20.

Retirement Benefits

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20. Retirement Benefits Retirement benefits of government employees are covered by republic acts (RA) as follows: a. RA 1616 The member must have completed at least 20 years of government service irrespective of age and status of appointment The last 3 years of service must be continuous Leave of absence without pay should not exceed one year during the last 3 years of service The member must be in the service as of May 31, 1977 Benefits payable by GSIS under RA 1616: Refund of retirement contributions, personal share with 3% interest and government share without interest which shall be processed by the GSIS including the maturity of policy contract or cash surrender value of the policy. b. RA 8291 otherwise known as the GSIS Act of 1997 was enacted last May 30, 1997 and took effect on June 24, 1997. Eligibility: He/She has rendered at least 15 years of service He/She is at least 60 years of age at time of retirement. He/She is not receiving a monthly pension benefit from permanent total disability. Under this law, a retiree may choose any of the two options: i. The 5-year lumpsum (60 x basic monthly pension) plus the basic monthly pension for life starting at the end of the 5-year guaranteed period; or ii. The cash payment (18 x basic monthly pension) plus the basic monthly pension for life starting immediately upon retirement c. RA 660 He/She must pass the Magic 87 criteria that is when the length of service and age of retirement are summed up, the total is at least 87. The last 3 years of service must be continuous Retirement options:

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20. Retirement Benefits

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a. For those who came into service before June 1, 1977 a.1. RA 8291 and PD 1146 may be availed of if an employee has rendered at least fifteen (15) years service and is at least sixty (60) years of age upon retirement a.2. RA 1616 may be availed of if he/she has rendered service for at least twenty (20) years a.3. RA 660 if he/she has passed the Magic 87 criteria that is, when the length of service and age at retirement are summed up, the total is at least 87 b. For those who came into service after May 31, 1977, the two options available to them are RA 8291 and PD 1146 c. For those who came into service on or before June 24, 1997, the only option open to them is RA 8291. Retirement Benefits: a. Five-Year Lump Sum. Available to those who are at least 63 years of age or over on date of retirement. After five years, if still living, a retiree will be paid monthly annuity for life. b. Initial three-year lump sum. Available to those who are at least 60 but less than 63 years of age on date of retirement. The subsequent two-year lump sum shall be paid to retiree in his 63rd birthday. If after the five-year period the retiree is still living, he will be paid the monthly annuity for life.

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