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By: Celyn

PhD-I
Saint Paul University Philippines
Summer 2010
Report in Human Resource and Management
Video clip
What is Retirement?
 it has been thought
of as the end in
person’s career,
retirement from a
particular employing
organization and
is seen more as a
transition than as an
end point
What is Retirement
Benefit ?
• It is a cash
benefit paid to
a member who
can no longer
work due to
old age.
RANSITION:

A point at which a person goes through a career shift of some
sort

 A point at which the


person’s work and other
activities change a
course
2 transitions:
Retirement from the organization

Has reached the


contractually agreed-
upon age and/ or

length of service at
which, he is permitted to exit
and receive retirement benefits
He may still find and be hired
in a new job
2 transitions:
Retirement from work

Cessation
from paid
employment
FACTORS THAT TEND TO DELAY RETIREMENT FACTORS THAT TEND TO ACCELERATE RETIREMENT
Retirement Age

• Good Health • Retirement Age
• Feeling that Retirement is Depressing
Fear of Aging and Death
• Poor Health

• Job Satisfaction • Positive View of
• Work Ethic Retirement
• Opportunity for 2nd
• Economic Necessity Career
• Fear of Inflation
• Job Dissatisfaction
• Increased Job/ Career
Pressures
• Adequate Pension and
other income
• Cost of Living Indexing of
Retirement Benefits
FACTORS AFFECTING THE DECISION TO RETIRE FROM
EMPLOYMENT
1. Reorganizer
Retirement Styles
• People for whom employment
retirement is a transition from
one type of active life to
another. Voluntary Activities,
community organizational activities
occupy their time.
• Their health is good, they
plan ahead, and they tend to be in
good financial condition.
1. Holding on
Retirement Styles
• Active group, in
good health, who
continue working
after retirement, in
another job.
• Many feel that they
need to work to
earn money.
3. Rocking Chair
• stereotyped
Retirement Styles
view of retired
people.

• Reduced level of activity, tend to


retire “ on time” and move
slower-
gracefully into a

paced life
• Dissatisfied
• They tend to have poor health
and low incomes, and are inactive
and apathetic
SHOULD I RETIRE ???

“The trouble with retirement


is that you never get a day
off. ”
~Abe Lemons
Retirement
Planning
Retirement planning is an
ongoing,
lifelong process that takes
decades of commitment in order to
receive the final payoff.
 Preparation for
one’s golden
years
 Filling
ones nest
egg
 It is a
long preparation for
.Personal life
.Financial life
.Emotional life
.Spiritual life
after separation from work
and organization
Guide Questions:
Why should I Plan for
Retirement?
How much do I need?
Where will my money come
from?
Shall I buy other
Retirement Plans?
Where will I spend my
retirement days?
With whom will
I spend my days?
Will I be happy?
•A bittersweet
experience
US Federal Programs
Social Security
Federal Employee Retirement System
Employer Sponsored
Programs
Qualified Plans
Defined Benefit Plans

Defined Contribution Plans


Providers of Retirement
Benefits in the Philippines

Private AMWSLA
institutions I
• Social Security
Social is part of the

Security Retireme
Act of nt Plan of
almost every
1935 American
worker.
Types
unemployment
Social insurance,
retirement
Security
income,
Act of  benefits for
1935 dependents,
medical
insurance
•Workers who have paid into
the system and were born
Who Gets before 1938 get full Social
Security benefits at age 65
Social Workers can begin to get benefits as
early as age 62, but at that age retirees
Security? get reduced benefits because they will
draw a pension for more years.

•A person born after
1929 must have at least
40 quarters of earnings
to get benefits.
Who Gets •The program indexes a
Social person’s earnings and
gives greater weight to
Security? people with low
incomes. This provides
the poorest people with
proportionately higher
benefits.
• Pay Social
Security taxes, you
•H
ow do you earn “credits”
toward Social
qualify for Security benefits.
retirement • No retirement
benefits? benefits can be paid
until you have the
required number of
credits.
a retirement plan that
provides benefits
Federal from three
different
Employee sources
Retirement Basic Benefit
Plan,
System  Social Security,
Thrift Savings
Plan
Welfare and
Employer pension plans
Sponsored that meet various
Programs requirements set
forth by the
•Qualified Employee
plans Retirement
Income Security
Act of 1974
•A plan that meets
Employer requirements of the
Sponsored Internal Revenue Code
and as a result, is
Programs eligible to receive
certain tax benefits.
•Qualified These plans must be for
the exclusive
Retirement benefit of
Plan employees or
their
beneficiaries.
KINDS:

1.Defined-
Contribution
Qualified Plan
•A retirement plan in
Retirement which a certain amount
or percentage
Plan of money is set aside
each year by a company
for the benefit of
the employee.
2. Defined-
Benefit Plan
Qualified •An employer-
sponsored retirement
Retirement plan where employee
benefits are sorted out
based on a formula
Plan using factors such as
salary history
and duration of
employment.
When I retire, from what
retirement program will I
avail my pension?
GSIS Retirement
Programs To qualify :
1. The retiree must
have rendered at
least 15 years of
1. Retirement Under RA 8291
Five-year lump sum or
service and must
be at least 60
cash payment with years of age upon
instant pension—choose retirement.
your personal reward.
1.He /she must
not be a
permanent total
disability
pensioner.
2. Retirement under Republic Act 660
Also called “Magic
87,” this option
provides both
annuity and lifetime
pension.
To qualify :
1.be in government service
3. Retirement under Republic
on or Act31,
before May 1616
Refund your GSIS 1977
premiums with this
2.has rendered at least 20
“take-all” option at
the same time get years of service regardless of
gratuity payment age and employment
from your status
employer.
3.His/her last 3 years of
service prior to retirement
must be continuous
4. Portability Law (RA 7699)
ith the help of RA 7699,
Combine your
otherwise known as the
GSIS and SSS
creditable Portability Law, government
years of retirees who do not meet the
service to required number of years
qualify for provided under PD 1146 and
retirement RA 8291 can still avail of
program retirement and other
offered by both benefits.
pension funds.
• To qualify:
• Only
5. Retirement under Presidential Decree 11
those who have
Retirement under been in government
PD 1146 gives service after
you a choice
between a Basic
• May 31, 1977 but
Monthly Pension before
(BMP) and Cash
Payment.
• June 24, 1997 can
avail of this retirement
program.
ssS Retirement
Programs 60 years old and
unemployed
Who may paid at least 120
monthly contributions
qualify prior to the semester of
retirement. OR
for a 65 years old,
retiremen whether employed or
not
t benefit? paid 120 monthly
contributions
What are
the the monthly
pension, and
types
of
retirement the lump sum
benefits? amount.
he monthly pension will be the highest of:

How much 1. the sum of P300 plus 20 per cent of the

monthly average monthly salary credit plus 2 % of


the average monthly salary credit for each

pension credited year of service in excess of 10


years; or

will a 2. 40 per cent of the average monthly

retiree salary credit; or

receive? 3. P1,200, provided, that the monthly


pension is paid for not less than 60 months.
•A retiree has the option
to receive his first 18
monthly pensions in
lump sum discounted at a
lump preferential rate of
interest to be determined
by the SSS.
sum
•=employee contributions
+ employer
contributions
+ plus interest
What
he monthly pension of a
happens retirement pensioner who
when the resumes employment and
retirement is less than 65 years old

pensioner will be suspended.


He and his employer will
resumes again be subject to
employment? compulsory coverage.
Retirement, whether we
will like it or not, is a reality
that it will soon come and
that we have to embrace
it
Afterall . . .
“ When you retire,
you switch bosses -
from the one who
hired you to the one
who married you. ”
~Gene Perret
THANK
YOU,
Mabbalo
References

Martocchio, Joseph J. (2006). Employee Benefits: A primer for human


resource professionals (2nd ed.). New York, NY: McGraw-Hill/Irwin
Citation:

Novak, Mark W. (2006). Issues in Aging. Boston, MA: Allyn and Bacon -
Pearson Education, Inc.

Investopedia. (2010). Defined-Benefit Plan. Retrieved from


http://www.investopedia.com/terms/d/definedbenefitpensionplan.asp

United States Department of Labor. (2010). Retirement Plans, Benefits and


Savings. Retrieved from
http://www.dol.gov/dol/topic/retirement/typesofplans.htm