Finance chief Frederick Go eyes improving PERA program

Finance Secretary Frederick Go is looking into improving the Personal Equity and Retirement Account (PERA).

In a statement on Tuesday, Go said the move was aimed to encourage more Filipinos to save for retirement, expand participation in long-term investments, and deepen the Philippine capital market.

Established under Republic Act No. 9505, or the PERA Act of 2008, PERA is a voluntary retirement savings program that allows eligible individuals to invest in approved financial products while receiving tax incentives, subject to applicable rules.

It is designed to supplement retirement benefits from the Social Security System (SSS), Government Service Insurance System (GSIS), and other programs.

Go said adjustments to the current annual contribution limits will be examined to determine how these could enable contributors to set aside more money for retirement, taking into account changes in income levels, financial needs, and prevailing economic conditions.

In particular, the Finance chief said he is looking to establish a uniform annual contribution limit to simplify rules and promote greater equity.

Currently, regular contributors may contribute up to P200,000 annually, while overseas Filipino workers are allowed up to P400,000 per year.

The Finance chief said the review will also consider other policy and regulatory improvements that could address barriers to participation, strengthen awareness of the program, and enhance its overall effectiveness.

As part of the review, the Finance Department is inviting stakeholders from the financial and investment sectors, employers, labor groups, retirement and pension institutions, and other relevant organizations to submit their inputs and recommendations on how to make PERA more accessible, beneficial, and attractive to Filipino workers, OFWs, and other eligible contributors.

“Our goal is to make PERA a more effective tool for helping Filipinos prepare for retirement. We welcome stakeholder recommendations on how to improve the program, strengthen its incentives, and encourage more people to build long-term savings,” Go said.

The Finance chief said the proposed improvements remain under study, and stakeholder inputs are welcomed as potential policy changes to the PERA framework are evaluated. — RSJ, GMA News