Villar urges House to pass PERA measure

Senate President Manuel Villar Jr called on the House of Representatives to act on a bill that seeks to create a sustainable retirement fund for Filipino workers in the public and private sector, especially those working overseas. The Senate passed on third and final reading Senate Bill 1882 otherwise known as Personal Equity and Retirement Account (PERA) Act last Wednesday. “Given the many benefits this bill have been envisioned to bring, I appeal to our colleagues in the Lower House to approve the PERA bill so this could be part of the many laws we intend to offer the people come the new year," Villar said. The measure proposes to establish a provident personal savings plan, or a legal and regulatory framework for retirement plans comprised of voluntary personal savings and investments. “This is similar to the United States’ 401(k) plans, which provides for a tax-advantaged individual retirement program. This will encourage savings and improve our country’s savings rate thus develop our local capital market," said Villar, who has made fortunes as an entrepreneur. In the bill, an individual contributor can make a total maximum annual contribution of P50,000 to his PERA account. The contributor will then be eligible to an income tax credit equivalent to five percent (5%) of the total PERA contribution. The measure seeks to supplement the Social Security System and Government Service Insurance System pension scheme by setting up a privately sponsored retirement fund. “A savings scheme with accompanying social protection and insurance that matures upon retirement is an attractive investment plan for OFW remittances. Our workers can now feel secure about their retirement years," Villar explained. The PERA measure is the 11th bill passed on third and final reading by the Senate after only four months of holding plenary sessions. - GMANews.TV