Guidelines on the Offering of Time Deposits as Personal Equity and Retirement Account (PERA) Investment Products

OFFICE OF THE DEPUTY GOVERNOR I FINANCIAL SUPERVISION SECTOR MEMORANDUM NO. M-2026-____ To : All Banks Subject : Guidelines on the Offering of Time Deposits as Personal Equity and Retirement Account (PERA) Investment Products
Section 1121 of the Manual of Regulations for Banks (MORB) recognizes deposits
as Bangko Sentral-eligible PERA investment instruments, in accordance with Republic Act No. 9505 (PERA Act) and its Implementing Rules and Regulations. A PERA time deposit (TD) is an accredited PERA investment product that takes the legal form of a bank time deposit. Accordingly, a PERA TD shall remain subject to applicable banking laws, rules and prudential regulations governing deposits. Matters relating to the eligibility, ownership, administration, transfer, rollover, withdrawal, tax treatment and other PERA-specific requirements shall likewise be governed by the PERA Act, its Implementing Rules and Regulations, and these Guidelines.

1. Qualification
   A bank may offer PERA TDs only if it complies with the prudential criteria under
   Section 111 of the MORB.
2. Notification requirement
   A bank intending to offer PERA TDs shall notify the Bangko Sentral and comply with the requirements under these Guidelines. For this purpose, the bank shall submit the following documents to the appropriate supervising department of the Bangko Sentral not later than 10 banking days after the approval of its Board of Directors 1 of the PERA TD program:
   a. Notification letter signed by the president or chief executive officer describing the PERA TD program, including its key product features, operating arrangements and target implementation date; b. Corporate Secretary's certificate on the approval of the board of directors of the PERA TD program; and
   c. Certification signed by the president/chief executive officer and the Compliance
   Officer that the bank complies with the prudential criteria under Section 111 of the MORB, as well as pertinent laws, rules and regulations.
3. Accreditation by the Bureau of Internal Revenue (BIR)
   Upon determining that the bank’s submission is complete and that it complies with the applicable prudential requirements, the appropriate supervising department, through the BSP PERA Technical Working Group, shall transmit to the BIR, within 15 banking days from receipt of the complete submission, a confirmation of the bank’s compliance with such requirements. 1 Or the equivalent management committee in case of a foreign bank branch

The bank’s PERA TD program shall be subject to accreditation by the BIR in accordance with applicable laws, rules and procedures. The bank shall not offer or accept placements in any PERA TD until the required BIR accreditation has been obtained. The bank shall maintain documentary evidence of such accreditation and make it available to the Bangko Sentral upon request.
4. Distribution
A bank shall not offer or accept placements in a PERA TD unless it has entered into a written arrangement with one or more duly accredited PERA Administrators. The arrangement shall ensure that PERA contributions intended for placement in the PERA TD are properly administered by the PERA Administrator, and received by the bank for placement in PERA TD in accordance with applicable rules. The PERA Administrator shall remain responsible for the administration of the contributor's PERA account, including compliance with contribution limits, enrollment in the PERASys, maintenance of PERA records, tax reporting, and other responsibilities prescribed under existing PERA rules.
5. Product features

a. Product Name
A bank offering a PERA TD shall ensure that the product name clearly includes the term "PERA" to distinguish it from the bank's regular time deposit products. The product name shall be used consistently in all customer-facing documents, marketing materials, disclosures, account records and reports relating to the PERA TD. b. Interest rates Interest rates of PERA TDs shall be market-based and shall comply with applicable laws, regulations and disclosure requirements governing deposit products.
c. Maturity
PERA TDs shall have a minimum maturity of at least 30 days.
Upon maturity, the proceeds shall continue to form part of the contributor's PERA assets and shall be rolled-over, transferred, or reinvested in an accredited PERA investment product in accordance with the contributor's instructions or standing investment arrangement. Pending reinvestment, the proceeds shall be maintained in the appropriate PERA cash custody account in accordance with existing PERA rules. The maturity of the PERA TD shall not, by itself, constitute a withdrawal under the PERA Act. d. Pre-termination The pre-termination of a PERA TD shall not, by itself, constitute a withdrawal from PERA provided that the proceeds remain within the contributor's PERA and are held, transferred or reinvested in accordance with applicable PERA rules. Any withdrawal of the proceeds from the PERA shall remain subject to the rules governing qualified and early withdrawals.

e. Deposit insurance
PERA TDs shall be subject to the applicable deposit insurance laws, rules and regulations administered by the Philippine Deposit Insurance Corporation (PDIC).
6. Disclosure
Banks are required to disclose to the PERA contributor, at a minimum, the following details:
i. interest rate;
ii. effective annual yield;
iii. fees;
iv. applicable PERA tax incentives and the conditions for entitlement thereto;
v. pre-termination conditions and the applicable PERA withdrawal rules; and
vi. relevant risks
7. Operating controls
All accredited PERA TDs shall be enrolled by the corresponding PERA Administrator in PERASys, the PERA registry maintained by the Bangko Sentral, to facilitate monitoring, recordkeeping and tax reporting.
8. Accounting and Reporting
Banks shall maintain accounting and management information systems capable of separately identifying PERA TDs from other deposit liabilities and shall comply with such reporting requirements as may be prescribed by the Bangko Sentral. For information and guidance. LYN I. JAVIER Deputy Governor Financial Supervision Sector 20___ August 2026