2020 - Pag-IBIG Fund

“Kaagapay mo sa Pagbangon Tungo saKinabukasang Puno ng Pag-IBIG”

CORPORATE ANNUAL REPORT

2020

CORPORATE PROFILE

INTRODUCTION

MESSAGES

OPERATIONAL HIGHLIGHTS

Kaagapay mo sa Pagbangon

Tungo sa Kinabukasang Puno ng Pag-IBIG

40 YEARS OF Pag-IBIG FUND

GOVERNANCE REPORT

Pag-IBIG FUND OFFICERS

AT A GLANCE

FINANCIAL STATEMENTS (COA Audited)

DIRECTORY OF UNITS

EDITORIAL BOARD

ACKNOWLEDGMENT

1

3

5

12

25

41

42

66

86

90

159

173

174

COVERAbout the

Pag-IBIG has held the hands of its members and

stakeholders every step of the way throughout

the challenges of the past years, especially in

the year 2020, providing them with security

and guidance through their excellent service.

This highlights how Pag-IBIG did not use the

pandemic as an excuse to take the back seat

when it comes to service, but instead opened

their hearts to serve even better and even more

than in subsequent years, as seen in Pag-IBIG’s

Fund’s 40th Anniversary.

The theme “Kaagapay mo sa Pagbangon Tungo

sa Kinabukasang Puno ng Pag-IBIG” is depicted

in the image of the sunrise, as the sunrise depicts

a new day or in the bigger scale, a brighter future.

The cover for Pag-IBIG’s 2020 Annual Report

encapsulates the overarching values and themes

that were put at the forefront of Pag-IBIG’s

activities for this year––honest love for service

and being a helping hand to its members and

stakeholders.

CONTENTSTable of

vCORPORATEANNUAL REPORT2020

The twin mandates of the Fund are to:

1. Generate savings through membership in an integrated nationwide savings system; and

2. Mobilize the provident funds of its members for housing purposes.

For every Filipino worker to save with Pag-IBIG Fund and to have decent shelter.

To generate more savings from more Filipino workers, to administer a sustainable

Fund with integrity, sound financial principles, and with social responsibility, and to

provide accessible funds for housing of every member.

Corporate Mandate

Vision

Mission

The governing values that will steer the Pag-IBIG Fund in pursuit of its Vision include

Professionalism, Integrity, Excellence, and Service.

To sustain membership growth and retention that would result to a P2 billion annual

increase in member’s savings collection until 2022, and provide affordable home

financing to at least 361,198 low income earners through Socialized and Low-Cost

Housing from 2018 until 2022.

Corporate Values

Corporate Objectives5-Year Plan

PROFILECorporate

2CORPORATEANNUAL REPORT2020

The year 2020 will go down in history as one of the most challenging

and probably one of the most unpredictable years.

It was a year marked with several community quarantines, which

affected everyone’s mobility and forced companies to rethink their

strategies on how to conduct their businesses. It was no different

for Pag-IBIG Fund as every Lingkod Pag-IBIG – from the Board of

Trustees, the Management, to all rank-and-file and allied service

staff adjusted on how to proceed in their usual tasks —from how to

interact with others on a daily basis to how to perform their work

and operate businesses, and how to serve the members even while

protecting themselves against the threat and danger of the virus.

The pandemic forced people to pause, to do most things at home,

and to shift our lives to what is now dubbed as the “new normal.”

Rather than looking at it as a hindrance, the circumstances motivated

Pag-IBIG Fund to better serve its members and stakeholders— their

kaagapay sa pagbangon (reliable partner in recovery). Guided by

its brand of service “Tapat na Serbisyo, Mula sa Puso” (honest

service from the heart), Pag-IBIG Fund offered relevant programs

that allowed members to prioritize and value their own health and

their family’s safety.

Coming from a string of best-ever years, Pag-IBIG Fund saw that for

2020 the measure of accomplishment is not about beating record-

highs but providing assistance for its members and stakeholders

who are experiencing their lows due to the impact of the pandemic --

providing assistance that will enable them to weather the pandemic

and its effects.

Pag-IBIG Fund’s online presence was key in ensuring that its service

would not be compromised or limited. By bringing its services

closer to its members through online platforms, the Fund promoted

accessibility and convenience, while at the same time employing

efficiency by allowing more members to avail of its programs and

services in the comfort of their homes, the safest possible way.

The Pag-IBIG Fund 2020 Corporate Annual Report is a showcase

of the Lingkod Pag-IBIG’s story of Service, Grit, and Resilience,

which empowered the Fund to be more reliable and responsive

to its members’ needs and stakeholders’ requirements tungo sa

kinabukasang puno ng Pag-IBIG (towards a better tomorrow with

Pag-IBIG Fund).

INTRODUCTION


My warmest greetings to the Home Development Mutual Fund (Pag-IBIG Fund) as it

publishes its 2020 Corporate Annual Report.

I recognize the Pag-IBIG Fund’s strong commitment to uplift the lives of Filipino

workers through its dependable savings and loan programs. Your initiatives to provide

your members with the opportunity to save for their future and build their own home

are truly noteworthy.

Through the agency’s effective fund management, many of our kababayans are able

to access housing, multi-purpose and calamity loans, which lead them towards more

dignified and productive lives. I trust that your accomplishments over the past four

decades will further inspire integrity, accountability and excellence in your endeavors.

As we recover from the COVID-19 pandemic, I hope that you will say unrelenting in

your service to our people, especially to those who are most in need. May you likewise

remain a reliable stakeholder in our pursuit of an inclusive and sustainable future for

the entire nation.

Congratulations and I wish you more success in the years ahead.

RODRIGO ROA DUTERTE

President

Republic of the Philippines

Message from the

PRESIDENT OF THE

PHILIPPINES


Message from the

CHAIRPERSONOF THE BOARDOF TRUSTEES

The year 2020 will go down in history as one of the most challenging years not just for Pag-IBIG Fund, but for

the entire world. The threat of COVID-19 unraveled a very different world. Truly, the events that transpired in the

last 12 months were far from ordinary.

But while many things changed, one thing remained constant – our commitment to serve our members and

stakeholders, especially during these challenging times. Heeding the call of President Rodrigo Duterte, the

Pag-IBIG Fund Board of Trustees and the Pag-IBIG Fund management approved and implemented numerous

programs to provide aid to fellow Filipinos during the pandemic.

Allow me to list them here.

In mid-March, only a day after the enhanced community quarantine was imposed, we offered our borrowers a

three-month moratorium on their loan payments. Under this moratorium program, more than 320,000 borrowers

were given immediate extended relief on their loan payments. And later, in compliance with ‘Bayanihan to Heal

as One’ laws, we granted automatic grace period on loan payments of more than 4.77 million borrowers under

‘Bayanihan I’ and 3.69 million borrowers later in the year under ‘Bayanihan II.’

We also brought aid to our key stakeholders - in particular, our partner developers - in recognition of their

critical role in realizing our mandate to provide shelter for our members even during these trying times. Thus,

the Pag-IBIG Fund board, on the recommendation of the management, increased the Housing Construction

Financing Line (HCFL) available to our partner developers – from P2 billion to P10 billion. With the HCFL, we

approved 31 housing projects amounting to P2.153 billion in 2020 – ensuring supply of affordable homes while

creating jobs amid the economic slowdown.

We then moved to entice home buyers by reducing the interest rates of our housing loan. The rate for loans

under a three-year repricing period, was reduced to just 5.375% per annum from 6.375% per annum. Meanwhile,

the rate for loans under a one-year repricing period were cut from 5.375% per annum to just 4.985% per annum

– the lowest rate ever offered under our regular housing loan program.

And lastly, after consulting with labor and employer groups, we deferred until 2022 the planned P50 increase of

our members’ monthly contributions, in consideration of the plight of both workers and business owners during

the pandemic.

As they say, when the going get tough, the tough get going. In the midst of the challenges posed by the

pandemic, Pag-IBIG Fund proved that it can continue to respond to the needs of its members and stakeholders

even under unfavorable circumstances.

Allow me also to commend the men and women of Pag-IBIG Fund, who are aptly called Lingkod Pag-IBIG,

whose dedication and commitment to serving you, our members and stakeholders, are the reasons why the

agency was able to achieve all these – despite the many challenges posed by the pandemic.

The theme of the Annual Report for the year 2020 – “Kaagapay mo sa pagbangon, tungo sa kinabukasang

puno ng Pag-IBIG,” rightfully describes the efforts and the accomplishments of your Pag-IBIG Fund during the

extraordinary year.

SEC. EDUARDO D. DEL ROSARIODepartment of Human Settlements and Urban Development (DHSUD)

Chairperson, Pag-IBIG Fund Board of Trustees


Message from the

CHIEF EXECUTIVE OFFICER

ACMAD RIZALDY P. MOTIChief Executive Officer

Pag-IBIG Fund

For Pag-IBIG Fund, 2020 is a story of strength, resilience, and service to members. Against all odds, we ended the year with figures that are better than expected while going the extra mile to fulfill our mandates.

Coming from yet another ‘best year ever’ performance in 2019, we looked forward to continuing our winning streak in 2020. Our achievements in the first two months alone indicated that we will likely achieve another banner year. But 2020 had other plans in store. With the looming threat of COVID-19, Metro Manila and other areas were placed under strict quarantine, which forced us to close our offices in compliance with the restrictions. The situation changed abruptly and posed challenges none of us were ready for. And yet we soldiered on.

WE DID NOT STOP WORKING.

In 2020, we experienced what the world’s longest lockdown induced by COVID-19. Early on, we did not know what lay ahead. We still have not seen what the ‘new normal’ would look like, but we adapted to it as we went along.

With our offices were closed during the ECQ, we continued working in the background. At home, atop makeshift office desks, we wrote important documents, generated reports, and held virtual meetings to keep our services available. And even after restrictions loosened, our dinner tables still bear witness to the long hours we endured. We did not stop working because amid the uncertainties, we were sure of only two things – first is that during these times, our members and stakeholders needed us the most and the second is we cannot let them down.

WE DID NOT HESITATE TO HELP.

Throughout the year, we have implemented many interventions to help our members and stakeholders. Only a day after the enhanced community quarantine was imposed, we launched the Three-Month Payment Moratorium Program. This gave our loan borrowers financial reprieve amid the pandemic. We also implemented the Special Housing Loan Restructuring Program to specifically help home loan borrowers who were affected by the economic slowdown keep their homes during these difficult times. We also stimulated the housing industry by increasing the construction fund available to our partner-developers and lowering our home loan rates to draw more borrowers looking to buy a home during the pandemic. In this way, we have ensured that the supply and demand remained steady until the end of 2020.

With these interventions were able to aid hundreds of thousands of our members and save the businesses of our stakeholders as well as the jobs that depend on them. Our programs complemented the national government’s’ efforts, such as Bayanihan I and Bayanihan 2 laws, in helping our fellow Filipinos cope with the challenges brought about by the virus and contribute to the recovery of our economy.

WE DID NOT STOP BEING RESILIENT

Of course, like many institutions, we did not escape 2020 unscathed. However, I refuse to call it a bad year. Because while our operations were disrupted in the early months of the ECQ, we bounced back to pre-pandemic levels by the time third quarter arrived. And while year-end figures were lower compared to recent breakthrough years, we still managed to break some records.

In our Housing front, after initially experiencing a slump during the ECQ, our takeout reached P12.1 billion in December – the highest amount ever released in a single month – pandemic notwithstanding. Meanwhile, the amount saved by members under the MP2 Savings program this year reached P13.3 billion, which is the biggest amount we collected, exceeding even the amount collected during pre-pandemic years. And even with the disruptions and interventions, we still booked over P30 billion in net income – a feat that only a handful of companies were able to pull off in 2020.

Early on, we knew that we were not going to have another banner year. But it did not matter as much, as long as we have done our best to help everyone we can. If 2020 has taught us anything, it is that during times of crises, Pag-IBIG Fund and the people working for it are willing and able to lend a hand. I dare to say that 2020 is our least favorite year but it is the perfect year to showcase what Pag-IBIG Fund is capable of.


Pag-IBIG Fund has proven to be the Filipino

worker’s reliable partner, especially amid the

challenges brought about by the COVID-19

pandemic in 2020. Its responsiveness to

the needs of its members, as well as its

stakeholders, through relevant programs and

benefits provided and continue to provide

them the means to continuously cope and

recover from the effects of the pandemic.

Indeed, while others may have used the

pandemic as an excuse not to serve, Pag-IBIG

Fund used it as a reason to serve better.

The Filipino Worker’s Reliable Partner

Kaagapay mo sa

PAGBANGON

OPERATIONALHIGHLIGHTS


A day after the implementation of the Enhanced

Community Quarantine (ECQ) in the National

Capital Region and other parts of the country,

Pag-IBIG Fund immediately offered a 3-month

moratorium on the loan payments of its members.

The program helped alleviate the financial

burden of 283,349 borrowers, whose jobs or

businesses were affected by the pandemic.

This included 177,056 short-term loan borrowers

and 106,293 housing loan borrowers who were

aided through the program.

3-MONTH MORATORIUMON LOAN PAYMENTSA day after the ECQ wasfirst implemented

AUTOMATIC GRANT OF A GRACE PERIOD ON LOAN PAYMENTSUnder the Bayanihan to Heal as One Act R.A. 11469

Pag-IBIG Fund granted an automatic grace

period on all loan payments of 4,774,784

members with housing and short-term loans in

accordance with the Bayanihan to Heal as One

Act (Bayanihan I).

Through this loan payment relief, Pag-IBIG Fund

aided 4,061,559 short-term loan borrowers

and 253,849 housing loan borrowers, enabling

them to allocate their financial resources to

more pressing needs during the early days of the

implementation of the ECQ.

Providing Financial Relief to Filipino Workers Amid the Pandemic


GRANT OF A 60-DAY GRACE PERIODON LOAN PAYMENTSUnder the Bayanihan to Recover as One Act R.A. 11494

Pag-IBIG Fund granted another grace period in September,

in accordance with the Bayanihan to Recover as One Act, as

it heeded the government’s call to further assist Filipinos in

coping with the financial challenges brought by the pandemic.

A total of 3,648,372 borrowers benefited from the grace

period granted by Pag-IBIG Fund, as it extended the coverage

to not just updated accounts as required by the Act, but also

to accounts which were in arrears of up to nine months.

It also allowed borrowers to pay the accrued interest during

the period of the grace period on a staggered basis, and at any

time during the remaining term of the loan.

Pag-IBIG Fund recognized that a number of its members

who, prior to the pandemic, consistently pay their loans

on time but have now incurred arrears due to the financial

challenges caused by the pandemic.

To aid them in updating their accounts, Pag-IBIG Fund

offered a Special Housing Loan Restructuring Program

to aid its borrowers with unpaid monthly amortizations

of up to 12 months as of August 2020.

By the end of 2020, 76,629 housing loan borrowers

availed of the program, allowing them to update their

accounts, have the penalties on their arrears waived,

and avoid foreclosure or cancellation. These borrowers

were also given the option to resume payment in March

2021, effectively granting them at least three months in

loan payment relief.

SPECIAL HOUSING LOANRESTRUCTURING PROGRAMEnabled borrowers to keep their homeswhile securing better terms on their loans



SHORT-TERM LOAN PROGRAMImmediate financial assistance that members can count on

VALUING SUSTAINABILITY OVER PROFITABILITYImmediate financial assistance that members can count on


Pag-IBIG Fund made both its Multi-Purpose Loan

(MPL) and Calamity Loan accessible to members

in despite the limitations of the quarantine. This was

made possible by immediately providing for online

filing of applications and submission via dropboxes.

In all, Pag-IBIG Fund released P35.64 billion to

1,735,921 members under its Short-Term Loan

program in 2020.

Amid the numerous payment reprieves provided for

its member-borrowers, Pag-IBIG Fund’s loan payment

collections in year 2020 amounted to P102.82 billion.

This consisted of P56.17 billion from short-term

loan payment collections and P46.65 billion from

housing loan payment collections. By the end of

the year, Pag-IBIG Fund still managed to post a

Performing Loans Ratio (PLR) 87.26% for its housing

loan portfolio.


After consultations with labor and employer groups,

the Pag-IBIG Fund Board of Trustees approved to

defer by one year the planned increase in monthly

contributions in January 2021. This marked the

35th year that Pag-IBIG Fund has not increased the

amount of the monthly contributions of its members.

The deferment showed Pag-IBIG Fund’s understanding

of the plight of the Filipino worker whose need for

every peso during the pandemic counts.

It also reflected the responsiveness of Pag-IBIG

Fund to the needs of the business community,

easing their financial burden and helping them

maintain their operations amid the health crisis.

DEFERMENT OF THE INCREASEIN MONTHLY CONTRIBUTIONSValuing the voice of its membersand the business community


We know that many of our members and

employers faced financial challenges in the last

few months because of the effects brought about

by the pandemic to the economy. After consulting

with our stakeholders, we will no longer push

through with the increase of the members’ monthly

contributions next year.

“

”Sec. Eduardo D. Del Rosario

Chairperson, Board of Trustees

Pag-IBIG Fund


Php 10 BILLION HOMECONSTRUCTION FUNDBuild more homes.Help boost the economy.

While the pandemic may have been used by others as an EXCUSE not to serve,Your Lingkod Pag-IBIGused it as a REASON to SERVE BETTER.

Not only did Pag-IBIG decide

to release home loans in the

face of such dark in uncertain

times but they also reach out to

all of us accredited developers

to find solutions to make the

home loan application process

even easier than it was before

the pandemic.

“

”Mr. Kerwin V. Padua

President and CEO,

Lynville Land Development Corporation

Pag-IBIG Fund increased its Housing Construction Financing Line

or HCFL to Php10 billion from Php2 billion, to enable partner

developers to continue the construction and production of socialized

and low-cost housing units.

A total of 31 housing projects worth Php2.153 billion were approved

under the financing line, helping boost housing in the country,

allowing several players in the industry to maintain their operations

and continue providing jobs to Filipinos.

This again showed that Pag-IBIG Fund can be relied upon, not just by

its members, but also by its stakeholders from the housing industry

in providing the needed financial assistance to keep their businesses

afloat during the most difficult times.

Stimulating the Housing Industry while providing Filipino Workers Better Opportunities to Own a Home


As it ensured the continuous supply of quality and

affordable housing units through its programs

for the housing industry, Pag-IBIG Fund then

offered special promo rates on its housing loan.

This helped Filipino workers secure a home at

even more affordable terms, providing them the

opportunity to own a home where they can be

safe amid the pandemic.

Pag-IBIG Fund’s interest rates, already considered

as among the lowest in the market, were further

reduced by as much as 100 basis points under its

promo rates. From July to December 2020, the

interest rate for a Pag-IBIG Housing Loan stood

To help Filipino workers securea home where they can be safe

PROMO RATES ON THEPag-IBIG HOUSING LOAN

Stimulating the Housing Industry while providing Filipino Workers Better Opportunities to Own a Home

at only 4.985% per annum, from the previous

5.375% rate, under a 1-year repricing period

and only 5.375 per annum, from the previous

6.375% rate, under a 3-year repricing period.

Pag-IBIG Fund approved a total of P36.66

billion in Housing Loans benefitting 32,256

members who now have their own homes

secured under the most affordable terms.

And, by offering these special rates, Pag-IBIG

Fund spurred demand in the housing industry,

thereby helping in the nation’s efforts to get

the economy back on track.


Launched in December 2019, just a few months

before the COVID-19 pandemic reached the

country, the Virtual Pag-IBIG provided members

a secure, convenient and, most of all, safe way to

continue to access and avail their benefits in 2020,

despite the limitations caused by the pandemic.

VIRTUAL Pag-IBIGOnline service innovations providing Filipino workers safe, secure and convenient access to Pag-IBIG benefits and services

Several enhancements to the Virtual Pag-IBIG were made

during the year, making it even more responsive to the

needs of its members. This included online applications

for the Pag-IBIG Short-Term Loan, and the Pag-IBIG

Housing Loan. A Virtual Pag-IBIG for Employers was

also deployed to help business owners certify short-term

loans and submit remittance schedules, online.

By year’s end, Virtual Pag-IBIG logged a total of 1,822,451

visits from members who utilized the online service

portal to transact and avail of Pag-IBIG’s services. It also

allowed 184,626 members to apply for a short-term loan

safely and conveniently, online.

Harnessing Technology to Bring its Benefits and Services Closer to its Members Especially in Times of Need


The Fund has ran a good race with us particularly in

technology, convenience and accessibility. They were one with us in providing stellar customer

service despite the harsh limitations of the pandemic. And as a team, we have acclimated

the house buying public to newer, more efficient and safer way of acquiring their homes.

“

” Ms. Nina Shatriya C. Paredes

Bria Homes, Inc.


KEEPING IN TOUCH WITH MEMBERSUNDER THE NEW NORMALUtilizing the internet, social media, teleconferencing platforms to continuereaching out to members and stakeholders

On March 20, just three days after the implementation of

the ECQ in the National Capital Region and other parts

of the country, Pag-IBIG Fund immediately established

an email service to accept applications for its Short-

Term Loans (STL). This provided members the means

to apply for a cash loan during these challenging times,

despite the limitations on mobility brought about by the

quarantine restrictions.

This allowed 37,901 members secure STLs totaling

P716.26 million to address their financial needs. This

email service eventually evolved to the online application

for STL via the Virtual Pag-IBIG.

Harnessing Technology to Bring its Benefits and Services Closer to its Members Especially in Times of Need

Pag-IBIG Fund also increased its presence on social media,

particularly via its official Facebook page, to provide

members and stakeholders information on the agency’s

programs and benefits. It also became a service tool, as

it served and addressed a total of 478,030 messages

sent by members through the Pag-IBIG Fund Facebook

in year 2020.

Through the use of teleconferencing platforms, Pag-IBIG

Fund also continued to reach out to its members and

stakeholders. By the end of the year, it had conducted

7,031 webinars on how to access Pag-IBIG Fund

benefits under the new normal, two virtual events for

key stakeholders and news media, and twelve various

online fora.


PUNO NG Pag-IBIGTungo sa Kinabukasang

For Pag-IBIG Fund, 2020 was a story of

SERVICE, GRIT, and RESILIENCY.

With its responsive programs and services,

Pag-IBIG Fund radiated hope among members,

as well as stakeholders, empowering them by

providing the means to help rebuild their lives

towards a better tomorrow.

And, while the circumstances of year 2020

hindered Pag-IBIG Fund from continuing its

string of “best-year” evers, the agency rose

above the challenges to play a bigger role in the

lives of its members and stakeholders, serving

them when they needed it most.

Ushering a Better Tomorrow for Filipino Workers

As of December 31, 2020, Pag-IBIG Fund’s active membership

stood at 12.77 million. Active members are those with at least

one monthly membership savings (contribution) with Pag-IBIG

Fund over the past six (6) months for local members and twelve

(12) months for OFWs.

In 2020, notwithstanding the limitations caused by the

pandemic, Pag-IBIG Fund continued serving its members here

and abroad by providing them convenient and safe access to

a secure savings program and a home financing facility to help

uplift their lives, even amid the global pandemic.

CONTINUOUSLY SERVINGFILIPINO WORKERSHere and Abroad


Despite the financial burden caused

by the COVID-19 pandemic, members

continued to save in Pag-IBIG Fund’s

Regular Savings and Modified Pag-IBIG

2 (MP2) Savings Programs.

In 2020, amid the health and economic

crisis, members collectively saved

P48.2 billion in Pag-IBIG Fund, only 4%

below the record-high P50.4 billion

that members saved in 2019.

SUSTAINED MEMBERS’ SAVINGSAMID THE HEALTH CRISIS

Strong Trust and Unwavering Support from Members and Stakeholders

Of the total amount, P34.9 billion was

collectively saved by members under

its Regular Savings Program.


Despite the economic slowdown

caused by the pandemic, members

collectively saved P13.3 billion in

the MP2 Savings, the highest-ever

amount saved in the program in a

year. This surpassed the previous

record-high in 2019 by 11%.

HIGHEST-EVER MP2 SAVINGS FROM MEMBERSAmid the pandemic, members continueto save voluntarily under the MP2 Savings


The MP2 Savings is a purely savings

program offered to Pag-IBIG

Fund members, including retirees

and pensioners who are former

members.

The continued growth of the MP2

savings, even amid the pandemic,

reflects its members’ trust and

confidence in the Pag-IBIG Fund’s

ability to manage and grow their

hard-earned peso.


These are actually stellar returns

in a depressed market. Having

been an analyst for much of my

adult life before entering public

office, I can assure you that even

the best equities and the best

fund managers will struggle to

match this performance. You truly

are among the best.

“

”Hon. Jose Ma. Clemente S. Salceda

Representative, 2nd District of Albay


Pag-IBIG Fund released a total of P63.75 billion

home loans in 2020, which financed the homes

of 63,750 members. Promoting homeownership

during a pandemic was difficult, but Pag-IBIG

Fund rose above this challenge.

By continuing to fulfill this mandate, Pag-IBIG Fund

enables more Filipino workers and their families

fulfill their dream of owning a home come true,

while providing them a safe haven amid the health

crisis.

FULFILLING ITS MANDATE OF PROVIDINGAFFORDABLE HOME FINANCINGHelping Filipino families keep safe in their own homes



Our success would not have been possible without the help

of Pag-IBIG Fund. The need for sustainable financing has

been at the core of each of our customers’ decision to purchase

their dream home. The Pag-IBIG Fund has helped us turn these dreams into reality for

thousands of Filipinos.

”Mr. Paolo Giovanni V. Olivares

Vice President for Operations,

Malate Construction and

Development Corporation

“


Pag-IBIG Fund was poised to achieve

another milestone year in 2020 as the

combined home loan releases in January

and February amounted to P12 billion,

growing 17 percent compared to the same

period in 2019.

But as expected, home loan numbers

started to decline in March when strict

community quarantine measures were

imposed to curb the spread of COVID-19.

Home loan releases dipped to P3.8 billion

in March and P883 million in April.

HIGHEST-EVER HOUSING LOAN AMOUNTRELEASED IN A SINGLE MONTHDisplaying Pag-IBIG Fund’s steadfast resolvein providing Filipino workers a home amid the pandemic

As restrictions were eased, home loan

figures started to recover in as early as

May when disbursements jumped to P1.2

billion and rose even higher to P2.9 billion

in June. Loan releases continued to climb

in the second half of 2020. And by the end

of the third quarter, home loan releases

had already recovered.

And, by December 2020, the Pag-IBIG

Fund released P12.11 billion in home loans

— the highest-ever amount released in a

single month.


Pag-IBIG Fund continues to offer minimum and low-wage earners its

Affordable Housing Program with a special subsidized home loan interest

rate of 3% per annum, still the lowest in the market.

Pag-IBIG Fund released P7.10 billion for socialized housing loans,

benefitting 16,975 borrowers belonging to the minimum-wage and low-

income sectors. Socialized housing loans represent 27% of the 63,750

units financed by Pag-IBIG Fund in 2020.

With its tax-exempt status under the Corporate Recovery and Tax Incentives

for Enterprises Act (CREATE Act), Pag-IBIG Fund shall continue providing its

Affordable Housing Program to the underserved.

With more than 350 partner-establishments

providing discounts and rewards, the Pag-IBIG

Loyalty Card Plus continues to provide cardholders

an additional means to save.

The card also provides members added convenience,

as it serves as a cash card powered by Asia United

Bank and UnionBank, where they can receive their

Short-Term Loan proceeds, MP2 Savings dividends,

and other benefits.

Its importance was further emphasized during the

health crisis as it allowed cardholders to easily

create a Virtual Pag-IBIG account, enabling them to

enjoy all the services of the agency’s online service

portal 24/7.

UPLIFTING THE LIVES OF THE UNDERSERVEDAffordable housing program for minimum-wage and low-income earners

THE Pag-IBIGLOYALTY CARD PLUSDiscounts, rewards, convenience,and easier access to online services



Pag-IBIG Fund ended 2020 with a strong

financial position, reflecting its outstanding

resiliency amid the global pandemic.

Total assets at the end of 2020 stood at

P669.82 billion. Despite the economic

slowdown, the agency’s total assets gained

a double-digit growth of 11% from the

P603.39 Billion recorded in 2019.

A STRONG FISCAL POSITIONAmid the global pandemic


Gross income reached P44.99 billion, a

better than expected figure considering

the impact of the crisis and all the payment

reprieves that the Pag-IBIG Fund granted

to its members.

Net income stood at P31.70 billion,

making 2020 the fourth consecutive year

that Pag-IBIG Fund has surpassed the

P30 billion-peso net income mark. This

reflects how prudently Pag-IBIG Fund has

managed the Filipino workers’ fund even

during the pandemic. While the pandemic may have been used by others as an EXCUSE not to serve,Your Lingkod Pag-IBIGused it as a REASON to SERVE BETTER.

I commend the healthy financial standing of Pag-IBIG. The growth of your fund and membership has remained

robust. Meanwhile, your housing loan disbursements

have reached an all-time high, enabling more Filipinos to

achieve their dream of building and owning a home.

”Hon. Carlos G. Dominguez III

Secretary, Department of Finance

Vice Chairman,

Pag-IBIG Fund Board of Trustees

“


Pag-IBIG Fund’s strong financial position amid the health

crisis further benefitted its members. Under its charter,

Pag-IBIG Fund is required to declare at least 70% of

its annual net income as dividends, to be distributed

proportionately among its members’ savings.

In 2020, the Pag-IBIG Fund Board of Trustees approved

the declaration of 92.15% of Pag-IBIG Fund’s annual

net income—amounting to P29.4 billion—as dividends

for its members. This is the highest-ever percentage of

Pag-IBIG Fund’s net income returned to its members as

dividends.

HIGHEST-EVERDIVIDEND PAYOUT RATIOProviding Better-than-Expected Returns on Members’ Savings


As a result, members with Regular Savings earned a

5.62% per annum dividend rate, while those who saved

under the MP2 Savings Program enjoyed a 6.12% per

annum dividend rate.

Pag-IBIG Fund also maintained a Capital Adequacy Ratio

(CAR) of 15%, which is higher than the 10% threshold set

by the Bangko Sentral ng Pilipinas (BSP) for the banking

industry. Even if Pag-IBIG is not regulated by the BSP, the

agency voluntarily maintains a high CAR which includes

a buffer to account for current economic challenges, to

protect the funds of its members and to maintain the

agency’s financial stability.


Since its launch in 2012, Pag-IBIG Fund’s “I Do, I Do! Araw ng Pag-IBIG” has

been helping member-couples from the low-income sector to formalize their

unions.

On February 14, 2020, Pag-IBIG Fund conducted free mass wedding

celebrations in Manila and in eleven other locations nationwide, formalizing

the union of 979 Pag-IBIG Fund member-couples. And to ensure the health

and safety of guests and participants, Pag-IBIG Fund strictly implemented

measures following the recommendations of the Department of Health.

A part of the Pag-IBIG Fund’s corporate social responsibility activities, this

event aims to help Filipino families, especially those in the low-income

sector, recognize the value of savings through Pag-IBIG membership and

thereby gain better access to social benefits.

2020

“I DO, I DO! ARAW NG Pag-IBIG”


Continuously promoting the valueof savingsamong the underserved


LINGKOD Pag-IBIG AMID THE PANDEMICTapat na Serbisyo, Mula sa Puso


Lingkod Pag-IBIG – the name Pag-IBIG Fund

officers and employees are aptly referred to –

remain steadfast in their committed service to the

Filipino worker.

At the heart of each Lingkod Pag-IBIG is the

agency’s core values of Professionalism, Integrity,

Excellence, Commitment and Service – values

which continue to drive them to serve members

and stakeholders, despite the challenges brought

about by the pandemic in their own professional

and personal lives.

In 2020, Pag-IBIG Fund established Anti-

COVID-19 guidelines following the government’s

health and safety protocols so that it can

continue to deliver its Lingkod Pag-IBIG Brand

of Service, “Tapat na Serbisyo, Mula sa Puso”

amid the pandemic, while ensuring the safety of

its own people and the transacting public.

These included the issuance of an office order

on Anti-COVID-19 measures, implementation

of a daily health self-assessment system, and

adherence to the prescribed health and safety

measures of the government which include

social distancing, temperature checks, wearing

of protective masks, frequent sanitation of

both personnel and transacting members in its

branches, and periodic sanitation of its branches

and offices.


1. Special Award for the Pag-IBIG Fund Website from the Association of Development Financing Institution in Asia and the Pacific (ADFIAP) The Association of Development Financing Institution in Asia and the Pacific (ADFIAP) bestowed a Special Award to the Pag-IBIG Fund under the Best Website, Special Awards Category.

4. Continuous Improvement Recognition Award for the Virtual Pag-IBIG from the ASEAN Social Security Association (ASSA) The ASEAN Social Security Association recognized the Virtual Pag-IBIG with its Continuous Improvement Recognition Award for its visionary and time-to-time integrated developments allowing Pag-IBIG Fund to provide interruption-free and pandemic-ready service, amid the limitations caused by quarantine and safety protocols amid the health crisis.

5. Silver Award for Innovation in Government Services from the Asia-Pacific Stevie Awards The Asia-Pacific Stevie Awards gave a Silver Award to Pag-IBIG Fund, recognizing the Virtual Pag-IBIG as one of the best innovations in government services in the region.

6. Merit Award for the Virtual Pag-IBIG from the Association of Development Financing Institution in Asia and the Pacific (ADFIAP) The Association of Development Financing Institution in Asia and the Pacific (ADFIAP) also gave an Award of Merit for the technological developments made by the agency on its online service portal, Virtual PagIBIG. ADFIAP recognized how Pag-IBIG Fund’s innovation transcended boundaries and brought services closer to members, providing them convenience in accessing Pag-IBIG’s services anytime, anywhere.

2. Bronze Award for Innovationin Government Websites from the Asia-Pacific Stevie Awards The Asia-Pacific Stevie Awards also recognized the Pag-IBIG Fund’s Corporate Website with a Bronze Award under the category, Innovation in Government Websites. The agency’s enhanced corporate website which houses Virtual Pag-IBIG, has been instrumental in providing comprehensive information to members, while providing access to its key services – previously availed only in physical branches – online.

3. Circle of Excellence Award – Most Innovative Company of the Yearfrom the Asia CEO Awards

The Asia CEO Awards included Pag-IBIG Fund under its Circle of Excellence, being one of the Most Innovative Companies of the Year. Cited were its many corporate-wide reforms, led by technological advancements in particular, the Virtual Pag-IBIG.

AWARDS & RECOGNITIONof Pag-IBIG Fund

9th Consecutive Year Unqualified/ Unmodified Opinion (2012-2020)from the Commission on Audit (COA) For the 9th straight year, the Commission on Audit issued Pag-IBIG Fund with an Unmodified Opinion, citing the accurate and fair presentation of its financial statements. An unmodified opinion is the highest audit rating state auditors can give to a government agency.

ISO 9001:2015 Certification Pag-IBIG Fund maintained its ISO 9001:2015 Certification as its services and processes in Housing Loan, Short-Term Loan and Provident Benefit Claims, Membership Registration, and Loans Management and Window I and II Developer-Assisted Process, continued to meet the international standards set by the ISO.

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GOVERNANCE REPORT

Stakeholder Relationships

Pag-IBIG Fund works for the benefit and welfare of its stakeholders: (a) Pag-IBIG Fund Members, (b) Member-Employers, both Public and Private, (c) Private entities such as Cooperatives, Unions, or Other Similar Organizations, (d) government regulatory agencies (GOCCs and LGUs, GCG, BIR, DHSUD, CoA, etc), (e) the housing industry (i.e., Partner-Developers, (f) Banks and Other Financial Institutions, (g) Trustees, Officers and Employees of the Fund, (h) The Filipino Workers , (i) Non-member buyers of acquired assets, (j) service providers (such as collection partners, telcos, insurance concessionaires, etc), (k) Courts.

a. Pag-IBIG Fund Members

The core of Pag-IBIG Fund’s mandate is to protect and support the welfare of its members.

The Fund’s charter defines its members as “all employees covered by the Social Security System and the Government Service Insurance System, including uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police”. Filipinos working overseas, and even those employed by foreign-based employers but working in the Philippines are also included. Full-time homemakers may also apply for membership on a voluntary basis, as well as those belonging to the Other Working Group.

In 2020, Pag-IBIG Fund extended support to its members to help address the challenges brought about by the calamities and the COVID-19 pandemic, following guidelines under Circular No. 375.

The Fund announced the availability of its Calamity Loan Program when the Taal Volcano erupted in January. A total of P3.84 billion in calamity loans was released benefiting 301,391 members in the affected areas. Likewise, when Typhoon Rolly hit Luzon, especially the Bicol area, in November, a total of P4.4 billion was made available for an estimated 226,170 affected member-borrowers.

When the threat of COVID-19 forced the government to implement quarantine controls throughout the country in its effort to curb possible infection in March, Pag-IBIG Fund was quick to respond to its members’ predicament.

Both Multi Purpose Loans and Calamity Loans were made available to members in areas where Enhanced Community Quarantine was implemented. This was availed by 151,948 members who collectively borrowed a total of P2.24 billion.

With the government’s issuance of Proclamation Nos. 929 and 922, declaring a State of Calamity and State of Public Health Emergency, Pag-IBIG Fund immediately issued Circular No. 432, granting moratorium on Short-Term Loan (STL) amortization, Housing Loan (HL) amortization/installment payments affected by the management of the COVID-19. A total of 320,406 applications (177,056 STL borrowers and 143, 350 HL borrowers) for moratorium were approved providing relief for borrowers and allowing them to use their funds for more urgent necessities.

In addition, when President Duterte signed into law Republic Act No. 11469 (Bayanihan to Heal as One Act), Pag-IBIG Fund issued Circular No. 433 providing the guidelines on the grant of mandatory 30-day grace period on all loans affected by the Enhanced Community Quarantine (ECQ) and its implementation period (17 March 2020 to 12 April 2020). More than P15 billion in loan amount was deferred for 4.77 million Pag-IBIG Member-borrowers. Of the number, about four million are STL borrowers and 713,225 are HL borrowers. HL borrowers were given further allowance when the ECQ was lifted, as the Fund extended the deadline of HL amortization payment within 30 calendar days through the issuance of Circular No. 435.


Republic Act No. 11494 (Bayanihan to Recover as One Act) was issued in September 2020 to accelerate the country’s recovery against the pandemic. Pag-IBIG Fund complied with the issuance of Circular No. 438, which again provided a 60-day grace period on STL and HL payments.

Further, the Fund issued Circular No. 439, providing guidelines for the implementation of a Special Housing Loan Restructuring Program, which allowed Pag-IBIG HL borrowers to preserve their properties from foreclosure or cancellation of Contract to Sell/Deed of Conditional Sale (CTS/DCS) by providing them the opportunity to apply for penalty condonation or update, fully pay, or restructure their accounts under affordable and more beneficial terms and conditions. The said program was availed by 85,440 HL borrowers.

With the approval of the Resolution no. 3424, Pag-IBIG Fund also offered special promo rates on housing loans to encourage members to purchase a property despite the pandemic. These rates, which were already considered lowest in the market, were made even lower with the reduction of rates at 4.985% per annum under a 1-year repricing period and 5.375% per annum under a 3-year repricing period for housing loans. The promo rates benefitted a total of 32,256 accounts, amounting to P36.664 billion loan value. Following Resolution No. 3466, Pag-IBIG Fund also extended the coverage of these promo rates to borrowers whose applications were filed with the accredited developers during the promo period, but were not delivered to Pag-IBIG Fund on time due to the limitations caused by the community quarantines.

When the quarantine restrictions were relaxed in June 2020, Pag-IBIG Fund implemented measures to ensure the safety and security of its transacting public. Health screening and contact tracing efforts were installed in the branch entrance. Walk-ins were limited, and only those with face masks and face shields were allowed to go inside. Inside the branches, foot mat and alcohol dispensers were provided for disinfection, while acrylic barriers were mounted in counters to ensure proper distance between the Pag-IBIG front liner and the transacting members.

c. Cooperatives, Unions, or Other Similar Organizations

Despite the pandemic, the Business Development Sector (BDS) continued to seek participation with institutions and promote the Pag-IBIG Fund Countryside Housing initiative (CHI). In 2020, Pag-IBIG Fund was able to confirm partnerships with four (4) proponents whose projects are expected to generate a total of 1,884 housing units amounting to P643.625M.

d. Government Agencies (NGA’s, GOCCs and LGUs)

ProponentCHI/Pag-IBIG Led Project

Name

CHI/Pag-IBIG Led Location

Target Beneficiaries

Year Confirmed

Total Production

Loan Value in Millions

Bignay-Maunlad Homeowners Association & Habitat for

Humanity Philippine

Bignay-Maunlad Socialized Housing Project

Galas St., Brgy. Bignay,

Valenzuela City

HOA Members 2020 334 235.100

LGU Pinamalayan/

Habitat for Humanity, Phils.in partnership

with Cebu Land Master

Guadalupe Habitat

Pinamalayan Socialized

Housing Project Phase 2

Brgy. Zone 1 & 2, Pinamalayan,

Oriental Mindoro

LGUEmployees &Constituents

2020 338 164.58

Catholic ReliefServices

Anibong Resettlement

Project

Brgy. Bagacay, Tacloban City

Constituents/Residents

affected by Typhoon Yolanda

2020 896 50.665

LGU of San Isidro, Davao Oriental

Hamiguitan View

Residences

Sitio Malacabac, San Isidro,

Davao Orienta

LGUEmployees

2020 316 183.280

TOTAL 1,884 643.625

The Fund’s online system – the Virtual Pag-IBIG, was further developed and reinforced to encourage online transactions. Included in online systems developed were Online STL Application, Online Payments for HL and STL amortizations, Application for Loan Restructuring, and Application for Savings Claims for select cases.

b. Member-Employers, both Public and Private

Pag-IBIG member-employees were not the only ones whose welfare was considered by the Fund. Assistance was also extended for member-employers in consideration of economic slow-down and temporary closure of establishments during the quarantine period when the global pandemic was declared.

The Board of Trustees, in a resolution issued in June 2020, provided relief for member-employers by extending the remittance deadline of all payables to the Fund. This includes remittance of Pag-IBIG monthly savings of its employees, as well as short-term loan payments for those under a salary-deduction scheme. The payment extension covered remittances for the months of April, May and June 2020.

Aside from the deadline extension, the Board of Trustees also approved the deferment of the P50.00 increase in the mandatory member savings that was slated to take effect by January 2021. The P50.00 increase for both employee and employer counterparts would have increased the decades-long mandatory monthly savings of P100, which would redound to increased savings and better benefits for Filipino workers.

c. Cooperatives, Unions, or Other Similar Organizations

Despite the pandemic, the Business Development Sector (BDS) continued to seek participation with institutions and promote the Pag-IBIG Fund Countryside Housing initiative (CHI). In 2020, Pag-IBIG Fund was able to confirm partnerships with four (4) proponents whose projects are expected to generate a total of 1,884 housing units amounting to P643.625M.

To improve the services it provides to Filipino workers, Pag-IBIG Fund has also been partnering with various government agencies.

In 2020, its existing partnership with the Bureau of Internal Revenue (BIR) aimed at making the transfer of titles and payment of taxes more convenient to members helped the Fund to promote more efficient use of time and resources of members and developers, as well as their safety during the pandemic. With the use of the electronic BIR Forms (eBIRForms) and the issuance of electronic Certificate Authorizing Registration (eCAR), members and developers are no longer required to personally go to BIR offices, various

local government offices, and banks to process the transfer of title and remit tax payments. Instead, Pag-IBIG Fund, through the Revenue Memorandum Order No. 28-2016, can file and remit taxes on their behalf. This arrangement did not only promote efficiency and safety in completing their Pag-IBIG loan applications during the pandemic, it also benefited both the Fund and BIR as they adopted online processes.

Pag-IBIG Fund and the Land Registration Authority (LRA) also signed the Joint Memorandum Circular (JMC) 2019-001 on February 13, 2020. This is in response to the Fund’s growing concern about the need for timely issuance of titles and consolidation


of the properties under the name of the Fund. The JMC was aimed to standardize all the transactions related to the Fund’s housing loan programs, so as to improve the processing time in the issuance of titles and other related documents. Its benefits are as follows:

· Faster delivery of services for both the Fund and the LRA; · Ease of transaction to the Fund’s borrowers and partner developers relative to the issuance of titles and mortgage annotation activities; · Faster way of consolidating properties in the name of the Fund; and · Significant savings for both the agencies

As of December 31, 2020

Regular 3,772

Agency-Hired Contractors 2,942

Job Order Workers 1,701

Allied Services 468

TOTAL 8,883

The pandemic has greatly affected how the Fund prioritized the benefits and activities that will cater to the safety, security, and welfare of its officers and staff.

Employee Health and Welfare:As mandated in the HDMF Manual of Corporate Governance, Pag-IBIG Fund provided comprehensive medical and safety assistance for its employees to ensure that their physical and mental well-being are taken care of. The Fund provided the following for its Lingkod Pag-IBIG:

HMO Coverage for all employees For the year 2020, a total number of 3,842 regular employees who enrolled as principals benefited from the Employee Health Maintenance Organization (HMO) coverage, along with 3,155 dependents including the employee’s family members.

The HMO coverage from Insular Health Care Inc. enabled all principal enrollees and dependents to access healthcare and medical benefits such as inpatient services, outpatient services, and emergency care, with a Maximum Benefit Limit of P200,000.00 per illness per year. Contract Period with the provider began 24 April 2020 and will end on 23 April 2021.

Corporate-Wide Anti-Flu Immunization Program The Human Resource Management Department (HRMD) initiated a corporate-wide inoculation of anti-flu vaccines in December 2020. A total number of 4,043 Pag-IBIG Fund employees were vaccinated to help them have protection against severe effects of flu.

Monthly HR Bulletin posted in all Workstations

BRANCH NO. OF EMPLOYEES

DATE OF VACCINATION

ILOCOS REGION 204 December 3 & 4, 2020

CAGAYAN VALLEY REGION 230

Solano Branch Santiago MSO

December 09, 2020

Cauayan Branch Iligan MSO

December 10, 2020

Tuguegarao Branch December 7 - 16, 2020

CORPORATE HEADQUARTERS

Petron Mega Plaza Bldg. 1,110 December 10 - 17, 2020

JELP Solutions Bldg. 1,624 December 10 - 18, 2020

International Operations Group (IOG)

204 December 10 & 14, 2020

Southern Tagalog Region 671 December 9 - 11, 2020December 14 - 16, 2020

e. The Housing Industry (i.e., Partner-Developers, Real Estate Organizations, etc)

Pag-IBIG Fund has been working with its partner-developers for a more efficient loan application and approval process. When the pandemic hit, the housing loan process was one of the first processes that was hit hard by the quarantine restrictions. Open houses, property viewings, assessments and valuations were halted when people were not allowed to go out.

The developers are also employers themselves. Thus, they also enjoyed the reprieve for employers, but aside from ensuring that their employees are taken care of, they also had to ensure that the construction of their projects would continue and be completed.

In May 2020, a month-and-a-half after the declaration of pandemic, the Fund also extended assistance to its partner-developers by increasing its House Construction Financing Line (HCFL) program from P2 million to P10 million. The loan was intended to ensure the continuous production of socialized and low-cost housing for the minimum-wage and low-income sector. It also acted as a stimulus fund for the housing and construction industry, given its x1.2 multiplier effect to the economy.

By the end of 2020, 31 housing projects have been approved to receive financing amounting to P2.153 billion for their socialized and low-cost housing projects.

The Pag-IBIG Fund Human Resources Services Group (HRSG) also ensured that all its employees are kept up-to-date through the release of HR Bulletins to provide advisories and synthesize accurate information on health, safety, benefits, wellness activities.

Through the weekly health bulletin, all Pag-IBIG Fund employees are apprised of the information about how the Fund -- from the officers to its employees, must behave, believe, and cooperate to continue to be safe from the virus.

f. Banks and Other Financial Institutions Pag-IBIG Fund has an on-going partnership with the following banks as Local Equity Fund Managers which contracts are existing since 2019: 1. Metropolitan Bank and Trust Company (Metrobank) 2. BDO Capital & Investment Corporation 3. ATR Asset Management Group (ATRAM or ATRAM Group) 4. Bank of the Philippine Islands (BPI) 5. Philequity Management, Inc.

g. Lingkod Pag-IBIG (employees)

Pag-IBIG Fund’s employees or its Lingkod Pag-IBIG are considered the Fund’s greatest asset – providing invaluable service to its members and engaging the Fund’s partners and other stakeholders to help carry out the Fund’s mandates.

By the end of 2020, the Lingkod Pag-IBIG workforce totals 8,883, including regular employees, agency-hired contractors, allied personnel, and the security team.


In 2020, 111 HR Bulletins were released by the HRSG, at least once every month.

To ensure that all Lingkod Pag-IBIG are informed, these bulletins were released through email advisories and e-bulletins which launched as start-up in Pag-IBIG-issued computers/workstations.

Briefing and Consultation Sessions with Health Experts

Monthly orientations, briefing sessions, and webinars with the Fund’s Infectious Disease Consultant (Dr. Yasmin Liboro) were also conducted in the months of July to November 2020, benefitting 1,182 participants from different offices and operating units of Pag-IBIG Fund.

In addition to these, more talks and consultations with health experts were made regarding various relevant wellness topics.

COVID-19 Internal Response

As the lead agency in the Philippines for home financing and cash loans, Pag-IBIG Fund’s operations have been affected by the COVID-19 pandemic. From a record-breaking year in 2019, the agency posted a H1 2020 gross income that’s 7.20% lower compared to the previous year.

Amid the pandemic, Pag-IBIG Fund’s top priority is to provide service, while ensuring the safety

Topic Date Conducted

Presenter Numberof Participants

Leptospirosis 17 December 2020

InLife accredited doctor

22

How to maximize the tele consult and the use of my pocket doctor

18 December 2020

Speaker from InLife 23

Maintaining Dental Health in the time of COVID-19

18 December 2020

Dr. Maria Clara Pilar (Issa) Reyes, Pag-IBIG dental consultant

32

2. An Alternative Work Arrangement aligned with the Civil Service Commission is implemented. Employees were divided into teams where one employee would report only thrice a week or less, to the office. Work from home arrangements were also implemented.

3. Door-to-door transportation and temporary shelter (if applicable) for all employees reporting to work was provided.

4. Personal protective equipment or PPEs were given to all workers (face masks, face shields, alcohol, disinfectants, and others) every month.

5. Constant monitoring of health and safety of all employees (through the Fund’s Daily Health Self-Assessment) in coordination with the medical experts, consultants and the agency’s HMO was conducted.

6. Acrylic barriers in all branches to limit physical contact were installed.

7. Offices were sanitized on a weekly basis. 8. All employees received remuneration on time. On top of this, they received loan payment relief in compliance to Philippine laws, RA 11469 and RA 11494 (includes suspension of loan deductions from employees’ payroll).

9. A Flu vaccination program was conducted for all employees in December 2020.

10. Weekly emails and reminders were sent from the Human Resources team and the CEO of Pag-IBIG Fund on safety reminders, guidelines, and recent updates about COVID-19. Assessment) in coordination with the medical experts, consultants and the agency’s HMO was conducted.

With all these efforts, Pag-IBIG Fund was able to remain in service of its members and stakeholders, while putting the health and welfare of its people first. Pag-IBIG Fund stands by its promise as the government agency you can truly count on in these difficult times.

of its people together with their families. Top executives of Pag-IBIG Fund knew that to fulfill its mandates and serve its members, its people must be taken care of above anything else. Hence, the agency initiated its own COVID-19 interventions to help its employees become well-informed, responsible and safe from the pandemic.

With this, the Pag-IBIG launched the following initiatives:

1. A four-part Office Order which states Pag-IBIG Fund’s Anti-COVID response was developed, disseminated, and implemented; grounded on the outputs of intensive research, discussions, and consultations with medical professionals, ensuring that every move to fight cross- infection in the office is science and evidence-based.

Employee Training The Pag-IBIG Fund Human Resources Development Department was able to facilitate the conduct of 94 training programs, for the benefit of a total of 4,438 participants.

Before the imposition of community quarantine restrictions in Metro Manila, 7 face-to-face trainings were conducted in January to March with 271 attendees. When minimum health standards were implemented to curb the spread of the COVID-19, Pag-IBIG Fund utilized the online platform as an alternative

medium to deliver these trainings. From the end of March 2020 to December 2020, 87 webinar sessions were conducted for the benefit of 4,167participants from various Pag-IBIG Fund offices and operating units nationwide.

The list and photo documentation of Employee Trainings conducted in 2020 can be accessed via the Pag-IBIG Fund Corporate Website > Employee Welfare > Trainings. (https://pagibigfund.gov.ph/EmployeeWelfare_Trainings_2020.html)


h. The Filipino Workers

In 2020, Pag-IBIG Fund implemented a number of interventions to cover inactive or non-registered members of the workforce. These include the following programs/ plans: 1. Increasing Membership Level targets to achieve its goal of generating more Pag-IBIG Fund members; 2. Setting target on reactivating OFW members; 3. Rolling out of Lingkod Pag-IBIG on wheels; and 4. Establishment of offices in key areas (at least in every province and every major city

Stakeholder Communications

Corporate Social Responsibilityand Sustainability Development

Pag-IBIG Fund provides various channels, which the members can use to bring up their concerns and requests.

The Pag-IBIG Fund Corporate Website (www.pagibigfund.gov.ph) provides all the information about Pag-IBIG Fund, its programs, and services.

The Pag-IBIG Fund Contact Center (+632) 8724-4244) is a 24/7 call center facility, which the members may call for to inquire about their accounts, follow-up their loans, or simply to get an answer for their queries. With the pandemic, the Contact Center operations were reduced to within office hours, to comply with government guidelines and restrictions.

Pag-IBIG Fund also has a Chat facility in its website to provide members with the option to talk to a Lingkod Pag-IBIG employee real-time.

Members who prefer to engage Pag-IBIG Fund through writing may do so via Email ([email protected]). Inquiries, requests, or even complaints may be coursed through this facility. Depending on the member’s need, a Lingkod Pag-IBIG or a member of the Customer Service Audit Team will conduct a review of the request or complaint.

Members may also visit and follow Pag-IBIG Fund’s official Facebook page (https://www.facebook.com/PagIBIGFundOfficialPage/) and leave a direct message in the Messenger for their concerns

Pag-IBIG Fund also put up a Member Services Helpline https://www.pagibigfund.gov.ph/ helpline.html which was set-up to help resolve issues, problems, and delays in the processing of the member’s Multi-Purpose Loan or Provident Savings Claims.

The Fund’s contact points are accessible and available 24/7 for its stakeholders.

Virtual Events

The Pag-IBIG Fund also ensures that all relevant stakeholders are kept updated on the undertakings and state of the agency especially amid the pandemic through the conduct of the Pag-IBIG Fund Virtual Events spearheaded by its Public and Media Affairs Department.

In 2020, events like the Virtual Stakeholders’ Accomplishment Report (vStAR), Developers’ Technical Forum, Employers’ Virtual Forum, and Fund Coordinators’ Virtual Forum were conducted to engage partner-developers, employers, fund coordinators, and service partners, on the latest updates in the Fund’s programs and services.

Internal events like the Virtual State of the Fund Address (vSOFA) were also conducted per quarter to inform all Lingkod Pag-IBIG on how the different clusters (Member Services, Home Lending Operations, Support Services, and Corporate-Wide) performed for the year being.

Aside from its stakeholders’ welfare, Pag-IBIG Fund is also concerned with social responsibility and sustainability. Incorporated in its business processes and member servicing is the conscious effort to consider environmental protection and preservation, and public accountability.

Pag-IBIG Fund conducted the following activities related to its CSR program:

The Pag-IBIG Fund Home Lending Operations Cluster, in partnership with Lio Tourism Estate, organized a clean-up drive at Lio Beach and

Damilatan Beach in El Nido, Palawan last 30 January 2020 to promote recycling and waste reduction. Most of the trash collected were cigarette butts, candy/snacks/chips wrappers, plastic bags, ropes, straw, glass bottles and pet bottles, wood/planks, wires, nylon cords, and diapers. The garbage collected was brought to a recycling facility also located in El Nido.

Pag-IBIG Fund provides a section in the website for its CSR activities. (https://www.pagibigfund.gov.ph/EmployeeWelfare_CSR_2020.html)

Compliance to Ethical and Good Governance Standards

Pag-IBIG Fund strictly adheres to the provisions of RA No. 6173 or the Code of Conduct and Ethical Standards for Public Officials and Employees. Recognizing that public office is public trust, the HDMF Manual of Corporate Governance was developed, which provides the guidelines and ethical standards that a Lingkod Pag-IBIG must hold for himself while serving its stakeholders.

The Fund’s Code of Conduct is cascaded to each Lingkod Pag-IBIG during on-boarding for new hires. Employees are reminded of the ethical standards through regular emails dispatched by the Office of the CEO or the Human Resources Group.

A copy of the HDMF Manual of Corporate Governance is also uploaded in the Employee’s portal.

Among the provisions in the HDMF MCG is adherence to the No Gift Policy and No Noon Break.

In instances when a Lingkod Pag-IBIG is suspected or assumed to be in violation of the ethical standards, Pag-IBIG Fund formed a committee that will address such concerns. Adapting GCG’s Whistle-blowing Policy, Pag-IBIG Fund also implemented procedures that will allow witnesses to lodge complaints against illegal (including corruption) or unethical behavior. Whistle-blower reports may be sent to [email protected]. Reports submitted are treated with confidentiality.

The logo should not be intentionally cropped. Use Pag-IBIG Fund flag from CTB materials (similar to DHSUD style).


SEC. EDUARDO D. DEL ROSARIODepartment of Human Settlements and Urban Development (DHSUD) Chairperson, Pag-IBIG Fund Board of Trustees

Retired Major General Eduardo D. del Rosario, Filipino, 64 years old, was appointed as Chairperson

of the (now-defunct) Housing and Urban Development Coordinating Council (HUDCC) on 12 July

2017 and as ad interim Secretary of the newly created Department of Human Settlements and Urban

Development (DHSUD) on 04 January 2020. On November 19, 2020, he was officially confirmed by

the Commission on Appointments (CA) to spearhead the department.

As HUDCC Chairperson, and now Secretary of Human Settlements and Urban Development,

Secretary del Rosario also sits as Chairperson of the 11-member Pag-IBIG Fund Board of Trustees.

He also serves as the Chairperson of key shelter agencies such as the National Housing Authority,

National Home Mortgage Finance Corporation, Social Housing Finance Corporation.

Secretary del Rosario served the military for nearly 37 years, until his compulsory retirement in

November 2012. He has occupied key positions in the Philippine military, which include serving as

General Officer-in-Charge of the Southern Luzon Command, Commander of the 2nd Infantry Division

of the Philippine Army, among others. He also headed “Task Force Kalihim” in August 2012, which

successfully conducted the search and retrieval operations for the remains of the late Department of

Interior and Local Government (DILG) Secretary Jesse M. Robredo from a plane wreckage under the

sea near the Province of Masbate. He received the Bakas Parangal ng Kabayanihan for accomplishing

this mission.

After his retirement from the military, Secretary del Rosario was appointed as the Administrator

of the Office of Civil Defense, while concurrently serving as the Executive Director of the National

Disaster Risk Reduction and Management Council (NDRRMC) from February 2013 to May 2014. On

30 June 2016, he was appointed as Undersecretary for Civil, Veterans and Retiree Affairs of the

Department of National Defense, a position he held until his appointment to HUDCC.

Secretary del Rosario also serves as head of “Task Force Bangon Marawi”, mandated to oversee the

rebuilding and rehabilitation of Marawi City.

Secretary del Rosario took up Bachelor of Science in Mechanical Engineering in Adamson University

before joining the Philippine Military Academy. He was a member of the 1980 Class Mapitagan,

graduating with a bachelor’s degree in Military Science. He holds a master’s degree in Public

Administration from the Philippine Christian University in 2012, and a master’s degree in Business

Administration from the Ateneo Graduate School of Business in 1994.

Secretary del Rosario has attended seminars on public governance and orientations about the key

shelter agencies’ operations.

Pag-IBIG FundBOARD OF TRUSTEES


Finance chief and economist Carlos G. Dominguez III, Filipino, 75 years old, was appointed as

Secretary of the Department of Finance (DoF), and de facto Vice Chairperson of the Pag-IBIG Board

of Trustees on 30 June 2016.

As Finance Secretary, he also serves as Chairperson of the Land Bank of the Philippines (LBP), the

Philippine Deposit Insurance Corporation (PDIC), Philippine Guarantee Corporation, and is a member

of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP).

Sec. Dominguez has over 40 years of experience in both the government and the private sector. He

began his career in government service in 1986 when he served at the helm of the Ministry of Natural

Resources, and then with the Department of Agriculture in 1987. He left government service in 1989

and held top executive posts and chairmanship in the private sector, most notably as Chairperson and

President of Philippine Airlines (1993 - 1995), and the Philippine Tobacco Flue-Curing and Redrying

Corporation (1992 - 2016). His family also owns the prestigious Marco Polo Hotel in Davao City.

He returned to public service in 2016 as Finance Secretary to support his childhood friend and

classmate President Rodrigo Roa Duterte.

Sec. Dominguez graduated from the Ateneo de Manila University with a bachelor’s degree in

Economics (1965), and a master’s degree in Business Administration (1969). In 1982, he completed

the Executive Management Program offered by Stanford University’s Graduate School of Business.

Chief Executive Officer Acmad Rizaldy P. Moti, Filipino, 46 years old, was appointed as head of Pag-

IBIG Fund on 17 May 2017.

After graduating from the University of the Philippines in 1995, CEO Moti began his professional

career as a faculty member in his alma mater. In November 1998, he started his career as a banker

with Asia United Bank (AUB), leaving a couple of years later to launch the web development start-

up agency, 25by8, where he manned its daily operations. He went back to AUB in 2006, and then

became the Vice President for Chinatrust (Philippines) Commercial Bank Corporation, where he

managed the Software Development and Maintenance Group.

He joined Pag-IBIG Fund as Senior Vice President for the Information Technology Services Sector in 2008, where he led the foundation of Pag-IBIG Fund’s integrated and innovative computer systems of today. He was then tasked to lead the agency’s Home Lending Operations Cluster in 2011, where he then initiated policy reforms to improve Pag-IBIG Fund’s Housing Loan programs. In March 2017, he was assigned as the agency’s officer-in-charge until he was appointed as Pag-IBIG Fund Chief Executive Officer by President Rodrigo Duterte in May 2017.

Under his leadership, Pag-IBIG Fund achieved consecutive banner years, with the agency achievingrecord-highs in housing loan releases, members’ savings collections, dividend rates on members’ savings, performing loans, net income, and customer satisfaction ratings.

He continues to lead Pag-IBIG Fund amid the pandemic, through the implementation of responsiveprograms and in delivering the Lingkod Pag-IBIG brand of service: Tapat na Serbisyo, Mula sa Puso – to aid members, stakeholders and the nation cope and move forward in its journey to recovery.

CEO Moti is a Computer Science degree holder from the University of the Philippines, obtaining a bachelor’s degree in 1995 and has completed all academic requirements towards a master’s degree in 2000.

He attended the virtual Advanced Corporate Governance Program (20 November 2020 & 28 January 2021), and also attended trainings on Equity Portfolio Management and Corporate Governance Orientation Program for Government Owned and Controlled Corporations (GOCCs) last 2019 and 2018, respectively.

SEC. CARLOS G. DOMINGUEZ IIIDepartment of Finance (DOF) Vice Chairperson, Pag-IBIG Fund Board of Trustees

ACMAD RIZALDY P. MOTIChief Executive Officer, Pag-IBIG Fund (HDMF)


Sec. Wendel E. Avisado, Filipino, 67 years old, was appointed as the Secretary for the Department of

Budget and Management on 05 August 2019.

Sec. Avisado has an established career in public service, notable for his leadership and innovation.

He was the Regional Director of the Department of Interior and Local Government (DILG) - Region

XI, from April 1986 to December 1992, and then for Region XII after until March 1993.

He left government service in March 1993 to become the Vice President for Legal and External

Affairs ofthe JVA Management Corporation – a position he held until June 1998, and would assume

again from July 2001 to June 2004.

Even with his engagement in the private sector, he continued to perform public service

through the Davao Integrated Development Program (DIDP), serving as its Executive Director

from 1994 to August 2019.

Sec. Avisado was the City Administrator of Davao City from June 2004 to February 2010 and

was elected as No. 1 City Councilor of the 1st District of Davao City in July 2010. This was

cut short when he was appointed as Deputy Secretary General of the Housing and Urban

Development Coordinating Council (HUDCC) in September 2010. He left HUDCC in April 2015

and served as the Acting Secretary General of the Boy Scouts of the Philippines until June

2016. His experience in administration and management was the basis for his appointment as

Presidential Assistant for Special Concerns overseeing the rehabilitation of the areas affected

by TS Yolanda from November 2016 to August 2019 – a post he held prior to his current

appointment as Budget Secretary.

Sec. Avisado was also an educator, serving in the academe as Professor of the Ateneo de

Davao University College of Law from 1990 to 1991, and the University of the Philippines

School of Management from 2007 to 2009.

Sec. Avisado completed his undergraduate degree in BA Political Science from the Southern

Island Colleges. He pursued his law degree in the Ateneo de Davao University College of Law,

graduating Cum Laude.

Sec. Ramon M. Lopez, Filipino, 60 years old, was appointed as the Secretary for the Department of

Trade and Industry on 30 June 2016.

As DTI Secretary, Sec. Lopez also serves as Chairperson for the Board of Investments (BOI), the

Cagayan Economic Zone Authority (CEZA), Small Business Corporation (SB Corp.), the Philippine

Economic Zone Authority (PEZA), National Development Corporation (NDC), Export Development

Council (EDC), and Halal Board.

Sec. Lopez began his career as a public servant working in the Presidential Management Staff Office

(1981), the Department of Trade and Industry (1982 - 1989), and the National Economic Development

Authority (1989 - 1993).

In 1994, Sec. Lopez established his career in the business sector, working for more than two decades

as top executive of RFM Corporation until his appointment as DTI secretary in 2016.

While engaged with his private sector commitments, Sec. Lopez also launched GoNegosyo – an

advocacy group promoting trade and entrepreneurship to small and micro business owners, PWDs,

out-of-school youth, and other marginalized sectors – where he held the position of Executive

Director for the past 11 years.

Sec. Lopez graduated in 1981 with a BA Economics degree from the University of the Philippines, and

completed the graduate program for Development Economics at Williams College in Massachusetts,

USA in 1988.

SEC. WENDEL E. AVISADODepartment of Budget and Management (DBM) Member, Pag-IBIG Fund Board of Trustees

SEC. RAMON M. LOPEZDepartment of Trade and Industry (DTI) Member, Pag-IBIG Fund Board of Trustees


Sec. Silvestre H. Bello III, Filipino, 76 years old, was appointed as Secretary of the Department of

Labor and Employment on 30 June 2016.

A seasoned lawyer, Sec. Bello served at the Department of Justice, initially as Undersecretary from

1986 to 1991, and eventually as Justice Secretary until 1992, a position he was again appointed to in

1998.

Sec. Bello also served as the Solicitor General from 1996 to 1998. Sec. Bello is also a distinguished

associate of several law firms.

As a public servant, Sec. Bello has served the government under four administrations in various

capacities. He was the Chairperson of the GRP Negotiating Panel for Peace Talks (2001 - 2004),

served as CEO of the PNOC- Development & Management Corp. (2004 - 2005), CEO of the Philippine

Reclamation Authority (2006), Presidential Adviser for New Government Centers (2007 - 2008),

and Cabinet Secretary (2008 - 2010), acting as Oversight Officer for Indigenous People and Cabinet

Officer for Regional Development for Region II. Sec. Bello also served in the 16th Congress (2013 -

2016) as representative for the 1BAP Party List.

Sec. Bello finished his BA Political Science degree from Manuel L. Quezon University in 1966, and

took his Bachelor of Laws in 1970 from the Ateneo de Manila University where he graduated with

distinction.

Atty. Cornelio P. Aldon, Filipino, 67 years old, was appointed as Pag-IBIG Fund Trustee on 04 October

2017 as Private Employers’ Representative.

Trustee Aldon started as a Paralegal Staff in Pefianco and Associates Law Office in 1975. In 1976,

he held his first government post, working in the Ministry of Local Government and Community

Development, a post he held until 1978. After which he spent a year in the Interim Batasang Pambansa

(IBP). After passing law school, he worked in the Metro Manila Commission (MMC) providing legal

service through various positions until 1995. In 1998, he became Legal Counsel to MMC, which was

reorganized to become the Metro Manila Development Authority. From 2002 to 2004, he served as

a member of the board of the APO Production Unit, Inc.

A practicing lawyer specializing in trial work and litigation, Trustee Aldon was a managing partner

and co-founder of Aldon, Puhawan & Associates from 1984 to 1995. In 1995, he established the Aldon

Law Office, which he manages until present.

Trustee Aldon spent the first three (3) years of his collegiate life in St. Peter’s Seminary (1971-1973)

taking up Bachelor of Arts but was curtailed with his detention during Martial Law. After he was

released, he spent one (1) semester in the University of San Carlos (1974), before completing his

bachelor’s degree in Arts, majoring in English and History. In 1980, he completed his Bachelor of

Laws degree from the University of the Philippines.

Trustee Aldon attended the virtual Advanced Corporate Governance Program (20 November 2020

& 28 January 2021), and also attended trainings on Equity Portfolio Management and Corporate

GovernanceOrientation Program for Government Owned and Controlled Corporations (GOCCs) last

2019 and 2018,respectively.

SEC. SILVESTRE H. BELLO IIIDepartment of Labor and Employment (DOLE) Member, Pag-IBIG Fund Board of Trustees

TRUSTEE CORNELIO P. ALDONPrivate Employers’ Representative


Trustee Mylah R. Roque, Filipino, 50 years old, was appointed to the Pag-IBIG Board of Trustees on 19

September 2017.

Trustee Roque worked as a broadcast journalist from 1995 – 2001. The National Museum also exhibited

her photographs of Marawi after the siege from September to November 2018.

A published writer, Trustee Roque co-authored “Bittersweet Stories of Farm Workers in the

Philippines”, a book that examines agrarian reform cases in four provinces (Negros Occidental,

Negros Oriental, Bukidnon, and Davao Oriental), focusing on the best and the worst experiences of

farmers on CARP. She also contributed to the book “The Right to Vote: Filipinos with Disabilities and

the 2013 Elections“, which tells the stories of people with disabilities (PWDs) in exercising their right

to vote during the 2013 elections. Both publications were published in 2013.

She graduated with a bachelor’s degree in Communication Arts from the University of the Philippines

(Cum Laude), where she also completed the academic requirements for the Art History graduate

program.

Trustee Roque attended the virtual Advanced Corporate Governance Program (20 November

2020 & 28 January 2021). She had also attended trainings on Equity Portfolio Management in 2019;

Corporate Governance Orientation Program for Government Owned and Controlled Corporations

(GOCCs) in 2018, and Understanding Philippine Media in 2014.

Trustee Pedrito G. Angeles, Filipino, 71 years old, was appointed as Pag-IBIG Fund Trustee on 02

June 2017 as Private Employees Representative.

Trustee Angeles is an accomplished operations and banking executive, beginning his career in branch

operations with the Rizal Commercial Banking Corporation in Davao from 1971 to 1980. He then spent

the next twenty-five (25) years with United Coconut Planters Bank, retiring from the bank in 2005 as

Vice President and Area Head.

In 2006, he was appointed by the court as Rehabilitation Receiver for the troubled Apo View Hotel, a

position he held until 2015. Trustee Angeles also managed the Rural Bank of Montevista in Tagum City

(2013 - 2014) and the Rural Bank of Lebak in Sultan Kudarat (2016 - 2017), applying the expertise he

gained in the banking industry. He is currently involved with the Silangan Multi-Purpose Cooperative

in Davao City, where he was elected Chairperson of the Elections Committee.

Trustee Angeles graduated from Ateneo de Davao College with a bachelor’s degree in Banking and

Finance, and pursued law for further studies in Ateneo de Davao Law School.

He attended the virtual Advanced Corporate Governance Program (20 November 2020 & 28 January

2021), and also attended trainings on Equity Portfolio Management and Corporate Governance

Orientation Program for Government Owned and Controlled Corporations (GOCCs) last 2019 and

2018, respectively.

TRUSTEE MYLAH R. ROQUEPrivate Employers’ Representative

TRUSTEE PEDRITO G. ANGELESPrivate Employers’ Representative


Trustee Crisostomo G. Gotladera, Filipino, 68 years old, was appointed as Pag-IBIG Fund Board of

Trustee, representing Private Employees’ Representative on 27 December 2017.

Trustee Gotladera started his career as a hotelier, managing Loyola Arms Hotel (1989 - 1990), and

Hyatt Hotels (1990 - 1998) both located in Illinois, USA. He became the Provincial Administrator for

Sorsogon from 1998 to 2000. After which, he went back to the USA and worked as a Real Estate

Broker. He has been engaged in various ventures, putting up an ice plant business and working as

top executives for several corporations in Sorsogon. In 2013, he ventured into politics and won as

Councilor in the Municipality of Bulan. Trustee Gotladera is currently the National Sales Director of

Agrimen, Inc.

Trustee Gotladera holds a Bachelor of Science degree, Major in Psychology, graduating from the

Ateneo De Manila University in 1972. In 1997, he signed up for a graduate program on Local Government

Management from Bicol University where he was credited with masters units. Trustee Gotladera is a

licensed real estate broker, receiving his board licensure from the State of Illinois Board of Realtors in

1985.

Trustee Gotladera attended the virtual Advanced Corporate Governance Program (20 November

2020 & 28 January 2021), and also attended trainings on Equity Portfolio Management and Corporate

Governance Orientation Program for Government Owned and Controlled Corporations (GOCCs) last

2019 and 2018, respectively.

Trustee Ma. Lorelei C. Fajardo, Filipino, 49 years old, was appointed as Pag-IBIG Fund Trustee on 27

June 2017 as Government Employees Representative.

Trustee Fajardo began her career as a Marketing Assistant for Asian Bank, but having been raised in

a family of public servants, she soon heeded the call for public office. She served as Chief of Staff to

Congressman Pacifico M. Fajardo from 1995 to 2000. In 2001, she was elected as the Mayor of

Palayan City, Nueva Ecija, where she was also elected as the National Treasurer for the League of City

Mayors in the Philippines. After her term as mayor, she worked as Assistant Secretary to the Office of

the Presidential Chief of Staff. In 2007, former President Gloria Macapagal-Arroyo appointed Trustee

Fajardo as Deputy Presidential Spokesperson, and concurrently as Presidential Assistant for Central

Luzon. In 2013, she became a host and producer of the radio program “Smiley Pinoy”. At the same

time, she was tapped to become the Outreach Specialist of Development Alternatives, Inc., which

is one of USAID’s implementing partners in facilitating public investment projects – a position she

held from August 2013 to December 2018. From July 2019 to present, Trustee Fajardo serves as Lead

Strategic Advisor of Chemonics International for its USAID-funded project, “Delivering Effective

Government for Competitiveness and Inclusive Growth” or Project DELIVER, which aims to promote

competitiveness and inclusive growth among countries.

Trustee Fajardo completed a bachelor’s degree in Business Administration from Miriam College in

1993. In 1994, Trustee Fajardo pursued further studies in the New York Institute of Finance, with a

Certificate on Finance Management and Certificate on Options Market. In the same year, she also

completed a Certificate on 21st Century Management with the New York University, in the USA.

Trustee Fajardo was also a candidate for the Graduate Program on National Defense provided by

the National Defense College of the Philippines. She is currently taking up her master’s degree on

Strategic Business Economics at the University of Asia and the Pacific.

Trustee Fajardo attended the virtual Advanced Corporate Governance Program (20 November

2020 & 28 January 2021), and also attended trainings on Equity Portfolio Management in 2019 and

Corporate Governance Orientation Program for Government Owned and Controlled Corporations

(GOCCs) in 2018.

TRUSTEE CRISOSTOMO G. GOTLADERAPrivate Employers’ Representative

TRUSTEE MA. LORELEI C. FAJARDOGovernment Employees’ Representative


9th Consecutive Year Unqualified/ Unmodified Opinion (2012-2020)

For the 9th straight year, the Commission on Audit issued Pag-IBIG Fund with an Unmodified Opinion, citing the accurate and fair presentation of its financial statements. An unmodified opinion is the highest audit rating state auditors can give to a government agency.

The complete list of awards and recognition garnered by Pag-IBIG Fund can be accessed in the Pag-IBIG Fund Corporate Website: https://pagibigfund.gov.ph/awards.html.

From the Commission on Audit (COA)

Training and Continuing EducationTraining and Continuing Education

ADVANCED CORPORATE GOVERNANCE PROGRAMADVANCED CORPORATE GOVERNANCE PROGRAM

DAY 1 November 11 , 2020

DAY 2 January 28, 2021

CHAMPIONS OF GOOD GOVERNANCECHAMPIONS OF GOOD GOVERNANCEThe Fund’s Financial Report bears the Statement of Management’s Responsibility for Financial Statements:

“Management is responsible for the preparation and fair representation of the financial statements, including the schedules attached herein, for the years ended December 31, 2020 and 2019, in accordance with the prescribed financial reporting framework indicated therein, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material

misstatements, whether due to fraud or error.”

ISO CertificationISO Certification

Pag-IBIG Fund maintained its ISO 9001:2015 Certification as its services and processes in Housing Loan, Short-Term Loan and Provident Benefit Claims, Membership Registration, and Loans Management and Window I and II Developer-Assisted Process meet the international standards set by the ISO.

RESPONSIBILITIES OF THE BOARDRESPONSIBILITIES OF THE BOARDThe Fund’s Financial Report bears the Statement of Management’s Responsibility for Financial Statements:

“Management is responsible for the preparation and fair representation of the financial statements, including the schedules attached herein, for the years ended December 31, 2020 and 2019, in accordance with the prescribed financial reporting framework indicated therein, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.”

Board Composition

1. Eduardo D. Del Rosario, Chairperson2. Carlos G. Dominguez, Vice Chairperson3. Acmad Rizaldy P. Moti, Chief Executive Officer4. Wendel E. Avisado, Department of Budget & Management5. Silvestre H. Bello, Department of Labor and Employment6. Ramon M. Lopez, Department of Trade and Industry7. Cornelio P. Aldon, Private Employers Representative8. Mylah R. Roque, Private Employers Representative9. Pedrito G. Angeles, Private Employers Representative10. Crisostomo G. Gotladera, Private Employers Representative11. Ma. Lorelei C. Fajardo, Government Employees Representative

Board Committees and Membership

• Board Committees1. Board Audit Committee

1. Charter2. Members

• Trustee Pedrito G. Angeles – Chairperson• Trustee Mylah R. Roque – Vice-Chairperson• Trustee Ma. Lorelei C. Fajardo – Member• Department of Budget and Management (DBM) Representative – Member• Department of Finance (DOF) Representative – Member

2. Board Investment Committee1. Charter2. Members

• Trustee Ma. Lorelei C. Fajardo – Chairperson• Trustee Cornelio P. Aldon – Vice-Chairperson• Trustee Crisostomo G. Gotladera – Member• Department of Finance (DOF) Representative – Member• Department of Trade and Industry (DTI) Representative – Member

3. Board Risk and Capital Committee1. Charter2. Members

• Trustee Crisostomo G. Gotladera – Chairperson• Trustee Pedrito G. Angeles – Vice-Chairperson• Department of Finance (DOF) Representative – Member• Department of Budget and Management (DBM) Representative – Member• Department of Labor and Employment (DOLE) Representative – Member


4. Board Risk and Capital Committee1. Charter2. Members

• Trustee Mylah R. Roque – Chairperson• CEO Acmad Rizaldy P. Moti – Vice-Chairperson• Trustee Cornelio P. Aldon – Member• Department of Labor and Employment (DOLE) Representative – Member• Department of Trade and Industry (DTI) Representative – Member

Board Committees and Membership

NameBoard

Meetings

Board Governance Committee

BACJoint BGC-BAC

Joint BGC-BRCC

BIC BRCC

CEO Acmad Rizaldy P. Moti 13/13 15/15 - 1/1 1/1 - -

Trustee Pedrito G. Angeles 13/13 15/15 12/12 1/1 1/1 - -

Trustee Mylah R. Roque 13/13 15/15 12/12 1/1 1/1 - -

Trustee Ma. Lorelei C. Fajardo 13/13 - 12/12 1/1 - 14/14 -

Trustee Crisostomo G. Gotladera 13/13 - - - 1/1 14/14 11/11

Trustee Cornelio P. Aldon 13/13 - - - 1/1 14/14 11/11

BOARD MEETINGS

Pursuant to GCG Memorandum Circular 2012-07 Section 8, Part 3, the Board meets for regular board meetings once a month. If needed, the Chairperson, or in his absence, the Vice Chairperson, may call for a Special Meeting at any time.

The Pag-IBIG Fund Board of Trustees approved during the 320th HDMF Board Meeting a fixed HDMF Monthly Board Meeting to be held every 1st Thursday of the month. This schedule is reiterated at the beginning of the year to inform the Trustees for compliance and to block off proposed dates.

During the 2019-11 Board Meeting held on 11 December 2019, the Schedule of Board Oversight Committee Meetings for 2020 was approved.

The Office of the Board Secretary, who provides administrative and organizational support to the Board prepares the agenda and sends out notices and board materials for review, at least three (3) days before the scheduled meeting.

BOARD MEETINGS ATTENDANCE

In 2020, Pag-IBIG Fund Board of Directors were able to attend all the scheduled board meetings.

BOARD PERFORMANCE APPRAISAL

No Board Performance Appraisal was conducted in 2020.

SPECIAL COMMITTEES AND THEIR ACTIVITIES:

Nomination/Remuneration Committee The Board Governance Committee acts as the Nomination/Remuneration Committee of Pag-IBIG Fund. In 2020, they met fifteen (15) times to discuss eligibility guidelines, appointments for Board confirmation/ approval, and other relevant issues concerning the Nomination/Remuneration Committee. All matters discussed during the meetings are disclosed on Pag-IBIG Fund’s website.

Board Audit Committee

The Board of Trustees appoints five (5) from among its members to constitute the Board Audit Committee who will serve for a term of one (1) year. Their functions revolve on financial reporting, internal and external audit, and risk management.

Given the nature of the Committee, it is preferred that their elected Chairperson and Vice-Chairperson have audit, accounting, or finance background. Currently, Trustee Pedrito G. Angeles leads the Committee as the Board Audit Committee Chair. He has a solid experience in finance, especially in the banking industry.

In 2020, the Board Audit Committee met twelve (12) times. All matters discussed during the scheduled meetings are disclosed to the public through the agency’s website.

Risk Management Committee

Similar to the Board Audit Committee, the Board of Trustees appoints five (5) from among its members, who will serve for a term of one year as part of the Board Risk and Capital Committee (BRCC). The BRCC must include a representative from the Department of Finance. The BRCC is led by its appointed Chair, Trustee Crisostomo G. Gotladera, who has a background in finance and investment.

The BRCC is supported by a Risk Management Task Force assigned to provide administrative and technical assistance for all risk management and assessment activities of the Fund.

Previous risk assessment measures proposed and implemented by Pag-IBIG Fund in the previous years, including the development of a Business Continuity Management Plan (BCMP), through the Enterprise - Value Risk Assessment (EVRA) had been instrumental in the immediate and timely response of the Fund in managing the pandemic. While the COVID-19 is considered a black swan, the Fund was able to adapt despite the changes, limitations, and challenges it brought, allowing it to be resilient, efficient, and productive despite the difficult situation of the country.


Pag-IBIG FUND

OFFICERS


12,769,930

9,406,999

2,262,126

839,405

15,934

116,956

128,510

2

261,618

151,913.39448,185.28734,909.261

0.162

13,275.864

56,170.55246,653.97239,875.669

6,778.303

903.583

14,022.840215,641

6,542.490

65,502

1,219.955

24,732

6,260.395

125,407

129.238

21,940

35,638.7751,735,921

30,673.896

1,353,523

4,964.879

382,398

84,529.40180,748

63,752.624

63,750

20,776.777

16,998

1,216.436214.700

1,001.736

2,302.600590.000

200.000

1,512.600

MEMBERSHIP LEVEL 1,2

(Cumulative)

COLLECTIONS (PhP M)

PROVIDENT CLAIMS

ADD’L DEATH CLAIMS

SHORT-TERM LOANS 2

SHELTER FINANCING

Pag-IBIG I

Pag-IBIG II

Members’ Savings 2

Short-term Loan Collections

Housing Loan Collections

Wholesale Home Lending Collections

Amount (PhP M)No. of Claimants

Amount (PhP M)

No. of Deceased Members

Private

Government

Overseas Filipino Workers

Private Household

Self Employed

Voluntary Members

Old Pag-IBIG II

Modified Pag-IBIG II

Pag-IBIG I

Pag-IBIG II (Old/ Existing)

Modified Pag-IBIG II (MP2)

MCR/SCR Collections 2

Asset Recovery Collections 2,3

Maturity 4

Optional Withdrawal 4

Regular Claims

Gross Loan Value (PhP M)

No. of Borrowers

Gross Loan Value (PhP M)

No. of Borrowers

Actual Take-outs 2

Pending for Take-out

Amount Released (PhP M)

Amount Approved (PhP M)

Gross Loan Value (PhP M)No. of BorrowersMulti-Purpose Loans

Calamity Loans

Retail Home Lending

Wholesale Home Lending

Loan Value (PhP M)

No. of Units

Loan Value (PhP M)

No. of Units

Loan Value (PhP M)

No. of Units

Developmental Loan Program

House Construction Financing Line

Developmental Loan Program

Medium/High-Rise Bldg.

House Construction Financing Line

13,629,670

875,531

160,180.521

46,353.808

57,716.873

55,836.677

47,277.515

8,559.162

273.163

-

-

-

-

-

-

7,089.000

194,224

243.552

40,592

43,293.558

2,072,255

43,293.558

2,072,255

72,246.000

75,517

62,246.000

64,467

10,000.000

11,050

1,000.000

2,000.000

15,743,954

1,451,780

157,678.588

41,000.000

60,899.510

55,363.215

47,021.710

8,341.505

415.863

15,199.654

331,417

5,682.232

85,934

2,038.017

44,956

7,479.405

200,527

258.474

43,079

50,768.053

2,258,627

50,768.053

2,258,627

88,650.000

112,734

78,650.000

101,484

10,000.000

11,250

1,000.000

2,000.000

93%

75%

110%

123%

97%

114%

110%

141%

215%

105%

96%

110%

102%

126%

138%

95%

84%

68%

69%

106%

115%

103%

111%

123%

101%

110%

94%

223%

163%

38%

15%

-13%

-14%

-1%

-23%

-12%

-28%

-26%

-96%

6%

-13%

-4%

-9%

-88%

11%

-5%

-26%

-23%

-42%

1%

-12%

-32%

5%

-26%

-52%

-60%

-12%

-26%

-26%

-26%

-34%

-33%

-41%

-46%

228%

327%

-22%

-29%

-27%

-33%

-7%

-7%

219%

39%

340%

668%

392%

-

740%

-13%

-40%

2%

13%

-5%

1%

1%

3%

-34%

-

-

-

-

-

-

-5%

-3%

-6%

-6%

-15%

-8%

-15%

-8%

-19%

-33%

-21%

-36%

0%

-2%

0%

0%

94%

96%

95%

104%

97%

84%

84%

79%

331%

-

-

-

-

-

-

88%

65%

53%

54%

82%

84%

71%

65%

117%

107%

102%

99%

208%

154%

122%

115%

14,686,036

10,953,920

2,283,328

1,094,829

18,130

162,483

173,346

54

246,178

173,885.68750,375.71538,361.504

1.306

12,012.905

59,231.81363,385.40351,598.057

11,787.346

892.756

15,888.223318,826

6,231.104

87,978

2,562.388

62,104

7,094.731

168,744

174.825

29,742

53,828.8672,593,538

52,312.901

2,503,968

1,515.966

89,570

109,037.697113,574

86,742.203

95,276

22,295.494

18,298

381.798154.100

227.698

300.000120.000

-

180.000

Year 2020 vs Year 2019

2019 ACCOMPLISHMENT

2019 ACCOMPLISHMENT

2020 ACCOMPLISHMENT

2020 ACCOMPLISHMENT

YEAR-ON-YEARCHANGE

YEAR-ON-YEARCHANGE

1 Exclusive of Pag-IBIG II membership. 2 Y2020 Target is based on September 2020 Board Approved Recalibrated Target.3 Actual includes IUL and Foreclosure collections.4 Y2020 projection is not available.

Actual

Actual

Target/Proj.

Target/Proj.

Target/Proj.

Target/Proj.

%

%

%

%

Actual

Actual

Actual

Actual

Target

Target

Pag-IBIG At a Glance


Financial Statements


Note 2020 2019

ASSETS

Current assets

Cash and cash equivalents 3 7,298,383,765 6,278,680,032

Investments 4 9,172,594,756 4,620,171,602

Receivables 5 226,357,556,306 173,200,476,954

Other current assets 6 297,777,694 284,319,951

243,126,312,521 184,383,648,539

Non-current assets held for sale 7 1,162,211,644 1,654,507,812

Non-current assets

Investments 4 46,374,370,071 54,752,715,863 54,752,715,863

Receivables 5 332,899,337,281 339,437,865,935

Investment property 8 17,485,631,715 20,209,938,559

Property and equipment 9 1,491,435,922 1,531,417,256

Intangible assets 10 88,406,801 270,812,888

Other non-current assets 11 27,906,664,211 1,146,285,449

426,245,846,001 417,349,035,950

TOTAL ASSETS 670,534,370,166 603,387,192,301

LIABILITIES AND EQUITY

Current liabilities

Financial liabilities 12 73,810,924,717 50,985,185,809

Inter-agency payables 13 136,786,420 196,588,046

Trust liabilities 14 4,783,682,944 3,279,816,918

Provisions 15 2,227,516,688 1,904,779,186

Other payables 16 18,821,116,907 17,119,733,722

99,780,027,676 73,486,103,681

Non-current liabilities

Provisions 15 362,335,371 330,068,358

Deferred credits/Unearned income 17 15,267,902,495 8,506,098,091

15,630,237,866 8,836,166,449

TOTAL LIABILITIES 115,410,265,542 82,322,270,130

Equity

Retained earnings 27 87,234,365,027 86,522,507,589

Cumulative changes in fair value 26 2,669,136,775 (2,102,878,187)

Members' equity 25 465,220,602,822 436,645,292,769

TOTAL EQUITY 555,124,104,624 521,064,922,171

TOTAL LIABILITIES AND EQUITY 670,534,370,166 603,387,192,301

HOME DEVELOPMENT MUTUAL FUND(Pag-IBIG Fund)

STATEMENTS OF FINANCIAL POSITIONDecember 31, 2020 and 2019

(In Philippine Peso)

The Notes on pages 108 to 166 form part of these financial statements. 104CORPORATEANNUAL REPORT2020

Note 2020 2019

Income

Service and business income 1818 38,741,117,085 45,799,704,732

Gains 19 7,822,146,301 6,410,618,498

Other non-operating income 20 3,102,810,288 4,685,985,514

49,666,073,674 56,896,308,744

Expenses

Personnel services 21 4,922,123,741 4,856,057,786

Maintenance and other operating expenses

22 6,057,026,086 6,940,394,973

Financial expenses 23 24,163,067 3,892,319

Non-cash expenses 24 6,956,952,356 10,719,826,866

17,960,265,250 22,520,171,944

Profit 31,705,808,424 34,376,136,800

Net Assistance/Subsidy 0 (1,439,796)

Net Income 31,705,808,424 34,374,697,004

Other comprehensive income 26 4,772,014,962 10,298,698,449

Comprehensive Income 36,477,823,386 44,673,395,453

Cumulative Changesin Fair Value

(Note 26)

Retained Earnings (Note

27)Members' Equity

(Note 25)Total

Balance, January 1, 2020 (2,102,878,187) 86,522,507,589 436,645,292,769 521,064,922,171

Members’ contribution 0 0 44,585,931,719 44,585,931,719

Comprehensive income of the year 4,772,014,962 31,705,808,424 0 36,477,823,386

Dividends 0 (31,072,799,783) 31,072,799,783 0

Provident claims 0 0 (12,815,222,102) (12,815,222,102)

Offsetting of Total Accumulated Value/Other adjustments

0 78,848,797 (34,268,199,347) (34,189,350,550)

Balance, December 31, 2020 2,669,136,775 87,234,365,027 465,220,602,822 555,124,104,624

Balance, January 1, 2019 (12,401,576,636) 80,390,915,996 408,836,369,030 476,825,708,390

Members' contribution 0 0 50,768,357,471 50,768,357,471

Comprehensive income for the year

10,298,698,449 34,374,697,004 0 44,673,395,453

Dividends 0 (28,229,448,836) 28,229,448,836 0

Provident claims 0 0 (16,139,965,166) (16,139,965,166)

Offsetting of Total Accumulated Value/Other adjustments

0 (13,656,575) (35,048,917,402) (35,062,573,977)

Balance, December 31, 2019 (2,102,878,187) 86,522,507,589 436,645,292,769 521,064,922,171


STATEMENTS OF COMPREHENSIVE INCOMEFor the Years Ended December 31, 2020 and 2019



STATEMENTS OF CHANGES IN EQUITYFor the Years Ended December 31, 2020 and 2019


The Notes on pages 108 to 166 form part of these financial statements.



Note 2020 2019

CASH FLOWS FROM OPERATING ACTIVITIES

Cash inflows

Collection of income/Revenue 31,786,869,542 36,186,088,009

Collection of receivables 50,200,138,570 59,692,738,525

Proceeds from matured investments 599,973,620,762 615,494,336,333

Trust receipts 232,011,433 429,519,748

Other receipts 3,634,804,429 6,720,761,489

Total cash inflows 685,827,444,736 718,523,444,104

Cash outflows

Payment of expenses (8,613,157,489) (9,107,954,368)

Purchase of inventories (124,013,668) (111,171,785)

Grant of cash advances (29,656,306) (39,909,108)

Prepayments (23,403,804) (23,293,293)

Refund of deposits (15,024,850) (11,352,660)

Payments of accounts payable (46,552,116) (60,311,832)

Remittance of personnel benefit contributions and mandatory deductions (2,910,153,543) (3,136,102,115)

Grant of financial assistance/subsidy/contribution 0 (556,008)

Grant of loans (83,947,025,408) (123,669,887,809)

Purchase/Acquisition of investments (635,832,206,330) (620,230,542,732)

Other disbursements (5,232,576,963) (5,056,173,265)

Total cash outflows (736,773,770,477) (761,447,254,975)

Net cash used in operating activities (50,946,325,741) (42,923,810,871)

CASH FLOWS FROM INVESTING ACTIVITIES

Cash inflows

Proceeds from sale/ Disposal of investment property 762,767,044 387,520,938

Sale of investments 25,238,989,689 9,029,352,562

Receipt of interest earned 296,033,522 2,811,220,540

Receipt of cash dividends 0 7,506

Proceeds from sale of other assets 1,789,379 803,545

Total cash inflows 26,299,579,634 12,228,905,091

Cash outflows

Purchase/Construction of investment property 0 (4,363,294)

Purchase/Construction of property and equipment (259,083,478) (379,816,625)

Purchase of investments (5,831,938,876) (6,129,864,436)

Purchase of intangible assets (10,865,375) (91,434,980)

Total cash outflows (6,101,887,729) (6,605,479,335)

Net cash provided by investing activities 20,197,691,905 5,623,425,756

CASH FLOWS FROM FINANCING ACTIVITIES

Cash inflows

Members’ contributions 44,585,931,719 50,768,357,471

Cash outflows

Provident benefit claims (12,815,222,102) (16,139,965,166)

Net cash provided by financing activities 31,770,709,617 34,628,392,305

INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 1,022,075,781 (2,671,992,810)

Effects of Exchange Rate Changes on Cash and Cash Equivalents (2,372,048) (30,823,367)

CASH AND CASH EQUIVALENTS, January 1 6,278,680,032 8,981,496,209

CASH AND CASH EQUIVALENTS, December 31 3 7,298,383,765 6,278,680,032


STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2020 and 2019



NOTES TO FINANCIAL STATEMENTS(Amounts in Philippine Peso)

1. CORPORATE INFORMATION

Incorporation

The Home Development Mutual Fund (HDMF), also known as the Pag-IBIG Fund, or the Fund, was created on June 11, 1978 by virtue of Presidential Decree (PD) No. 1530 to address two of the country’s basic needs: generation of savings and provision of shelter for the Filipino workers.

Under this Decree, two agencies administered Pag-IBIG Fund namely: (a) Social Security System (SSS) for the funds from private employees, and (b) Government Service Insurance System (GSIS) for the funds from government workers. To meet the urgent need to consolidate all long-term, low-interest housing funds under the administration of a single agency to support the National Shelter Program of the then Ministry of Human Settlements, Executive Order (EO) No. 527 was issued on March 1, 1979, transferring the administration of Pag-IBIG Fund to National Home Mortgage Finance Corporation (NHMFC). As such, NHMFC took care of the administration, custody, disposal and utilization of the funds, including the authority to promulgate Implementing Rules and Regulations (IRRs) pertaining to the aforesaid functions. On June 4, 1979, EO No. 538 was issued merging the two funds into what is now known as Pag-IBIG Fund, which stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno. It remained under the administration of the NHMFC until PD No. 1530 was amended by PD No. 1752 on December 14, 1980, making it an independent corporation with its own Board of Trustees (BOT).

Shortly after the administration of President Corazon C. Aquino, Pag-IBIG contributions were suspended from May to July 1986. However, on August 1, 1986, former President Aquino issued EO No. 35 directing the resumption of mandatory Pag-IBIG membership under more liberal terms. The contribution rate was reduced from three per cent to one per cent of fund salary for employees earning over P1,500. Employer share was cut from three per cent to a fixed rate of two per cent while the maximum fund salary was raised from P3,000 to P5,000.

January 1, 1987 marked the return of Pag-IBIG membership to a voluntary program under EO No. 90. The next eight years witnessed the growth of Pag-IBIG Fund as a voluntary fund. On June 17, 1994, then President Fidel V. Ramos signed Republic Act (RA) No. 7742, which reverted Pag-IBIG membership back to mandatory effective January 1, 1995.

On July 21, 2009, then President Gloria Macapagal-Arroyo signed into law RA No. 9679, otherwise known as the “Home Development Mutual Fund Law of 2009.” The new law and its IRR took effect on August 27, 2009 and November 3, 2009, respectively. It repealed PD Nos. 1530 and 1752 as well as EO Nos. 35



and 90. Its landmark provisions are those expanding the mandatory coverage of the Pag-IBIG Fund to include all employees compulsorily covered by SSS and GSIS, as well as Filipinos employed by foreign-based employer; exempting Pag-IBIG Fund employees from the coverage of the Salary Standardization Law; and restoring tax exemption privileges.

Section 19 of RA No. 9679 states that all laws to the contrary notwithstanding, the Fund and all its assets and properties, all contributions collected and all accruals thereto and income or investment earning therefrom, as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty; and all benefit payments made by the Pag-IBIG Fund shall likewise be exempt from all kinds of taxes, fees, charge, and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the person or person entitled thereto, except to pay any debt of the member to the Fund. No tax measure of whatever nature enacted shall apply to the Fund, unless it expressly revokes the declared policy of the State in Section 2 of RA No. 9679 granting tax exemption to the Fund. Any tax assessment against the Fund shall be null and void.

The Fund, together with the other housing agencies namely National Housing Authority (NHA), National Home Mortgage Finance Corporation (NHMFC) and Social Housing Finance Corporation (SHFC), is under the administrative supervision of the Department of Human Settlements and Urban Development (DHSUD). DHSUD was formed by virtue of RA No. 11201, which was signed into law on February 14, 2019 and through the consolidation of the Housing and Urban Development Coordinating Council (HUDCC) and the Housing and Land Use Regulatory Board (HLURB). It shall act as the primary national government entity responsible for the management of housing, human settlement and urban development. DHSUD is currently headed by Secretary Eduardo D. Del Rosario, who is also one of the members of the Board of Trustees of the Fund.

Through the years, Pag-IBIG Fund has become the prime government financial institution tasked to continually perform two of the nation’s basic concerns: generation of savings and provision of access to home financing to the workers. As such, it mobilizes an efficient, dynamic, regular, and integrated nationwide savings system and at the same time enables low and middle-income families to realize their dream of having decent shelter.

At present, the Fund has its Corporate Headquarters (CHQ) at the Petron MegaPlaza Building, 358 Senator Gil J. Puyat Avenue, Makati City and it operates in 11 Housing Business Centers (HBCs), 18 Technical and Administrative Support (TAS), 102 Branches and 39 Member Services Offices (MSOs) throughout the country.

Approval of Financial Statements

The financial statements of the Fund as at and for the year ended December 31, 2020, including the comparative financial statements as at and for the year ended December 31, 2019, were authorized for issue by the BOT on June 10, 2021.

The significant accounting policies that have been used in the preparation of these financial statements are summarized below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation of financial statements

a. Statement of compliance with Philippine Financial Reporting Standards (PFRS)

b. Presentation of financial statements

c. Basis of consolidation

The financial statements of the Fund have been prepared in accordance with the PFRS. The Fund likewise adhered to the Commission on Audit (COA) Circular No. 2017-004 dated December 13, 2017, which lays down the guidelines on the preparation of financial statements and other financial reports and implementation of the PFRS by Government Corporations classified as Commercial Public Sector Entities (CPSE), previously known as Government Business Enterprises (GBE).

The International Public Sector Accounting Standards Board (IPSASB) and International Accounting Standards Board (lASB), which promulgate the International Public Sector Accounting Standards (lPSAS) and International Financial Reporting Standards (IFRS), respectively, acknowledge the right of governments and national standards-setters to establish their respective accounting standards and guidelines for financial reporting in their jurisdictions.

The Fund has no consolidated financial statements because it has no controlled subsidiaries and entities. Moreover, the Fund has no debt or equity securities traded in organized financial market and is not in the process of filing its financial statements with the Securities and Exchange Commission or other regulatory organization for the purpose of issuing any class of instruments in an organized financial market. Its equity consists of members’ contributions, the members being the owners of Pag-IBIG Fund, employers’ counterpart for employed members and the accumulated dividends.

The financial statements presented include the combined financial statements and transactions of the CHQ and its offices nationwide. All inter-branch transactions and balances have been eliminated and reconciled in the consolidation.

The financial statements are presented in accordance with Philippine Accounting Standards (PAS) 1, Presentation of Financial Statements. The Fund presents all items of income and expenses in a single Statement of Comprehensive Income (SCI).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


d. Functional and presentation currency

h. Deployment of Tellering System

e. Adoption of the COA Revised Chart of Accounts (RCA)

g. Deployment of Real and Other Properties Acquired (ROPA) System

f. Deployment of Provident Fund Management System (PFMS) and Short- Term Loans Management System (STLMS)

The combined financial statements are presented in Philippine Peso, which is the Fund’s functional and presentation currency. All values are rounded to the nearest peso, except when otherwise indicated.

Phase I of the said system encompasses automation of the recurring operational and accounting processes such as acquisition, depreciation, impairment testing, while Phase II covers i) reversal of returned accounts; ii)

disposal related transactions such as allocation of reservation fees, bid bonds, down/partial/full payments, classification to NCAHS and derecognition; iii) set-up of Short-Term Installment (STI) and posting of installment payments; and iv) generation of Statement of Accounts, ledgers, schedules and reports.

Migrated ROPA accounts were assigned a unique identification number referred to as ROPA ID. Such ID is utilized to extract all related transactions that occurred on a certain property which is far more efficient compared to the previous system. As at December 31, 2020, 96 per cent of the total 63,516 accounts has been migrated to the system.

On November 27, 2020, recording of the accounting transactions for ROPA was centralized at CHQ through the issuance of AMO No. 2020-013 Accounting for Centralization of Investment Property – Real and Other Properties Acquired (IP-ROPA) and Non-Current Assets Held for Sale (NCAHS).

To further the progress of IISP, the Tellering System has been fully deployed before the end of year 2019. The said system accommodates new procedures on remittance of members’ contributions, payment of loan amortizations and other amounts due to the Fund through Over-the-Counter (OTC). The new system emphasizes the accountability of employees involved on collection transaction by recognizing journal entries related to cash shortage and overage. Significant change has been effected in the recording of transactions and reconciliation activities, which are now being handled by the Corporate Headquarters.

Imus Branch, being the pilot user, had successfully introduced the system to their collection activities in July 2019. This paved the way to the system’s deployment to other regional branches in November 2019, and final deployment to NCR branches in December 2019.

This system introduced new processes that strengthened the Fund’s OTC collection internal control – related activities which include the following:

• Assignment/re-assignment of Pag-IBIG Fund Official Receipt (PFOR) to concerned branch;

• Proper turnover of PFOR and Change Fund;• Receipt of remittance for MC/payment of loan amortizations and

other amounts due to the Fund;• Transfer and deposit of end-of-day Cash/Check collections; and• Cancellation of PFOR.

Two components of the Integrated Information Systems Project (IISP) – the PFMS and STLMS have been deployed in all branches before the end of CY 2017.

Under the said systems, operational and accounting processes have been automated, thus, more efficient with due regard for accuracy and sound internal control.

For control purposes, collections under the PFMS are electronically posted to the ledger of members with Member’s Identification (MID) Number. On the other hand, collections under the STLMS are electronically posted to the ledger of member-borrowers using the STL application number as reference. Collections not supported by the mandatory information are temporarily parked in Undistributed Collections (UC). During transition, collections pertaining to accounts not yet migrated to the IISP are, likewise, lodged to UC. Completion of the mandatory information and migration of data to the IISP systems are actively being pursued corporate wide.

The TAS shall continue with the clean-up activities until the non-migratable accounts that remained in the old system (legacy system) are migrated to the PFMS and STLMS. After exhausting all efforts to clean up the accounts in the old system, any remaining non-migratable accounts shall be disposed of in accordance with business rules/policies setting the threshold for such.

In compliance with COA Circular No. 2016-006 dated December 29, 2016 and COA Circular No. 2020-002 dated January 28, 2020 “Adoption of the Updated Revised Chart of Accounts for Government Corporations (2019)”, the Fund adopted the RCA in its Trial Balance for years 2020 and 2019. General Ledger (GL) and Subsidiary Ledger (SL) accounts were carefully analyzed and manually mapped to the RCA.

Core components of the IISP-ROPA System (Phases I and II) have been fully deployed in all operational and accounting units of HBCs before the end of CY 2018.


Adoption of New and Amended Standards and Interpretations

c. New Standards, Amendments and Interpretations Not Yet Adopted

ii. Amendments to PFRS 7, PFRS 9 and PAS 39, Interest Rate Benchmark Reform. The amendments provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amount of benchmark-based cash flows of the hedged item or the hedging instrument.

Other Standards and Amendments that are not yet effective and have not been adopted early by the Fund include:

i. Amendments to PFRS 9, PAS 39, PFRS 7, PFRS 4 and PFRS 16, Interest Rate Benchmark Reform (effective from January 1, 2021). The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).

ii. Amendments to PFRS 3, Business Combination – Reference to the Conceptual Framework (effective from January 1, 2022). The amendments update an outdated reference to the Conceptual Framework in PFRS 3 without significantly changing the requirements in the standard.

iii. Amendments to PAS 16, Property, Plant and Equipment – Proceeds Before Intended Use (effective from January 1, 2022). The amendments prohibit the entities from deducting from the cost of an item of property, plant and equipment any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss.

iv. Amendments to PAS 37, Onerous Contracts – Cost of Fulfilling a Contract (effective from January 1, 2022). The amendments apply a ‘directly related cost approach’. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.

v. Annual Improvements to PFRS 2018 - 2020 Cycle. The following amendments, which are effective from January 1, 2022, are relevant to the Fund:

• PFRS 9, Financial Instruments – Fees in ’10 per cent’ test for derecognition of financial liabilities. The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf.

i. Revised Conceptual Framework for Financial Reporting. The revised conceptual framework will be used in standard-setting decisions with immediate effect. Key changes include (a) increasing the prominence of stewardship in the objective of financial reporting, (b) reinstating prudence as a component of neutrality, (c) defining a reporting entity, which may be a legal entity, or a portion of an entity, (d) revising the definitions of an asset and a liability, (e) removing the probability threshold for recognition and adding guidance on derecognition, (f) adding guidance on different measurement basis, and, (g) stating that profit or loss is the primary performance indicator and that, in principle, income and expenses in other comprehensive income should be recycled where this enhances the relevance or faithful representation of the financial statements. The application of the revised conceptual framework had no significant impact on the Fund’s financial statements.

ii. Amendments to PAS 1, Presentation of Financial Statements, and PAS

8, Accounting Policies, Changes in Accounting Estimates and Errors

– Definition of Material. The amendments refine the definition of

material in PAS 1 and align the definition used across PFRSs and other

pronouncements. They are intended to improve the understanding

of the existing requirements rather than to significantly impact an

entity’s materiality judgments. The application of these amendments

had no significant impact on the Fund’s financial statements.

iii. Amendments to PFRS 16, Leases – COVID-19 Related Rent Concessions.

The amendments provide relief to lessees from applying PFRS 16 guidance

on lease modification accounting for rent concessions arising as a direct

consequence of COVID-19 pandemic. As a practical expedient, a lessee

may elect not to assess whether a COVID-19 related rent concession from

a lessor is a lease modification. A lessee that makes this election accounts

for any change in lease payments resulting from the COVID-19 related

rent concession the same way it would account for the change under

PFRS 16, if the change was not a lease modification. The Management is

still evaluating if these amendments will have significant impact on the

Fund’s financial statements when adopted.

i. Amendments to PFRS 3, Business Combinations – Definition of a Business. The amendment clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that, together, significantly contribute to the ability to create output. Furthermore, it clarifies that a business can exist without

including all of the inputs and processes needed to create outputs.

a. Effective in CY 2020 that are relevant to the Fund

b. Effective in CY 2020 that are not relevant to the Fund


• Illustrative Examples accompanying PFRS 16, Leases – Lease Incentives. The amendment removes the illustration of payments from lessor relating to leasehold improvements in illustrative example accompanying PFRS 16 to resolve any potential confusion regarding the treatment of lease incentives.

The following improvements are not relevant to the Fund:

• PFRS 1, First-time Adoption of PFRS – Subsidiary as a first-time adopter. The amendment simplifies the application of PFRS 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences.

• PAS 41, Agriculture – Taxation in fair value measurements. The amendment removed a requirement to exclude cash flows from taxation when measuring fair value of assets within the scope of PAS 41.

• discounted probability-weighted cash flows;• an explicit risk adjustment; and• a Contractual Service Margin (CSM) representing the unearned

profit of the contract which is recognized as revenue over the coverage period.

vi. Amendments to PAS 1, Presentation of Financial Statements – Classification of Liabilities as Current or Non-current (effective January 1, 2023). The amendments aim to promote consistency in applying the requirements by helping entities determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current.

vii. PFRS 17, Insurance Contracts (effective January 1, 2023). The new standard which will replace PFRS 4, Insurance Contracts upon effectivity, will set out the principles for the recognition, measurement, presentation and disclosure of insurance contracts within its scope. The overall objective of the standard is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. This new standard requires a current measurement model where estimates are remeasured in each reporting period. Moreover, contracts are measured using the building blocks of:

Under the prevailing circumstances, the Fund is currently assessing the financial impact, which includes, among others, the material effect of above stated new and amended standards on its financial statements.

Significant Accounting Judgments and Estimates

In the process of applying the Fund’s accounting policies, Management exercised judgment and estimates in determining the amounts recognized in the financial statements, with the most significant as follows:

a. Presentation of financial statements

b. Financial instruments

The Fund applies materiality considerations to all parts of its financial statements. Each material class of similar items is presented separately and dissimilar items that are individually immaterial are aggregated. Materiality considerations are applied even when standard requires a specific disclosure and information is not obscured by aggregating or by providing immaterial information.

Notes to financial statements are presented in a systematic manner that considers the effect on understandability and comparability. Each item in the financial statements is cross-referred to any related information in the notes.

The Fund adopted the applicable provisions of PFRS 9 – Financial Instruments, which superseded PAS 39 – Financial Instruments: Recognition and Measurement.

Financial assets and financial liabilities are recognized when the Fund becomes a party to the contractual provisions of the financial instrument.

The Fund’s financial assets totaled P622.102 billion or 92.78 per cent of its Total Assets for CY 2020, to wit:

Investment accounts are mapped and grouped to the most appropriate accounts in the COA RCA and disclosed as Financial Assets in accordance with PFRS 9. Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Fund provides money, goods, or services directly to a debtor with no intention of trading the receivable. Interest earned on such receivables is reported as interest income.

Particulars Amount

FA at Amortized Cost

Cash and cash equivalents 7,298,383,765

Investment in time deposits 4,008,722,247

Investment securities 500,000,000

Receivables – net 559,256,893,587

FA at Fair Value through Other Comprehensive Income (FVOCI) 46,374,370,071

FA at Fair Value through Profit or Loss (FVTPL) 4,663,872,509

622,102,242,179


Financial assets are measured at amortized cost if both of the following conditions are met:

• the asset is held within the Fund’s business model whose objective

is to hold financial assets in order to collect contractual cash flows

(“held to collect”); and

• the contractual terms of the instrument give rise, on specified dates,

to cash flows that are solely payments

• Debt securities – Fair values are generally based on quoted market

prices. If the market prices are not readily available, fair values

are estimated using adjusted quoted market prices of comparable

investments.

• Equity securities – Fair values are based on quoted prices published

in markets.

• Receivables – Carrying amounts are net of provisions for impairment.

• Short-term investments – Carrying amounts are approximately at

fair values.

• Cash and cash equivalents – Carrying amounts are approximately

at fair values.

After initial measurement, receivables are subsequently measured at amortized cost using effective interest method, less allowance for impairment losses. Amortized cost is calculated taking into account any discount or premium on acquisition that are an integral part of the effective interest rate. The amortization is included in the “Service and Business Income” section of SCI. Assets in this category are included in current assets except for those with maturities greater than 12 months after reporting period, which are classified as non-current assets.

These include the following accounts:

Financial assets at FVTPL are subsequently measured at fair value. The unrealized gains and losses, and dividend income are recognized directly in the SCI.

These accounts include investments under the Local Equity Fund Managers (Note 4), to wit:

• the contractual terms of the financial assets give rise to cash flows that are SPPI on the principal amount outstanding.

Investments under this category are subsequently measured at fair values. The unrealized gains and losses arising from fair valuation of these investments are excluded from reported income and are reported as ‘Cumulative Changes in Fair Value in the equity section of the Statement of Financial Position (SFP). The effective yield component of debt securities, as well as the impact of restatement of foreign currency-denominated debt securities, is reported in the SCI.

When the debt securities are disposed of, cumulative gains or losses previously recognized in equity, under Other Comprehensive Income, are recognized as trading and investment securities gains (losses) in the SCI. Investments are included under non-current assets unless the Fund intends to dispose of the investments within 12 months after the end of reporting period.

HDMF accounts for financial assets at FVOCI if the assets meet the following conditions:

• they are held under a business model whose objective is to hold to collect the associated cash flows and sell (“hold to collect and sell”); and,

Classification, Measurement and Reclassification of Financial Assets

The classification and measurement of financial assets is driven by the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The classification and measurement of financial assets are described below and in the succeeding pages.

The Fund initially measures a financial asset at its fair value plus or minus, for an item not at an FVTPL, transaction costs that are directly attributable to its own acquisition or use.

Fair Value Measurement

The method and assumptions used by the Fund in estimating the fair value of the financial instruments are:

i. Financial Assets at Amortized Cost

i. Fair value of financial assets

iii. Financial Assets at Fair Value through Profit or Loss (FVTPL)

ii. Financial Assets at Fair Value through Other Comprehensive Income (FVOCI)

2020 2019

Cash and cash equivalents (Note 3) 7,298,383,765 6,278,680,032

Investment in time deposits (Note 4) 4,008,722,247 200,000,000

Investment securities (Note 4) 500,000,000 0

Receivables – net (Note 5) 559,256,893,587 512,638,342,889

571,063,999,599 519,117,022,921

Market Value

BPI Asset Management and Trust Corp. 981,293,784

BDO Unibank, Inc. – Trust and Investments Group 902,839,264

Philequity Management, Inc. 1,005,132,017

Metropolitan Bank and Trust Company 945,094,010

ATRAM Trust Corporation 829,513,434

4,663,872,509


If the financial assets are not listed in an active market, the fair value is determined using appropriate valuation techniques which include recent arm’s length market transactions, comparison to similar instruments for which market observable prices exists, and other relevant valuation models.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. PFRS 13, Fair Value Measurement, establishes a framework for measuring fair value. It provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under the standard are described as follows:

Level 1

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Fund has access into.

Level 2

Inputs to the valuation methodology include:

The Fund recognizes the amount that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized in accordance with PFRS 9.

On December 17, 2018, the Management Committee (ManCom) approved to revise the Expected Loss Rate (ELR) for current and one to 30 days past due (dpd) buckets to 0.45 per cent. The impairment rate was the result of the assessment made by the Risk Management Task Force based on its Expected Loss Model with probability of default and loss given default as its components which were both approved by the Board of Trustees. With the adoption of Expected Credit Loss (ECL), the objective evidence or loss event is no longer a trigger to recognize impairment loss, rather, future losses are factored in at trade or commitment date.

On December 11, 2020, the Board of Trustees approved the adoption of BSP rates on Allowance for Credit Losses (ACL) for housing loans as follows:

If the asset or liability has a specified (contractual) term, the Level 2 input must be observed for substantially the full term of the asset or liability.

Level 3

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Fair value of debt and equity security investments of the Fund are measured using Level 1 methodology, Level 2 measurement of fair value is applied to Receivables and Level 3 technique is used for measurement of investment properties.

The Fund reviews its financial assets periodically or upon incurrence of loss events to assess whether the impairment provisioning is sufficient to cover credit risks and absorb losses incurred on the loan portfolio and other risky assets or an impairment loss should be recognized or reversed in the SCI.

ii. Fair value hierarchy

Impairment of Financial Assets

ACL Rate = 1 - recovery rate based on APM

• Quoted prices for similar assets or liabilities in active markets.

• Quoted prices for identical or similar assets or liabilities in inactive

markets.

• Inputs other than quoted prices that are observable for the asset

or liability.

• Inputs that are derived principally from or corroborated by

observable market data by correlation or other means.

• Expected Loss Rate Model for current to 30 days past due accounts as

contained in the framework approved by the BOT on December 20, 2016.

Adopt impairment rates for 31 to 365 days past due and Over 1 year

to 5 years pursuant to BSP Circular No. 1011 and BSP Memorandum

No. M-2020-061. This is to align the Fund’s Expected Credit Losses

for these accounts with the standards set by the BSP to address

issues on over conservatism which tend to deprive members of

additional benefits.

• Complementary rate of the recovery rate based on the Asset

Pricing Model (APM) for housing loan accounts over 5 years past

due applying the following formula:


The Fund employed the following impairment rates on receivables The Fund employed the following impairment rates on receivables depending on the age of the loan:depending on the age of the loan:

Rate(in per cent)

Mortgage / Sales Contract Receivables

Current 0.45

1 – 30 days past due 0.45



91 – 120 days past due 15.00

121 – 180 days past due 25.00

181 – 270 days past due 25.00

271 – 365 days past due 25.00

Over 1 year 50.00

Over 2 years 50.00

Over 3 years 50.00

Over 5 years 50.00

Referred to foreclosure 50.00

With extra-judicial foreclosure 50.00

Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred.

Classification and Measurement of Financial Liabilities

Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Fund designated a financial liability at FVTPL.

The Fund’s financial liabilities include Accounts Payable, Insurance/Reinsurance Premium Payable and Due to Officers and Employees, which are subsequently measured at amortized cost.

Financial Liabilities are derecognized in the statement of financial position only when the obligations are extinguished either through discharge, cancellation or expiration. The difference between the carrying amount of the financial liability derecognized and the consideration paid or payable is recognized in profit or loss.

Cash and cash equivalents

Cash includes cash on hand and in banks, both foreign and local. Cash in banks earn interest at the respective bank deposit rates. Cash equivalents, on the other hand, include highly liquid investments acquired three months or less before maturity and subject to insignificant risk of change in value resulting from change in interest rates.

Investments

Investments include Financial Assets at Amortized Cost, Fair Value through Other Comprehensive Income and Fair Value through Profit or Loss. They include equities and debt instruments, which are not intended for trading in the short-term period of not more than 90 days but may be sold in response to liquidity requirements or changes in market conditions. Included under this category are Treasury Notes/Bonds and Philippine Dollar Denominated Bonds issued by the Bureau of the Treasury (BTr) and Republic of the Philippines, Government Banks and Philippine Corporations.

A regular way purchase or sale of financial assets is recognized and derecognized by the Fund, as applicable, using settlement date accounting. The method is applied consistently for all purchases and sales of financial assets that belong to the same category of financial asset.

Investment in Bonds and Other Debt Instruments are carried at current market value. Cost of Bonds and Other Debt Instruments sold are accounted for using specific identification method.

Local Equity under Fund Managers (LEFM) consists of managed equity investments which are carried at current market value. The market value of investments is adjusted every end of the month and any increase or decrease from valuation is recognized in the SCI.

Investment in stocks includes Philippine Long Distance Telephone (PLDT) Company shares listed in the Philippine Stock Exchange which are carried at current market value. The market value of the stocks is adjusted every end of the month. If the market value is more or less than the cost, the difference is treated as unrealized gains (losses) on mark-to-market and is presented as equity portion of the SFP and addition/reduction in the SCI.

Cost of stocks sold is computed using the weighted average cost method.

Other investments consist of short-term placements with maturities of 91 days but not more than one year from the date of acquisition and are unrestricted as to withdrawal and earns interest at the respective bank deposit rates.

Receivables

Receivables are carried at book value, net of allowance for impairment losses, if any. They are classified into current and non-current.

Current portion refers to the aggregate principal amortizations due for the entire year succeeding the reporting year and those pertaining to the entire balance of receivables in arrears, over three months.


a. Prepayments

Prepayments include amounts advanced/deposited for registration fees, leases/rentals, supplies, software subscriptions, and insurance premiums of the Fund’s property and equipment used in day-to-day operations. These are carried at cost and are expected to be realized or consumed within twelve months after the end of the reporting period.

b. Inventories - Inventory Held for Consumption

Inventories are stated at the lower of cost or Net Realizable Value (NRV). Cost is determined by using the First-In-First-Out (FIFO) method.

c. Inventories – Semi-Expendable Items

This includes tangible items that are below the capitalization threshold of P15,000. Tangible assets with serviceable life of more than one year but small enough to be considered as Property and Equipment (PE), and items eventually treated as expense upon issuance are also included in this account.

Non-Current Assets Held for Sale (NCAHS)

NCAHS consists of ROPA that the Fund intends to sell within one year from the date of reclassification as held for sale. The Fund classifies an asset as NCAHS if its carrying amount will be recovered principally through a sale transaction rather than continuing use. NCAHS is initially recognized at lower of carrying amounts immediately prior to its classification as assets held for sale or its fair value less cost to sell. The Fund recognizes an impairment loss for any initial and subsequent write-down of the asset to fair value less cost to sell. Gain on any subsequent increase in fair value less cost to sell an asset is recognized to the extent of the cumulative impairment loss previously recognized. NCAHS is not subject to depreciation.

If the Fund has classified an asset as held for sale, but the criteria for it to be recognized as held for sale are no longer satisfied, the Fund shall cease to classify the asset as such. If the sale of the asset is extended beyond one year, the extension of the period required to complete the sale on the asset does not preclude an asset from being classified as held for sale if the delay is caused by events or circumstances beyond the Fund’s control and there is sufficient evidence that it remains committed to sell the asset.

Investment Property (IP)

Real and Other Properties Acquired (ROPA), consisting of collaterals of cancelled Contracts to Sell (CTS) and foreclosed properties with registered Certificate of Sale, but still under the redemption period, as well as those with titles already consolidated in favor of the Fund, are

classified as IPs. These are initially measured at their fair value, net of discount rate based on APM, as the deemed cost at foreclosure date and subsequently valued using the cost model.

Based on the cost model approach, depreciable amount (cost, net of residual value) of ROPA is allocated using straight line method over the remaining useful life as disclosed in the Appraisal Report, but not to exceed the prescribed life span as follows:

On November 24, 2017, the ManCom approved the use of the APM as a valuation methodology to determine the discount rate, which will be the basis for the initial recognition of the ROPA in the Fund’s books of accounts.

IP- ROPA is presented net of Allowance for Impairment Losses and Accumulated Depreciation as shown in Note 8.

Property and Equipment (PE)

The Fund adopted the cost model as its measurement policy for PE where the entire class of PE is carried at cost less accumulated depreciation and accumulated impairment loss, if any.

An item of PE is recognized as an asset if: (1) it is probable that future economic benefits associated with the asset will flow to the Fund; and (2) the cost of the item can be measured reliably. Future economic benefits occur when the risks and rewards of the asset’s ownership have passed to the Fund and the asset will be used in its operation for more than one year from the date of issuance of Certificate of Acceptance or Receiving and Inspection Report.

PE is initially recognized at cost, which is its cash price equivalent at acquisition date. The initial cost of the asset includes its purchase price, including import duties and non-refundable purchase taxes after deducting trade discounts, trade-in discounts and rebates, any cost directly attributable to bringing the asset to the location and condition necessary for it to operate in the manner intended by management, and the initial estimate of the costs of dismantling and removing the item as well as restoring the site on which it is located.

The cost of an item of PE shall exclude cost of opening a new facility, cost of introducing a new product or service, cost of doing business in a new location and administrative and other general overhead costs.

Other expenditures subsequent to acquisition of PE, such as repairs and maintenance and relocation, are charged to expense as incurred.

Other Current Assets

Type Estimated Useful Life

Predominantly wood 10 years

Predominantly mixed 20 years

Concrete 30 years


Replacement of parts shall be recognized as PE if the recognition criteria are met while cost of the parts replaced should be derecognized.

Depreciation is calculated on straight-line basis over the estimated and/or remaining useful life of the asset. Residual value of PE is set at ten per cent of the acquisition cost. As applicable, PE such as Leased Asset Improvements shall be depreciated over the useful life of the improvement or the lease term, whichever is shorter. The lease term would include any renewal option periods where extension of the lease is expected. Method of depreciation, useful life and residual value is reviewed at least every financial year-end to assess whether there has been significant change in expected pattern of consumption of future economic benefits embodied in the asset or expectations differ from previous estimates. Any change is accounted for as change in accounting estimates.

The estimated useful life of PE are as follows:

Intangibles

Information Technology Software costs are capitalized on the basis of the cost incurred to acquire and bring to use the specific software. These costs, net of residual value, are amortized over its useful life on a straight-line basis. The useful life is based on the nature of the asset acquired, which shall not exceed the period of contractual or other legal rights over the asset.

Maintenance costs associated with maintaining the computer software program is recognized as expense when incurred.

Leases

The Fund as a lessor classifies rental income as operating lease. Rentals received are recognized as income on a straight-line basis over the lease term. Assets held for operating leases are presented in Note 8. Likewise, the Fund as a lessee classifies rental payments as operating lease. Periodic rental is recognized as rent expense on a straight-line basis over the lease. COA Resolution No. 2020-033 dated December 2, 2020 was issued prescribing the mandatory adoption of PFRS 16 – Leases effective for periods beginning January 1, 2020. The HDMF requested deferment on the adoption of PFRS 16 in a letter dated March 3, 2021 and the COA, in its reply dated April 12, 2021, interposed no objection.

Interest income recognition

Interest income on housing loans is recognized on accrual basis at month end. Interest on Calamity Loans under HDMF Circular Nos. 322, 375, 418 and 426, and interest on Multi-Purpose Loans (MPL) under HDMF Circular Nos. 323, 374, 419 and 425 are computed on a daily basis but recorded at month end. Recording of accrual stops once an account is over 90 days past due.

a. Interest on multi-purpose loans/calamity loans

The policies adopted in setting the interest rates on short-term loans are set out as follows:

When an item of PE is sold or retired, its cost and accumulated depreciation and amortization are dropped from the books and any gain or loss resulting from the disposal is reported in the SCI.

Land Improvement

Leased Assets Improvement

Land 10

Building, Mixed 40

Building, Concrete 50

Building and Other Structures

Mixed 40

Concrete 50

Machinery and Equipment

Office Equipment 5

Information and Communication Technology Equipment

5

Communication Equipment 5

Medical Equipment 10

Printing Equipment 5

Sports Equipment 10

Technical and Scientific Equipment 5

Other Machinery and Equipment 5

Transportation Equipment

Motor Vehicles 7

Other Transportation Equipment 10

Furniture, Fixtures and Books

Furniture and Fixtures 10

Books 5

Other Property, Plant and Equipment 5

OperativeDates

HDMFCircular No.

DescriptionInterest Rate(in per cent)

February 3, 2017 374

Revised Guidelines on the Pag-IBIG MPL Program under the Short-Term Loans Management System of the Integrated Information Systems Project (STLMS – IISP)

10.50

February 28, 2017 375Revised Guidelines on the Pag-IBIG Fund Calamity Loan Program

5.95


b. Interest on wholesale loan

c. Interest on housing loans

Effective March 5, 2020, the nominal interest rates for Wholesale Loan Program are as follows:

For end-user loans outstanding prior to January 1, 2020 prevailing interest rates are as follows:

Nominal interest rates for Housing Loan Restructuring Program effective November 15, 2019 are as follows:

The following policies adopted the Full Risk-Based Pricing Model:

Prior to March 5, 2020, prevailing interest rate, in force by virtue of HDMF Circular No. 330, “Adoption of Full Risk-Based Pricing Framework for all Pag-IBIG Fund Wholesale Loan (WL) Programs,” are as follows:

Nominal interest rates for the End-User Home Financing (EUF) Program for CY 2020 are as follows:

Pursuant to the approval of BOT last July 9, 2020, the interest rates under the EUF program have been reduced to 4.985 per cent and 5.375 per cent for 1-year and 3-year fixing period, respectively. The promotional interest rates shall apply to new housing loan take outs starting July 1, 2020 until December 29, 2020. Said interest rates shall also apply to ROPA installment accounts with signed Deed of Conditional Sale (DCS) starting July 1, 2020 until December 29, 2020.

Product Rate (in per cent)

1-Year Fixing 6.000

2-Year Fixing 6.125

3-Year Fixing 6.250

Product Rate (in per cent)*

1-year term, fixed 6.125



*Effective January 01, 2015

Fixing Period

Rate (in per cent)

January 1, 2020 to June 30, 2020

July 1, 2020 to December 31, 2020

End-user financing (Regular)End-user financing (Regular)

1-year Fixing*1-year Fixing* 5.375 5.375 5.3755.375

3-year Fixing* 3-year Fixing* 6.3756.375 6.1256.125

5-year Fixing5-year Fixing 6.8756.875 6.5006.500






Fixing Period

Rate (in per cent)

Jul 1, 2019 to Dec 31,

2019

Jan. 1, 2019 to Jun 30,

2019

Feb. 14, 2018 to Dec. 31,

2018

Jan. 1, 2018 to Feb. 13,

2018

End-user financing (Regular)

1-year Fixing 5.375 5.375 5.375 5.500

3-year Fixing 6.375 6.375 6.375 6.500

5-year Fixing 6.875 7.270 7.270 7.270

10-year Fixing 7.500 8.035 8.035 8.035

15-year Fixing 8.125 8.585 8.585 8.585

20-year Fixing 8.875 8.800 8.800 8.800

25-year Fixing 9.500 9.050 9.050 9.050

30-year Fixing 10.125 10.000 10.000 10.000

Fixing Period Rate (in per cent)

Housing Loan Restructuring Program

1-year Fixing 7.750

3-year Fixing 8.000

5-year Fixing 8.250

10-year Fixing 8.875





Operative DatesHDMF

Circular No.Description

July 24, 2014 344 Guidelines Implementing the Pag-IBIG Fund Take-Out Mechanism for Developer-Assisted Housing Program

August 2, 2017 385 Revised Guidelines Implementing the Pag-IBIG Fund Home Rehabilitation/Reconstruction Loan Program

August 30, 2017 389 Revised Guidelines on the Conversion to Full-Risk Based Pricing Program

January 9, 2018 396 Modified Guidelines on the Pag-IBIG Fund End-User Home Financing Program

May 23, 2018 403 Modified Guidelines on the Pag-IBIG Fund Affordable Housing Program

September 14, 2018 410 Adjustment on the Socialized Housing Loan Ceiling


Operative DatesHDMF

Circular No.Description

October 24, 2018 413Extended Application of the Subsidized Interest Rates Under the Pag-IBIG Fund Affordable Housing Program

December 18, 2018 414Amended Guidelines on the Pag-IBIG Fund Housing Loan Restructuring Program

October 23, 2019 429Revised Guidelines on the Implementation of the Pag-IBIG Non-Performing Asset Resolution Program for Retail Loans

July 10, 2020 437Guidelines on the Pag-IBIG Fund Rental Housing Construction Loan Program

October 16, 2020 439Guidelines on the Pag-IBIG Fund Special Housing Loan Restructuring Program

Loan AmountLoan-to-Appraisal

Value Ratio(in per cent)

Up to the Economic Housing Limit* 95

Over the Economic Housing Limit up to P6,000,000 90

Loan AmountLoan-to-Appraisal

Value Ratio(in per cent)

Up to the Socialized Housing Loan Ceiling 100

Over the Socialized Housing Loan Ceiling up to P750,000 95

HDMF Circular No. 396, “Modified Guidelines on the Pag-IBIG Fund End-User Home Financing Program,” repealing HDMF Circular Nos. 310, 349, 353 and 361 took effect on January 24, 2018. The circular prescribes comprehensive guidelines that cover all retail and developer-assisted housing loan accounts that will be processed and taken out upon its effectivity.

Pursuant to HDMF Circular No. 396, interest rates on retail housing loans were based on a pricing framework approved by the BOT on June 6, 2012. Said interest rates shall be re-priced periodically depending on the re-pricing period chosen by the borrower whether every 3, 5, 10 or 15 years. Under HDMF Circular No. 317, “Program on the Conversion to Full Risk-Based Pricing Model”, all borrowers with housing loans taken out under HDMF Circular No. 247, “Guidelines on the Pag-IBIG Fund End-User Home Financing Program” or earlier circulars with interest rates above the prevailing market rates may avail of interest rate reduction under the Full Risk Based Pricing Program, subject to its terms and conditions. The program was amended by virtue of HDMF Circular No. 389.

Effective July 14, 2018, HDMF Circular No. 402, “Determination of Loanable Amount Based on Capacity to Pay and Loan-To-Appraised Value Ratio Under Pag-IBIG Fund End-User Home Financing Program” was issued to determine the ratio of the loan amount to the appraised value of the collateral which shall not exceed the following:

To further enhance the benefits of housing loan borrowers, HDMF Circular No. 379, was issued covering all accounts of eligible borrowers processed and taken out beginning May 1, 2017. However, effective on June 7, 2018, for the Affordable Housing Program (AHP), HDMF Circular No. 403, “Modified Guidelines on the Pag-IBIG Fund Affordable Housing Program” prevails. HMDF Circular No. 379 and memoranda, rules, regulations, and other issuances inconsistent with HDMF Circular No. 403 are repealed. The new guidelines cover all AHP retail and developer-assisted housing loan applications received by the Fund upon its effectivity. Under this Circular, the ratio of the loan amount to the appraised value of the collateral shall not exceed the following:

By virtue of HDMF Circular No. 340, “Socialized Housing Price Ceiling Adjustment,” the maximum loanable amount under the socialized housing program was raised to P450,000 from the previous limit of P400,000. At the end of the ten-year period, the interest rates shall be re-priced either based on the prevailing market rates using the Fund’s pricing framework or increased by two per cent, whichever is lower. The borrower shall also be given the option to choose the succeeding re-pricing period, whether it will be every three, five, ten or 15 years. HDMF Circular No. 351, “Amended Guidelines on the Implementation of the Pag-IBIG Non-Performing Asset Resolution Program (NPARP)” amending HDMF Circular No. 311 took effect on November 26, 2014.

The circulars are intended to enable highly delinquent borrowers to maintain their possession or use of the property under modified terms and conditions and to immediately dispose of non-performing assets at the highest value possible through cash, installment sale for a period of six months or 12 months, or through housing loan. Nominal interest rate for installment plan is set at 10.250 per cent.

It provides that for the first five or ten years of the loan, borrowers under each specific income cluster shall be charged with affordable interest rate as follows:

* For developer-assisted housing loans up to the prevailing maximum limit for socialized housing loan, the LTV ratio shall be 100 per cent; provided, the developer’s License to Sell is for a socialized housing project and the loan purpose is for the purchase of a residential unit.

Details Maximum Gross Monthly Income/Cluster Limit

Income ClusterCluster 1 (NCR) Up to P15,000 Up to P17,500

Cluster 2 (Other Regions) Up to P12,000 Up to P14,000

Loan Amount Loans up to P450,000 Loans up to P750,000Loans up to P750,000

Interest Rate 3.0% 6.5%6.5%


HDMF Circular No. 429, “Revised Guidelines on the Implementation of the Pag-IBIG Non-Performing Asset Resolution Program for Retail Loans” took effect on October 23, 2019, which was intended to update and enhance the guidelines set in the HDMF Circular No. 351.

HDMF Circular No. 437, “Guidelines on the Pag-IBIG Fund Rental Housing Construction Loan Program” was issued on July 10, 2020, which is intended to engage the participation and involvement of project proponents in rental housing as an alternative mode of shelter provision, through site development and house construction on land owned and/or provided by the project proponent and encourage project proponents to construct housing units on their fully developed lots, thus, creating ready inventories of residential housing units for rent. Interest rate shall be based on the prevailing rates in the Fund’s Full Risk-Based Pricing Framework for wholesale loan programs.

Mode of Settlement Discount(in per cent)

Cash 30

Six-month installment 20

12-month installment 10

Housing loan revaluation 5

2020 2019

Cash on hand 271,186,506 380,995,539

Cash in bank – local currency 3,233,292,663 2,781,066,377

Cash in bank – foreign currency 21,419,196 18,243,475

Cash equivalents 3,772,485,400 3,098,374,641

7,298,383,765 6,278,680,032

Foreign currency transactions

Foreign currency transactions are recorded based on the exchange rate on the date of transaction. Exchange rate difference arising from the settlement of monetary items or from reporting of foreign currency monetary items at rates other than the rate applied in recording the transaction or the rate adopted in previous financial statements are reported in the SCI. US Dollar-denominated transactions are initially translated into the functional currency using the Spot Exchange Rate (SER) between the foreign currency and the functional currency on the date of transaction. SER is the exchange rate for the immediate delivery based on the weighted average rate of the previous business day as published by Bankers Association of the Philippines (BAP). All other foreign currency-denominated transactions are translated to US Dollar currency first using the exchange rates published by Reuters before translating the same to Philippine peso.

Members’ equity

Members’ equity comprises of members’ contributions, employers’ counterpart for employed members and the accumulated dividends of the members as owners of Pag-IBIG Fund, inclusive of MP2 program of the Fund. It is credited for contributions collected and share in declared dividends and debited for set-up of Accounts Payable for membership matured as of year-end and maturing within one year from statement of financial position date (Note 12), offsetting of member’s short-term or housing loans and withdrawal of savings.

Modified Pag-IBIG 2 (MP2) Savings is a special savings facility with a 5-year maturity, designed for Pag-IBIG Fund members who wish to save more and earn even higher dividends, in addition to their Pag-IBIG Regular Savings. The program is also open to pensioners and retirees who were former Pag-IBIG Fund members.

Reclassifications

The Fund has reclassified certain accounts in the December 31, 2019 financial statements and supporting note disclosures to conform to the current year presentation as follows:

Accountable Officer and Claims for Disallowed Payments amounting to P1.047 million, previously presented as part of Other Current Assets, were reclassified and presented under Other Receivables to conform to the current year presentation.

Directors and Committee Members Fee and Special Counsel Allowance amounting to P12.893 million were reclassified from Maintenance and Other Operating Expenses to Personnel Services to conform to the more appropriate current year presentation. The reclassification has no impact on the statements of comprehensive income for the year ended December 31, 2019.

Discounts are provided depending on the chosen mode of settlement as follows:

This account is composed of the following:

Previously reported

Movement After reclassification

Statement of Financial Position

Current assets

Receivables 173,199,429,785 1,047,169 173,200,476,954

Other current assets 285,367,120 (1,047,169) 284,319,951

Current liabilities

Financial Liabilities 67,211,093,829 (16,225,908,020) 50,985,185,809

Provision 2,234,847,5442,234,847,544 (330,068,358) 1,904,779,186

Other payables 893,825,702 16,225,908,020 17,119,733,722

Non-current liabilities

Provision 00 330,068,358 330,068,358

Statement of Comprehensive Income

Expenses

Personnel services 4,843,165,220 12,892,566 4,856,057,786


6,953,287,539 (12,892,566) 6,940,394,973

3. CASH AND CASH EQUIVALENTS


Bank deposits on foreign currencies at December 31, 2020 were revalued based on the following rates as at December 29, 2020: BAP Weighted Average Rate US$1 = P48.036 and Reuters’ CAD$1 = US$0.7769 for third currency conversion from Canadian to US Dollar. Interest rates from cash equivalents with maturity of 90 days and below range from 0.90 to 1.83 per cent for local currency and 0.01 to 0.45 per cent for foreign currency.

This account consists of investment in treasury notes/bonds and equity securities which includes the following:

Investment in Time Deposits

This account consists of Investment in Time Deposits, which is a local currency, fixed-term placement for a period of 91 days but less than one year and earns interest from 1.73 to 2.30 per cent.

Financial Assets Designated at Fair Value Through Profit or Loss

The Fund outsourced, through Public Bidding-Consultancy Services, the management of its P5 billion equity investments to five well-established, technically, legally and financially competent and qualified fund managers taking into consideration the requirements for safety, liquidity and growth. As part of risk mitigating measures, the P5 billion total equity portfolio shall be equally divided into five lots amounting to P1 billion each. The Board, in its meeting on July 5, 2018, approved the Terms of Reference and Budget for the Contract for the Engagement of Local Equity under Fund Managers (LEFMs) under the Board Resolution No. 3293, series of 2018.

Last January 25, 2019, the Fund started investing in LEFMs. As at December 31, 2020, total investment stood at P5 billion with a market value of P4.664 billion. Net losses recognized in 2020 and 2019 amounted to P256.299 million and P79.828 million, respectively.

4. INVESTMENTS

2020 2019

Current

Financial assets designated at FVPL 4,663,872,509 4,420,171,602

Investment in time deposits 4,008,722,247 200,000,000

Investment securities at amortized cost 500,000,000 0

9,172,594,756 4,620,171,602

Non-Current

Financial assets at FVOCI 46,374,370,071 54,752,715,863

55,546,964,827 59,372,887,465

Principal Value Market Value

BPI Asset Management and Trust Corp. 1,000,000,000 981,293,784

BDO Unibank, Inc. – Trust and Investments Group 1,000,000,000 902,839,264

Philequity Management, Inc. 1,000,000,000 1,005,132,017

Metropolitan Bank and Trust Company 1,000,000,000 945,094,010

ATRAM Trust Corporation 1,000,000,000 829,513,434

5,000,000,000 4,663,872,509

Investment Securities at Amortized Cost

This pertains to one-year Premyo Bonds, which are investment securities issued by the Republic of the Philippines with a quarterly interest coupon payment of 1.25 per cent, maturing on December 16, 2021.

Fair Value through Other Comprehensive Income (FVOCI)

FVOCI is composed of investment in bonds and other debt instruments and investment in stocks, details follow

Included in this account group are Treasury notes/bonds for Member’s Savings Reserve Fund (MSRF) with face value of P19.033 billion and market value of P20.615 billion (Note 11), the setting up of which was covered by HDMF AMO No. 2015-005. This is to ensure efficient liquidity management for benefit claims and return of members’ equity upon maturity, pursuant to Section 1(k), Rule III of the IRR and Section 4 (j) of the HDMF Charter, RA No. 9679.

Interest rates for investment in bonds and other debt instruments range from 3.00 to 8.00 per cent with maturity dates from CYs 2022 to 2042.

Treasury Bills consist of government securities issued by the Bureau of the Treasury purchased at a discount with a tenor of 364 days and interest rate of 1.78 to 3.84 per cent.

Investment in Stocks includes PLDT common shares converted from PLDT preferred shares carried at current market value amounting to P536,939.

5. RECEIVABLES

2020 2019

Treasury notes/bonds 33,504,549,415 45,203,766,692

Corporate bonds 6,301,895,965 6,052,064,674

Dollar denominated bonds 3,424,469,864 3,496,124,105

Treasury bills 3,142,553,684 0

Investment in stocks 901,143 760,392

46,374,370,071 54,752,715,863

2020 2019

Mortgage/sales contracts receivable 524,146,362,490 476,549,329,505

Loans receivable 59,389,363,036 68,086,271,145

Interests receivable 6,155,380,742 4,893,110,617

Accounts receivable 1,520,836,770 2,225,184,477

Other receivables 7,353,533,096 266,911,255

598,565,476,134 552,020,806,999

Allowance for impairment loss (39,308,582,547) (39,382,464,110)

559,256,893,587 512,638,342,889

Current receivables 226,357,556,306 173,200,476,954

Non-current receivables 332,899,337,281 339,437,865,935


Mortgage/Sales Contracts Receivable (M/SCR) represent loans to Pag-IBIG members that are backed-up by REMs/CTS under the various home lending programs of the Fund. The current M/SCRs of P182.303 billion and P123.051 billion for years 2020 and 2019, respectively, include past due accounts, zero to three months in arrears of P74.386 billion and P32.415 billion, respectively, which are immediately due and demandable.

Loan Sale and Purchase Agreement (LSPA) Between HDMF and NHMFC

On June 18, 2019, HDMF and NHMFC entered into a LSPA covering the sale, transfer, assignment and conveyance to the latter, all the rights, obligations, titles and interests to 2,925 residential housing loan accounts originating from various socialized housing units that meet the following criteria as of April 30, 2019, the agreed cut-off date:

• Documented through Real Estate Mortgage (REM)• Seasoned for at least 24 months from date of takeout• Current in status of up to three months in arrears as of cut-off date• With loan term not exceeding 30 years from date of takeout and with

remaining loan term of at least five years as of cut-off date• With original loan amount of up to P450,000 and interest rate of 4.50 per

cent• Loan-to-appraised value ratio not exceeding 100 per cent as of takeout

date • Properties covered by the sale must be house and lot or condominium unit

The HDMF and NHMFC also entered a separate Servicing and Accounts Management Agreement (SAMA) for certain scope of services to the accounts covered by the LSPA, including collection of payments and remittance to NHMFC, effective for the period of one year from cut-off date, for a servicing fee of 1.27 per cent of the total purchase price. Service fee earned is included as part of Other Service Income presented in Note 18. Total purchase price for the covered accounts is P1.058 billion.

A second tranche of LSPA was entered into by the HDMF and NHMFC on December 17, 2019, for an agreed price of P463.365 million. This covers 1,228 accounts that pass the refined criteria as of August 31, 2019 agreed cut-off date, as follows:

• REM accounts under HDMF• Account’s status is current or 0-3 months in arrears for the last 12 months• Seasoned to not less than 12 months from take-out date• Original loan equivalent to socialized loan limits• Original loan term should not be more than 360 months• Remaining term must not be less than 60 months as of cut-off date• Minimum interest rate of three per cent• Maximum initial loan value ratio of 100 per cent• House and lot or condominium unit

Housing loan accounts covered by the second tranche was not subjected to SAMA.

Loans Receivables account consists of receivables from STL, Calamity Loans and Other Government Corporations in the total amount of P59.389 billion and P68.086 billion for CY 2020 and 2019, respectively. Further, these include past due accounts, zero to three months in arrears, of P13.848 billion and P16.030 billion for CYs 2020 and 2019, respectively, which are immediately due and demandable.

Interest Receivable includes interest earned by the Fund on its investments and loans receivable but not yet collected as at end of year. The Fund recognizes interest receivable on loans for up to three months of delinquency for accounts with monthly amortization schedule. For accounts with quarterly, semi-annual and annual amortization schedule, accrual ceases on the first month after due date.

Accounts Receivable (AR) consists of:

a. AR–Developers are receivables representing collection of loan amortizations by developers for remittance to the Fund, which are within the float period of one week as embodied in the collection servicing agreement. They likewise include the buyback value of past due Sales Contract Receivable (SCR) and SCRs covered by CTS which the developer failed to convert to Real Estate Mortgages (REM), as well as deficiencies on conversion fees withheld from takeout proceeds.

b. AR–Borrowers consist of receivables from housing loan borrowers for advances made by the Fund for renewal of insurance coverage of delinquent accounts and remaining balance of short term loans after deducting their Total Accumulated Value (TAV) upon withdrawal or claim.

c. AR–Collecting Agents (CAs) are receivables from CAs representing collection of Members’ Contributions and/or loan amortizations due for remittance to the Fund, which are within the float period as embodied in the collection agreements.

d. AR–Others include, among others, the P0.583 million remaining balance of unremitted overseas collections from a former employee pursuant to Notice of Finality of Decision issued by the COA on January 18, 2011.

Other receivables consist of the following:

2020 2019

Other receivables - Bayanihan Act 7,087,873,554 0

Insurance claims receivable 155,051,197 130,189,524

Due from officers and employees 54,858,269 47,098,083

Receivables-disallowances/charges 5,537,758 5,665,125

Others 50,212,318 83,958,523

7,353,533,096 266,911,255


Other Receivables – Bayanihan Act consist of accrued interests on Short Term Installments (STI), Institutional Loans (IL), HL and STL accounts that fall due within the M/ECQ period covered by the grant of mandatory grace period under Bayanihan I and Bayanihan II, pursuant to HDMF Circular Nos. 432, 433, 435, 438, and 439 (Notes 17 and 28). Included in these accounts are non-interest bearing restructured amount relating to unpaid accrued interest within the grace period under the Bayanihan I and II.

The restructured amount, which comprised of total arrearages, foreclosure expenses, unpaid balances and any amount advanced by the Fund, shall be interest bearing and lodged to its corresponding receivable account.

Due from Officers and Employees include zero-interest loans amounting to P48.897 million availed through the HDMF Car Plan. The loans were covered by promissory notes and granted to qualified officers of the Fund.

Movements in Allowance for Impairment Loss of receivables are as follows:

Bulk of the prepayments pertains to prepaid supplies and other prepaid expenses.

Prepaid supplies amounting to P53.65 million are purchases of office supplies paid in advance to the Department of Budget and Management - Procurement Services then reclassified to specific supplies inventory account upon delivery of related items.

Other prepaid expenses amounting to P125.300 million pertain to subscriptions of various software licenses essential for the Fund’s day-to-day operation, which are expected to be amortized until October 2022

These consist of the following:

Balance January 1, 2020

Additional Impairment Loss

Recovery from Impairment Loss

Recognition of ROPA & other

adjustments

Balance December 31,

2020

Current

MCR/SCRs 36,849,474,376 2,696,437,407 2,074,793,062 1,310,341,970 36,160,776,751

ARs 700,199,469 815,598 69,317,311 27,451,004 604,246,752

Int. Rec. 544,513,084 863,311,688 131,620,079 20,385,580 1,255,819,113

LR 1,288,277,181 49,180,526 76,946,473 (27,228,697) 1,287,739,931

39,382,464,110 3,609,745,219 2,352,676,925 1,330,949,857 39,308,582,547

2020 2019

Prepayments 213,581,917 200,605,455

Inventories held for consumption 82,247,179 79,251,738

Inventories semi expendable Items 1,948,598 4,462,758

297,777,694 284,319,951

2020 2019

Balances at beginning of year 1,654,507,812 2,270,778,0382,270,778,038

Additions 4,391,720,402 5,437,791,505

Disposal (4,208,562,800) (5,639,322,985)

Adjustments/Cancellations (675,453,770) (414,738,746)

Balances at end of year 1,162,211,644 1,654,507,812

Land and Land Improvement Building Total

Cost

Balances at beginning of year 7,404,958,567 15,456,076,524 22,861,035,091

Additions 1,138,343,870 1,695,693,066 2,834,036,936

Reclassification to NCAHS (2,056,767,539) (2,707,538,428) (4,764,305,967)

Reversals/Adjustments 1,812,605,886 (2,776,002,324) (963,396,438)

Balances at end of year 8,299,140,784 11,668,228,838 19,967,369,622

Accumulated depreciation

Balances at beginning of year 518,055 1,027,735,145 1,028,253,200

Additions 121,895 492,008,457 492,130,352

Reversals/Adjustments 0 (355,865,805) (355,865,805)

Balances at end of year 639,950 1,163,877,797 1,164,517,747

Allowance for impairment

Balances at beginning of year 43,569,581 1,579,273,751 1,622,843,332

Additions 303,799,007 482,654,819 786,453,826

Reversals/Adjustments 697,028,008 (1,789,105,006) (1,092,076,998)

Balances at end of year 1,044,396,596 272,823,564 1,317,220,160

Carrying amount, end of year 7,254,104,238 10,231,527,477 17,485,631,715

6. OTHER CURRENT ASSETS

7. NON-CURRENT ASSETS HELD FOR SALE

8. INVESTMENT PROPERTY

As at December 31, 2020

This account consists of:

IP–ROPA is reclassified to NCAHS upon payment of reservation fee by the buyer. They are derecognized from the books upon full payment of contract price and execution of Deed of Absolute Sale for cash purchase, upon execution of Deed of Conditional Sale for installment sale, and upon loan take out for housing loan. NCAHS is presented at the lower between carrying amount and fair value less cost to sell.

For the year 2020, the additions of P4.392 billion is net of P112.722 million and P259.863 million allowance for impairment loss and accumulated depreciation, respectively.

For CY 2020, the P3.525 billion gains arising from the sale of assets held for sale is presented as part of Gains (Note 19). On the other hand, the P3.331 million loss from sale is presented under Non-Cash Expenses-Losses (Note 24).

Investment Property (IP) is composed of real and other properties acquired with Transfer Certificate of Title still for consolidation in favor of the Fund as well as properties under the name of the Fund and other land and land improvements being held for rental and capital appreciation.

The movements for real and other properties acquired are as follows:


Land and Land Improvement Building Total

Cost

Balances at beginning of year 6,503,693,299 14,293,880,499 20,797,573,798

Additions 3,025,800,749 4,190,969,305 7,216,770,054

Reclassification to NCAHS (2,124,535,481) (3,530,221,710) (5,654,757,191)

Reversals/Adjustments 0 501,448,430 501,448,430

Balances at end of year 7,404,958,567 15,456,076,524 22,861,035,091

Accumulated depreciation

Balances at beginning of year 396,160 727,622,570 728,018,730

Additions 121,895 530,446,098 530,567,993

Reversals/Adjustments 0 (230,333,523) (230,333,523)

Balances at end of year 518,055 1,027,735,145 1,028,253,200

Allowance for impairment

Balances at beginning of year 18,321,362 2,331,239,465 2,349,560,827

Additions 25,575,396 45,302,353 70,877,749

Reversals/Adjustments (327,177) (797,268,067) (797,595,244)

Balances at end of year 43,569,581 1,579,273,751 1,622,843,332

Carrying amount, end of year 7,360,870,931 12,849,067,628 20,209,938,559

No. of Accounts Book Value Appraised Value*

With valid appraisal 45,878 15,228,540,978 32,638,408,540

With lapsed appraisal 12,129 4,738,828,644 8,542,384,374

58,007 19,967,369,622 41,180,792,914

Lessee Block/Lot No.

Qty Contract PeriodArea

(in Sq.M.)Rent per

Sq.M.

SL Harbour Bulk Terminal Corp. B15, L1-6 6 Dec. 2019 – Dec. 2021 4,368.23 P274.05

SL Harbour Bulk Terminal Corp. B15, L7 1 Dec. 2019 – Dec. 2021 5,167.53 274.05

Moreta Shipping Lines Inc.Moreta Shipping Lines Inc. B18, L5-7 3 Aug. 2020 – Aug. 2022 2,125.48 271.50

Moreta Shipping Lines Inc. Moreta Shipping Lines Inc. B21, L5-12 8 Dec. 2019 – Dec.2021 5,632.02 274.05

18 17,293.26

2020 2019

Within one year 53,793,165 54,051,173

More than one year but not more than five years 4,241,523 53,572,281

58,034,688 107,623,454


*Appraised value excludes applicable discount under APM.

Fair value is based on valuation performed by in-house appraisers. The Fund employed the following appraisal methods: (a) Market Data for the lot, and (b) Cost Approach for the house component of the property. As a matter of policy, ROPA is initially recognized at appraised value net of discount per APM and is subject to re-appraisal at least once every two years until its eventual disposal. Status of appraisal is shown below:

For accounts with lapsed appraisal as at December 31, 2020, units concerned are continuously exerting efforts to fully migrate the remaining ROPA accounts to the ROPA System. ROPA System has been fully deployed in CY 2018. Said system is an efficient tool in recording ROPA transactions specifically geared towards volume of portfolio, complexity of the transactions and reasons, revaluation and computation of impairment and depreciation.

Total rental income on IP-ROPA for CY 2020 and CY 2019 amounted to P3.672 million and P8.323 million, respectively.

Included in the IP are the following properties held for rental by the Fund:

Manila Harbour

The pieces of property being held for rental and capital appreciation are located at the Manila Harbour Central Business District, Tondo, Manila. These consist of 18 lots with total area of 17,293.26 square meters acquired in December 1996 in exchange for the matured Smokey Mountain Project Participation Certificates

All the 18 lots are on lease as follows:

Total rent/lease income on the properties for CY 2020 totaled P47.649 million, while expenses incurred, including real property taxes and depreciation expenses on the installed water distribution system, amounted to P2.871 million.

The estimated minimum future annual rentals of the Fund are as follows:

On June 29, 2020, the appraisal value of the 18 lots was at P640.762 million as determined by the in-house appraisers.

Fiesta World Mall – Building A

The Fiesta World Mall – Building A located in Barangay Marauoy, Lipa, Batangas was acquired by the Fund through Deed of Dacion en Pago in 2018. It consists of a two-story mall with a total lot area of approximately 6,408 square meters. It has a book value of P151.268 million with an appraised value of P329.173 million on land, building and machineries.

Club Balai Isabel Condotel Units

The 11 Club Balai Isabel condotel units were transferred to the Fund by way of Dacion in Payment Agreement in January 2016. These properties are located in Club Balai Isabel Resort in Sta. Maria, Talisay, Batangas, with floor area ranging from 33.10 to 68.32 square meters.

The consolidated book value of these units is P22.344 million which have a market value of P53.347 million. All units are being held for lease until December 2020 by Club Balai Isabel, Inc. (CBII) at P10,000 per unit per month for a total monthly rental of P110,000.

as approved under Board Resolution No. 1234, series of 1996. The book value is inclusive of real property tax paid upon acquisition.


9. PROPERTY AND EQUIPMENT, NET

11. OTHER NON-CURRENT ASSETS

10. INTANGIBLE ASSETS

This account consists of the following:

In 2020, a total of P7.517 million worth of Property and Equipment was disposed through donations.

Intangibles include various software licenses used in the day-to-day operations of the Fund. Changes in the costs of intangible assets are as follows:



LandLand

ImprovementsBuildings and Other Structures

Machinery and Equipment Total

Cost:

Balances at beginning of year 108,878,912 1,588,428 1,485,248,316 2,278,694,165 3,874,409,821

Additions 00 0 34,379,282 224,704,196 259,083,478

Disposals 0 0 (1,849,151) (35,573,415) (37,422,566)

Reclassifications/Adjustments 147,078 0 (33,540,788) (57,510,883) (90,904,593)

Balances at end of year 109,025,990 1,588,428 1,484,237,659 2,410,314,063 4,005,166,140

Accumulated Depreciation

Balances at beginning of year 0 701,335 971,808,227 1,370,483,003 2,342,992,565

Additions 0 174,674 47,017,506 198,465,279 245,657,459

Disposals 0 0 (1,601,512) (33,393,453) (34,994,965)

Reclassifications/Adjustments 0 0 (5,076,762) (34,848,079) (39,924,841)

Balances at end of year 0 876,009 1,012,147,459 1,500,706,750 2,513,730,218

Carrying Amount, end of year 109,025,990 712,419 472,090,200472,090,200 909,607,313 1,491,435,922

LandLand

ImprovementsBuildings and Other Structures

Machinery and Equipment Total

Cost:

Balances at beginning of year 104,212,774 842,296 1,404,045,145 2,086,119,414 3,595,219,629

Additions 00 0 105,110,895 348,250,606 453,361,501

Disposals 0 0 (8,402,914) (78,238,187) (86,641,101)

Reclassifications/Adjustments 4,666,138 746,132 (15,504,810) (77,437,668) (87,530,208)

Balances at end of year 108,878,912 1,588,428 1,485,248,316 2,278,694,165 3,874,409,821

Accumulated Depreciation

Balances at beginning of year 0 457,048 935,492,032 1,299,904,637 2,235,853,717

Additions 0 104,387 42,270,067 201,558,844 243,933,298

Disposals 0 0 (7,439,738) (72,458,757) (79,898,495)

Reclassifications/Adjustments 0 139,900 1,485,866 (58,521,721) (56,895,955)

Balances at end of year 0 701,335 971,808,227 1,370,483,003 2,342,992,565

Carrying Amount, end of year 108,878,912 887,093 513,440,089513,440,089 908,211,162 1,531,417,256

2020 2019

Cost

Balance, January 1 332,644,094 314,491,467

Addition 10,865,375 96,354,980

Derecognition (177,729,432) (73,282,353)

Adjustment 0 (4,920,000)

Balance, December 31 165,780,037 332,644,094

2020 2019

Accumulated Amortization

Balance, January 1 61,831,206 92,943,038

Amortization 33,758,778 42,170,521

Derecognition (18,216,748) (73,282,353)

Balance, December 31 77,373,236 61,831,206

Carrying amount, December 31 88,406,801 270,812,888

2020 2019

Restricted funds 27,634,551,546 953,735,641

Deposits 221,644,790 148,195,147

Other assets 50,467,875 44,354,661

27,906,664,211 1,146,285,449

2020 2019

Time Deposit - Local Currency and MSRF 26,617,950,725 20,175

Funds Held In Trust 292,217,099 280,298,978

Contingency Trust Fund 724,383,722 673,416,488

27,634,551,546 953,735,641

IT Development Costs directly attributable to the design, development and implementation of the IISP were recognized as Intangible Assets when the following criteria were met: it is technically feasible to complete the development so that it will be available for use; it is probable it will generate future economic benefits; its development can be reliably measured.

Considering the turn of events that resulted to termination of contracts with the IT Consultants, the Fund took over some of the core and sub-core systems under the IISP, thus, embarked on an in-house developed system. Development costs amounting to P141.676 million were derecognized upon assessment that no future economic benefits could be derived.

The remaining P36.053 million were software licenses that were initially classified as IT Software.. Acquired computer software licenses were initially capitalized on the basis of the costs incurred to acquire and bring to use the specific software. Based on evaluation, licenses cover only one-year subscription thus those previously capitalized have to be reversed in CY2020.

This classification comprises the following:

Restricted funds consist of reserves of money that can only be used for specific purposes:

On February 16, 2015, the Fund opened MSRF Land Bank of the Philippines (LBP) bank account with initial deposit of P20,000 to provide for benefit claims and return of members’ equity upon maturity. Balance as at December 31, 2020 is at P20,192.

a. Member Savings Reserve Fund (MSRF) and Time Deposit – Local Currency


On April 10, 2015, the Fund issued AMO No. 2015-005 to cover the set-up and operations of the MSRF. The MSRF was established as a liquidity provision with funds restricted/designated for the settlement of maturing members’ contributions.

On June 30, 2020, part of Investment on Government Securities Debt Instruments classified as MSRF were sold, the proceeds of which were reinvested in government banks Time Deposit - Local Currency for less than one year to ensure efficient liquidity management for benefit claims. As at December 31, 2020, Time Deposit-MSRF amounted to P26.618 billion.

Aside from the above LBP Atrium Current Account and Time Deposits, this MSRF also includes designated investments in treasury notes/bonds (Note 3), which are readily convertible to cash as needed.

Total MSRF balance as at December 31, 2020 amounted to P47.232 billion (Note 4). The Fund earmarked P22.012 billion additional funds for MSRF to cover the maturing members’ contributions.

A life and non-life insurance coverage as Contingency Trust Fund (CTF) 1 and CTF2, were established to cover for Mortgage Redemption Insurance (MRI)/Sales Redemption Insurance (SRI) and Fire and Allied Perils Insurance (FAPI) for loan releases of the Fund and pertinent collaterals for the loans. Initial set-up of CTF1 and CTF2 was at P890.970 million and P90.371 million, respectively.

As an interim measure, the monies collected from the borrowers for MRI/SRI premium shall be placed in the trust fund administered by a trustee bank and all claims relating to the same shall be paid out of the fund.

On October 28, 2014, the Fund formally entered into brokerage agreement with the new insurance, for yearly renewable term MRI/SRI coverage of housing loan borrowers starting November 1, 2014, effectively terminating CTF1. Based on the Fund’s Board approval, the P523.801 million remaining balance as at December 31, 2016, shall be distributed among active housing loan borrowers, after settlement of all claims covered by the interim period.

The Fund formally entered anew into brokerage agreement with the same insurance provider, the winning bidder, on January 11, 2018, for a five-year non-life insurance coverage of insured property starting January 12, 2018, effectively terminating also CTF2.

As at June 30, 2019, balance of CTF2 before distribution/liquidation amounted to P554.598 million.

On July 8, 2019, the ManCom approved the liquidation of CTF2, which includes the withdrawal of the funds to be distributed to the borrowers and only the amount of P137 million earmarked for the alleged claim of HDMF

b.

c.

Non-Life Insurance Pool should be left in the trust fund account. This caused the major decrease in restricted fund in 2019.

On October 30, 2019, the Fund renewed its brokerage agreement for MRI/SRI coverage of housing loan borrowers for a period of five years beginning November 1, 2019.

CTF1 and CTF2 accounts as at December 31, 2020 amounted to P583.405 million and P140.979 million, respectively.

Funds Held in Trust-Trustee and Officers Liability Fund (TOLF) was created and established on May 8, 2014 pursuant to and in compliance with the requirements of Governance Commission for GOCCs (GCG) Memorandum Circular (MC) No. 2012-10 (Re-issued). Its objective is to provide the Fund, the members of its governing board and its officers, the means to pursue their fiduciary duties and obligations to always act in the best interest of the Fund and with utmost good faith. It allows them the proper recovery of the costs of litigation and judgment liability imposed on them when they are sued on matters within their official functions and capacity and on matters where business judgment has been exercised in good faith.

A Trust Fund Committee composed of officers of the Fund headed by the CEO was constituted, primarily to oversee the HDMF TOLF. A government financial institution was also constituted as TOLF Trustee pursuant to Item V of the aforementioned GCG MC.

Initially set up at P244 million, the Committee shall replenish the trust fund in case usage thereof at any given time exceeds 20 per cent of the initial amount. As at December 31, 2020, the balance of TOLF is at P292.217 million with a reported income of P14.177 million from the administration of the fund for the year 2020.

Deposits consist of rental and other guaranty payments while Other assets include the unexpended portion amounting to P33.959 million as at December 31, 2020 on the 50 per cent share of the Fund on motor vehicles purchased through the HDMF Car Plan.

12. FINANCIAL LIABILITIES

This classification comprises the following:

Accounts Payable includes amount due to members at P61.318 billion and P38.699 billion for the years ending December 31, 2020 and 2019, respectively. These totals represent TAV which have reached their maturity at SFP date but have not been withdrawn, as well as those that will mature in the succeeding year.

2020 2019

Accounts payable 69,954,254,556 47,061,550,589

Insurance/Reinsurance premium payable 3,848,292,474 3,918,290,102

Due to officers and employees 8,377,687 5,345,118

73,810,924,717 50,985,185,809



Due to BIR consists of liability for income taxes withheld from employees’ compensation and for taxes withheld from payment to suppliers for the account of the BIR for the month of December 2020 to be remitted in January 2021.

Due to Other Government Corporations includes collections for the Servicing and Accounts Management Agreement that are due for remittance to NHMFC, which amounted to P11.353 million as at December 31, 2020. This account also includes housing loan amortization payments for the account of NHMFC.

Due to GSIS, Due to Pag-IBIG and Due to PhilHealth comprise of amortization of loan availments, life and retirement insurance premiums payable to GSIS, contributions and amortization of loan availments payable to Pag-IBIG Fund, and medical insurance premiums payable to PhilHealth deducted from the salary of the Fund’s regular employees and the employer’s counterpart for the month of December 2020 to be remitted in January 2021.

Due to SSS pertains to the Job Order employees’ premium payments and other payables withheld for the account of Social Security System (SSS) for the month of December 2020 to be remitted in January 2021.

13. INTER-AGENCY PAYABLES

14. TRUST LIABILITIES

2020 2019

Due to BIR 72,536,576 121,477,708

Due to Other Government Corporations 46,534,291 53,375,352

Due to GSIS 12,238,545 16,349,091

Due to SSSDue to SSS 1,560,955 1,417,375

Due to PhilHealth 1,544,065 1,437,648

Due to NGAs 1,454,766 1,461,821

Due to Pag-IBIG 852,658 919,875

Due to LGUs 64,564 149,176

136,786,420 196,588,046

The account also includes accrual of expenses, charges and taxes already incurred at year-end but have not yet been paid.

Insurance/Reinsurance Premium Payable represents insurance premiums for housing loans initially deducted from housing loan proceeds and subsequently collected as part of the monthly amortizations representing insurance premium prepayments for remittance to the insurance provider.


Guaranty/security deposits payable pertains to suppliers’ deposits on bids and performance guarantee deposits.

Customers’ deposits payable represents advance housing and multi-purpose loan amortization to be allocated when they fall due.

Trust liabilities include Housing Contingency Fund in the amount of P583.405 million, Trust Liabilities – Head Office in the amount of P233.963 million, and Trust Liabilities – POP Members in the amount of P58.454 million as at December 31, 2020.

2020 2019

Customers' deposits payable 3,761,361,927 2,290,299,070

Trust liabilities 879,083,126 839,824,996

Guaranty/security deposits payable 143,237,891 149,692,852

4,783,682,944 3,279,816,918

Trust Liabilities-POP Members refer to long outstanding membership contributions that remain unposted for the following reasons:

- Invalid payor’s ID and different membership type;- No available records with Pag-IBIG International Operations Group (PIOG);- Discrepancy in the payor’s name; and- Lack of over-the-counter daily collection report.

Set-up of Trust Liabilities–POP Members was made on May 25, 2015 in the amount of P58.807 million. Through various initiatives, e.g. strengthening the “one ID system” for each member, encoding/editing of ID numbers and period covered, verifying whether the unallocated accounts have been claimed already and coordinating with the manning agencies/OFW members for the submission of lacking collection lists, contributions lodged to Trust Liabilities–POP Members were posted/adjusted so that these can be debited from Trust Liabilities account. Undistributed Collections (UC)-Housing Loan (HL) in the amount of P217.192 million representing dormant balances left by the defunct Billing and Ledgering Department (BLD)–MCR in the books of the CHQ after the decentralization of accounts in CY 1992, and Unidentifiable Collections in the amount of P6.818 million which includes collections of closed banks, were reclassified to Trust Liability account on December 29, 2016 after reconciliation activities proved to be futile due to absence of supporting documents. These shall be gradually reduced upon request by operating units for transfer of payment records, triggered by the borrowers’ presentation of Pag-IBIG Fund Receipts (PFRs) covering previous payments.


15. PROVISIONS

17. DEFERRED CREDITS/UNEARNED INCOME

16. OTHER PAYABLES

2020 2019

Current:

Leave benefits payable 496,262,598 417,307,884

Other provisions 1,731,254,090 1,487,471,302

2,227,516,688 1,904,779,186

Non-current:

Leave benefits payable 362,335,371 330,068,358

2,589,852,059 2,234,847,544

2020 2019

Deferred credits 14,467,305,720 7,829,334,386

Unearned revenue/income 800,596,775 676,763,705

15,267,902,495 8,506,098,091

2020 2019

Conversion cost 13,981,808,462 12,822,101,784

Developers undertaking 3,638,566,002 3,311,896,794

Developers’ retention 658,609,787 0

Undistributed collections 426,818,503 878,994,272

Borrowers undertaking 115,314,153 91,909,442

Unclaimed balances 0 14,831,430

18,821,116,907 17,119,733,722

In CY 2018, the cumulative leave credits and benefits previously recorded under Accounts Payable were reclassified to Leave Benefits Payable effective June 26, 2018, pursuant to PAS 1.

Pursuant to AMO No. 2019-018, “Accounting for Accrued and Deferred Expenses,” the remaining balances of accrued expenses accounts for both prior and current period were reclassified to Other Provisions, effective December 27, 2019.

The details of this classification are as follows:

This account is composed of:

Conversion cost pertains to amount deducted from take-out proceeds of the developer to defray cost to be incurred in the conversion of CTS to REM.

Developers undertaking includes amount deducted from take-out proceeds of developer-assisted housing loan accounts representing cash retention for allowable undertakings of developer.

Developers’ retention account was created in CY 2020 for easier monitoring of retention fee over and above the security or retention value deducted from the take-out proceeds of the developer during the community quarantine due to COVID-19 pandemic.

Undistributed collections (UC) include collections of members’ contributions, short term loans and housing loan repayments which have not been allocated to the specific members’/borrowers’ accounts and collections under PFMS and STLMS due to absence of MID Number and STL Application Number. These also

include collections which at month-end are still in transit for transfer to the branches carrying the account/s, thus, remain floating in the Due to/from accounts. The Posting Clearing Account (PCA) which falls under UC covers daily collections and checks subject to one day clearing period prior to allocation and posting to the members’/borrowers’ subsidiary ledger within five days from receipt of the journal ticket by the operating unit concerned. Borrowers undertaking pertains to deductions from take-out proceeds of retail housing loan accounts representing cash retention for allowable undertakings of borrower.

Unclaimed balances represent checks dated over six months payable to members/borrowers/suppliers which have not been presented to bank for payment.

Deferred credits account represents the capitalized interest income on restructured housing loans which are credited to interest income and penalties upon amortization every month-end and rental payments on foreclosed properties under the redemption period or rent-to-own arrangement. In 2020, Deferred interest income amounting to P7.166 billion was recognized from STI, Institutional Loans, Housing Loans and STL accounts that fall due within the period covered by the grant of mandatory grace period under Bayanihan I and Bayanihan II (Notes 5 and 28).

Housing Loan Restructuring Program

Deferred Credits for the interest-bearing portion of the restructured amount shall be amortized based on the principal payments over the corresponding outstanding balance portion.

Deferred Credits for the non-interest bearing portion of the restructured amount shall be credited to Interest Income in proportion to the received payment.

Unearned revenue/income includes capitalized origination fees on loans processed prior to May 30, 2001, being amortized and credited as income over the term of the loan and interest portion of advance amortization on housing loans posted to borrowers’ ledger.


18. SERVICE AND BUSINESS INCOME

19. GAINS

The details of this classification are as follows:

Service income

Fees and commissions income includes insurance service fees that are administrative fees collected from the insurance provider equivalent to 0.02 per cent of the total amount insured, deducted from the remittances of premiums to the broker. It also includes sales administration fee and mortgage origination fee that are collected as part of the monthly amortization of housing loan borrowers who availed of loans under HDMF Circular Nos. 147 and 148, respectively, fees for appraisal services on properties offered as collateral for loan with the Fund, forfeited commitment fee from developers, handling fee, pre-termination fee and Housing Contributory Fund.

Housing Contributory Fund represents a portion of the loan amortization on housing loans extended by the NHMFC to HDMF member-borrowers, subsequently assigned to the Fund in CY 1992. This was based on the premise that the few early borrowers favored by NHMFC’s home lending policies should share such favor with future generations as well as future borrowers who are likely to borrow at a time when long term funds and prevailing rates then may no longer be available. Processing fees of P3,000 are collected from borrowers availing of loans under HDMF Circular Nos. 312, 385, and 396 and conversion to Full Risk-Based Pricing Model under HDMF Circular No. 317.

Business income

Interest income includes interest earned from housing loans, multi-purpose loans and investment in bonds.

2020 2019

Service income

Fees and commissions income 229,720,517 375,487,609

Processing fees 202,853,681 286,956,170

Other service income 23,840,259 90,530,346

456,414,457 752,974,125

Business Income

Interest income 35,448,808,330 39,935,511,567

Fines and penalties 1,417,037,228 1,598,232,674

Income from acquired/foreclosed assets 1,298,199,193 3,451,442,355

Rent/lease income 57,068,226 57,452,456

Dividend income 163,030 192,744

Other business income 63,426,621 3,898,811

38,284,702,628 45,046,730,607

38,741,117,085 45,799,704,732

2020 2019

Gain on sale of investment property/NCAHS 4,016,746,005 5,798,807,879

Gain on sale/redemption/transfer of investments 2,342,191,837 160,265,608

Gain from changes in fair value of financial instruments 1,413,377,950 9,768,203

Gain on foreign exchange (forex) 17,481,285 214,687,159

Gain on sale of property and equipment 1,622,112 3,836,520

Other gains

Gain on revalued MCR 16,132,712 190,945,992

Gain from redemption of auctioned properties 11,799,367 10,615,872

Gain on revalued SCR 1,924,799 20,166,493

Gain on restructuring 797,534 0

Gain on revalued wholesale loans 0 1,524,772

Others 72,700 0

7,822,146,301 6,410,618,498

Income from acquired/foreclosed assets includes income from acquired/foreclosed property and income from repurchase of dacioned assets which are redeemed by the owners within the redemption period.

Fines and penalties are fees imposed on late remittances of HDMF contributions, amortizations of short-term loans and mortgage contracts receivable, and other housing related loans.

Rent/lease income pertains to the income earned from lessees of the Fund’s properties at Manila Harbour Centre and Club Balai Isabel Resort. To ease the financial burdens of the said lessees caused by volcanic eruption and COVID-19 pandemic, the Management approved the following:

• Waiver on lease payment of Moreta Shipping Lines, Inc. (MSLI) for April 2020 and 50 per cent discount on lease payments for May and June 2020 for leased property at Manila Harbour.

• Waiver on lease payments of Club Balai Isabel, Inc. (CBII), lessee of the Fund’s condotel units at Club Balai Isabel, from February to December 2020.

As a result, the foregone income on waived leased payments amounted to P2.940 million for MSLI and P1.100 million for CBII.

Overall impact of COVID-19 on the Fund is a decline in its gross income in 2020 by 13 per cent compared to that of 2019 (Note 28).


20. OTHER NON-OPERATING INCOME

21. PERSONNEL SERVICES

22. MAINTENANCE AND OTHER OPERATING EXPENSES

2020 2019

Reversal of impairment loss

Receivables 2,352,676,925 2,771,856,200

Others 384,235,117 835,543,660

Miscellaneous income 365,898,246 1,078,585,654

3,102,810,288 4,685,985,514

Reversal of impairment loss pertains to recovery from provision of impairment losses due to improvement in the quality of the loan portfolio and other housing-related assets of the Fund. Details for reversal of impairment loss are included in Notes 7 and 9.

Professional services include costs incurred for legal, auditing, consultancy, and other professional services.

General services consist of expenses incurred for environment/sanitary services, janitorial services, security services and other general services contracted by the Fund not otherwise classified under any of the specific general services accounts.

Litigation/acquired assets expenses account pertains to expenses incurred for litigation proceedings and registration/consolidation of ownership of acquired assets, as well as those incurred in their preservation/maintenance and expenses related to disposal of acquired assets.

Other maintenance and operating expenses include expenses incurred in relation to advertising, promotional and marketing activities, representation, transportation and delivery and other expenses.

2020 2019

Salaries and wages

Salaries and wages-regular 1,812,849,072 1,804,312,942

Other compensation

Bonuses and Incentives 1,036,104,891 1,053,880,268

Health Maintenance Insurance 97,478,644 84,326,271

Personnel economic relief allowance 90,169,088 89,406,669

Transportation allowance 48,632,891 47,458,172

Representation allowance 47,633,047 47,539,943

Overtime and night pay 36,897,888 81,012,247

Clothing/uniform allowance 22,656,626 22,818,577

Cash gift 18,851,750 18,713,250

Longevity pay 17,546,369 17,047,505

Quarters allowance 10,924,502 11,763,829

Others 221,617,428 197,084,462

1,648,513,124 1,671,051,193

Personnel benefit contributions

Provident/welfare fund contributions 816,962,219 814,075,997

Retirement and life insurance premiums 217,786,186 216,927,056

PhilHealth contributions 25,854,962 21,070,466

Pag-IBIG contributions 4,517,839 4,487,869

Employees compensation insurance premiums 4,503,421 4,424,457

1,069,624,627 1,060,985,845

Other personnel benefits

Terminal leave benefits 165,539,145 104,097,297

Other personnel benefits 225,597,773 215,610,509

391,136,918 319,707,806

4,922,123,741 4,856,057,786

2020 2019

Professional services 2,084,384,075 2,501,774,177

Rent/Lease expenses 1,006,369,456 734,934,336

Litigation/acquired assets expenses 681,339,687 937,697,900

General services 664,476,237 576,135,656

Subscription expenses 432,847,555 282,042,397

Supplies and materials expenses 248,490,988 292,221,232292,221,232

Utility expenses 188,728,373 222,293,302

Communication expenses 165,834,694 182,326,009

Members' benefits 130,603,032 175,998,494

Repairs and maintenance 119,093,857 93,301,656

Confidential, intelligence and extraordinary expenses 51,781,635 400,314,182

Taxes, insurance premiums and other fees 41,527,554 21,793,507

Traveling expenses 24,494,775 95,152,559

Printing and publication expenses 16,631,313 23,420,606

Survey, research and development expenses 10,880,632 25,517,297

Training and scholarship expenses 5,966,280 48,279,821

Other maintenance and operating expenses 183,575,943 327,191,842

6,057,026,086 6,940,394,9736,940,394,973

This expense classification consists of:


23. FINANCIAL EXPENSES 25. MEMBERS’ EQUITY

26. CUMULATIVE CHANGES IN FAIR VALUE

27. RETAINED EARNINGS

24. NON-CASH EXPENSES

2020 2019

Management supervision/Trusteeship fees 22,430,488 1,967,342

Bank charges 1,732,579 1,924,977

24,163,067 3,892,319

2020 2019

Depreciation on Investment Property 492,130,352 530,567,993

Depreciation on Property and Equipment 245,657,459 243,933,298

737,787,811 774,501,291

2020 2019

Impairment loss 3,783,754,777 8,085,213,859

Losses 2,400,428,744 1,817,941,195

Depreciation 737,787,811 774,501,291

Amortization 33,758,778 42,170,521

Discounts and rebates 1,222,246 0

6,956,952,356 10,719,826,866

2020 2019

Net unrealized losses, January 1 (2,102,878,187) (12,401,576,636)

Unrealized gains:

Recognized during the year 20,984,808,854 14,750,397,842

Realized during the year (2,337,016,150) (677,305,041)

Net unrealized gains 18,647,792,704 14,073,092,801

Unrealized losses:

Recognized during the year (13,875,777,742) (4,447,983,070)

Realized during the year 0 673,588,718

Net unrealized losses (13,875,777,742)(13,875,777,742) (3,774,394,352)

Net unrealized gains (losses), December 31 2,669,136,775 (2,102,878,187)

2020 2019

Loss from Changes in Fair Value of Financial Instruments 1,669,677,044 89,596,601

Loss on Foreign Exchange 220,264,698 365,323,247

Loss on Sale of Investment Property 8,215,821 15,510,839

Loss on Property and Equipment 2,897,786 7,215,292

Other Losses 499,373,395 1,340,295,216

2,400,428,744 1,817,941,195

2020 2019

Receivables 3,609,745,219 7,892,300,864

Investment Property 173,866,614 192,602,531

Property and Equipment 142,944 310,464

3,783,754,777 8,085,213,859

2020 2019

Bonds and other debt instruments 1,080,708,550 (1,178,171,564)

Bonds and other debt instruments – MSRF 1,576,839,677 (924,202,293)

Stocks/equity securities 11,588,548 (504,330)

2,669,136,775 (2,102,878,187)

This account consists of: This account reflects the equity of the members as owners of Pag-IBIG Fund amounting to P465.221 billion in CY 2020 and P436.645 billion in CY 2019, corresponding to members’ contributions, employers’ counterpart for employed members and the accumulated dividends. The account is reduced by the provident claims of members and offsetting of loans against the TAVs.

Cumulative changes in fair value comprise of net unrealized gains (losses) from marking to market of financial assets at fair value through other comprehensive income. The net changes for each year are as follows:

The net unrealized gain in CY 2020 is caused by the increase in the marking to market revaluation of AFS investments. The favorable market conditions improve the inflation rate as well as BSP’s interest rates which favorably affected the Fund’s investment portfolio.

The net unrealized gains (losses) are broken down as follows:

The realized gains during CY 2020 amounting to P2.337 billion were recorded as part of gain from sale/redemption of FVOCI investments.

Retained Earnings (RE) consists of accumulated earnings of the Fund not paid out as dividends. RE amounting to P87.234 billion as at December 31, 2020, includes appropriations, and net income for CY 2020 pending dividend declaration.

This account consists of:

Breakdown of Losses for the periods ended December 31, 2020 and 2019 are as follows:

Depreciation expenses for the periods ended December 31, 2020 and 2019 are as follows:

The provision for impairment is intended to absorb the potential future losses on the Funds’ receivables, investment properties, and properties and equipment. Details of impairment loss are as follows:


28. IMPACT OF COVID-19 PANDEMIC

The Corona Virus Disease - 2019 (COVID-19) Pandemic has amped up risk management, forcing the Fund to adapt and learn new technologies and find different ways to continue services to the members and customers. Never before has a health risk impacted the Fund and its workforce at a rapid, enterprise-wide level. True enough, the COVID-19 Pandemic is a highly contagious disease that continue to spread among countries, globally, and can be fatal.

Business Continuity Management presentation in 2019 EVRA write-shops discussed pandemics as being highly contagious diseases that necessitate work from home arrangement for employees. COVID-19 lead to the focus on business continuity.

National and international preventive measures, including lockdowns and other restrictions were not excuses for the Fund to shirk from performing mandated duties to its members. Alternative work arrangements (AWA) were set based on a determination of activities that would continue face-to-face or work from home (WFH) that required provision of office laptops and connectivity.

Health and other safety protocols were strictly observed, and decisions were based on rigorous study of the nature and effects of COVID-19, as well as the guidance of a seasoned epidemiologist hired as a consultant of the Fund. Employees, including agency-hired and job orders, were provided health kits consisting of surgical masks, face shield, alcohol, cleaning rugs, disinfectant, and shuttle service from home to office and vice versa, and restricted employee movements exclusively to their respective floors. Meetings were conducted via Zoom, a video conferencing application.

Critical processes for providing shelter finance and short-term loans to members and the corresponding support processes were identified and continued with limited workforce observing health and safety protocols for both employee and transacting members.

Use of Virtual Pag-IBIG by the present and prospective members was regularly encouraged on TV, radio, and social media. Correspondingly, the IT Services Sector ensured the continuous provision of IT hardware, services, and monitoring of cyber threats.

Financial stress testing was likewise conducted to study different scenarios of net cash flows and their effects on the Fund’s continued operations.

The thrust was resilience, with optimum utilization of Fund resources given the limitations on workforce and transactions with the public, suppliers, and government agencies.

As a support on the government’s efforts to lead the nation in fighting the COVID-19, the Fund has introduced a number of programs such as granting of loan moratoria and grace period to qualified members. These programs were introduced through the following circulars issued by the Fund:

HDMF Circular 432, “Guidelines on the Grant of Moratorium on Short-Term Loan (STL) Amortization and Housing Amortization/Installment Payments to Pag-IBIG Fund Borrowers/Buyers Affected by the Management of the Corona Virus Disease (COVID-19)” was issued on March 27, 2020. This is in pursuant to Proclamation Nos. 929 and 922, Declaring a State of Calamity and State of Public Health Emergency, and further reiterated in Joint Resolution Nos. 11 and 12 (s. 2020) of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases and Republic Act No. 11469, otherwise known as the “Bayanihan to Heal as One” Act.

For approved applications, STL amortization and/or Housing amortization/ installment payments of borrowers shall be suspended from March 16, 2020 to June 15, 2020 at no additional cost to the borrower/buyer. Thus, no penalty or additional interest shall be charged during the moratorium period. For HL accounts that are subject to staggered releases, interest shall still be deducted for every release.

Forgone interests on approved moratorium on HL and STL is estimated at P2.273 billion and P100.744 million, respectively.

Pursuant to RA No. 11469, HDMF Circular No. 433 “Guidelines on the Grant of Mandatory 30-Day Grace Period on All Loans Affected by Enhanced Community Quarantine (ECQ)” took effect on April 6, 2020.

On June 26, 2020, HDMF Circular Nos. 435 “Extended Deadline of Payment of Housing Loan Amortization Due Within the Modified/Enhanced Community Quarantine Period on All Retail, Developer-Assisted and Institutional Loans” and 436 “Extended Deadline of Employer Remittance of Monthly Savings (MS) and Short-Term Loan (STL) Amortization Payments Due Within the Modified/ Enhanced Community Quarantine (M/ECQ) Period were issued.

Pursuant to RA No. 11494, “Bayanihan to Recover as One” Act, HDMF Circular No. 438 “Guidelines on the Grant of the 60-Day Grace Period on Short-Term Loan and Housing Loan Accounts under the Bayanihan II” was issued on October 14, 2020. The grace period will give borrowers payment reprieve without incurring any penalty, and interest on interest.

On October 16, 2020, HDMF Circular No. 439, “Guidelines on the Pag-IBIG Fund Special Housing Loan Restructuring Program” was issued for all interested Pag-IBIG Fund housing loan borrowers/installment buyers, but excluding accounts that are more than 12 months in arrears as of August 31, 2020.

All arrearages, foreclosure expenses, unpaid balances and any other amount advanced by the Fund shall form part of the Interest-Bearing principal. Also, the applicable interest from the date of application up to scheduled date of first amortization/installment due shall be included in the computation thereof. The unpaid accrued interests within the Grace Period under the Bayanihan I and II shall be part of the non-interest bearing principal.

All outstanding penalties shall be condoned as of the date of application for the restructuring of the housing loan/installment account.

Forgone penalties for defaulting borrowers with approved special restructured loan is estimated at P41.800 million.


The Fund has utilized P287.252 million budget for operating expenses in its efforts to respond to COVID-19. The budget was allotted for payments of hazard pay and meal allowance for skeleton workforce; engagement of additional medical consultants and nurses; payments for COVID-19 testing; procurement of various personal protective equipment and supplies for employees and contractors; and transportation to and from work to lessen employees’ possible exposure to the virus, not to mention to cover for the lack of public transport during the strict community quarantine.

The Fund’s 2020 net income surpassed the P30-billion mark despite the economic slowdown caused by the pandemic. Based on the significant judgment exercised by the Management, it was assessed that there are no material uncertainties that may cast significant doubt on the Fund.

The taxes paid for ROPA, which cover tax assessment not paid by the borrowers prior to foreclosure of their properties, were assumed by the Fund to facilitate consolidation of title.

The Fund has no deficiency assessments and tax cases under preliminary investigation, litigation and/or prosecution in courts or bodies outside the BIR.

On September 28, 2011, BIR Revenue Memorandum Circular No. 43-2011 circularizing Section 19 of RA No. 9679 was issued highlighting the Fund’s exemption from tax payments relative to the said law. It also states the Fund’s exemption from the documentary stamp tax imposed under Title VII of the National Internal Revenue Code of 1997.

The President of the Philippines signed into law the Package 1 of the Tax Reform Acceleration and Inclusion Law on December 19, 2017, otherwise known as the “TRAIN Law” under RA No. 10963. One of the salient features of the Train Law is the increase of the non-taxable personal income to P250,000 per year for compensation income earners and self-employed and/or professional. The result of which is the decrease in monthly withholding tax for employees’ compensation as shown above. This Act took effect starting January 2018.

Supplementary Information Required Under Revenue Regulations No. 15-2010

In compliance with the requirements set forth in Revenue Regulations No. 15-2010, hereunder, are the information on taxes, duties and licenses paid or accrued during the taxable year.

The components of taxes, duties and license fees paid and accrued during the year are as follows:

29. COMPLIANCE WITH TAX LAWS

2020 2019

Taxes, duties and fees

Taxes and licenses – ROPA 322,133,036 516,455,951

Real estate taxes – ROPA 51,964,801 83,262,877

Real estate taxes – Properties 6,064,935 2,968,430

Others 18,326,917 3,164,224

398,489,689 605,851,482

Withholding taxes

Tax on compensation and benefits 399,102,766 404,677,413

Creditable withholding taxes 275,887,933 313,932,751

Final withholding taxes 267,082 2,072,912

675,257,781 720,683,076

1,073,747,470 1,326,534,558

30. RELATED PARTY DISCLOSURES

As at December 31, 2020, the composition of the Board of Trustees of the Fund is as follows:

Board Position Name Position from Other Agencies

Chairman, Ex-Officio Sec. Eduardo D. Del Rosario Department of Human Settlementsand Urban Development

Vice Chairman, Ex-Officio Sec. Carlos G. Dominguez III Department of Finance

Chief Executive Officer Mr. Acmad Rizaldy P. Moti -

Trustee, Ex-Officio Sec. Wendel E. Avisado Department of Budget and Management

Trustee, Ex-Officio Sec. Ramon M. Lopez Department of Trade and Industry

Trustee, Ex-Officio Sec. Silvestre H. Bello III Department of Labor and Employment

Trustee Atty. Cornelio P. Aldon Private Employers' Representative

Trustee Mr. Crisostomo G. Gotladera Private Employees' Representative

Trustee Mr. Pedrito G. Angeles Private Employees' Representative

Trustee Ms. Mylah R. Roque Private Employers' Representative

Trustee Ms. Ma. Lorelei C. Fajardo Government Employees' Representative

Key management compensation

The compensation of key management personnel consists of short term benefits amounting to P55.599 million and P55.664 million for the years ended December 31, 2020 and 2019, respectively. Key management compensation forms part of the accounts under the Personnel Services and Maintenance and Other Operating Expenses (Notes 21 and 22). Salaries and allowances received, and expenses incurred by the key officers in the conduct of their official functions are as follows:

2020 2019

Personnel services

Salaries and wages 22,789,109 22,515,622

Other compensations 2,616,775 2,313,905

Personnel benefits contributions 10,255,099 10,132,030

Other personnel benefits 9,256,284 7,769,712

44,917,267 42,731,269


Survey, research, exploration and development expenses 8,808,481 8,832,867

Amortization 1,295,970 1,334,235

Supplies and materials expenses 433,447 939,327

Other maintenance and operating expenses 143,776 1,826,242

10,681,674 12,932,671

55,598,941 55,663,940


31. RISK MANAGEMENT

Co-ownership of Atrium of Makati Condominium Building

The Fund owns 84 units of the 177 total condominium units and 83 slots of the 204 total parking slots of the Atrium of Makati Condominium Building, equivalent to 14,865.80 square meters or 52.73 per cent ownership of the 28,193.48 square meters total floor area. The property is located along Makati Avenue, Urdaneta Village, Makati City.

Pending the creation of a formal risk management structure and approval by the GCG, a Risk Management Task Force (RMTF) was created. On December 29, 2015, a Special Order (SO) reassigning the Investment Risk Management Division (IRMD) staff, complemented by a staff from the Legal and General Counsel Group, to the RMTF was issued.

Per SO, the RMTF shall handle priority activities for the following functions:

The Enterprise Risk Management Policy (ERMP) was approved by the BOT on July 6, 2017. The ERMP is the overarching framework for the overall direction and strategies of the Fund on enterprise risk management. It shall serve as guide for systems and procedures for risk assessment, monitoring, and communication and shall define the context for risk management activities.

In CY 2019, the RMTF started updating the ManCom, BRCC and the full Board on the financial risks (credit, market and liquidity) associated with the Fund’s operations by reporting to them monthly the Financial Risk Highlights (FRH). The FRH includes all the risk measurement tools/models/templates adopted by the Fund to calculate/compute market, credit and liquidity risks.

Credit risk

Credit risk is the risk of loss arising from the borrowers’ failure to fulfill their contractual obligations. To mitigate this risk, the Fund has adopted the following initiatives:

The Fund has formulated the BES, a credit quality assessment process for the determination of the creditworthiness of housing loan borrowers which also factors in borrowers’ equity adjustments.

a. Implementation of the Borrower Evaluation System (BES)

a. Implementation of the Borrower Evaluation System (BES)

- Design and deployment of the overall risk management framework to ensure that the Fund’s exposures to its various risk-taking activities are appropriately identified, measured, monitored, reported, and managed across the organization covering credit risk, liquidity risk, market risk and operational risk- Monitoring of business unit’s adherence to framework and strategy- Compilation of data on risk across operating units and escalation of risk and control issues to ManCom/Board Risk and Capital Committee (BRCC)- Aggregated risk reporting- Recommendation on risk management decisions/mitigating activities to the business units, ManCom, BRCC and BOT

The assessment of the credit quality of housing portfolio taken out prior to July 2012 is based on the flow rate or payment behavior of the borrowers.

Conversion to Full Risk Based Pricing Model (HDMF Circular No. 317, dated August 8, 2012)

A pricing framework was adopted where a market based and full risk-based pricing of housing loans shall cover the Fund’s costs, its risks in terms of expected loss on defaults and reasonable spread.

In support to the pricing framework, the Fund formulated models for the Probability of Default (PD) and Loss Given Default (LGD), which are components of the Expected Loss Rate (ELR). ELR is defined as the product of PD and LGD. These models will be applied to various loan programs and subjected to periodic review for the required modifications to firm-up the models.

Adoption of the Single Borrower’s Limit (SBL) for Wholesale Loans (WL) (HDMF Circular No. 306 dated April 10, 2012)

This aims to mitigate risks and limit the losses in the event of default by the borrower/s and avoid a situation where a single loss will adversely affect the profitability/financial condition of the Fund.

The total amount of loans, credit accommodations and guarantees that may be extended to any person, partnership, association, corporation or other entity shall, at any point in time, not exceed 25 per cent of the Free RE of the Fund. Free RE refers to the RE after declaration of dividends for the preceding year and net of the total capital valuation accounts.

Credit Risk Management Policy

The Board approved the Credit Risk Management Policy on July 6, 2017. It was patterned from pertinent provisions of BSP Circular No. 855, series of 2014, Guidelines on Sound Credit Risk Management Practices.

Prepayment Rate Model (PRM) for End-User

This was presented to and approved by the ManCom and BRCC last July 29, 2019 and August 30, 2019, respectively. The Model aims to determine and monitor the Prepayment Rate of the End-User Financing Portfolio. Since its approval, it has formed part of the Financial Risk Highlights, a monthly report.

Model Risk Management Policy

The ManCom and BRCC approved the Model Risk Management Policy (MRMP) on December 9, 2019 and December 17, 2019, respectively. The MRMP shall enable proactive assessment, prioritization, and management of Model Risks to support the Fund’s vision, mission, and objectives. It is patterned from different guidelines from European and US banks. This shall be implemented by phase and will form part of the Risk Management Manual.

b.

c.

d.

e.

f.


Delinquency Rate and Roll Rate Models

Delinquency rate refers to the percentage of loans within a financial institution’s loan portfolio whose payments are delinquent. The roll rate is the percentage of borrowers that roll from one category of delinquency to the next.

The Delinquency Rate and Roll Rate Models were presented to and approved by the Multi-Functional Team (MFT) Housing, Credit Risk Sub-Committee, and Management Committee on June 22, 2020, July 9, 2020 and July 27, 2020, respectively.

They aim to determine the credit quality of the Housing Loans Portfolio, provide information on the payment behavior of the housing loan borrowers, and predict credit losses.

Concentration Risk

This was presented to and approved by the Credit Risk Sub-Committee and Management Committee on October 23, 2020 and October 27, 2020, respectively. Concentration Risk can be defined as any single, direct and/or indirect, exposure or group of exposures with the potential to produce losses large enough to threaten an institution’s health or ability to maintain its core business

g.

h.

Liquidity risk

Liquidity risk is defined as the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities. It may arise because of the possibility that the Fund may be unable to meet its payment obligations when they fall due under both normal and stress circumstances. The Liquidity Risk Management Policy (LRMP) was approved by the BOT on July 6, 2017.

The Fund ensures liquidity through a combination of active management of liabilities, a liquid asset portfolio composed substantially of deposits in government securities and securing of money market lines. The Funding and Liquidity Risk Framework (FLRF) and Contingency Funding Plan (CFP) Template were approved by the BOT on November 9, 2017.

Maturity Analysis

As at December 31, 2020, the Fund has no outstanding long-term liabilities. The amounts disclosed below are the contractual undiscounted cash flows of current liabilities in respect of balances due within 12 months. These generally equal their carrying amounts in the SFP as the impact of discounting is not significant.

LiabilitiesOn demand up

to three monthsMore than three months up to 12

months

Accounts payable 36,666,708,772 51,023,234,400

Customers' deposits payable 3,761,361,927 0

Provisions 2,227,516,688 0

Insurance/Reinsurance premium payable 962,073,119 2,886,219,355

Trust liabilities 879,083,126 0

Other payables 658,609,787 0

Guaranty/Security deposits payable 143,237,891 00

Inter-agency payables 136,786,420 0

Due to officers and employees 8,377,687 0

Balance

Cash and cash equivalents 7,298,383,765

Investments 55,546,964,827

To meet maturing obligations, aside from cash generated from operations, the Fund earmarks funds and invests in assets readily convertible into cash, such as time/special savings deposits, treasury bills, notes, bonds, both local and foreign denominated, and equity securities. As at December 31, 2020, balances of these assets are as follows:

Of the total Investments, P20.615 billion is assigned to MSRF.

Operational risk

Operational risk refers to the risk of loss caused by inadequate or failed internal processes, people, and systems, or from external events (including legal risk). It is inherent in all activities, products and services, and cuts across multiple activities and operating units within the Fund. When controls fail to perform, operational risk can cause damage to reputation, have legal or regulatory implications, or lead to financial loss.

The Fund cannot be expected to avoid all operational risks but endeavors to manage these risks through control measures embedded in its processes. These controls, which are measures to ensure achievement of objectives, include effective segregation of duties, access-authorization, computer-generated sequential pre-numbering of documents and forms, and reconciliation procedure, staff training and assessment process, as well as activities of the Internal Audit Services Group.

The Operational Risk Management Policy (ORMP) and Reputational Risk Management Policy (RRMP) were approved by the Board on July 6, 2017. These are patterned from pertinent provisions of BSP Circular No. 900, Series of 2016, Guidelines on Operational Risk Management and “Designing Enterprise Risk Management in Organizations”, an Asia Risk Management Institute (ARIMI) module, and BSP Circular No. 747, Series of 2012, Revised Guidelines on Compliance, and articles of other authorities on Reputational Risk Management.


The Social Media Risk Management Policy, adapted from BSP Circular No. 949, and Business Continuity Management Policy, adapted from BSP Circular No. 951, were both approved on March 13, 2018.

The Asia Risk Management Institute’s (ARIMI’s) Enterprise Value Risk Assessment (EVRA) was the basis for EVRA risk assessment process for the Fund’s operational risks. The Fund’s EVRA was approved by the ManCom on March 26, 2018 and presented to the BRCC and the full Board for information purposes on April 24 and May 18, 2018, respectively.

The typical risk control self-assessment process identifies risks directly as internal and external factors affecting the organization. This approach does not provide assurance that risks needing prioritizing are identified.

EVRA uses Organizational Context Analysis to determine the parameters within which the organization operates and can operate. Customer Analysis and Business Model Analysis identify key processes and resources critical to answering the needs of the customer in a competitive manner while making a profit and sustaining operations over time. Risk Tree Analysis identifies the causes and effects of a disruption to key processes and resources and determines crisis management and preventive measures. Only the risks that affect the key processes and resources, as well as Black Swans, or catastrophic losses, and Blue Swans, or unexpected opportunities, are identified, and measured in terms of likelihood and severity, and studied for other characteristics. Risk evaluation and treatment are based on a one-to-five scoring for risk likelihood and one-to-five scoring for risk severity.

EVRA Cascading is conducted to raise awareness for the risk assessment process and proper filling out of Risk Management forms.

It was one of the bases for the determination of the Fund’s 2020 Top Operational Risks that were analyzed and presented to the ManCom, during the Strategic Planning for 2020, and to the BRCC.

Sessions of EVRA technical assistance were likewise conducted in preparation for audits and to address specific Pag-IBIG unit concerns.

The Cyber Risk Management Policy was approved in October 2020. It adopted the National Institute of Science and Technology’s (NIST’s) Cybersecurity Framework and identified the roles of the Board, Management, specific Pag-IBIG units and individual units.

Market risk

Market risk is brought about by adverse movements in factors that affect the market value of instruments, products, and transactions in an institutions’ overall portfolio. It arises from market marking, dealing, and position-taking in interest rate, foreign exchange and equity markets.

The Fund’s adoption of the Full Risk-Based Pricing Model is also intended to provide an objective pricing model, reflective of the market.

The following market risk reports are being currently generated:

a. Mark-to-market – reports the fair value of financial instruments based on market prices.

b. Value-at-Risk (VaR) – measures the worst loss of the investment portfolio over a one-month horizon at 95 per cent confidence level.

c. Liquidity report – shows the cash flow from the investment portfolio grouped in different time buckets.

d. Duration – shows the percentage change in the value of the investment portfolio for a 100 basis point change in interest rates.

e. Stress test – reports the worst-case loss in the value of portfolio using scenario based on extremely probable market developments.

Market Risk Management Policy (MRMP) was approved by the Board on July 6, 2017. This is patterned from pertinent provisions of BSP Circular No. 544, series of 2006, Guidelines on Market Risk Management.

Capital Management Policy (CMP)

The adoption of the Capital Adequacy Framework established the minimum capital requirement in determining the amount of dividends to be declared. The Fund also manages its liquidity by maintaining Capital Adequacy Ratio (CAR) of not less than 16 per cent as directed by the BOT during its December 21, 2011 Board meeting.

On December 20, 2016 Board meeting, the BOT approved the inclusion of operational risk provisions in determining CAR. This is to ensure that the Fund’s level of capital is commensurate to its exposure to credit, market, and operational risks. To compute the Risk-Weighted Asset (RWA) equivalent for operational risk, the Basic Indicator Approach was approved with a modified rate of 12 per cent.

Now, the approved maintaining minimum CAR level of the Fund is at least 17.50 per cent, recommended for Systemically Important Financial Institutions (SIFIs).

To supplement the CAR, the Fund is currently developing policies to improve risk management, governance and ability to absorb shocks arising from financial and economic stress via the adoption of Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).

The CMP shall guide the Fund in managing its Capital 1 (Members’ Contributions) and Capital 2 (Retained Earnings) using applicable provisions of Basel Accord on Capital Adequacy Ratio (CAR) – the ratio of capital to risk-weighted exposures.

The Fund shall maintain a minimum of 17.50 per cent CAR based on Capital 2 and at least 100 per cent Expanded CAR based on Capital 1 and 2, as recommended for SIFIs.


Formula:

CAR = Capital 2 / (RWACMP + RWAORP)

Expanded CAR = (Capital 1 + Capital 2) / (RWACMP + RWAORP)

where,

RWACMP – risk-weighted assets for credit and market risk provisionsRWAORP – risk-weighted assets equivalent for operational risk provision

The RWA of the Fund for market and credit risks shall be determined by converting its assets using the Board approved risk weights. The RWA for operational risk shall use the Basic Indicator Approach at 12 per cent provision.

The maintenance of minimum CAR and Expanded CAR level will ensure sustainable operations that prioritize the safety of Members’ Savings and capital commensurate to risk exposures: liquidity, market, credit, and operational risks.

On April 4, 2019, the Board approved the lowering of the minimum CAR level, from 17.50 per cent to 12.50 per cent.

Dividend declaration

On February 18, 2021, the BOT approved the declaration of dividends for the year 2020 in the amount of P29.403 billion or 92.15 per cent of the Fund’s audited net income of P31.909 billion, excluding P202.783 million net foreign exchange loss, to be credited proportionately to the Members’ TAV. The dividend rate is equivalent to 5.62 per cent for Pag-IBIG 1 and 6.12 per cent for the MP2 program.

Legal and other cases filed by or against HDMF

The impact on the financial statements of the legal and other cases filed by or against HDMF as at December 31, 2020 is not yet determined pending resolution by the proper courts.

CREATE Law

On March 26, 2021, RA No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act was signed into law, which seeks to reduce the corporate income tax rates and to rationalize the current fiscal incentives by making it time-bound, targeted, and performance-based. The law takes effect on April 11, 2021, 15 days after its complete publication.

Salient provisions of CREATE are as follows:

• Amendments to corporate income tax

32. EVENTS AFTER THE REPORTING DATE

Effective July 1, 2020, corporate income tax rate is reduced from 30 per cent to 20 per cent for domestic corporations with net taxable income not exceeding P5 million and with total assets (excluding land where the

business entity’s office, plant and equipment are situated) not exceeding P100 million and resident foreign corporations will be subject to 25 per cent income tax.

The Act excluded the Fund from the above mentioned reforms in the areas

of corporate income tax, to wit:

COVID-19 related tax relief measures to assist taxpayers during the pandemic include the temporary reduction for domestic corporations – from 2 per cent to 1 per cent of the Minimum Corporate Income Tax (MCIT); reduction of percentage tax for non-VAT taxpayers from 3 per cent to 1 per cent starting July 1, 2020 until June 30, 2023; exemption from import duties, taxes, and fees of imported COVID-19 vaccines; and VAT exemption starting January 1, 2021 until December 31, 2021 of drugs for treatment of COVID-19 and equipment, its spare parts, and raw materials for the production of personal protective equipment components for COVID-19 prevention.

The changes in rates do not have material impact on the Fund’s financial statements as at and for the year ended December 31, 2020.

• Amendments to indirect tax and incentives related to COVID-19 prevention, control and treatment and revised fiscal incentives for registered projects and activities

The provisions of existing special or general laws to the contrary notwithstanding, all corporations, agencies, or instrumentalities owned or controlled by the Government, except the GSIS, SSS, HDMF, PHIC, and the local water districts shall pay such rate of tax upon their taxable income as are imposed by this Section upon corporations or associations engaged in similar business, industry, or activity.


I. Executive Offices

Internal Audit Services GroupCorporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati City

Operations Audit DepartmentManager – Gloria A. Bautista

Financial Audit DepartmentManager – Nelin P. Paraiso

Legal and General Counsel GroupCorporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati City Corporate Business and Legal Advisory Department Manager – Atty. Deborah R. Capili Legal Department Manager – Atty. Jose Roberto F. Po Management Services GroupCorporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati City

Corporate Planning DepartmentManager – Ronnald S. Guevarra Management Systems DepartmentManager – Wennie B. Jaudian Research and Development DepartmentManager – Anella Marie L. Allena Public Relations and Information Services Group

Member Relations Department JELP Bldg., 409 Shaw Boulevard, Mandaluyong CityManager – Jerrilynn L. Pilar

Public and Media Affairs DepartmentCorporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati CityManager – Domingo C. Jacinto, Jr.

Risk Management Group

Risk Management Office(Corporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati City)Manager – Atty. Maria Rosario S. Dacanay

II. Member Services Cluster

Member Services Operations Sector

Other Working Group Project TeamThe World Center Bldg.,330 Sen. Gil J. Puyat Avenue, Makati CityManager – Florencio O. Galang, Jr.

Member Services Support UnitCorporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati CityHead – Nadia R. Taboy

Loyalty Card UnitThe World Center Bldg., 330 Sen. Gil J. Puyat Avenue, Makati CityHead – Sally C. Banal

International Operations GroupRoxas Strip Building, Libertad cor. Roxas Boulevard, Pasay City

OFW Center Operations DepartmentManager – Rosette Ramona T. Ignacio

OFW Technical and AdministrativeServices DepartmentOIC – Ruben R. Galamay

Pag-IBIG Overseas Posts

ASIABruneic/o Philippine Embassy, SPG 336, Diplomatic Enclave, Jalan Kebangsaan, Bandar Seri BegawanRepresentative – Edna C. Peñahermoso

Hong Kongc/o Philippine Consulate General 14th Floor, United Centre Building,95 Queensway, Hong KongRepresentative – Raymond Francis L. Ramos

Macauc/o Philippine Consulate General Unit 1404-1406, 14/F AIA Tower, NOS.251A-301, Avenida, Comercial De Macau, Macau SARRepresentative – Joel I. Nadres

Malaysiac/o Philippine Embassy/Philippine Overseas Labor Office, No. 1 Changkat Kia Peng, 50450 Kuala Lumpur, MalaysiaRepresentative – Louie Brigida Q. Lee

Pag-IBIG FUND

As of December 2020OFFICES


Singaporec/o Phil. Overseas Labor Office / Philippine Embassy 20 Nassim Road Singapore 258395Representative – Christian Jan T. Oliveros

South Koreac/o Philippine Embassy 80 Hoenamuro, Itaewon 2dong, Yongsan-gu, Seoul, Republic of KoreaRepresentative – James J. Lumantas

TaiwanNo. 55, 57 Zhouzi Street, Neihu District,Taipei City, TaiwanRepresentative – Lersa A. Li

EUROPEAthens, Greecec/o Philippine Overseas Labor Office, 10 Fhotidos St. Ambelokipi, Athens 11523, GreeceRepresentative – Jean V. Santos

London, United Kingdomc/o Philippine Embassy 6 Suffolk St. London SW1Y 4 HG, United KingdomRepresentative –

Milan, Italyc/o Philippine Consulate General Via Stelvio 71, Via Bernina 18 Milan, ItalyRepresentative – Mylene M. Lontoc

Rome, Italyc/o Philippine Embassy Viale Delle Medaglie D’Oro 112/114 00136 Rome, ItalyRepresentative – Delilah C. Gutierrez

MIDDLE EASTAbu Dhabi, UAEc/o Philippine Embassy W-48 Street, No. 8 Sector 2-23,Plot 51, Al Qubaisat, Abu Dhabi, UAERepresentative – Salome M. Macatangay

Bahrainc/o Philippine Embassy Villa No. 939 Road No. 3320, Mahooz Area PO Box 26681Manama, BahrainRepresentative – Alistair Pamela Stacy A. Sicat

Dubaic/o Philippine Consulate General / Philippine Overseas Labor Office, Beirut St. , Al Qusais, P.O. Box 4960, Dubai, UAERepresentative – Lowella C. Recto

Jeddah, KSAc/o Philippine Consulate General,Umm Al-Qura Street Rehab District,P.O. Box 4794 Jeddah 21412Representative - Jamal D. Baguan

Kuwaitc/o Philippine Embassy Villa No. 817, Block 1, Street 101, Al Sadiq Area, State of KuwaitRepresentative - Mahmoud B. Khalil

Qatarc/o Philippine Overseas Labor Office, Al Furat Street, Zone 66, Onaiza Area, 24900 Doha, QatarRepresentative - Maria Analyn G. Gaoat

Riyadh, KSAc/o Philippine Embassy Site D4, Collector Road, Diplomatic Quarter, P.O.Box 94366 Riyadh 11693, Kingdom of Saudi ArabiaRepresentative - Renato A. Soqueno

NORTH AMERICANew York, USAc/o Philippine Consulate General 556 5th Avenue New York 10036 USARepresentative - Michael F. Azucena

Toronto, CanadaRepresentative - Elizabeth V. Borres

Member Services Operations-NCR North East Group

Member Services Branch Operations-NCR North 795 Anchor Center, EDSA, Quezon CityArea Head - Imelda Nimfa A. De Guzman

Cubao Branch145 Union Square Condominium,15th Avenue, Cubao, Quezon CityHead – Contessa C. Olegario

Caloocan-EDSA BranchPuritan Philippines, Inc. (PPI) Building 355 EDSA cor Gen. Tirona Street, Bagong Barrio, Caloocan CityHead – Mario C. Suasi

GMA-Kamuning Branch795, Anchor Center, EDSA, Quezon CityHead – Agnes O. Nery

Quezon Avenue Branch1184 Ben-Lor Building, Quezon Avenue, Quezon CityHead – Maelyn P. Alejandro

Commonwealth Avenue BranchLGF Diliman Commercial Center, Commonwealth Ave., Batasan Hills, Quezon CityHead – Florencio C. Ramirez

Valenzuela Branch286 ARCA North Center, McArthur Highway Brgy. Karuhatan, Valenzuela CityHead – Jesus G. Namin

Marikina Branch2F Graceland Plaza, Sta. Teresita Village, J.P. Rizal St., Lamuan, Malanday, MarikinaHead – Lalaine A. Yang

Member Services Branch Operations-NCR East611 Westar Building, Shaw Boulevard, Pasig City Area Head – Perlacita A. Roldan

Antipolo BranchG-2/F Budget Lane Shopping Center Provincial Road, San Jose, Antipolo CityHead – Vicente D. Julian, Jr.

Pasig Branch611 Westar Building, Shaw Boulevard, Pasig City Head – Mariza L. Santingyaman

Mandaluyong Shaw-Zentrum Branch2/F 500 Shaw Zentrum, Shaw Boulevard, Mandaluyong CityHead – Zenaida M. Cruz

Member Services Operations-NCR South West Group

Makati Central Business District-NCR SouthThe World Center Bldg., 330 Sen. Gil J. Puyat Avenue, Makati CityManager – Jannet P. Cayabyab

Makati – Buendia I Branch2/F 317 Justine Bldg., Sen Gil Puyat Avenue, Makati CityHead – Dee Eunice S. Sonido

Makati – Buendia II Branch317 Ground Floor, Justine Bldg.,Sen Gil Puyat Avenue, Makati CityHead – Romer A. Manucdoc

Makati-Ayala Avenue Branch2/F., SSS Building 6782 Ayala Avenuecor. V. A. Rufino Street, Makati CityHead – Rodrigo Jesus Gumera

Muntinlupa Branch3/F, ARCS1 Sycamore Building Buencamino St. cor Alabang-Zapote Road, Alabang, Muntinlupa CityHead – Romeo H. Ocampo

SM Aura Branch7 Flr., SM Aura Tower Bldg, 26th ST. cor. Mckinley Parkway, Fort Bonifacio Global City, TaguigHead – Mervin M. Pereda

Guadalupe – EDSA Branch2nd Flr., Guadalupe Commercial Complex No. 9, EDSA-Guadalupe, Makati CityHead – Maria Lourdes B. Atienza

Makati –JP Rizal Branch4/F KBC Bldg., J. P. Rizal St. Brgy. Olympia, Poblacion, Makati CityHead – Marivic E. Agot

Taguig-Gate 3 Branch3rd Flr. Gate 3 Plaza Mall, Lawton Avenue corner Juliano Ave., Phase III, AFPOVAI, Western Bicutan Taguig CityHead – Sonia G. Sangalang

Biñan Branch2/F, Umbria Commercial Center, National Highway, Tulay Bato, San Antonio, Biñan, LagunaHead – Fortunata E. Blay

Outside Makati Central Business District-NCR SouthThe World Center Bldg.,330 Sen. Gil J. Puyat Avenue, Makati CityManager – Yolanda A. Febre

Member Services Branch Operations-NCR WestRoxas Strip Building, Libertadcor. Roxas Boulevard, Pasay CityArea Head – Sylvia A. Vista


Pasay BranchGround Floor Roxas Strip Building Libertad cor. Roxas Boulevard, Pasay CityHead – Mercidita S. Lusanta

Intramuros BranchPalacio del Gobernador Condominium A. Soriano Ave., cor. General Luna St. Intramuros, ManilaHead – Amado B. Dalmacio

Binondo BranchLucky Chinatown Mall, Annex B, 3/F Cityplace Square, Calle Felipe corner La Chambre Brgy 293 Zone 28 Binondo ManilaHead – Emmanuel Zosimo G. Orcine

Las Pinas- Robinsons Place BranchRobinsons Place Las Piñas 345 Alabang-Zapote Road, Brgy. Talon Uno, Las Piñas CityHead – Rolando R. Carandang

Sta. Mesa BranchJ & T Building, 3894 Ramon Magsaysay Boulevard, Sta. Mesa, ManilaHead – Agripina T. Cruz

Paranaque BranchLot 2-1-C-A Dr. Arcadio Santos Ave Brgy BF Homes Parañaque CityHead – Rosana A. Del Rosario

Member Services Operations-Cavite Area2nd Floor, Olma Building, Emilio Aguinaldo Highway, Imus, CaviteArea Head – Juanito Angelito A. Jareno

Imus Branch 2/F Olma Building, Emilio Aguinaldo Highway, Imus, CaviteHead – Redem C. Vinuya

Rosario Branch2/F MGS Building, General Trias Drive, Tejeros, Rosario, CaviteHead – Montano V. Camaña

Dasmarinas BranchGF & 2nd Floor Volets Commercial Building, Emilio Aguinaldo Hi-way,Dasmarinas CaviteHead – Cesar B. Fulgencio

NCR Technical and AdministrativeSupport Group

Technical and Administrative Support-NCR North145 Union Square Condominium, 15th Ave., Cubao, Quezon CityManager – Helen M. Paner

Technical and Administrative Support-NCR East145 Union Square Condominium, 15th Ave., Cubao, Quezon CityOIC – Fernando C. De Paz

Technical and Administrative Support-NCR South317 Justine Building, Sen. Gil J. Puyat Ave., Makati CityManager – Melba Flor M. Badilla

Technical and Administrative Support-NCR West317 Justine Building, Sen. Gil J. Puyat Ave. Makati CityManager – Josephine M. Rodriguez-Santiago

Technical and Administrative Support-CaviteOlma Building, Emilio Aguinaldo Highway, Imus, CaviteHead – Mary Ann C. Orias

Member Services Operations- Luzon Group

Central Luzon I AreaSuburbia Commercial Center, Maimpis,City of San Fernando, PampangaArea Head – Christian C. Chua San Fernando BranchSuburbia Commercial Center, McArthur Highway, Maimpis, City of San Fernando, PampangaHead – Evelyn D. Pena

Angeles City BranchUnit 105, Angeles Business Center Dona Teresa Dr. cor. Sto Rosario St, Brgy. Sto Rosario, Angeles CityHead – Liberty C. Guerrero

Tarlac City BranchUnit 2, Ten Bldg. MacArthur Highway,San Rafael, Tarlac CityHead – Marina H. Mutuc

Subic Bay Branch2/F Formosa Tower, Manila Ave.,CBD Area, Subic Bay Freeport ZoneHead – Roman Infante

Balanga BranchC. T. Edifice Building Capitol Drive, San Jose, Balanga City, BataanHead – Myra M. Anicete

Central Luzon II AreaNo. 17 A. Square BuildingDRT Highway, PinagbarilanBaliuag BulacanArea Head – Amy G. Gopez

Malolos Branch1215 Javier Building, Mac Arthur Highway, Sumapang Matanda, City of Malolos, BulacanHead – Elisa G. David Meycauayan BranchSupima Square Commercial Complex, Malhacan Road, Malhacan, Meycauayan, BulacanHead – Lestina C. Ramos

Cabanatuan BranchDuran Building, Quezon District,Maharlika Highway,Cabanatuan CityHead – Dorina Y. Mangunay

Baliuag BranchNo. 17 A. Square Bldg. DRT Highway, Pinagbarilan Baliuag, BulacanHead – Amalia C. Tiangco

Ilocos Region AreaPag-IBIG Fund Building, Government Center, San Fernando City, La UnionArea Head – Mary Jocelyn N. Retuya

Ilocos Region Technical and Administrative SupportPag-IBIG Fund Building, Government Center, San Fernando City, La UnionHead – Virginia S. Cabamungan

La Union BranchPag-IBIG Fund Building Government Center, Sevilla San Fernando City, La UnionHead – Mardito T. Dalope

Laoag Branch2/F Al Fresco Area, Expansion Mall,Robinsons Place San Nicolas, Ilocos NorteHead – Vivian P. Rimando

Vigan Branch3/F Plaza Maestro Commercial ComplexBurgos Street, Vigan CityHead – Aileen Angelie F. Abelanes

Baguio BranchS Building, Upper Session Rd Ext.,Engineers Hill, Baguio CityHead – Meriam N. Pamittan

Dagupan Branch 2/F BHF Family Plaza, Mayombo Rd.,Dagupan City, PangasinanHead – Lorenzo T. Ocampo

Urdaneta Branch3/F, CB Mall, Mc Arthur Highway, Nancayasan, Urdaneta City, PangasinanHead – Merline Vicky A. Delos Reyes

Cagayan Valley AreaEditha Tuddao Building, Balzain Road, Tuguegarao City, CagayanArea Head – Lagracia S. Ilarde Tuguegarao BranchGround Floor, Editha Tuddao Building,Balzain Road, Tuguegarao City, CagayanHead – Elmer M. Melad

Cauayan Branch1st Floor, Bucag Bldg., cor. F. L. Dy and Canciller Sts. Cauayan City, IsabelaHead – Ciriaco S. Vasquez

Solano BranchGF Units F & G, 2F Units O & P, KMCI Building,National Highway, Barangay Roxas, Solano, Nueva VizcayaHead – Susana C. Jasmin

Southern Tagalog AreaHigh Rise Business Center, Brgy. Halang, Calamba City, LagunaArea Head – Maria Elsa C. Naga


Sta. Rosa Branch2/F Cross Town Mall, Brgy. Pulong-Sta.Cruz, Tagaytay-Sta.Rosa Road, Sta. Rosa City, LagunaHead – Jimmy A. Sales

Calapan BranchGaisano Capital Calapan, Brgy. Tawiran National Highway, Calapan CityHead – Guillermo A. Alegre

Puerto Princesa Branch4/F, NCCC Mall Palawan #89 Lacao St.,Brgy. Maningning, Puerto Princesa CityHead – Emley P. Platero

Batangas Branch3/F, Nuciti Central Mall, P. Burgos,Poblacion, Batangas CityHead – Thelma D. Acosta

Lipa Branch2/F 3MJ Building, Brgy Marawoy,Lipa City, BatangasHead – Angelina N. Mojares

Bicol Region AreaBldg. 1 ALDP Plaza Mall, Roxas Ave.Diversion Road, Naga CityArea Head – Ma. Luisa P. Barcebal

Naga Branch3rd level Robinsons Place Naga, Roxas Avenue cor. Almeda Highway, Triangulo, Naga CityHead – Vivian V. Oropesa

Legazpi BranchHi-Tone Construction and Development Corp. Bldg. F. Imperial Street, Bitano, Legazpi CityHead – Ma. Luisa A. Rivero

Member Services Operations-Visayas-Mindanao GroupSouth-Central Visayas AreaWT Corporate Tower, Mindanao Ave.cor. Archbishop St., Cebu Business Park,Cebu CityHead – Sulpicio C. Villegas

Cebu-Ayala Branch Pag-IBIG Fund - WT Corporate TowerMindanao Avenue, cor. Archbishop St.,Cebu Business Park, Cebu CityHead – Portia V. Bacalso

Dumaguete Branch2/F, EROS Bldg., cor. Real & Dr. V. Locsin Sts., Dumaguete City, Negros OrientalHead – Julio Carmel P. Alfarero, Jr.

Talisay Branch2/F, Gaisano Capital SRP Brgy. San Roque,SRP Highway, Talisay City, CebuHead – Ana Maria Y. Santos

Cebu – Colon Branch5/F Gaisano Capital - South Brgy. Kalubihancor. Colon & Leon Kilat Sts., Cebu CityHead – Sara Eloisa G. Javier

Toledo BranchG/F Prince Warehouse Club Toledo, S. Osmena St., Sipaway, Brgy. Luray II, Toledo City, 6038 CebuHead – Maria Carla D. De Pio

North-Central and Eastern Visayas AreaWT Corporate Tower, Mindano Ave. cor. Archbishop St., Cebu Business Park, Cebu CityHead – Jovelita V. Custodio Mandaue Branch3/F, J. Center Mall, A. S. Fortuna St., Bakilid, Mandaue City, CebuHead – Ma. Salve P. Ceniza

Tagbilaran Branch2/F Galleria Luisa, Gallares Street,Tagbilaran City, BoholHead – Felix A Garan

Mactan Branch2/F Gaisano Mactan Island Convention Center, Pajo, Lapulapu City, CebuHead – Teofredo A. Garcia

Danao Branch3/F CFI Building, North Nautical Highway, Poblacion, Danao City, CebuHead – Dexterio C. Evardo

Tacloban BranchLevel 3, Robinsons North, Brgy. Abucay, Tacloban City, LeyteHead – Alectys G. Bajarias

Ormoc Branch2nd Level Robinsons Place Ormoc,Brgy. Cogon Ormoc CityHead – William T. Veloso

Calbayog BranchACLC Bldg., Maharlika Hi-way Brgy. Obrero, Calbayog City,SamarHead – Ma. Carmel P. Cayobit

Western Visayas AreaGaisano Grand City Mall, Araneta St.,Singcang, Bacolod CityHead – Ronnie S. Abelo Bacolod Branch Ground Floor Gaisano Grand City MallAraneta St., Singcang, Bacolod CityHead – Mary Faith Jocelyn B. Poylan Kabankalan BranchKabankalan Farmers Training CenterRizal Street, Brgy 8., Kabankalan City,Negros OccidentalHead – Celso S. Amar

Sagay BranchEspino Bldg., Cabalawan Rd.,cor. Gonzaga St., Poblacion 2, Sagay City, Negros OccidentalHead – Mary Ann T. Fruylan

Iloilo – Mandurriao BranchPlazuela de Iloilo, Benigno Aquino Ave., Mandurriao, Iloilo CityHead –Dulce Ann S. Salvino

Iloilo – Molo Branch2/F GT Plaza Mall, M.H. del Pilar St.,Molo, Iloilo CityHead – Juanita V. Genovania-Artiola

Kalibo Branch2/F, St. Ignatius Square D. Maagma St.,Kalibo, AklanHead – Ronnie S. Abelo

Roxas Branch (Capiz Branch)A&T Santos Building, Sacred Heart of Jesus Avenue Pueblo de Panay, Lawa-an, Roxas CityHead – Juanita V. Genovania-Artiola Northern Mindanao AreaPag-IBIG Fund Building, J.R. Borja-Mortola St., Cogon, Cagayan de Oro CityHead –

Cagayan De Oro – Lapasan BranchPuregold Bldg, Claro M. Recto Avenue, Lapasan, Cagayan De Oro CityHead – Reynaldo P. Florano

Cagayan De Oro – Carmen Branch2nd Ororama Super Store Bldg.,Vamenta Blvd., Carmen, Cagayan de Oro CityHead – Jennifer Colico

Valencia BranchLevel 3,Lingkod Pinoy Center, Robinsons Place Valencia Bagontaas Valencia City, BukidnonHead – Nena L. Importante

Butuan Branch KHO Building, JC. Aquino Avenue,Butuan City Head – Elenette L. Magdalera

Surigao BranchLML Building, Km. 1, National Highway,Brgy. Washington, Surigao CityHead – Ma. Olive U. Seron

Iligan BranchLevel 2, Lingkod Pinoy, Robinson’s Place Iligan, Tubod Highway, Iligan CityHead – Floyd V. Zapanta

San Francisco BranchG/F Gaisano Capital, Brgy. 4 National Highway San Francisco, Agusan del SurHead – Noly B. Quimbo

Western Mindanao AreaPag-IBIG Fund Building, San Jose Road, Baliwasan, Zamboanga CityHead – Ma. Lourdes Z. Uy


Western Mindanao Technical and Administrative SupportPag-IBIG Fund Building, San Jose Road, Baliwasan, Zamboanga CityHead – Venafel B. Kong Zamboanga City BranchPag-IBIG Fund Building San Jose Road, Baliwasan, Zamboanga CityHead – Beder F. Morandarte, Jr.

Dipolog City BranchFSA II Building, Quezon Avenue,Miputak, Dipolog CityHead – Gregorio M. Luba, Jr.

Pagadian Branch2F Trace Arcade Building F. S. Pajares Avenue, Gatas District, Pagadian City Head – Evelyn A. Tindahan Southern Mindanao AreaPryce Tower Building, JP Laurel St., Davao CityHead – Manolito O. Olegario Davao – Bajada Branch2F Bormaheco Bldg. Bajada, Davao CityHead – Emelinda Q. Glemao Davao – Matina BranchG/F Building 3, GMC Building, # 97 Mac Arthur Highway, Matina, Davao CityHead – Nolina T. Ortizo

Davao – Lanang Branch2/F Alpha Building Lanang, Business Park, Lanang, Davao CityHead – Ruby Lyn R. Sitchon

Tagum Branch Nicole’s 22 Building, Assessors Village,Apokon, Tagum CityHead – Pepito S. Dichosa

Digos Branch2F , Arita Bldg USPD Bldg. Door 10 USPD Business Center, Rizal Avenue, Digos CityHead – Arlene T. Gonzales

Panabo Branch 2F Nixon Lim Building, National HighwaySan Francisco, Panabo City, Davao del Norte Head – Maggie D. Cabali

South-Western Mindanao AreaBethany Building, General Santos Park,Head – Grace C. Camaganacan

Southern and South Western Mindanao - Technical and Administrative SupportHead – Ma. Luz A. Robledo

General Santos BranchBethany Building, General Santos Park, Bethany Building, General Santos ParkHead – Domingo B. Caina II

Koronadal BranchGround Floor JYSL Building Corner Balmores - Arellano Sts.Koronadal City 9506, South CotabatoHead – Laarni S. Mabanglo Polomolok BranchWJ Building, Cannery Road, Sanchez Subdivision, Brgy. Poblacion, Polomolok, South CotabatoHead – Marlon D. Barluado

Kidapawan BranchABLC Building, Ninoy Aquino Road, Kidapawan CityHead – Rolando D. Roque

Cotabato BranchR. Chio Building, Notre Dame Avenue cor Clemente Allinio St., Cotabato CityHead – Joy A. Villarma

POEA Blas Ople Building, Ortigas Avenue corner EDSA, Mandaluyong City

III. Home Lending Operations

Cluster

Home Lending Operations – Luzon GroupSan Fernando Housing Business Center Suburbia Commercial Center, Maimpis,City of San Fernando, Pampanga

Business DevelopmentDepartment Manager – Josephine S. Reyes Loans Origination DepartmentOIC – Engr. Danilo P. Catolos

Loans Management and Recovery DepartmentOIC – Lydia T. De Castro

La Union Housing Business CenterPag-IBIG Fund Building, Government Center, Sevilla, San Fernando City, La UnionHead – Ferdinand B. Garcia Tuguegarao Housing Business CenterEditha Tuddao Building, Balzain Road, Tuguegarao City, CagayanHead – Nelson N. Titular Calamba Housing Business CenterHigh Rise Business Center Building, Brgy. Halang, Calamba City, Laguna

Business DevelopmentDepartment Head – Jerome V. Badiong

Loans OriginationDepartment Manager – Noli O. Martirez

Loans Management and Recovery Department Manager – Nanette Gerarda T. Abilay Naga Housing Business CenterBldg.1 ALDP Plaza Mall, Roxas Ave., Naga CityHead – Theody Jean D. Amador

Home Lending Operations -Visayas-Mindanao GroupCebu Housing Business CenterWT Corporate Tower, Mindanao Ave. cor. Archbishop St., Cebu Business Park, Cebu City

Business Development Department Manager – Engr. Paulino C. Talacay

Loans Origination DepartmentManager – Reynaldo P. Cue Loans Management and Recovery DepartmentManager – Wilmer B. Lirazan Bacolod Housing Business CenterGaisano Grand City Mall, Araneta St.,Singcang, Bacolod CityManager – Atty. Gilbert Francis A. Uy III

Cagayan De Oro Housing Business Center Pag-IBIG Fund Building, J.R. Borja-Mortola St., Cogon, Cagayan de Oro CityHead – Erna B. Taghap Zamboanga Housing Business CenterPag-IBIG Fund Building, San Jose Road, Baliwasan, Zamboanga CityOIC – Herminia Vera Alita A. Morales

Davao Housing Business CenterPryce Tower, JP Laurel St., Davao City

Business Development DepartmentManager – Cesar C. Bazan Loans Origination DepartmentManager – Engr. Noli D. Armada Loans Management and RecoveryDepartment OIC – Atty. Lovella L. Albina

Loans Operations Sector409 JELP Business Solutions Building, Shaw Boulevard, Mandaluyong City

Housing Operations Support UnitHead – Napoleon V. Ala II

Property Valuation DepartmentManager – Engr. Maria Imelda E. Pabros

Loans Origination Group409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong City

Servicing DepartmentManager – Hayde C. Lim

Loans Evaluation Department I(Retail Department)Manager – Ma. Socorro R. Singzon Loans Evaluation Department II(Developer Assisted Department)OIC – Priscila A. Valenzuela


Loans Management Group409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong City

Accounts Management and Billing DepartmentManager – Annette V. Dominguez Loans Support Services DepartmentManager – Merlyn P. Medina Loans Accounting DepartmentOIC- Maria Luisa V. Poblete

Loans Remediation Group409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong City

Remediation DepartmentManager – Editha F. Pascua Foreclosure DepartmentManager – Cristina A. Estepa

Business Development Sector

Corporate Sales Group409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong City

Developer Assisted Department IManager – Mary Annette R. Samano

Developer Assisted Department IIManager – Brenda T. Cao

Institutional Housing DepartmentManager – Jacqueline O. Constantino

Acquired Assets Management Group409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong City

Marketing and Sales DepartmentManager – Atty. Amely D. Agmata

Documentation Support and Property Management DepartmentManager – Engr. Sigfred T. Briones

IV. Support Services Cluster

Financial Services Sector

Finance GroupCorporate Headquarters, Petron MegaPlaza,358 Sen. Gil J. Puyat Avenue, Makati City

Operations Accounting DepartmentOIC – Lorna M. Del Rosario General Accounting DepartmentManager – Estrella A. Santos

Fund Management GroupCorporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati City

Treasury DepartmentManager – Jose M. Manalese Investment DepartmentOIC – Jose Rommel S. Bayan

Commission on Audit409 JELP Business Solutions Building, Shaw Boulevard, Mandaluyong City

COA-Auditor (CHQ) – Emma B. Alcovendaz

Administrative Services Sector

Human Resource Services GroupCorporate Headquarters, Petron MegaPlaza,358 Sen. Gil J. Puyat Avenue, Makati City

Human Resource Development Department Manager – Human Resource Management DepartmentManager – Maria Joyce N. Mercado-Rojas

Facilities Management and General Services GroupCorporate Headquarters, Petron MegaPlaza, 358 Sen. Gil J. Puyat Avenue, Makati City

General ServicesManager – Wilhelmina S. Espineli

Facilities and Office Services DepartmentManager – Arch. Lora B. Rivera Integrated Records and Information Management DepartmentOIC – Nanette Angela L. Dacayo

Information Technology Services Sector

Information Systems Security Department409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong CityManager – Nilo M. Lumberio Computer Operations and Support Services Group409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong City

Electronic Data Processing DepartmentManager – Arlene M. Chu

Computer Operations Task ForceOIC – Anya Regina T. Morales Information Systems Group409 JELP Business Solutions Building,Shaw Boulevard, Mandaluyong City

Information Systems Development DepartmentManager – Robert E. Pilapil Information Systems Quality Assurance Department Manager – Lilia Flor S. Ambal Data Center DepartmentManager – Jonathan D. Haber


Editorial

Board AcknowledgmentEDITOR-IN-CHIEFEDITOR-IN-CHIEF

Acmad Rizaldy P. MotiAcmad Rizaldy P. Moti

EDITORIAL BOARD MEMBERS EDITORIAL BOARD MEMBERS

Atty. Karin-Lei N. Franco-GarciaAtty. Karin-Lei N. Franco-Garcia

Domingo C. Jacinto, Jr.Domingo C. Jacinto, Jr.

Janice Anne P. DelmoJanice Anne P. Delmo

MANAGING EDITORMANAGING EDITOR

Lilibeth C. PlucenaLilibeth C. Plucena

WRITERSWRITERS

Elmer Kristian D. DauigoyElmer Kristian D. Dauigoy

Fatima M. PeyraFatima M. Peyra

Thale B. EscutonThale B. Escuton

CONTRIBUTORSCONTRIBUTORS

Jose Carlo Roberto R. SaperaJose Carlo Roberto R. Sapera

Mary Grace B. DaroyMary Grace B. Daroy

Glenn Carlo N. ErolesGlenn Carlo N. Eroles

Charmaine A. RafaelCharmaine A. Rafael

Edgar D. AbarabarEdgar D. Abarabar

Roderick N. GomezRoderick N. Gomez

CREATIVE CONSULTANTCREATIVE CONSULTANT

Red Root Artists CooperativeRed Root Artists Cooperative

Pag-IBIG Fund would like to thank the following offices for their assistance:Pag-IBIG Fund would like to thank the following offices for their assistance:

The Petron Condominium Corporation, JELP Business Solutions, the Pag-IBIG Fund GMA-The Petron Condominium Corporation, JELP Business Solutions, the Pag-IBIG Fund GMA-

Kamuning and Pasig Branches, Facilities and Offices Services Department (FOSD), General Kamuning and Pasig Branches, Facilities and Offices Services Department (FOSD), General

Accounting Department (GAD), Operations Accounting Department (OAD), Institutional Housing Accounting Department (GAD), Operations Accounting Department (OAD), Institutional Housing

Department (IHD), Housing Operations Support Unit, Corporate Planning Department, Human Department (IHD), Housing Operations Support Unit, Corporate Planning Department, Human

Resource Management Department, IT Infrastructure Department, Member Services Sector Resource Management Department, IT Infrastructure Department, Member Services Sector

Support Unit (MSSSU), the Corporate Executive Officers and Secretaries of our dearest Pag-IBIG Support Unit (MSSSU), the Corporate Executive Officers and Secretaries of our dearest Pag-IBIG

Fund officers, and the LBP Staff and Security Team.Fund officers, and the LBP Staff and Security Team.

Special thanks to:Special thanks to:

The Office of the President of the Philippines’ Correspondence Office and Ms. Sher Pua.The Office of the President of the Philippines’ Correspondence Office and Ms. Sher Pua.


2020 - Pag-IBIG Fund

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