QUEZON CITY, Feb. 26 (PIA) -- The public is encouraged to invest for a retirement fund at an earlier age under Personal Equity & Retirement Account (PERA) or known as the Republic Act No. 9505 or the PERA Act of 2008.

PERA is a voluntary retirement savings program, established by and for the exclusive use and benefit of the contributor on top of the retirement benefits from the Social Security System (SSS) from the private sector and Government Service Insurance System (GSIS) from the public sector, and employers. It has voluntary portability where it can be carried over even in the change of employer from private to public or vice versa.

PERA Contributor can be employed, self-employed and overseas Filipinos with a maximum Php100,000 per person annual contributions in a yearly flexible payment.

For married couple investment, a maximum of Php100,000 each per annum while Overseas Filipinos can invest with a maximum of Php200,000 per annum.

The money under PERA can be invested in Unit Investment Trust Fund (UITF) manage by banks, mutual funds, annuity contract, insurance pension product, pre-need pension plan, exchange-listed securities/stocks, government securities, and any other category of investment product or outlet which the regulatory authority may allow. As of now, the accredited products are UITF managed by banks.

As to tax benefits, PERA is tax-free earnings from investments, with tax incentive on contributions or tax credit equivalent to 5% of the total contributions' or Php 5,000 deductible to income tax liabilities, and tax-free withdrawal of qualified distribution of qualified PERA investment provided the contributor complied the 55/5 rule or at age 55 and contributed in 5 years, and in case of death of Contributor will not subject to estate tax.

Tax credit can be used annually deductible to income tax to employed or to any income tax liabilities by contributors.

The Contributor should be a Filipino with the capacity to contract and have a Tax Identification Number (TIN) which is necessary for tax credit incentives.

PERA can be invested digitally through the digital PERA platform in opening an account that connects to the PERA Product Providers, the Administrators, and the Regulators for electronic submissions of documents.

For further details, visit the Digital Platform Providers: Seedbox: https://pera.seedbox.ph BDO: https://online.bdo.com.ph, and the PERA Administrators: ATRAM : https://www.atram.com.ph; BDO: https://ww.bdo.com.ph/PERA; and BPI: https://www.bpiexpressonline.com/p/1/676/personal-equity-and-retirement-account. (MBP/PIA-IDPD/BSP)