Provident and Retirement Fund

BUSINESS BANKING

Provident and Retirement Fund

Invest in your best assets, reward your employees for their loyalty with retirement benefits. A Retirement Trust Fund or a Provident Trust Fund is a corporate trust arrangement set up by private corporations with at least 10 regular employees intending to comply with R.A. 7641 of the Labor Law and to avail of the tax incentives from the Bureau of Internal Revenue (BIR) as provided by R.A. 4917.

 

Features and Benefits

  • Get an advise for a tailor-made retirement plan that is suited for the size and requirements of the company
  • Avail of tax exemption benefits from the Bureau of Internal Revenue for a qualified plan:
    • Reduces corporate income taxes
    • No tax on qualified employees’ retirement compensation
    • No tax on passive income of the qualified retirement fund
  • Improve employee morale
  • Avail of Fund management expertise for the Fund
  • More convenient administration of the retirement plan rules
  • Compliance with government regulations

Eligibility

  • Available to corporations/companies with a minimum of 10 employees

Requirements

  • Articles of Incorporation
  • By-Laws
  • General Information Sheet
  • Board Resolution to open a retirement fund account with PBCOM Trust
  • Board Resolution on Authorized Signatories
  • Board Resolution on the Retirement Plan Rules
  • The Retirement Plan Rules
  • Actuarial valuation report on funding
  • Customer Information and Government-issued ID of Authorized Signatories
  • Client Investment Suitability Assessment
  • Risk Disclosure Sheet
  • Investment Policy Statement, for Discretionary account
  • Letter of Instruction, for Non-discretionary account

Terms and Conditions

  • Trust Products are not deposit accounts and NOT insured by PDIC for P500,000.00. Trust assets are separate from bank’s assets. In case of bank closure, the Trust assets of the clients remain in the portfolio and may be sold/withdrawn or transferred to a successor Trustee bank at its market value. 
  • Yields are not guaranteed. Bonds and fixed income assets may have their respective indicative yields depending on maturity. However, these assets are valued at the end of each trading day for price transparency. All investments (except for cash and/or time deposits) are valued at market prices (MTM); therefore, yields may change upward or downward depending on daily price movement.
  • All Income/losses are for the account of the client.   Investments have their inherent risks. The higher the risk, the higher the return potential. It is important for a client to manage own risk by choosing the appropriate investment that would suit his risk profile.  
  • Historical performances are purely for reference purposes and are not a guarantee of similar future results. Prices may go up or down depending on several socio-political & economic factors and market sentiment. Analysts can only forecast or project based on data and possible scenarios but cannot accurately predict future outcome.
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