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A new law has just been passed in the Congress. The Home Development Mutual Fund Law of 2009, also known as the Pag-IBIG Fund would establish, develop, promote and integrate a nationwide sound and viable tax-exempt mutual provident savings system and housing suitable to the needs of the employed and other earnings groups.

The House of Representatives agreed to adopt the Senate version of the bill as it came up with the law regarding the bicameral conference meeting on the measure. The new bill which is known as the Senate Bill No. 2971 and House Bill No. 5220 is just waiting to be signed by President Arroyo into law.

SB No. 2971/HB No. 5220 or An Act Further Strengthening the Home Mutual Development Fund or the Pag-IBIG Charter Amendment, is aimed at motivating the workforce to a better plan and to better provide for their housing needs, by membership in the Home Mutual Development Fund, together with compulsory support from their employers.

The new bill provides power to the board of trustees to increase the monthly contribution similar to the GSIS and the SSS. It also provides members the option to withdraw their contribution after 15 years of continuous membership, which is similar to the “optional retirement in the government service.”

The new bill however retained the provision which allows the board of trustees of Pag-IBIG to “invest not less than 70 percent of its investible funds to housing programs.”

A provision in the Republic Act No. 7742, which gives tax-exemption to Pag-IBIG Fund and all its assets and properties has also been restored in the new bill. Zubiri said that with the tax exemption status, the Fund would be able to free around P2 billion per annum which it can invest for more housing projects.