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Tuesday, April 17, 2018

Here's How to Open in PERA Investment — A Voluntary Retirement Account for OFWs

Overseas Filipino Workers (OFWs) are often told to prepare for their old age or retirement. One thing OFW can do for this is to invest their earnings in a Personal Equity Retirement Account (PERA).
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Overseas Filipino Workers (OFWs) are often told to prepare for their old age or retirement. One thing OFW can do for this is to invest their earnings in a Personal Equity Retirement Account (PERA).  What is PERA?   It is the first ever voluntary retirement account with tax incentives. OFWs can invest up to P200,000 annually while non-OFWs are allowed a maximum of P100,000 investment per year. Even if the OFW is abroad, the spouse and children can open a PERA account on behalf of the OFW.  Upon reaching retirement at the age of 55, all payments or distributions will be tax-exempt. This can either be in a lump sum, a pension for a definite period, or a lifetime.  Early withdrawals are allowed if one has made contributions for at least five years but will be subject to a penalty – except in cases when the individual is totally disabled due to an accident or hospitalization.  According to Senator Juan Edgardo Angara, chairman of the Senate Ways and Means Committee, “PERA investments have higher returns because it is a tax-free investment income. PERA supplements the social pension Filipinos can get from SSS or GSIS. It especially targets OFWs, who may not be contributing to either of these funds.”  Agara said, PERA will help and encourage Filipinos to save for their old years or emergency medical situation. He added they are encouraging OFWs to save and invest their earnings here in the country so they can secure a comfortable retirement and be with their families.  The Bangko Sentral ng Pilipinas (BSP) accredited last year Banco de Oro (BDO) and Bank of the Philippine Islands (BPI) as PERA institutional administrators.  PERA investments products include unit investment trust funds, the share of stock of mutual funds, insurance pension products, government securities, and other financial products.
What is PERA? 

It is the first ever voluntary retirement account with tax incentives. OFWs can invest up to P200,000 annually while non-OFWs are allowed a maximum of P100,000 investment per year. Even if the OFW is abroad, the spouse and children can open a PERA account on behalf of the OFW.

Upon reaching retirement at the age of 55, all payments or distributions will be tax-exempt. This can either be in a lump sum, a pension for a definite period, or a lifetime.


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Early withdrawals are allowed if one has made contributions for at least five years but will be subject to a penalty – except in cases when the individual is totally disabled due to an accident or hospitalization.



According to Senator Juan Edgardo Angara, chairman of the Senate Ways and Means Committee, “PERA investments have higher returns because it is a tax-free investment income. PERA supplements the social pension Filipinos can get from SSS or GSIS. It especially targets OFWs, who may not be contributing to either of these funds.”
Agara said, PERA will help and encourage Filipinos to save for their old years or emergency medical situation. He added they are encouraging OFWs to save and invest their earnings here in the country so they can secure a comfortable retirement and be with their families.



The Bangko Sentral ng Pilipinas (BSP) accredited last year Banco de Oro (BDO) and Bank of the Philippine Islands (BPI) as PERA institutional administrators.


PERA investments products include unit investment trust funds, the share of stock of mutual funds, insurance pension products, government securities, and other financial products.





Interested in opening an account? If you are OFW and interested in opening an account but currently in another country, you can request your child to go to an administrator of the bank to open the account for you.

You can only open these account in BPI and BDO as currently designated administrator of the BSP.

The following are requirements;

For OFWs
  • Overseas Employment Certificate issued by the Philippine Overseas Employment Administration (POEA)
  • Any official document showing your earnings in a foreign country.
For opening an account via Spouse
  • Marriage Certificate
  • Sworn certificate that the spouse is opening a PERA for and on behalf of the OFW who has not availed of the benefits under PERA Act.
  • Supporting document attesting OFW status.
For opening an account via child
  • Birth Certificate attesting the relationship to the OFW parent
  • Sworn certificate that the child is opening a PERA for and on behalf of the OFW who has not availed of the benefits under PERA Act.
  • Supporting document attesting OFW status.
More information regarding this program you may visit the nearest BPI and BDO account in your area.