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The rules and regulations implementing the Personal Equity and Retirement Account (PERA) Act of 2008 were finally signed by the heads of Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Department of Finance, Office of the Insurance Commission and the Bureau of Internal Revenue on October 21, 2009.


Under the implementing rules, the following may serve as PERA administrators: banks, trust entities, life insurance companies, securities brokers, insurance brokers, pre-need companies, investment houses and investment company advisers. The following products may also qualify as PERA investment products: unit investment trust fund, mutual fund, annuity contract, insurance pension product, pre-need pension plan, government securities, shares of stock traded in the local exchange and exchange-traded bonds.


Republic Act 9505, more commonly known as the PERA Act of 2008, was approved on August 22, 2008. Its main objectives are: (1) to establish a multi-pillar retirement income structure, and (2) to develop the domestic capital market.


PERA provides the following tax incentives: (1) five percent (5%) tax credit on contributions not exceeding P 100,000 annually and (2) tax-free investment income. The distribution or withdrawals shall not be subject to tax if the contributor : (1) has reached the Age of 55 and has contributed to his PERA account for 5 years, or (2) dies or becomes permanently disabled, or  (3)  was confined to a hospital in excess of 30 days. Otherwise, withdrawal shall be subject to a penalty equivalent to the tax incentives that were provided.