By Benjamin Cuaresma
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has authorized qualified banks to offer time deposits as investment products under the Personal Equity and Retirement Account (PERA), giving Filipinos another option for building long-term retirement savings.
Under BSP Memorandum No. M-2026-044, PERA time deposits must carry a minimum maturity of 30 days. Once the deposit matures, its proceeds will remain within the contributor’s PERA assets and will not be treated as a withdrawal.
Contributors may roll over or reinvest the proceeds, or transfer them to another accredited PERA investment product, depending on their instructions or existing investment arrangement.
“Retirement planning should be simple, accessible, and within reach of every Filipino. By introducing PERA time deposits, we are providing another practical option for individuals who want to build their retirement savings through a product they already understand and trust,” BSP Deputy Governor Lyn I. Javier said.
The new product works much like a conventional bank time deposit, except that the funds remain inside the contributor’s PERA account and may qualify for tax incentives available under the retirement savings program.
PERA time deposits will remain subject to existing rules governing PERA investments.
Banks seeking to offer the product must comply with applicable BSP prudential requirements and notify the central bank of their intention to provide PERA time deposits.
They must also secure accreditation from the Bureau of Internal Revenue before accepting placements and partnering with a PERA administrator.
The new option expands the range of investments available under PERA, which already includes unit investment trust funds, stocks, real estate investment trusts and government securities.
Created under Republic Act No. 9505, PERA is a voluntary retirement savings program designed to supplement state pension benefits and employer-sponsored retirement plans.
Individual contributors may invest up to P200,000 annually in PERA, while overseas Filipinos may contribute as much as P400,000 each year.
The BSP’s latest data show growing interest in the retirement savings program.
PERA contributions jumped 45 percent to P757.55 million in the first half of the year from P521.36 million during the same period last year.
Employee contributions accounted for the biggest share at P449.45 million, followed by self-employed Filipinos with P207.9 million and overseas Filipino workers with P100.2 million.
The number of PERA contributors also surged to 30,055 from just 6,193 a year earlier, marking an almost fivefold increase.
The BSP’s move to allow time deposits under PERA gives the expanding pool of contributors another relatively familiar savings instrument while keeping their funds within the framework of a dedicated retirement account.
ia/xf
