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The House of Representatives passed on the third and final reading a
bill mandating the establishment of a provident personal savings
plan for the country’s retirees.
Known as Personal Equity and Retirement Account
(PERA) Act of 2008, House Bill No. 3754 seeks to establish a
long-term savings plan for retirees.
PERA also aims to increase savings mobilization
and accelerate capital market development by creating a legal and
regulatory framework of retirement plans, comprised of voluntary
personal savings and investments.
Rep. Ramon “Red” Durano of Cebu, one of the
bill’s authors, stressed that 61 percent of the country’s
population falls between the 15 to 64 years old age bracket with the
elderly population expected to rise yearly.
“We have the looming specter of an increase in
[the] elderly population and the government must do what it can to
ensure that when a person gets old, he or she will have sufficient
income security during their retirement years,” he stated.
Another author of the bill, Rep. Marcelino
Teodoro of Marikina, said many people view retirement with
apprehension since it means loss of income.
He reiterated that with the passage of PERA, the
government is encouraging retirees to save their money.
Teodoro added that PERA is a flexible scheme,
and in case of an emergency, one can withdraw money or a portion of
his savings from the fund.
“Instead of being ambivalent about retiring,
hardworking Filipinos will be secure in the knowledge that they have
something to look forward to when they finally retire,” Teodoro
said.
-- Jomar Canlas
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