FINEX Capital Market Development Committee Comments on PERA Benefits to the Economy
The FINEX Capital Market Development Committee supports the proposed retirement scheme bill, known as the Personal Equity Retirement Account (PERA) which provides tax incentives to the contributions, earnings and eventual distribution of funds invested in various PERA accredited- products.
Taxation is integral to the financing of retirement systems. Basically, government can fund a mandatory public, pension system through payroll taxes, which is vulnerable to tax evasion via underreporting of earnings or technical weaknesses related to noncompliance. Another way wherein taxation influences retirement programs is in the provision of tax incentives for pension products such as PERA. PERA is an alternative scheme, voluntary and private in character designed to supplement the present public pension schemes administered by SSS and GSIS.