BSP allows overseas Filipinos greater access to retirement investment options

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) amended its regulations to expand investment opportunities for overseas Filipinos by allowing their retirement funds to invest in central bank securities.

In Circular 1220, Series of 2025, signed by BSP Governor Eli Remolona Jr. and approved by the Monetary Board under Resolution 926, the central bank said Personal Equity and Retirement Account (PERA) Unit Investment Trust Funds (UITFs) would no longer be subject to the 10-percent cap on the participation of non-residents in UITFs investing in BSP securities.

The policy change recognizes that PERA UITFs may include overseas Filipinos who are considered non-residents under existing regulations.

“The move reflects the BSP’s continued effort to promote financial health. It helps Filipinos, both at home or abroad, build secure and sustainable retirement savings,” the central bank said.

“It also helps develop the country’s private pension system and strengthens domestic capital markets,” it added.

Data showed that PERA contributions climbed to P491.4 million in 2024, up 24 percent from P396.3 million a year earlier, as more Filipinos joined the voluntary savings program. The number of contributors also increased by 6.4 percent to 5,912 from 5,555.

Employed workers accounted for the largest share, contributing P341.7 million from about 4,211 participants. Overseas Filipinos followed with P82.25 million from 789 contributors, while 912 self-employed individuals invested a combined P67.39 million.

The central bank noted that nine out of 13 PERA-UITFs currently exceed the 10-percent non-resident ownership limit, preventing them from investing in BSP securities.

The updated policy will now allow these funds to diversify their portfolios and enhance potential returns for investors.