BDO accepts first batch of PERA investors

BDO Unibank Inc. has accepted the first batch of Personal Equity and Retirement Account (PERA) contributors via a test launch, the bank said on Thursday.

It is the first of only two banks authorized by the Bangko Sentral ng Pilipinas (BSP) and the Bureau of Internal Revenue (BIR) as PERA administrators – the other is Bank of the Philippine Islands.

Last week, the central bank launched PERA as a new retirement investment tool.

PERA was offered to a limited number of BDO clients who were briefed prior to opening their accounts. PERA accredited personnel explained to the investors the features, terms and conditions of the investment the particular account or product available and suitable for specific investors.

"Launching PERA has been a challenge given the coordination required from the different PERA participants, namely the Cash and Securities Custodian and the various product providers," said Ador A. Abrogena, trust officer and executive vice president of BDO Trust and Investments Group.

With the rules and regulations in place, the next step is to offer PERA on a wider scale, he said.

"We are likewise hopeful that the rules will be refined over time to allow millions of Filipinos to benefit from lower transaction and management costs for PERA and make it more inclusive," he added.

Created by the Personal Equity and Retirement Account Act of 2008 or Republic Act 9505, PERA establishes the legal and regulatory framework for voluntary personal retirement plans as a means to promote savings mobilization and capital market development. Ultimately, it is meant to provide Filipinos a way to supplement their future pension benefits from the Social Security System and the Government Service Insurance System.

"Thus, this is an offering that is very much in line with BDO's advocacy for financial inclusion," the bank said. — VS, GMA News