RR No. 23-2018: Amends certain provisions of RR No. 17-2011, as amended, implementing RA No. 9505, (Personal Equity and Retirement Account [PERA] Act of 2008)

Key points

1. Section 4(5) on proof of funds. Establishing a PERA requires proof of the source of funds for the year, or to be earned for the year, in which the PERA contribution was made.
2. Early withdrawal without penalty. Section 10(B) lists withdrawals not subject to the Early Withdrawal Penalty. The first is transfer of PERA assets to another Qualified/Eligible PERA Investment Product or Administrator within fifteen (15) calendar days from withdrawal.
3. Hospitalization and disability. Payment for accident or illness-related hospitalization exceeding thirty (30) days is also exempt, with a notarized doctor’s certificate attached to the Notice. Payment to a Contributor later rendered permanently totally disabled is exempt too, with a certification from a government agency attached.
4. Fee deductions. Deduction of fees of the administrator, custodian and product provider from PERA assets after account opening is exempt, if the Contributor consents.

Who is affected

• PERA Contributors
• PERA Administrators

Deadlines and effectivity

• Transfer of PERA assets within 15 calendar days from withdrawal
• Hospitalization in excess of 30 days