Easy Redemption Plan

 

The BDO Easy Redemption Plan (ERP) is a redemption facility that allows participants to automatically receive regular cash pay-outs from their Unit Investment Trust Fund (UITF) investments.

 

Product Features

Target Market
  • Individuals and Corporations with programmed disbursements
  • Retired individuals who want to program their retirement/investment funds to give out regular cash for living expenses
UITF Available for ERP BDO Peso Money Market Fund
Cut-off Time 11:30 am of any banking day
Frequency and Schedule of Pay-outs 1x a month / 2x a month
5th, 10th, 15th, 20th, 25th, 30th
Minimum Pay-out Amount Php 1,000.00 / pay-out
Maintaining Balance The same as the participant's designated pay-out amount but not lower than the minimum pay-out amount of Php 1,000
Manner of Pay-out Automatic credit to participant's nominated BDO Current Account/Savings Account (CA/SA)
Fee Php 500 per enrollment
Documentation
 

Mechanics

On Enrollment The participant enrolls his Confirmation/s of Participation (COP/s) in the ERP at the same branch* where his UITF investment is booked and specifies the
  • Pay-out amount
  • Frequency and schedule of pay-out
  • BDO CA/SA to credit every pay-out

In cases where UITF participants opt to enroll more than one (1) COP under the same ERP account, the combined number of units of the COPs will be reflected in a SOA.

On Scheduled Pay-out Dates

The equivalent units of the specified pay-out amount will be automatically redeemed and proceeds thereof will be credited to the nominated BDO CA/SA of the participant.

When scheduled pay-out date/s fall on a weekend, holiday or a non-banking day, the pay-out shall be done on the next banking day after the scheduled pay-out date.

Unsubscription Policy

Regular Unsubscription is initiated by the participant by submitting to his BDO Servicing Branch a Notice of Unsubscription which documents that he no longer wishes to participate in the ERP. The participant’s UITF participation in the ERP will be redeemed and the proceeds will be credited to participant's enrolled BDO CA/SA.

Notices of Unsubscription received before the cut-off time of 11:30 a.m. shall be considered as transactions for the day and shall be settled after 4:00 p.m. of the same banking day.

Automatic Unsubscription is initiated by the bank when the remaining amount in the participant’s ERP account falls below the designated pay-out amount or has no remaining balance. In such cases, the participant’s outstanding units in the ERP, if any, will be redeemed and the proceeds will be credited to the participant's enrolled BDO CA/SA on the next scheduled pay-out date.

Change Request Policy The participant is allowed to change the following ERP details:
  • Pay-out amount
  • Schedule and frequency of pay-out
  • Nominated CA/SA subject to existing policies and procedures

The change request will take effect within four (4) banking days from date of request.

*Servicing branch is where the UITF investments are booked.

 

Frequently Asked Questions

Overview

1. What is the BDO Easy Redemption Plan?
    The BDO Easy Redemption Plan (ERP) is a redemption facility that
    allows participants to automatically receive regular cash pay-outs
    from their UITF investments.

 

2. How does the ERP work?
    To join the ERP, you should enroll the UITF Confirmation/s of Participation
    (COPs) that you want to include in this plan.  You will then choose the
    pay-out amount desired and the frequency of such pay-outs. These will
    automatically and regularly be credited to your nominated CA/SA following
    the schedule you have specified. Pay-outs are funded from partial
    redemptions of units covered by the enrolled COPs and will continue until
    all the units under the ERP have been redeemed.

 

3. What are the advantages in enrolling in the ERP?

  1. Automatic Credit. The pay-out is automatically credited to your nominated BDO CA/SA by redeeming a portion of your UITF placement.
  2. Convenience. The ERP allows you to regularly receive cash pay-outs from your PMMF investment without having to visit the branch each time.  It also allows you to allocate funds for different purposes such as allowances, utility bills, etc.
  3. Flexible.  By filling out the Change Request Form, ERP allows you to change your original pay-out instructions (i.e., pay-out amount, frequency of pay-outs, CA/SA for credit).
  4. Reporting.  Keep track of the status of your ERP account through a Statement of Account that your servicing branch can provide you.
On ERP Enrollment

1. Who can enroll in the ERP?
    All individual and corporate clients with
    outstanding PMMF placements can enroll their Confirmation/s of
    Participation (COPs) in the ERP. 

 

2. Can I enroll my other UITF placements aside from the PMMF?
    For now, only the PMMF placements can be enrolled under the ERP.
    In the event that the other UITFs can be enrolled in the ERP, holding
    period for each fund will apply. This means that you cannot enroll your
    COP in the ERP if it is still within the holding period. 

 

3. Where should I enroll my ERP? 

    You may enroll for ERP only in your UITF servicing branch.

 

4. How do I enroll?

    a. Accomplish and submit the ERP Enrollment Form to your UITF servicing
        branch. For joint OR accounts, anyone can sign and submit this. For
        joint AND accounts, all should sign and submit this. 

    b. Decide on the following:

  1. Fixed amount (minimum of P1,000.00 per pay-out) that will automatically be credited to your nominated account
  2. Date, every (5th, 10th, 15th, 20th, 25th, 30th) of the month
  3. Frequency (once or twice a month)
  4. BDO account number for regular crediting of pay-outs

     c. Pay enrollment fee of PhP500 per ERP account

     d. Surrender the Confirmation/s of Participation (COP/s) that
         you wish to enroll in the ERP. Name/s in the COP should
         be exactly the same as the name/s in the ERP account.

 

5. What are the account opening requirements? 

    a. ERP Enrollment Form, 

    b. ERP Joining Terms and Conditions 

    c. Payment of PhP500 enrollment fee per ERP account

    d. Confirmation/s of Participation (COP/s) for transfer to ERP

 

6. When should I submit my ERP enrollment form? 
    Submission of enrollment form to your ERP servicing branch
    (branch marketing assistant or marketing officer) should be four
    (4) banking days before your preferred initial pay-out date. 

 

7. What types of BDO accounts may I nominate to credit my ERP pay-outs?
    a. Regular CA/SA
    b. Other types of CA/SA i.e. Asenso Kabayan, Junior Savers Club, etc
        As long as the account is the same as or has a common name as
        the ERP account.

 

8. For purposes of automatic crediting of pay-outs under the ERP, may I
    nominate a BDO checking/savings/payroll account maintained in a
    branch other than my ERP servicing branch? 

    Yes. You may nominate a BDO account maintained in another branch
    for as long as the BDO account name is the same as or has a common
    name as the ERP account name. 

    Example: Your PMMF account is in BDO Makati Branch. This will be
    your ERP servicing branch. You may use your BDO ATM savings
    account maintained with BDO Ortigas Center Branch as the account
    where your ERP pay-outs will be credited.

 

9. How flexible is the ERP in terms of pay-out amount and frequency?  

    You can choose the following details:

    a. Amount: You can choose the amount (minimum of P1,000) that will
        be credited regularly to your nominated CA/SA.

    b. Frequency: You can choose to be credited once or twice a month
        (choose among these dates: 5th, 10th, 15th, 20th, 25th, 30th )

    c. CA/SA for credit of pay-outs: You can nominate a CA/SA where you
        are an accountholder.

 

10. Is it possible to have several COPs (from one PMMF account) and
      transfer these COPs to one ERP account?

     Yes, you may have several COPs (under one PMMF account) which can
     be transferred to one ERP account.

     Once the COPs are transferred to the ERP account, all of their
     outstanding units will be combined.

 

11. Can I add more COPs in my existing ERP account? Will you charge me
      a separate enrollment fee?

      Yes, you may add more COPs in your ERP by submitting the “Add COP”
      Form to your servicing branch. The P500 enrollment fee is a one-time fee,
      charged on a per ERP account basis, therefore adding COPs to an
      existing ERP account will not require another enrollment fee. There is no
      limit as to the number of COPs you can add in your existing ERP account.

 

12. If I have a PMMF account with several COPs, is it possible to set-up
      different ERP accounts for my PMMF account?

      Yes you may set up different ERP accounts from your PMMF account,
      provided that each COP can only be enrolled under one ERP account.  

 

Thus, one PMMF account with more than one COP can have different ERP
accounts.  But one COP cannot be broken down or divided to service several
ERP accounts.

To illustrate,

 

1 PMMF Account

ERP Fee

ERP Account 1

COP 1, COP 2

P500

ERP Account 2

COP 3, COP 4

P500

 

 

On ERP Redemptions

1. When will the ERP pay-outs be credited to my account? 

    Crediting of ERP pay-outs will happen on scheduled dates after
    release of the day’s NAVPU.

 

2. What will happen if my scheduled pay-out date falls on a non-banking
    day, a holiday or a weekend? 

    Your scheduled pay-out will be processed one (1) banking day after
    the scheduled pay-out date. Kindly take this into account when
    expecting your pay-outs.

 

3. How will I know the status of my ERP account?

    You may request for a Statement of Account (SOA) from your ERP
    servicing branch for free. The SOA will reflect the COP numbers
    enrolled for ERP, their equivalent units, the redeemed units, regular
    pay-out amounts and remaining no. units of participation in your ERP
    account.

 

In cases where UITF participants opt to enroll more than one (1) COP under the same ERP account, the combined number of units of the COPs will be reflected in one SOA.

In addition, the credit details can be viewed online when you enroll your nominated BDO checking/savings/payroll account in the BDO Online Banking facility

 

4. In case my ERP account does not have sufficient balance to cover for
    my scheduled pay-out amount, what will happen? 

    Your ERP account will automatically be unsubscribed, and the remaining
    units will be redeemed and paid out (Automatic Unsubscription).

 

5. In case I will be needing cash for emergencies, may I redeem all
    outstanding units in my ERP account? Can I unsubscribe from the
    ERP anytime?

    Yes. You may request to unsubscribe from ERP by submitting a
    Notice of Unsubscription (Regular Unsubscription) to your servicing
    branch whereupon all outstanding units will be redeemed.

 

Notices of Unsubscription received before the cut-off time of 11:30 a.m. shall be considered as transactions for the day and shall be settled after 4:00 p.m. of the same banking day.

 

6. Can I suspend the scheduled pay-out for a particular month?

    No.  The branch can only accommodate requests for change in
    redemption dates and the same should be submitted at least
    four (4) banking days before your preferred pay-out date.

 

7. What happens when I unsubscribe from the ERP?

    Since the ERP is a redemption facility, unsubscription will mean
    redemption of all outstanding units enrolled under that ERP account.
    All COPs (combined units) enrolled under that ERP account will
    automatically be redeemed based on the NAVPU of the unsubscription
    date and will be credited according to client’s specified Mode of Payment.
    Partial redemption of outstanding units is not allowed.

 

8. Can I open another ERP account after I have unsubscribed from my old
    ERP account? 

    Yes. You can enroll for a new ERP account anytime by going through
    the enrollment process and filling out the required forms in your servicing
    branch.

On ERP Amendments

1. What details can be amended in my ERP account?
    By filling out the Change Request Form, you can change
    the following details in your ERP account:

    • Pay-out amount

    • Schedule and frequency of pay-out 

    • Nominated CA/SA, as long as the account is the same
      as or has a common name as the ERP account (In the
      event that the CA/SA enrolled under the ERP is closed,
      the ERP redemptions are put on hold. It is only when a
      new CA/SA is nominated and the corresponding Change
      Request Form is submitted that the regular pay-outs will
      resume. 

      Change requests are free of charge.

 

2. Where can I file my request for amendment of my ERP account? 
    Requests can be done at the BDO branch where you opened
    your ERP account. Submission of the Change Request Form to
    your ERP servicing branch should be four (4) banking days
    before your preferred pay-out date. 

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