THE first accredited company among the expanded list of administrators for the voluntary retirement fund of the Bangko Sentral ng Pilipinas (BSP) will begin its services by the second half of this year, a senior official of the central bank said on Wednesday.
Deputy Governor Chuchi Fonacier of the BSP’s Financial Supervision Sector, said in a Viber message that DragonFi Securities, the first approved stockbroker to be an accredited administrator of the Personal Equity and Retirement Accounts (PERA), is targeting to launch its product offerings in June.
“DragonFi is currently enhancing its digital platform with target launching of PERA product offerings in June 2025. We expect this to further boost our PERA numbers,” Fonacier said.
DragonFi is the stockbrokerage arm of Edgar “Injap” Sia’s DoubleDragon Corp.
Fonacier said the expanded list of administrators for the voluntary retirement fund, released last September 2024, includes securities brokers, investment houses and investment company advisers or fund managers.
Prior to this, the role of a PERA administrator was limited to banks.
Aside from DragonFi, Fonacier said “there are those that (have) signified interest.”
“We are working closely with the industry and partner agencies to achieve substantial growth of PERA by year-end. The growth will be driven by the launching of Open Finance-PERA project and entry of new market participants in the PERA ecosystem,” the deputy governor added.
Fonacier said estimates on how the entry of DragonFi will affect PERA’s accounts and contributions are still not available as of this time.
DragonFi, on its website, however, said it will launch a P10 million Matching Grant, pledged by Sia, once it rolls out its PERA services.
The matching grant, DragonFi said, is an initiative designed to encourage young Filipinos to start their retirement savings through PERA.
“Under this program, 2,000 eligible participants who deposit their first P5,000 into a PERA account with DragonFi will receive an additional P5,000 in matching funds,” DragonFi said.
The grant is expected to generate 2,000 new retirement accounts and a total of P20 million will be infused into PERA accounts, DragonFi said.
“If continued contributions and investments follow at P10,000 per year, participants could build a P1.13 million retirement fund in 30 years, based on an estimated 8 percent annual return,” DragonFi said.
DragonFi’s accreditation as administrator was approved by the Securities and Exchange Commission (SEC) in January 2025.
An accredited PERA administrator is required under the SEC’s memorandum circular 14-2024, issued in September, to maintain a net worth of at least P100 million at all times.
Gaining traction
Fonacier said, as of end-December 2024, PERA contributions reached P491.4 million from 5,912 contributors, reflecting a 24.0 percent increase from 2023. Membership, meanwhile, grew only 6.42 percent in 2024 from 5,555 contributors in the preceding year.
“This growth indicates investor confidence in retirement security through increased contributions. Though it may be lower than what we wish for, it reflects that PERA is gaining traction nonetheless,” Fonacier said.
She explained that the sluggish growth in new contributors “highlights challenges like economic pressures and low financial literacy.”
“The BSP addresses these challenges through regulatory initiatives, targeted information campaigns, and expanded market engagements. It advocates for more accredited PERA administrators and collaborates with financial institutions to implement Open Finance, simplifying processes and increasing accessibility,” Fonacier said.
She added the BSP also promotes PERA as part of employee welfare packages to foster long-term financial planning.
“These efforts aim to sustain growth in PERA contributions and contributors, enhancing financial security for Filipinos,” Fonacier said.
Created under Republic Act 9505, PERA supplements state-based pension plans from the Social Security System and the Government Service Insurance System, as well as employer-sponsored retirement plans.
Filipinos aged 18 and above who are employed or self-employed or overseas workers may make use of PERA and its benefits such as tax-free earnings and capital gains, as well as tax credits.
The maximum annual investment per person increased to P200,000 from P100,000. OFWs, meanwhile, are allowed to invest up to P400,000 each per year.
The BSP said each individual may have a maximum of five PERA accounts.
