Retirement Plan Options

Employees' Trust

The original PERAA Plan prior to enactment of R.A. 7641. An individual account is opened for each covered employee. Adequate for schools joining PERAA upon institutional establishment and for schools giving immediate employee coverage.

Employer's Contribution is fixed and expressed as a percentage of the employee's basic monthly salary at a minimum of 4%.

Employee's Contribution is optional.

Employees' Trust + Reserve Fund (RF)

The RF is a special employer's account intended to fund employer's Retirement Benefit liability in case the Accumulated Value (AV) from Employees' Trust will not suffice. It is determined through an initially free Actuarial Valuation and earns the same rate of interest as the regular fund.

Employees' Trust + Past Service Benefits (PSB)

On top of regular premiums under Employees' Trust, the employer adds additional premiums for past services rendered to the school prior to PERAA participation. The PSB is based on a formula adopted by the school.

Institutional Fund

The institution sets up an institutional fund under its account strictly for employees' benefits through fixed & periodic premiums based on valuation.