Amendments to the Regulations on Personal Equity and Retirement Account (PERA)

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE GOVEtrNOR CIRCULAR NO. 1168 Series of 2C23 Subject: Amendments to the Regulations on Personal Equity and Retirement Account (PERA) The Monetary Board, in its Resolution No. 1855 dated 22 December 2022, approved the amendments to Section 'l'l2l and Appendix ll4 of the Manual of Regulations for Banks (MORB) and Section 1121-Q and Appendix Q-69 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFt)to reduce the rate for the security for the faithful performance of PERA Administrators' duties and to increase the amount for the maximum annual PERA contribution. Section l. Section ]l21rn]2l-Q of the MORB/MORNBFI is hereby amended to read, as follows: II2IAIzI.Q PERSONAL EQUITY AND RETTREMENT ACCOUNT (PERA) MARKET PARTICIPANTS AND PERA INVESTMENT PRODUCTS XXX Security for the faithful performance of administrators' duties. As a security for the faithful performance of its duties under the PERA Act, an Administrator shall hold eligible government securities, equivalent to at least zero percent (O.O%) of the book value of the total volume of PERA assets administered, earmarked in favor of the Bangko Sentral starting I January 2023:xxx For this purpose, eligible government securities shall consist of evidence of indebtedness of the Republic of the Philippines or of the Bangko Sentral or any other evidence of indebtedness or obligations the servicing and repayment of which are fully guaranteed by the Republic of the Philippines or such other kinds of securities which may be declared eligible by the Monetary Board: Provided, That, such securities shall be free, unencumbered, and not utilized for any other purpose. a. Valuation of securities and basis of computation of the basic security deposit requirement. 0 ) Government securities deposited with the Bangko Sentral shall be measured at fair value xxx xxx '| Amended by Circular No. 1142 dated 29 March2022.

Section 2. Appendix llalQ-69 of the MORBIMORNBFI is hereby amended to read, as fullowsr opERATTONAI GUTDELTNES ON THE ADM|N|STRATION OF THE PERSONAI EQUTTY AND RETIREMENT ACCOUNT (PERAI (Appendix to Sec. II2lnI2f -Q) Pursuant to R.A. No. 95OS also known as the Personal Equity and Retirement Account (PERA) Act of 2008 (PERA Act) and its Revised lmplementing Rules and Regulations (Revised PERA Rules), the fiollowing operational guidelines on the administration of PERA are hereby issued. Certain capitalized terms herein used shall have the definitions ascribed to them in the Revised PERA Rules unless the context otherwise requires. xxx il. ACCOUNT ADMI NISTRATION A. Contributions l) The administrator shall - (a) Secure proof of income when a contribution is made and ensure that the maximum allowable aggregate contribution per calendar year as prescribed under the Revised PERA Rules has not been exceeded. lf in case proof of income is already obtained fior a contribution made during the calendar year, the same shall no longer be required for subsequent contributions made during the year. For this purpose, prior to contribution, the status of an overseas Filipino (OF) shall be validated by securing ftom the OF a sworn certification on his continuing status as an OF for the calendar year; x)(x Section 5. The submission of the Quarterly Report on Compliance with the Basic Securigr Deposit Requiremenf under Section llzlnlzt-Q and Appendix ilQ-s of the MORB/MORNBFI shall no longer be required starting with the reference period of 3l March 2023.In this regard, the following provision shall be incorporated as footnote to Section tl2lnlzl-Q (under ltem b.(2)(a) of the Securigr br the faithtul performance of administrators'dutiesl and Appendix 7Q-3 of the MORB/MORNBFI on the references to the Quarterly Fleport on Compliance with the Basic Sxurity Deposit F?eguiremenf that are required ftom PERAAdministrators, as follows: Starting with the refierence period of 5l March 2o.23, this report shall no longer be submitted to the Bangko Sentral in view of the zero rate for the security for the faithful performance of PERA Administrators'duties. Section 4. This Circular shall take effect on Ol Janu ary 2A23. FORTHE MONETARY BOARD: E', La tc- FELIPE M. MEDALIA Governor U February2O?3 Page2of2