PERAPERAFREQUENTLY ASKED QUESTIONSFREQUENTLY ASKED QUESTIONS

BangkoSentralBangkoSentralngPilipinaswww.bsp.gov.ph

A Filipino citizen with thecapacity to contract and have aTax Identification Number (TIN)can be a PERA Contributor.

Who is eligible toWho is eligible toopen a PERA?open a PERA?

What is PERA?What is PERA?Personal Equity and Retirement Account or PERA is a voluntary retirement savingprogram that supplements the existing retirement benefits from Social SecuritySystem, Government Service Insurance System and employers.

This will enable Filipinos to live more comfortably in their sunset years.

*Republic Act No. 9505 otherwise known as the “Personal Equity and Retirement Account (PERA) Act of 2008”, is thePhilippine version of similar laws covering retirement savings vehicles common in more advanced countries.

Why should I beWhy should I beinterested in a PERA?interested in a PERA?

Retirement planning at an early age enables Filipinosto make better decisions for their career, families andloved ones as there is assurance of financial securitywhen they retire.

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TAXTAXTAX

INCENTIVESINCENTIVESINCENTIVESCOMFORTABLECOMFORTABLECOMFORTABLE

RETIREMENTRETIREMENTRETIREMENT

The tax credit can be used to payyour income tax liabilities.

For Overseas Filipinos, the 5% taxcredit can be claimed against anyinternal revenue tax liabilities in thePhilippines.

All income earned from the investmentsand reinvestments of the maximumamount allowed is exempted from taxeson investment income

PERA assets shall not be consideredyour assets for purpose of insolvencyand estate taxes.

AdvantagesAdvantagesof PERAof PERA

5% income tax credit on the actualPERA contribution

*These incentives are limited to your actual PERA contributionnot exceeding the annual maximum contribution.

SAVINGSSAVINGSSAVINGS

How much canHow much canI contribute toI contribute toa PERA?a PERA?The maximum aggregate annualcontribution is ₱100,000 exceptfor Overseas Filipinos who cancontribute up to ₱200,000annually.

For married individuals, eachspouse can contribute up to₱100,000 each.

Administers and oversees the PERA of the Contributor.Presents available PERA products in the market and determinesif the Contributor’s investment choices are consistent withhis/her risk profile.Provides regular updates on the status of the account/s.The Administrator can be a bank, stand alone trust corporation,an insurance company, or a securities broker.

The Administrator is pre-qualified by a RegulatoryAuthority which can either be Bangko Sentral ngPilipinas (BSP), Securities and Exchange Commission(SEC) or Insurance Commission (IC), and accreditedby the Bureau of Internal Revenue (BIR).The BSP, SEC, or IC can also prequalify its othersupervised entities to become PERA Administratorsif it determines that they are eligible to act as PERAAdministrator.

Who are the parties to a PERAWho are the parties to a PERAaside from the “Contributor”?aside from the “Contributor”?

ADMINISTRATOR

A third-party Custodian is a separate and unrelatedentity to the Administrator. Your Administrator shalladvise you who the BSP-accredited third party PERACustodians are. The Custodian is required to reportto the Contributor, the Administrator, and theconcerned Regulatory Authority at regular intervalsall financial transactions and all documents in itscustody under a PERA.

Another option is the PERA self-custodyarrangement. Under this arrangement, theContributor acts as the custodian of his/her ownuninvested PERA funds and income thereof as wellas the PERA investments. Any movement of cash orinvestments under a self-custody arrangement shallbe coursed through the Administrator

CUSTODIAN

May be optionally engaged by theContributor to make investment decisions forhis PERA.An Investment Manager is an entityaccredited by the concerned RegulatoryAuthority to invest on behalf of theContributor.Your PERA Investment Manager, should youchoose to have one, is not allowed torecommend or sell to you its own investmentproducts or that of its subsidiaries oraffiliates.

INVESTMENT MANAGER

Unit of UITFShares of stock of mutual fundsAnnuity contractInsurance pension productPre-need pension planShare of stock or other security listed andtraded in a local exchangeExchange-traded bondGovernment securitiesAny other category of investment product oroutlet which the concerned Regulatory Authoritymay allow for PERA purposes, provided that theproduct must be non-speculative, readilymarketable, and with track record of regularincome payments to investors

1.2.3.4.5.6.

7.8.9.

Investment ProductsInvestment Productsavailable for PERAavailable for PERA

These investment products must be duly approved/considered eligible by the concernedRegulatory Authority in order to be entitled to the above-mentioned tax incentives.

Look for an Administrator who will open, administer andoversee your account. You may have a maximum of five(5) PERA, provided that you shall designate only one (1)Administrator for all accounts and that each account shallbe confined to one (1) investment product category.

Once the Administrator is appointed, you have the optionto either appoint a third-party custodian or to be thecustodian of your own PERA funds.

How do I start investingHow do I start investingin a PERA?in a PERA?

The choice of investment product is up to you. However,if you are unsure of which investment products to investin, you may hire an Investment Manager.

You will be asked to identify your investment objectives and yourrisk tolerance through a Client Suitability Assessment (CSA).

You will be provided with a Pre-Acceptance and General RiskDisclosure Statement that contains provisions on the general risksassociated with each category of PERA Investment Product andcautionary statement on the aforementioned risks.

You will be informed of the investment options/ productsaccording to their category and your risk profile classification.

Procedures in opening a PERAProcedures in opening a PERA

Account opening process are done online wherein:

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PERA can also be opened by the spouse/childof a married overseas Filipino.

Visit the websites of Digital PERA Platform Provider and PERA Administratorsto know the account opening requirements and other PERA related documents:

Digital Platform ProviderSeedbox (https://pera.seedbox.ph)

PERA AdministratorsATRAM (https://www.atram.com.ph)BDO (https://www.bdo.com.ph/PERA/requirements)BPI (https://www.bpiexpressonline.com/p/1/676/personal-equity-and-retirement-account)

The fees and charges for your PERA areadministration fees and custodial fees.* 

Investment management fees shall also becharged if you appointed an Investment Manager.

What are the fees andWhat are the fees andcharges involved?charges involved?

*Custodial fee is applicable for third-party custodian arrangement

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When am I allowed toWhen am I allowed towithdraw my PERA contributions?withdraw my PERA contributions?

PERA contributions can be withdrawn or distributed, andbe exempted from income or estate taxes, if applicable,under the following circumstances:

Upon reaching the age of 55 and having madequalified contributions for at least 5 years (55 and 5 rule). This may be made either inlump sum or monthly pension

Upon death, irrespective of age orcontributions made

Can I withdraw my PERA contributionsCan I withdraw my PERA contributionswithout complying with the 55 and 5 rule?without complying with the 55 and 5 rule?

No withdrawal penalties shall be imposed under any of the following circumstances:

Accident or illness-related hospitalization in excess of 30 daysPermanent total disabilityImmediate transfer of proceeds to another PERA investment product and/oranother Administrator within 15 calendar days from withdrawal.

Yes, but subject to early withdrawal penalties. Early withdrawal penaltiesmeans all taxes waived in the Contributor’s favor shall be repaid to the BIR.

Are there exemptions from the earlyAre there exemptions from the earlywithdrawal penalties?withdrawal penalties?

PhoneDirect Lines: 02-8708-708702-5306-2584 Fax02-8708-7088 Email AddressConsumeraffairs@bsp.gov.ph Mailing AddressThe Consumer Empowerment GroupCenter for Learning and Inclusion AdvocacyBangko Sentral ng Pilipinas5th Floor Multi-Storey Building, BSP ComplexA. Mabini Street, Malate, Manila, 1004

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