Months after former President Corazon C. Aquino assumed leadership of the country, Pag-IBIG contributions were suspended from May to July 1986. This gave way to the Presidential Task Force on Shelter to conduct a thorough review of the Fund and its operations. The task force later affirmed that Pag-IBIG Fund was run professionally and that there were no anomalies in the Fund. On 1 August 1986, former President Aquino directed the resumption of Pag-IBIG membership under Executive Order No. 35. Membership was still on a mandatory basis but under more liberal terms. For one, contribution rate was reduced from three percent to one percent for employees earning over P1,500. Employer share was likewise cut from three percent to a fixed rate of two percent. The Maximum Fund Salary was raised from P3,000 to P5,000.

1 January 1987 marked the return of the Pag-IBIG Fund to a voluntary program under Executive Order No. 90. While many companies chose to discontinue their Pag-IBIG membership, quite a number, including big companies like PLDT and Dole Philippines, nevertheless opted to retain their membership to the Fund despite the voluntary nature of registration.merging the funds for private and government personnel into what is now known as the Pag-IBIG Fund. However, It was only on 14 December 1980 when Pag-IBIG was made independent from the NHMFC with the signing of PD 1752, which amended PD 1530. With the improved law in effect, the Fund's rule-making power was vested in its own Board of Trustees. Likewise, PD 1752 made Pag-IBIG membership mandatory for all SSS and GSIS member-employees.

Confronted with the sudden reduction in its membership base, Pag-IBIG stood unfazed and took the challenges head on. As a first step, the Fund implemented an intensified marketing campaign that focused on membership retention and generation.

It was during the years as a voluntary fund that Pag-IBIG evolved from an institution primarily for savings and housing into an agency with a wider reach that covers almost all other needs.

Pag-IBIG introduced innovative benefit programs that heeded the calls for expansion of membership to include self-employed groups with informal income, overseas Filipino workers, and non-earning spouses. It also launched other novel programs such as the Multi-Purpose Loan for its short-term loans program, and shelter programs that address both individual and institutional housing requirements.

Clearly, the voluntary nature of Pag-IBIG membership did not stop the Fund from growing in depth and breadth. During the period, the Pag-IBIG Fund has claimed its rightful place in the country's economic and financial system, finally gaining the acceptance of its members, not by force, but by its continuing efforts to impress upon the members that the Fund exists solely for their benefit as well as their beneficiaries.

After eight years as a voluntary fund, the nature of Pag-IBIG membership reverted to mandatory on 17 June 1994 when President Fidel V. Ramos signed Republic Act 7742. The new law became effective on 1 January 1995.

Today, more than a decade after the universal Pag-IBIG coverage law was implemented, the Pag-IBIG Fund continues to be a strong partner in realizing Filipino workers' dreams. Over the years, it initiated more programs and projects, particularly those that address the needs of members belonging to the bottom economic level. The Fund has established special housing partnerships with teachers and uniformed men, among others. The Rent-to-Own Program was introduced, providing members another affordable way of homeownership.

The Fund's efforts towards housing the Filipino did not go unnoticed. During the World Habitat Day celebration in October 2006, Pag-IBIG was given the prestigious Scroll of Honour Awards by the United Nations Human Settlements Program (UN-Habitat) for "making the dream of affordable housing a reality for hundreds of thousands of households." Pag-IBIG is the first Philippine government agency to be awarded such recognition.

The Fund likewise strengthened its partnership with accredited developers by way of its various institutional lending programs, among which is the much-sought after program for the development of medium and high-rise condominium buildings. The program provides a ready inventory of condominium units for sale at affordable prices, and allows members to experience condominium style living in areas close to their places of work.

In recent years, the Fund has embarked on its successful bid in the financial market, moving a step closer to its vision of becoming a premier and globally competitive provident financial institution. In 2001, the Fund floated P2 billion-worth of Pag-IBIG Housing Bonds to generate additional funds for its shelter financing programs, which was warmly received by both institutional and individual investors. The bonds matured in late 2006.