Republic Act 9505 or the PERA Act of 2008
A new law that hopes to encourage Filipinos to invest more of their savings in high yield products has been signed recently. The PERA Law or Personal Equity and Retirement Account will be implemented by the Bangko Sentral ng Pilipinas (BSP) next year.
BSP Governor Amando M. Tetangco Jr., one of the signatories of the implementing rules and regulation of the Republic Act 9505 also known as the PERA Act of 2008, said that the law took almost 10 years to conceptualize and is glad that it finally could be implemented, hopefully by next year.
He said that PERA Act would benefit especially those who are not covered by the Social Security System (SSS) and the Government Service Insurance System (GSIS), as well as Filipinos working abroad, as it would create savings investment vehicle of at least five years. It would also help develop the domestic capital market by giving incentives to long-term investments and creating more institutional investors.
Those who want to invest, who’ll be called contributors, can establish an account with a maximum annual contribution of P100,000. Overseas Filipino workers (OFWs) could inject P200,000 per year. These investments would be entitled to a tax credit of five percent.
The funds would be managed by administrators, regulated by various government agencies, who would be investing in products such as investment trust fund, annuity contract, insurance pension product, shares of stocks of mutual fund, and other investment product.
Espenilla expects the new law to encourage the contributors to invest their extra savings into the fund
October 22, 2009
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Tags: Banks, Business, Filipino, finance, investments, money, OFWs, PERA Law of 2008, Philippines, RA 9505, Republic Act 9505, shares of stocks В· Posted in: Announcement, banking, finance, Government, investments, money, Philippine business news, Philippines
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