Pag-IBIG FundCorporate Headquarters

Petron MegaPlaza Building358 Sen. Gil Puyat Ave., Makati City

Circular No. 431

TO: ALL CONCERNED

SUBJECT: AMENDMENTS ON CIRCULAR NO. 273 (AMENDED GUIDELINESIMPLEMENTING THE OPTIONAL WITHDRAWAL OF Pag-IBIGSAVINGS)

Pursuant to the approval of the Senior Management Committee (SMC) during itsmeeting held on 16 September 2019, the Amendments on Circular No. 273 (AmendedGuidelines Implementing the Optional Withdrawal of Pag-IBIG Savings) are herebyissued:

A. OBJECTIVES

In line with, Rule IX Section 9 of the Implementing Rules and Regulations of RepublicAct No. 9679, the option of the member to withdraw his or her Total AccumulatedValue on the fifteenth (15th) year of continuous membership is being offered in orderto:

1. Serve as an incentive to members who have faithfully and continuously remittedtheir savings to the Fund; and

2. Encourage other members to remit continuously to the Fund their savings, evenduring periods of employer delinquency, or when under leaves without pay, orother similar instances.

B. COVERAGE

1. Those who registered with the Fund under R.A. 9679 and R.A. 7742 with at leastfifteen (15) years and 180 continuous monthly savings (MS) inclusive of theemployer counterpart if applicable; and

2. Those members who will reach their 120th MS until 31 December 2019.

C. ELIGIBILITY

1. All members registered with the Fund under R.A. 9679 and R.A. 7742 with at leastfifteen (15) years and 180 continuous monthly savings without gap from their initialremittance, inclusive of membership savings (employee share) and, if applicable,the employer counterpart;

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2. Members who will reach their tenth (10th) year and 120th MS without gap fromtheir initial remittance until 31 December 2019, inclusive of membershipsavings (employee share) and, if applicable, the employer counterpart; and

3. Must be in active status at the time of application for optional withdrawal.

D. LIMITATIONS OF COVERAGE

The following members, however, are not eligible to withdraw their Pag-IBIG savingsunder these guidelines:

1. Members who have completed the prescribed number of years of membershipbut have gaps in their monthly savings shall not be allowed to pay thecontributions for the lacking months to qualify for optional withdrawal;

2. Members who have outstanding housing loans, whether as a principal orco-borrower, or as a sponsor under HDMF Circular No. 203 or the Housing LoanGuidelines for Pag-IBIG Members Registered under HDMF Circular No. 96(Membership of Self-Employed Working Groups with Informal Incomes throughCooperatives and Trade Associations);

3. Members with outstanding short-term loans of more than P100, unless they fullypay their respective accounts over the counter.

E. PAYMENT OF BENEFITS

1. The amount to be released to the member shall be equivalent only to the 120 or180 monthly savings. Said amount shall consist of the following:

1.1. Member's accumulated monthly savings;

1.2. His/her employer counterpart monthly savings, if any;

1.3. Credited dividends

2. In instances where the employer counterpart savings are not remitted in time withthe employee's savings, the employer's share to be released at point of optionalwithdrawal shall be limited to the actual employer savings remitted at the date themember's MS reach the 120th or 180th month. The remaining employer share shallbe released to the member at point of membership maturity or upon theoccurrence of the grounds for membership termination.

3. For a member with multiple employers, savings remitted for the same period shallbe counted as one monthly saving, regardless of the number of employersremitting for the member.

4. A member with an STL outstanding balance of not more than P100 shall beallowed to avail of optional withdrawal. The outstanding balance shall be deducted

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from the savings that will be released to the member. However, if the member'sobligation is more than P100, he/she shall only be allowed to avail of optionalwithdrawal upon full payment of said obligation over the counter.

5. A member eligible for optional withdrawal after completing 180 continuousmonthly savings may opt to withdraw an amount less than the equivalent sum ofsaid 180 monthly savings. The remaining TAV together with succeeding savingsshall be released to the member upon the occurrence of any of the grounds formembership termination.

6. The member's savings shall be released through any of the following modes:

6.1. Crediting to the member's bank account through LANDBANK's PayrollCredit Systems Validation (PACSVAL);

6.2. Crediting to the member's cash card;

6.3. A check payable to the member; or

6.4. Other similar modes of payment.

F. PERIOD OF AVAILMENT

1. An eligible member shall be given one (1) year from the exact date the memberhas made his/her 120th or 180th month of continuous savings, inclusive ofemployer counterpart if applicable;

2. Should the member fail to avail of optional withdrawal within the one-year periodafter the 180th month of continuous savings, the option to withdraw his/her TAVshall be forfeited. He/she shall be able to withdraw his/her savings only upon theoccurrence of any of the grounds for membership termination.

3. For 10-year optional withdrawal, the Fund shall no longer acceptapplications effective 01 January 2021 in compliance with R.A. 9679.

G. OTHER PROVISIONS

1. This option may be exercised only once. A member who has availed of theoptional withdrawal after the 120th month of continuous savings shall no longer beeligible to withdraw his/her TAV even after making 180 continuous savings.He/she may only withdraw his/her remaining TAV upon the occurrence of any ofthe grounds for membership termination.

2. The exercise of this option shall not prejudice one's continuing membership norshall it constitute termination of Fund membership. Employers shall continue todeduct membership savings from their employees and remit to the Fund saidsavings together with the employer counterpart. Voluntary members shallcontinue remitting their savings using any of the modes acceptable to the Fund.

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3. A member, who availed of the optional withdrawal, shall be allowed to applyfor Short-Term Loans (STL) provided said member has subsequentlyaccumulated 24 MS or at least its equivalent from the cut-off date of optionalwithdrawal.

H. ESCALATION OF ISSUES

Any issue in the interpretation and implementation of this Guidelines shall, as muchas possible, be resolved by the concerned officer. Matters that are not therebysatisfactorily resolved shall be escalated to the next higher approving authority.

I. REPEALING CLAUSE

All other memoranda, rules, regulations and other issuances contrary to orinconsistent with the provisions of this Guidelines are hereby repealed, amended ormodified accordingly.

J. AMENDMENTS

The Board authorizes the Senior Management Committee to formulate and issueguidelines and procedures in furtherance of the objectives of this program consistentwith the mandate of the Fund under its charter and existing laws.

K. EFFECTIVITY

This Circular takes effect fifteen (15) days following the completion of its publicationin the Official Gazette or in a newspaper of general circulation.

L~~.MOTIc tive Officer

Makati City,

January 20, 2020

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