The Bangko Sentral ng Pilipinas said Monday it will virtually launch next week the Digital Personal Equity and Retirement Account to enable more Filipinos to invest in retirement-saving products through the use of mobile phones and other devices.
PERA is a voluntary retirement account that can be a supplementary source of retirement benefits in addition to state-sponsored retirement programs implemented by the Social Security System or Government Service Insurance System.
BSP Governor Benjamin Diokno, who will lead the event in partnership with the Trust Officer Association of the Philippines, said the digital PERA would allow Filipinos to invest in investment products anytime, anywhere using only their gadgets.
“This is firmly in line with the BSP’s thrust to foster digitalization in the financial system and to bring the BSP closer to the people,” Diokno said.
PERA is structured to encourage Filipinos to invest in long-term retirement saving products while enjoying certain tax incentives.
Diokno said the digitalization of PERA would enable accredited banks and financial institutions to provide convenient and affordable retirement saving products.
The BSP initiative, in collaboration with the Trust Officer Association of the Philippines, is themed, “Convenient and Affordable Retirement Savings through Digital PERA” or “#PERACares”.
The event will be broadcast live via the BSP’s Facebook page on Sept. 8.
The Capital Market Development Council chaired by Finance Secretary Carlos Dominguez III earlier said it was considering reforms in the corporate pension system, notably the recommendation by the Fund Managers Association of the Philippines to require the partial or full funding requirement of retirement plans for workers in the private sector.
Dominguez said the council consulted the Department of Labor and Employment regarding the recommendation.
He said the recommendation would help in providing sufficient funds for the pension or retirement plans of private sector workers while boosting the demand side for investments that could contribute to the growth of the Philippine capital market.