BDO becomes first PERA administrator

The Trust and Investments Group of BDO Unibank became the first institution in the country to be accredited as Personal Equity and Retirement Account (PERA) administrator after hurdling stringent qualification requirements of the Bangko Sentral ng Pilipinas (BSP) and the Bureau of Internal Revenue (BIR).

PERA is a product of Republic Act 9505, also known as the PERA Act of 2008, which was signed into law on August 22, 2008. Subsequently, PERA Implementing Rules and Regulations (IRR) were issued on October 21, 2009 by various regulatory bodies.

These were further fleshed out by regulatory issuances of the BSP and the BIR, the latest of which was dated July 21, 2016. PERA is the local version of similar laws covering retirement savings vehicles prevalent and long standing in more developed countries.

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 op portunity to become agents in furthering these objectives.

More important, it provides Filipinos a means to supplement their future pension benefits from the Social Security System (SSS) and the Government Service and Insurance System (GSIS). “BDO believes that being 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 toward aligning our systems and processes with recent and forthcoming regulatory issuances,” said Ador Abrogena, executive vice president and trust officer of BDO Trust.

“Implementing PERA is complex as it involves efficient coordination with the various PERA participants like the cash/securities custodians, investment product providers and investments managers as well as providing the required regulatory reports.

More important, it involves educating and inculcating financial literacy in the PERA Contributors. For further reach, we also have to increase our number of Accredited Individual PERA Administrators who are the only ones allowed by regulations to market PERA.

All these need to be carefully readied before a PERA launch,” he added. Abrogena said BDO looks forward to fulfilling its responsibilities as the country’s first PERA Administrator and will find ways to make it work.