Covid Response Loan Program


Circular 2020 No. 001


May 21, 2020


To All our Participating Institutions,


As we continue to fight against the pandemic we are being confronted right now, I can only hope and pray for the well-being of every one. In this crisis we are in, our prayer is for the PERAA Fund to be your faithful partner and may we continuously serve the interests of our members.


2019 Return on Investment


2019 was a respite from low earnings in 2018. Our Return on Investment (ROI) ending December 31, 2019 is 7.34% as compared to December 31, 2018 ROI at 1.57%. We gained much from our diversification of our asset allocation. Currently we have six fund managers, of which two are foreign asset managers, who are actively managing our fund portfolio. Additionally, we have alternative assets such as real estate holdings and market neutral fund investments to diversify the market risk.


With our shift from an annual declaration of ROI to monthly distribution of earnings and losses, each of our members gets their accumulated fund value as close to real market value of the Fund. This means that members leaving and withdrawing their fund already get the actual fund value with the latest monthly ROI.


As a result of the pandemic, the global economy is projected to go down sharply and has been said to get much worse than the global financial crisis in 2008-2009. Although the PERAA Fund notably ended the Calendar Year 2019 with a good return, we have yet to see how badly this pandemic has affected the Fund these past months and how it will fare up to the end of the Calendar Year 2020.


With the threat of the virus, your PERAA Board is looking for alternative means to do our Annual Meeting given the limitations of mobility and social distancing rules. As of this moment, we are not sure if we shall push through with the Annual Meeting this year. But rest assured PERAA’s Annual Report ending Calendar Year 2019 will be made available for all our Participating Institutions. The Individual Statement of Fund (ISF) shall be mailed as well.


Processing of Claims


In view of the fact that we have been under an Enhanced Community Quarantine (ECQ), we have not been able to update the individual accounts of our members. The last update of the members’ Accumulated Value (AV) was up to January 2020 ROI only. Computation of the monthly ROI for the last three (3) months will take some time because of the tedious work of accounting for all our fund managers’ investment transactions and aggregating them.


 As such, we are giving our members who have pending claims to have two options namely:


  1. To wait for the updated fund value to be properly computed by end of July or mid-August as basis for the computation of their benefit, or;
  2. To request for the immediate processing of the benefit claim with only 80% of the member’s Accumulated Value (AV) as of January 31, 2020 as basis for the benefit. The balance of 20% will be released after we have updated our records. This is to ensure that there will be no overpayment of benefits for those leaving the Fund.


Our Members Services Department will get in touch with you for your response so that we can expeditiously process your claims or you can email us at


Covid Response Loan Program


Your Board, in consideration of the members’ welfare, has opened a Covid Response Loan program to help our members in this trying time. All individual Members who have been actively contributing their share to the Fund before the ECQ may apply. Existing borrowers may renew their loan up to 70% of their latest AV or simply apply for the outstanding balance to be restructured to avail of the reduced effective interest rate of:


Type of Loan

Annual Interest Rate

Amortization Period


Service Fee



12 -24 months

up to max of P50,000

1% of Loan Amount



12 Months





24 Months

P50,001 up to P200,000

1% of Loan Amount



36 Months





12 Months



 MPL  Plus


24 Months

P200,001 up to 70% of the EE AV

1% of Loan Amount



36, 48 or 60 Months



  The Covid Response Loan (CRL) period will be from May 2020 to April 2021.

  Loan applications received but have not been released before ECQ will automatically be processed under CRL.


Also, as mandated in Republic Act No. 11469 otherwise known as “Bayanihan To Heal As One Act”, a program primarily undertaken by the government for the recovery and rehabilitation of all affected sectors, a mandatory grace period has been given to all existing Multi-Purpose Loan (MPL) amortizations. This means that no interest nor penalties will be imposed if your employees have not paid their loans during the ECQ and Modified ECQ period.


For your loan inquiries, you may get in touch with our Member Services at (02) 88174531 locals 143, 150 and 118. For assistance, you may also text or call at the following mobile nos.: (Smart) 09088850906 and 09189497768 / (Globe) 09178806610.


Our office will operate in accordance with the government’s mandated guidelines which have restricted our mobilization of work and personnel.  Please bear with us for the slowdown in processing of your benefit claims and other services.


We assure you that PERAA will extend all support it can offer and abide with all government mandates to help ease the burden of our members and follow the guidelines to secure the safety of our employees as we open and resume operation.


Stay healthy and be safe!


Very truly yours,






ECQ Files: Circular on Loan & Benefits


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September 02, 2022, Friday

at CONRAD MANILA, Seaside Boulevard, Coral Way, Pasay CIty

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  (02) 8817-4531

            starting October 6, 2019

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