MANILA, Philippines – BDO Unibank Inc. is the first institution in the country to be accredited as administrator of the contributions made by employers and employees to a retirement savings program.
The universal bank owned by retail and banking magnate Henry Sy through its Trust and Investments Group is now an administrator for the Personal Equity and Retirement Account (PERA).
BDO Trust executive vice president and trust officer Ador Abrogena said being named the first PERA administrator is a distinct privilege.
“This will allow BDO to further promote its advocacy for financial inclusion. It is also a great responsibility and thus, we have to see to it that it is properly implemented. We are working towards aligning our systems and processes with recent and forthcoming regulatory issuances,” he said.
The listed bank hurdled stringent qualification requirements of the Bangko Sentral ng Pilipinas (BSP) and the Bureau of Internal Revenue (BIR).
RA 9505 also known as the PERA Act of 2008 was enacted to establish a legal and regulatory framework for voluntary personal retirement plans as a means to promote savings mobilization and capital market development, to contribute to long-term fiscal sustainability through the provision of long-term financing and to reduce the need for social pension benefits.
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PERA establishes the legal and regulatory framework for voluntary personal retirement plans as a means to promote savings mobilization, capital market development and long-term fiscal sustainability. It affords employers an opportunity to become agents in furthering these objectives.
More importantly, it provides Filipinos a means to supplement their future pension benefits from the Social Security System (SSS) or the Government Service Insurance System (GSIS).
As such, the PERA is in the nature of long-term investments similar to other retirement plans. It is similar to retirement savings vehicles in more developed countries such as the Individual Retirement Account (IRA) and the 401(k) in the US.
