CONTRIBUTIONS of voluntary members in the Personal Equity and Retirement Account (PERA) reached P237 million as of September, the central bank said on Thursday. 

Bangko Sentral ng Pilipinas (BSP) data released on Thursday showed PERA contributions jumped 62% year on year from P144 million in September 2020. 

“The noted increase may be attributed to the BSP and partner providers’ promotion of the retirement savings program for Filipino families, especially those working abroad,” it said in a statement. 

PERA contributors reached 4,001 as of the third quarter, BSP data showed.  

About 2,800 of the contributors are full-time employees. This is followed by self-employed individuals (590) and overseas Filipino workers (584). 

“We continue to actively promote financial security and encourage more Filipinos to plan for retirement and set aside funds for their sunset years through PERA,” BSP Governor Benjamin E. Diokno said in the statement. 

The BSP launched the digital platform for PERA in September 2020 to make it more accessible to investors. 

The government eyes to have five million Filipinos as members of the voluntary retirement fund by 2025. 

Republic Act 9505 provided for the creation of PERA, a voluntary retirement savings program that supplements existing retirement benefits from the Social Security System, Government Service Insurance System, and private employers.  

To attract investors, PERA offers tax incentives, including a 5% income tax credit on contributions which could be used for paying income tax liabilities. 

Under the law, contributors can inject maximum annual investments worth P100,000, while overseas Filipinos are allowed to pour in up to P200,000 a year in their PERA accounts. 

Based on data from the Philippine Statistics Authority, only 20% of the 7.6 million Filipinos aged 60 years and above are covered by state-backed mandatory pensions.  

Mr. Diokno earlier said they are backing a suggestion to increase the annual maximum allowable contribution of Filipinos in the PERA. 

He said as the PERA Law was enacted in 2008, there may be a need to adjust the contribution cap upwards to take into account the impact of inflation. — L.W.T. Noble 

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