“PERCEPTION AND LEVEL OF AWARENESS ON MP2 SAVINGS OF PAG-IBIG

MEMBERS IN SAN JUAN CITY HALL”

A Research Submitted

in Partial Fulfillment of the Requirements for the Course

Business Research

Campillanes, Aloes Joyce G.

Jamaybay, Ma. Emerald S.

Macapagal, Claudette Chloe G.

Manicane, Realyne R.

Maylon, Ma. Loui D.

Puserio, Crizha Allyne S.

Rocaberte, Jivanta R.

Ting, Janna Denise T.

Researchers of BSBA FM 3-2

223 Ortega Street, cor. A. Mabini Street Brgy. Addition Hills,

San Juan, Metro Manila

February 2023
 Chapter 1

THE PROBLEM AND ITS BACKGROUND

This chapter includes the introduction, theoretical framework, statement of the

problem, hypothesis, scope and limitation, conceptual framework, significance of the
study and the definition of terms used.

Introduction

The researchers are focused on the Perception and Level of Awareness on MP2
Savings among the Pag-IBIG members of San Juan City Hall. This study is conducted
to determine their perception when it comes to investment and how knowledgeable they
are about this kind of savings as an investment.

A study conducted by Heeb, F., Kölbel, J., Paetzold, F., Zeisberger, S.(2022)
suggests that through the use of a framed field experiment, they examined how
investors' willingness-to-pay (WTP) for sustainable investments responds to the social
impact of those investments. Investors do not substantially pay more for investments
with greater impact, despite the fact that they have a high WTP for sustainable
investments. The same is true for committed impact investors. Their WTP responds to
relative but not absolute levels of impact when investors compare a variety of
sustainable investments. Investors feel good when they choose sustainable
investments, regardless of the impact of those investments. This research suggests that
an emotional rather than a rational evaluation of impact drives the WTP for sustainable
investments.

This empirically investigates whether and which investors are willing to pay for
sustainable investments using data from two stated choice experiments for fixed-
interest investment products and equity funds among private financial decision makers.
In fact, the econometric analyses using mixed and latent class logit models show
significant willingness to pay (WTP) for sustainable investment products in addition to
strong stated preferences. The mean WTP for certified sustainable investment products
is strongly higher than the mean WTP for the non-certified counterparts, according to
the mixed logit model analysis. Additionally, the estimation results imply that investors
who have a strong affinity for left-wing parties, a high level of warmth from sustainable
investments, and a strong awareness of the environment have a clearly higher mean
willingness to forgo returns for sustainable investment products than their counterparts.
Despite the fact that risk perceptions appear to be more important for certified
sustainable equity funds, they undoubtedly have little impact on less risky sustainable
fixed-interest investment products (Gutsche, G., and Ziegler, A.) (2019).

Savings includes money one sets aside to cover and prepare for future plans or
unexpected events. According to Mapa (2022), it was stated in his article entitled,
“Philippines: How the Pandemic Impacted Household and Savings and Debt” that due
to the limited income caused by the lockdowns and recession, households were forced
to dip into their savings. According to the Bangko Sentral ng Pilipinas’ Consumer
Expectations Survey, the trend regarding the drop-off in savings was pronounced for the
income bracket of Php 10,000 to Php 29,000 and even more so on the income group
that earns Php 10,000 or less per month. Despite the gradual growth in the economy,
households are still yet to return to their usual saving habits after revenge spending.
Revenge spending would keep the Philippine economy growing in the near terms
(Domingo, 2022) but this boost will soon dissipate as it greatly affects the savings of the
households and higher interest rates demand.

Financial literacy has grown its importance in recent years, particularly as

financial markets have become increasingly complex, making it difficult for the average
person to make informed decisions about how to generate wealth even while sleeping.
In recent years, financial literacy has drawn the attention of various groups, including
financial markets, employers, bankers, and governments, as its importance has been
emphasized due to a variety of factors, including changes in economic and
demographic situations, complicated financial markets, and the development of new
financial markets (Alshebami and Aldhyani, 2022). People's ability to process economic
information and make informed decisions about financial planning, wealth accumulation,
debt, and pensions is referred to as financial literacy (Lusardi, A. and Mitchell, O.,
2017). Financial literacy can be expressed in saving and investing. According to a study
conducted by Alshebami and Marri (2022), saving behavior can mediate financial
literacy and entrepreneurial intention, demonstrating the significance of saving behavior
as a component of financial literacy in investment orientation.

The researchers intended to conduct this study due to the recent Pag-ibig media
release dated February 18, 2022 via Republic of the Philippines PNA [Philippine News
Agency] (https://www.pna.gov.ph/articles/1168077) that Pag-ibig has recorded nearly
Php. 26-B MP2 savings in 2021 despite the pandemic. According to this release, Pag-
IBIG Fund's MP2 savings collection in 2021 grew by up to 95 percent from PHP13.23
billion collection in 2020. The housing czar, Eduardo del Rosario, also emphasized that
MP2 has always provided higher returns on savings, hence, more members now prefer
to grow their hard-earned savings with Pag-IBIG Fund. From the required initial PHP500
savings, Pag-ibig members can save more and earn even higher dividends on top of the
regular savings. Furthermore, this savings-investment platform is open to pensioners
and retirees who were former Pag-IBIG Fund members, as long as "they had at least
two years worth of savings prior to retirement."

Another update was released to the media on November 16, 2022 through
Philstar Global when Pag-ibig members' savings hit Php67B in just 10 months, exactly
after the press release in February 2022. As per the statements provided, Pag-IBIG said
that its members have saved P66.66 billion during the period, which is up by 27 percent
year-on-year, and actually the highest for any given 10-month period or even for full-
year figures. 50% of this target collection comes from the MP2 program. According to
the news, "the MP2 program continued to drive Pag-IBIG’s total savings after it also hit
a record P33.72 billion during the period, jumping by 57 percent from P21.43 billion a
year ago. It also surpassed the full-year 2021 MP2 savings of P25.95 billion".

These news and press releases to the public are proof that Pag-ibig's member
enrolment to MP2, together with their savings and investments are growing constantly
and swiftly over the years. Being future employees or future business owners and
operators, it is essential for the researchers to have a clear grasp and understanding of
what MP2 is and how it works for Pag-ibig members. It is also important for the
researchers to know and reflect on the perception and awareness of current Pag-ibig
members regarding MP2 in order to arrive at a wider understanding of this savings and
investments platform, how it is perceived and used by the common employee.

The researcher

Theoretical Framework

This theoretical framework shows the relationship among perception, awareness,

social influence, and behavior on how it affects saving and making financial decisions.

Classical Economic Theory

The “Classical Economic Theory” or Pre-Keynesian Theories of Consumer

Behavior states that consumer’s assessment of the interests and costs for future
consumption has an impact on their savings behavior. The J.M Keynes theory on the
other hand states that the extent of an individual’s savings is determined by the size of
the real income. That is why savings is vital as it provides one a financial security and
freedom and secures its future for unprecedented events.

Social Capital Theory

In terms of the social capital theory, the social association amongst individuals
represents "productive resources." Social capital depicts the association between
individuals who belong to a particular society. Social capital is defined as "the sum of
the actual and potential resources embedded within, available through, and derived
from an individual's or a social unit's network of relationships" (Nahapiet and Ghoshal,
1998; Berraies et al., 2020). Social capital is a component of intellectual capital that may
imply valuing social interactions (Janette Young, 2012). Social capital theory is one
systematic way of looking at communities of knowledge, where awareness about
specific topics such as financial literacy, saving behaviour, and investment awareness
are influenced by these communities of knowledge (T. Schuller, H. Theisens, 2015).
Social Cognitive Theory

Albert Bandura's Social Cognitive Theory (SCT), which began as the Social
Learning Theory (SLT), proposes that learning occurs in a social context with a dynamic
and reciprocal interaction of the person, environment, and behaviour. The emphasis on
social influence, as well as external and internal social reinforcement, distinguishes
SCT. SCT takes into account the unique way in which individuals acquire and maintain
behaviour, as well as the social environment in which individuals perform the behaviour.
It proposes a "human agency model" in which people "self-reflect, self-regulate, and
self-organize" (Bandura, 1989). According to Martin et al. (2014), "SCT estimates an
individual's ability to engage in a targeted behaviour, based on internal and external
parameters and their interrelationships" (p. 2).

Nature and Nurture Theory

The concept "nature vs nurture" was developed in the mid-1800s by the English
Victorian polymath Francis Galton in a discussion regarding the importance of an
individual's natural attributes versus experiences from one's upbringing in determining
individual variances in physical and behavioral traits (Cherry, 2022).

Nature mostly relates to genetic inheritance. It includes the genes we are born
with as well as other hereditary elements that can influence how our personality
develops. The savings gene falls under the nature theory, which refers to someone who
has a natural ability to save, which can influence financial decisions (Yih, 2020).

The environmental factors that influence who a person is refers to as nurture.

This encompasses exposure, experiences, a person's upbringing, social relationships,
and the surrounding culture. Social learning theory falls under the nurture theory which
contends that we establish habits such as saving by imitating the people around us
(Hustle, 2022).
Conceptual Framework

This conceptual framework shows below the relationship among perception and
level of information, behavior, financial status, and social influence.

Independent Variable
Demographic Profile:
Age
Gender
Income

Dependent Variable
Dependent Variable
Level of Awareness on MP2
Perception on MP2 Savings
Savings with the following
with the following domains:
domains:
Dividend Rate
Dividend Rate
Enrollment of MP2
Enrollment of MP2
Benefits
Benefits

Figure 1:
Conceptual diagram showing the relationship between perception and level of
awareness on MP2 savings to the respondents.

The main concern of this study is to know the perception and level of awareness
of the respondents. The conceptual paradigm shows the process on how the
researchers measured the relationship of perception and awareness on MP2 savings to
the respondents.

Statement of the Problem

 The study focused on the Perception and Level of Awareness on MP2 Savings of
Pag-IBIG members in San Juan City Hall.

Specifically, it aims to answer the following questions:

1. What are the respondents’ demographic data concerning their:

1.1 Age

1.2 Gender

1.3 Income

2. What is the level of awareness of the pag-ibig members on MP2 with the
following domains:

2.1 Dividend Rate

2.2 Enrollment of MP2

2.3 Benefits

3. What is the perception of the pag-ibig members on MP2 in terms of:

3.1 Dividend Rate

3.2 Enrollment of MP2

3.3 Benefits

Hypothesis

The hypothesis will be raised in the study and will be tested at 0.5 significance
level.
H0 - The local staff of the San Juan city government is not a part of it and has minimal
to no knowledge of MP2 savings.

H1 - More than 50% of the San Juan city government's local staff are participants in the
MP2 savings program, and they have advanced knowledge of it.

Scope and Limitation

The MP2 Savings Perception in Level and Awareness of Pag-Ibig Members in

San Juan City Hall was the main focus of this study. The study's respondents were
made up of 1262 of the population overall and were chosen at random from a pool of
304. The findings of this study only apply to the respondents to this study, and they
should not be used to gauge the perception and level of awareness of the MP2 program
among employees who do not comprise this study's population.

With the intention of assisting them in growing and enhancing their capacity to
promote their program clearly, the researchers have taken into consideration as they
work on this study to determine the level of awareness and their perception of the
selected employees in San Juan City Hall after completing the survey questionnaires.

Significance of the Study

The study is concentrated on elucidating the level of perception and awareness

in MP2 savings. Moreover, the following will benefit from the study's findings:

To the members/investors. This study contains the knowledge about MP2 Savings,
where the investors and members of Pag-ibig can relate and can gain more knowledge
and develop better understanding on the said topic. The researchers believed that
through this study, they can also learn about how to improve their financial management
skills through discipline and investing.
To the future researchers. For the future research studies related to the said topic,
this will be of great help. It can serve as an essential source or reference for future
related studies. In short this research could be a reliable secondary source of
information that may support other related studies.

Definition of Terms

MiFID - Markets in Financial Instruments Directive (2004/39/EC). It has been applicable

across the European Union since November 2007.

MP2 Savings – is a special saving facility that has 5 years maturity, designed for Pag-
ibig Fund members.

Pag IBIG- it is an acronym that stands for “Pagtutulungan sa Kinabukasan: Ikaw,

Bangko, Industriya at Gobyerno. It is a Philippine-government controlled corporation
which provides affordable shelter through financing and other national savings program
in the Philippines.

Savings- is the portion of the income not spent on current expenditures that is set aside
for future use.

Awareness - It is an individual’s surface-level knowledge about the MP2 savings

program of Pag-IBIG.

Perception - it is an individual’s opinion about the MP2 savings program of Pag-IBIG.

Investment - It is an act of putting money into assets expecting it would have a greater
return in the future.

Dividends- It is a distribution or a profit-sharing payment made between Pag-Ibig and

its investors depending in MP2’s earnings annually.
 CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES

This chapter includes some related literature and studies of foreign and local
which are presented in the following paragraphs.

Foreign Literature (5)

Local Literature (5)

Foreign Studies

In a published book entitled “Psychological Approaches to the Study of

Savings”, it stated that there are different ways of describing the individual's saving

process. The “Classical Economic Theory” or Pre-Keynesian Theories of Consumer

Behavior states that consumer’s assessment of the interests and costs for future

consumption has an impact on their savings behavior. The J.M Keynes theory on the

other hand states that the extent of an individual’s savings is determined by the size of

the real income. That is why savings is vital as it provides one a financial security and

freedom and secures its future for unprecedented events.

According to Nam et al. (2019), low-income older Asian immigrants portray a

behavior of economic insecurity. Through the thirteen participants they interviewed in

their study, they concluded reasons as to why they showed economic insecurity. Most

respondents did not see the need to improve their financial knowledge and

management skills as they had "no money to manage". Others stated that the distrust of

financial institutions and other financial barriers prevented their access to financial
services. The study concluded that if financial services were available to everyone, it

could improve the financial capability, knowledge, and management skills of individuals.

According to the systematic review of Birkenmaier et al. (2021), the effects of

financial intervention to improve retirement savings through financial education and

access didn't show any improvement in the financial behaviors or outcomes of

individuals. Systematic review that they did, studied published, and unpublished

experimental studies that met their criteria. However, they concluded that even if there

is no clear improvement in the financial behavior or outcomes of individuals, policies

and practices in financial management skills should still be taught to everyone.

Amal, Muhammad Ridha Haykal., Kartika, Arie. (2021). The emergence and

expansion of cooperatives in Indonesia could be isolated from the actual record of

savings and lending organizations (KSP). The main source of cooperative activities that

ensure cooperatives endure and advance throughout time is now the savings and loan

industry. Savings and Loan Cooperatives are now the major objective for micro and

small business operators looking for hospitable and friendly financing sources in the

perspective of low-interest rates and a quick/easy method to achieve without

requirements and based on familial principles. This kind of savings and credit

cooperative has the ability to engage in the activity of money laundering given all

advancements and changes. Questionable banking statements, such as payments for

collective savings made by third parties that have no connection to service users and

contributions for optional savings made in huge quantities by individuals who do not

meet the criteria of service users. Therefore, it should be suspected, and measures

taken to stop and fight money laundering. It is a first proactive step to prevent money
laundering in savings and loan cooperatives and savings units with the principle of

knowing service users thanks to the presence of Presidential Regulation Number 13 of

2018 concerning the Application of the Principles of Recognizing Beneficial Owners of

Corporations in the Context of Prevention and Eradication of Money Laundering and

Terrorism Funding Crimes (PMPJ).

Nga, Koe Hwee., Yeoh, Ken Kyia. (2018). By 2050, Malaysia is projected to have

an aging population, which is concerning given that most Malaysians do not with the

exception of their retirement. If Malaysians put off retirement planning, the cost of care

may end up being borne by their offspring and all taxpayers. This study uses a

multidisciplinary measures to analyze the retirement savings behavior of 160

Malaysians by looking at the influence of social factors, financial knowledge, the caliber

of financial advisors, and perceptions of health. These structures are given a conceptual

framework that is supported by a number of theories, including the Theory of Planned

Behavior, the Continuity Theory, and the Social Identity Theory. It is discovered that all

constructs, with the exception of financial adviser quality, have an impact on retirement

savings behavior. The relationship between the quality of advisors and retirement

savings conduct is shown to be mediated by financial expertise. The need for efficient

professional financial advisers, earlier intervention in personal finance, long-term elderly

care, and other adjustments to social security policy are only a few of the many

implications from the study that are highlighted.

Feng, Jun. (2018). Concerns about the employed population's ability to fund their

retirement have grown as a result of the switch to defined-contribution plans. This study

examined the reasons behind greater savings on the inside of the Australian
superannuation system, where mandated savings are in place, in contrast to earlier

studies in nations where retirement funds are voluntary. The findings suggested that key

variables for optional retirement contributions include age, financial and economic

status, and employment characteristics. Participation is hampered by affordability,

myths, and a lack of knowledge about retirement savings. Voluntary retirement savings

are positively impacted by prior saving behaviors and retirement planning. Incorporating

new information into the body of research, joint modeling of pre- to post saving

decisions showed an opportunity cost between the two.

According to Manopo et al. (2021), the main purpose of investing of people in

Manado City is to gain profit. It explains more that their reason is because of the

continuous increase in the cost of education and inflation. Moreover, it also states that

people in Manado City already know how to manage their finances. Thus, they set aside

a portion of their income to invest it. Gold and property are the top favorite investments

of people in Manado City. Manopo et al. (2021) recommend educating and introducing

the capital market to Manado City as people lack an understanding of how a stock

investment works. In addition, they also recommend teaching how to invest using

technology since a lot of trading platforms are available on the internet.

According to the research of Hala et al. (2020), there is only a slight difference in

the decision-making of individuals in investing in real assets and financial assets. The

mentioned difference is that investing in financial assets is less complicated than

investing in real assets since there are a lot of administrative problems to consider.
 According to Kumari (2020), financial literacy has a positive impact on the

investment decisions of undergraduates at the University of Sri Lanka. Kumari (2020),

also concluded three dimensions that had an impact on the investment decision of

undergraduates at the University of Sri Lanka. The most significant dimension and the

main determinant of financial literacy are financial skills. The second most influential

dimension is knowledge about financial investment options. The third significant

dimension is knowledge of the financial product. Kumari (2020), concludes that these

three dimensions significantly influence the financial literacy and decision-making of

undergraduates at the University of Sri Lanka as regards investments.

Local Studies

Savings includes money one sets aside to cover and prepare for future plans or
unexpected events. According to Mapa (2022), it was stated in his article entitled,
“Philippines: How the Pandemic Impacted Household and Savings and Debt” that due
to the limited income caused by the lockdowns and recession, households were forced
to dip into their savings. According to the Bangko Sentral ng Pilipinas’ Consumer
Expectations Survey, the trend regarding the drop-off in savings was pronounced for the
income bracket of Php 10,000 to Php 29,000 and even more so on the income group
that earns Php 10,000 or less per month. Despite the gradual growth in the economy,
households are still yet to return to their usual saving habits after revenge spending.
Revenge spending would keep the Philippine economy growing in the near terms
(Domingo, 2022) but this boost will soon dissipate as it greatly affects the savings of the
households and higher interest rates demand.

One of the institutions that help people to gain financial security is the Pag-IBIG

Fund, Pag-IBIG is an acronym that stands for Pagtutulungan sa kinabukasan:

Ikaw,Bangko, Industriya,Gobyerno. It is also known as the Home Development Mutual

Fund, which offers housing loans for those planning to acquire but have a limited budget

they can get loans from the Pag-Ibig Fund. It not only contributes to housing but also

provides other sorts of loans for education, livelihood, financial assistance as well as

savings programs, The latest savings program they offer is the MP2 - Modified Pag-Ibig

II ( "Introducing Pag-IBIG Fund in the Philippines'' , n.d.)

The Pag-IBIG Fund’s Modified Pag-IBIG2 (MP2) savings program, which seeks

placements maintained for a five-year period, offers a more competitive dividend rate

than most offered by banks and even corporate bonds. As seen in the infographic

below, the program has been offering higher dividend rates for the past eight years in

contrast to the average interest rates offered by leading commercial banks on time

deposits, based on data from the Bangko Sentral ng Pilipinas (BSP).

Furthermore, HDMF has also recently adjusted the requirements to get into the

MP2 program, which may encourage more members to save through the investment

scheme. Starting this July the company has extended the program to retirees who may

have other sources of income, as long as they have contributed for at least 24 months

to Pag-IBIG prior to retirement,it has also waived the PHP 5,000 monthly gross income

requirement for members who wish to become part of the program ( Lopez, 2018).

Pag-IBIG Fund CEO Acmad Rizaldy Moti said retirees, particularly those who

previously served in the government have become more interested in investment

instruments that can help them earn money even after years of work. "We expect to

exceed the 2017 figures, as more and more Pag-IBIG members opt to enroll with our

voluntary savings program that is the MP2" said Moti in a press release. " There is a lot
of clamor from retirees especially those who retired from government services. They are

looking for a savings mechanism to grow their extra funds."

The Pag-IBIG Fund (2019) has declared that 70% of its yearly net revenue and

credits are distributed as dividends to all of the members of the Pag-IBIG Savings

program on an equitable basis. They also remarked that the dividends earned on the

Modified Pag-IBIG II Savings account were greater compared to the dividends earned

on their ordinary savings account. The dividends rate for MP2 Savings in the year 2020

is 6.12%, which, taking into account the fact that this year is a pandemic, is considered

to be high. The dividends rate for the year 2021 is 6%; even so, despite the fact that its

percentage dropped by.12%, this is still considered to be a high rate. This indicates that

a member's potential dividend earnings will increase both yearly and after the account

has been in existence for 5 years if they save more money in their account.

According to del Rosario (2022), even if there are a few concerns caused by the

pandemic, the Modified Pag-IBIG 2 savings program is still one of the most lucrative

programs offered by Pag-IBIG. This is said despite the fact that the pandemic has

brought up certain uncertainties. As a result of the declaration made by the Pag-IBIG

Fund, which is their high record of savings gathered in the year 2021, the total amount

of which is PHP 25.95 billion even in the midst of the pandemic, this sum was revealed.

This indicates that the majority of individuals are really making an effort to set aside

some of their income in order to increase their wealth in the not-too-distant future. In

addition to this, it demonstrates that individuals have full trust in the Pag-IBIG to handle

their money responsibly since their contributions are entirely voluntary and the Pag-IBIG

guarantees that they will make a return from their investments.

 An article in Business World written by Neil (2020), states that the Pag-IBIG Fund

continues to generate a bigger return compared to commercial banks. It mentions that

the dividend rate in 2019 in Pag-IBIG regular savings is 6.73% and in Modified Pag-

IBIG 2 it is 7.23%. It also discussed how Pag-IBIG Fund acquired a lot from their cash

and home loans. Furthermore, Mr. Eduardo D. del Rosario, the Chairman of Pag-IBIG

Fund Board of Trustees, was amazed at how a lot of Filipinos invest in Modified Pag-

IBIG 2, even if it is just voluntary.

An article written by Kabagani (2022), states that in 2021 the Pag-IBIG Fund

reports its highest savings collection, which is 25.95 billion pesos. This proved that even

if there were unforeseen events such as the pandemic that happened in our country,

Filipinos strive to invest their hard-earned money in savings programs that they trust

and will provide a higher return than any other institution. Additionally, Mr. Acmad

Rizaldy Moti, the Pag-IBIG Fund Chief Executive Officer, mentioned that the members

of Modified Pag-IBIG 2 grew from 508, 522 in 2020 to 721, 980 members in 2021. This

growth is significant in determining the awareness of the Filipino working class.

According to Lopez (2019), the Modified Pag-IBIG 2 is still unfamiliar to most

individuals. What most people know are the required contributions when a person is

employed, which are the Pag-IBIG regular savings. However, Pag-IBIG Fund offers

another savings program, which is the Modified Pag-IBIG 2. This savings program is a

voluntary contribution that should be maintained for five years. It is a tax-free savings

that offers a higher return compared to other commercial banks that also offers time

deposits which can be like the Modified Pag-IBIG 2. The minimum monthly contribution
to this savings program is five hundred pesos. Moreover, the dividend rate is

determined by the financial performance of Pag-IBIG Fund at the end of the year.
 CHAPTER 3
RESEARCH METHODOLOGY

This chapter presents the research methodologies used in the study. This
includes the research design, population, and sample techniques, research instrument,
data-gathering procedures, and statistical treatment of data.

Research Design
The researchers used quantitative research design to calibrate the perception
and level of awareness of San Juan City Hall's Pag-ibig members towards MP2. The
quantitative data can be transposed into numbers, in a formal, objective, systematic
process to obtain information and describe variables and their relationships.

Research Population, Sample Size and Sampling Techniques

Population defined as the totality of all subjects that conform to a set of

specifications, compromising the entire group of persons that is of interest to the
researcher and to whom the research results can be generalized. To describe a sample
as a portion or subject of the research population selected to participate in this study,
representing the research population.

Population
The research population for this study is composed of 304 employees of the local
government in San Juan City Hall. There will be an eligibility criteria that specifies the
characteristics that people in the population must possess in order to be included in the
study. This criteria includes whether the San Juan City Hall Local government employee
is a PAG-IBIG member who has knowledge about MP2 savings or is a PAG-IBIG
member who is an MP2 savings investor.
Sample Size
The researchers use Slovin’s Formula to calculate an appropriate sample size from
a population. The Slovin's Formula is written as n = N / (1 + Ne2), where n = Number of
samples, N = Total population and e = Error tolerance (level). The total employees of
San Juan City Hall are 1,262 thus: Given the total population of employees in San Juan
City Hall the sample size (n) is computed as 1,262 as for the HR Development Office of
San Juan City Hall.
Thus:
n= 12621+1262(0.05)2
n= 12621+1262 (0.0025)
n= 12621+3.1555
n= 12624.155

n= 303.73 or 304

Therefore 304 is the total number of target respondents that will be surveyed in San
Juan City Hall.

Sampling Techniques

Description of Respondents
The respondents of the study are composed of employees in the San Juan City
Hall Local Government who are indicated as PAG-IBIG members who have knowledge
about MP2 savings or as a PAG-IBIG member who is an MP2 savings investor.
Research Instrument
The researchers use a printed questionnaire as the main data gathering
instrument that consists of information about the personal characteristics of the
respondents. The instrument prepared focused on answering the statement of the
problem questions including demographic profile of the respondents ( age bracket,
gender, and income range). The questionnaire is composed of 10 questions and will be
distributed to the respondents at their work where they can answer during their free
time.
The questionnaires were structured as scales ranging from 1-5. Where in (1) is
…
Data-gathering Procedures
In this study, printed questionnaires were used to obtain data relevant to the
objectives and research questions of this study. The researchers approached a total of
three hundred four (304) employees of local government in San Juan City Hall, who are
investors and non-investors of MP2 to identify their level of perception and awareness
on MP2 savings. Each employee who participated willingly received a consent form
ahead of time. After completing the said survey, the results were handed to statisticians
for data analysis.

Statistical Treatment of Data.

Statistical Treatment of Data refers to devices to collect data such as questionnaires. To
define, a questionnaire is “a method of gathering information from respondents about
information, behavior, financial status, and social influence”. The questionnaire was
designed to gather information about perception and level of awareness on MP2
Savings.
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Amal, Muhammad Ridha Haykal., Kartika, Arie. (2021). Beneficial ownership

arrangements in saving loan cooperative as a preventive attempt to the crime of
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https://www.oapub.org/soc/index.php/EJSSS/article/view/1023
Asha Thomas & Vikas Gupta, (2021). “Social Capital Theory, Social Exchange Theory,
Social Cognitive Theory, Financial Literacy, and the Role of Knowledge Sharing
as a Moderator in Enhancing Financial Well-Being: From Bibliometric Analysis to
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