About PERA

 

THE PERSONAL EQUITY AND RETIREMENT ACCOUNT (PERA)
 

Republic Act No. 9505, otherwise known as “The Personal Equity and Retirement Account (PERA) Act of 2008”, was signed into law on August 22, 2008. PERA is the Philippine version of similar laws covering retirement savings vehicles prevalent and long standing in more developed countries.
 

Subsequently, various implementing rules, regulations and guidelines were issued by PERA regulatory agencies, namely: Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Department of Finance (DOF), Office of the Insurance Commissioner (OIC) and the Bureau of Internal Revenue (BIR) from October 21, 2009 to December 27, 2016.
 

PERA provides Filipinos a tax exempt facility to supplement their future pension benefits from SSS/GSIS and from their own employers. The law also provides employers an opportunity to become agents in furthering the objectives of the State to promote savings mobilization and capital market development.
 

BDO Trust and Investments Group (BDO Trust) has been accredited as a PERA Administrator, the first approval given jointly by the BSP and the BIR. We consider this role as a distinct privilege since this will allow us to promote further our advocacy of financial inclusion. We believe that PERA, when finally offered on a wider scale, is a historical milestone as it should be good for the development of the Philippine financial markets as well as for the public. In addition, BDO Trust, as a PERA Investment Product Provider, has also obtained BSP approval to offer various PERA qualified Unit Investment Trust Funds (UITFs).
 

In December 2016, we have accepted our first batch of PERA contributors via a test launch in our Head Office in Makati. A public announcement will be made once PERA becomes available to the general public. To know more about PERA, we have prepared the following answers to frequently asked questions (FAQs) to provide basic information on this new social security legislation.