PNB PERA Bond Fund
Why Should You Invest
- ✓ Boost your retirement savings and retire comfortably.
- ✓ Enjoy generous tax incentives
- 5% Tax Credit on annual contributions
- Resident Filipinos: Max of PHP 5,000
- OFWs: Max of PHP 10,000
- Exempt from investment income tax
- Exempt from Estate Tax
- Tax-free withdrawals (at the age of 55 years and with at least 5 years of contributions)
- 5% Tax Credit on annual contributions
- ✓ Very Affordable! Invest for as low as Php1,000
How to Invest
- STEP 1: Check if you are eligible and have all the required documents.
- Filipino
- At least 18 Years Old
- Tax Identification No.
- CA/SA with any bank
- Valid ID
- Has a source of income in the country or abroad
- STEP 2: Sign up to open a PERA account via the “PERA by ATRAM Application”, available for download on IOS App Store or Adroid Playstore.
You will also need to do the following:
- Fill out all the necessary information
- Take the client suitability assessment.
- Attend the Video KYC session.
- STEP 3: Select a PERA Fund that you wish to invest in.
- You may start investing in the PNB PERA Bond Fund once your account has been approved.
- Make sure to fund your investment through the available payment channels.
- Maximum contribution is P200,000 per year. For OFWs, it is up to P400,000.
It’s never too early to start.
For as low as P1,000, you can invest towards your retirement with the PNB PERA Bond Fund!
For more information, you may contact Trust Customer Care trust_customercare@pnb.com.ph.
Frequently Asked Questions
- PERA or the Personal Equity Retirement Account is a long-term and tax-free voluntary investment program which allows you to accumulate additional funds for your retirement.
- It was enacted in 2008 under Republic Act 9505 and is similar to the Individual Retirement Account (IRA) and 401k retirement program in the US.
- It is designed as an additional retirement savings option and supplements government pension programs like the GSIS or SSS and retirement programs of private companies.
- Fund contributions are invested solely in PERA qualified investment products like UITFs, Mutual Funds and insurance products.
- Any Filipino, whether residing here or abroad, may open a PERA account.
- Below are the basic eligibility criteria and requirements:
- At least 18 years of old
- Must be employed or self-employed
- Has a source of income in the country or abroad
- Must have a Tax Identification Number (TIN)
- Must have a bank account to be used as settlement account
- Must have a Valid government-issued ID (Driver’s License, Passport, UMID, SSS ID, etc.)
- Boost Your Retirement Savings and Retire Comfortably
- Not Mandatory; Invest any amount anytime you want, for as long as you don’t go beyond the annual limit.
- Enjoy generous tax incentives as follows:
- 5% Tax Credit on annual contributions
- Resident Filipinos: Maximum of PHP 5,000
- OFWs: Maximum of PHP 10,000
- Exemption from investment income taxes
- The table below further illustrates the tax benefits of PERA
Year
Contribution (Php)
Principal Account Balance
5% Tax Credit (Cumulative)
Amount Exempted from Investment Income Tax
1 100,000 100,000 5,000 100,000 2 50,000 150,000 7,500 150,000 3 75,000 225,000 11,250 225,000
- 5% Tax Credit on annual contributions
- Not considered as an asset and therefore exempt from Estate Tax /Insolvency.
- Tax-free withdrawals (at the age of 55 years and with at least 5 years of contributions)
- Open a PERA Account through any accredited PERA Administrator. A faster option would be to open an account through PERA seedbox via https://pera.seedbox.ph/.
- Here are the basic steps to open a PERA account via Seedbox:
- Here are the basic product features of the PNB PERA Bond Fund:
*Includes Admin Fee paid directly to the AdministratorFund Name
PNB PERA Bond Fund Fund Classification
Fixed Income Fund Investment Outlets
Deposits and Other Fixed Income Securities Investor Risk Profile
Moderate Min. Initial Participation
Php1,000 Min. Additional Participation
Min. Maintaining Balance
Minimum Holding Period
30 Calendar Days Trust Fee
1%* p.a. of fund value Investment Horizon
At least 1 year Valuation
Mark-to-Market Benchmark
Markit iBoxx ALBI Philippines 1–5
- Each PERA investor may contribute up to PHP 200,000 every year. On the other hand, OFWs can invest up to PHP 400,000 yearly.
Contributor
Maximum Annual PERA Contributions
Single P200,000.00 Married (both spouses qualify as contributor) P200,000.00 for each qualified contributor Unmarried Overseas Filipino Workers (OFWs) P400,000.00 Married OFW whose legitimate spouse is also OFW P400,000 for each qualified contributor - Contributor may open and maintain up to of 5 PERA accounts for as long as your total is within the limit.
- Contributor shall designate and maintain only 1 Administrator for all his/her PERA
- For the PNB PERA Bond Fund, PNB will charge 1% Trust fee. This is inclusive of the admin fee which PNB will be paying directly to the Administrator
- Contributor – Employees, Self-employed individuals and OFWs with capacity to contract and possesses a TIN.
- Administrator – An entity accredited by BIR (Banks, insurance companies, etc).
- Product Provider – Can be Banks, Mutual Fund, Insurance Companies, Stockbrokers, etc. They provide and/or manage PERA qualified investment products.
- Investment Manager – A regulated person or entity accredited by a regulatory authority that gives advice and/or make investment decisions for the Contributor; cannot recommend or sell its own products. Appointment of an investment manager is optional.
- Custodian – A separate and distinct entity unrelated to the Administrator and shall operate independently from the Administrator; receives all funds in connection with the PERA and maintains custody of all original securities, evidence of deposits or other evidence of investments. Note: If done through the Digital PERA platform, no need for a custodian as BSP allows self-custody arrangement.
- You can redeem your PERA when you meet the 55 and 5 rule (i.e. once you’ve reached 55 years old and contributed for at least five years.)
- PERA investments can also be withdrawn when the investor is sick for more than 30 days, was permanently disabled, or has passed away.
- If the Contributor redeems his PERA investment and fails to meet the 55 and 5 rule, the following early redemption fees shall apply and shall be deducted from the Contributor’s redemption proceeds:
- The 5% tax credit availed by the Contributor for the entire period of PERA
- 20% based of the total income from the time of opening to the time of redemption.
- The 5% Tax credit is given to the contributor through the PERA-Tax Credit Certificate (TCC)
- If contributor wishes to get his TCC’s, he needs to communicate (e.g. via email) with his PERA administrator.
- It shall depend on the source of income of the qualified contributor from which the savings or contributions to his or her account were derived from. Please refer to the table below as provided by the BIR via Revenue Memorandum Circular No. 139-2020 issued last December 18, 2020:
Source of Income of Qualified Contributor
Internal Revenue Tax
BIR Form No.
Description of BIR Form
Income derived purely from business/profession or both from employment and practice of profession/business Quarterly Income Tax 1701Q Quarterly Income Tax Return for Individuals, Estate and Trusts Annual Income Tax 1701 Annual Income Tax Return (AITR) for Individuals, Estates and Trusts Income derived purely from employee’s compensation Income tax withheld by employer - Not applicable – if employee availed and qualified for substituted filing of AITR
- 1700 – if not qualified for substituted filing
Income derived purely from abroad by an Overseas Filipino Any national internal revenue tax liabilities except taxes withheld by them as withholding agents The applicable BIR form can be asked from the nearest BIR office or downloaded from the BIR website at www.bir.gov.ph
NOTE: Any PERA Tax Credit Certificate (TCC) that remains unutilized after five (5) years from the date of issuance, shall be invalidated and automatically cancelled by the ePERA System. It will also be barred from being used as payment for internal revenue tax liabilities of the concerned contributor. Moreover, damaged, or lost certificates are no longer subject to reissuance after 5 years from the date of issuance of the original certificate.