Bangko Sentral-backed Pera contributions on the rise

Personal Equity and Retirement Account (Pera) contributions have reached P329.55 million in 2022, growing by 30 percent from the P253.35 million recorded a year ago as digital processes continued to attracted more Filipinos to sign up.

The Bangko Sentral ng Pilipinas (BSP) said in a statement on Tuesday that the number of contributors or investors had increased by 16 percent to 5,100 last year from 4,382 in 2021.The BSP said that about 3,600 employed individuals had contributed P223.71 million to the fund as of the end of last year.

Similarly, 721 overseas Filipino workers (OFWs) and 785 self-employed individuals invested P60.58 million and P45.25 million, respectively, to Pera.

Pera was launched by the BSP in 2016 under Republic Act No. 9505, standing as a voluntary retirement savings program meant to supplement the state-based pension plan and the employer-sponsored retirement plans.

The BSP has touted it as a “powerful retirement tool” for individuals, as well as a measure to support economic growth and capital market development.By 2017, Pera funds were recorded at P37.15 million, with 583 contributors.

One notable advantage of the Pera investment program is that it offers tax exemptions on earnings from investments, as well as from estate taxes, among others.

Employer companies that contribute to Pera for their employees can also get the amount as deductible from corporate gross income and is not subject to fringe benefit tax. INQ