PENSION SYSTEM PNP

PNP RETIREMENT PROVISIONS Applicable provisions Benefits under the laws Example illustrative cases

PRESENT LAWS PROVIDING FOR RETIREMENT & SEPARATION

LAWS PRESENTLY PROVIDING FOR RETIREMENT & SEPARATION RA 6975 – an act establishing the Philippine National Police under the reorganized Department of the Interior and Local Government; otherwise known as the “Department of the Interior and Local Government Act of 1990” RA 8551 - an act providing for the reform & reorganization of the PNP, amending certain provisions of RA 6975; otherwise known as the “PNP Reform & Reorganization Act of 1998”

OTHER SALIENT PROVISIONS ON RETIREMENT NAPOLCOM RESOLUTION NUMBER 8 - ” -”Implementing Rules and Regulations (IRR)” passed on February, 1992 ; for the purpose of implementing Republic Act 6975 as amended by Republic Act 8551

SALIENT PROVISIONS ON RETIREMENT OF THE PRESENT LAWS

PERTINENT RETIREMENT PROVISIONS Sec.39, RA 6975 - Compulsory Retirement Sec.39, RA 6975 - Compulsory Retirement Sec.40, RA 6975 - Optional Retirement Sec.35, RA 8551 - Total Permanent Physical Disability (TPPD) Retirement (Sec.73, RA 6975 as amended) Sec.74, RA 6975 - One (1) Rank Higher Benefits Sec.34, RA 8551 - Retirement Benefits (Sec.75, RA 6975 as amended) Sec.76, RA 6975 - Death/disability Benefits Sec.71, RA 6975 - Longevity Pay Benefits Sec.40, RA 6975 - Optional Retirement Sec.35, RA 8551 - TPPD Retirement Sec.74, RA 6975 - One Rank Higher Benefits Sec.34, RA 8551 - Retirement Benefits Sec.76, RA 6975 - Death/Disability Benefits Sec.71, RA 6975 - Longevity Pay Benefits

Compulsory Retirement Optional Retirement 56 years old (Sec.39, RA 6975) AREA OF CONCERN PERTINENT PROVISIONS OF LAW Compulsory Retirement 56 years old (Sec.39, RA 6975) Optional Retirement 20 years of active service (Sec 40.RA 6975) Total Permanent Disability Benefits (Section 73 of RA 6975 as amended) (Sec.35, RA 8551) A member who is permanently and totally disabled as a result of injuries suffered or sickness contracted in the performance of his duty shall be entitled to one year’s salary and to lifetime pension equivalent to 80% of his salary; and should said member die within five years from his retirement, his surviving legal spouse or children shall be entitled to the pension for the remainder of the five years guaranteed period. NOTE: NAPOLCOM and PNP Pensions shall be cut-off at the end of 5-yr period Optional Retirement 20 years of active service (Sec 40.RA 6975)

COMPULSORY & OPTIONAL RETIREMENT BENEFITS Gratuity or 36 months lump sum Commutation of Accrued Leave (CAL) Lifetime Monthly Pension of 50% of (BP + LP) in case of 20 years of active service, increasing by 2.5 % for every year of active service rendered beyond 20 yrs to a maximum of 90% for 36 years of active service and over, which shall be restored 3 years after retirement date in case of Lump Sum Adjustment of Monthly Pension w/ increase in pay of personnel in active service Old Age Pension Former AFP members - upon attaining age of 65, & have served military for at least 6 years (PVAO) Former INP members, GSIS grants pension upon attaining age of 60

ILLUSTRATIVE CASE COMPUTATION: FOR MONTHLY PENSION Name: SPO4 Juan Dela Cruz Date Retired: 16 September 2009 LENGTH OF SVC: 34YRS, 7 MONTHS, 18 DAYS = 86.564% BASE PAY: P18,334.00 (Pay of INSP - 1RH) LONG PAY: P9,167.00 (5th LP) FORMULA FOR COMPULSORY/OPTIONAL RETIREMENT BENEFITS: (BASE PAY + LONG PAY) X (50% + 2.5%/YEAR BEYOND 20 YRS BUT NOT TO EXCEED 90%) COMPUTATION: FOR MONTHLY PENSION BASE PAY = P18,334.00 (Pay of INSP - 1RH) + 5th LONG PAY) = P 9,167.00 ------------------ P 27,501.00 x 86.564% (50% + 2.5% increase for every year of active service beyond 20 yrs but not to exceed 90%) = 36.564% ---------------------------------------------------- P 23,805.96 (MONTHLY PENSION) COMPUTATION: FOR MONTHLY PENSION BASE PAY = P18,334.00 (Pay of INSP - 1RH) + 5th LONG PAY) = P 9, 167.00 ------------------ P 27,501.00 x 86.564% (50% + 2.5% increase for every year of active service beyond 20 yrs but not to exceed 90%) = 36.564% ---------------------------------------------------- P 23,805.96 (MONTHLY PENSION)

ILLUSTRATIVE CASE COMPUTATION: FOR 36 MOS./3 YR-LUMP SUM Name: SPO4 Juan Dela Cruz Date Retired: 16 September 2009 LENGTH OF SVC: 34YRS, 7 MONTHS, 18 DAYS BASE PAY: P18,334.00 (Pay of INSP - 1RH) LONG PAY: P 9,167.00 (5th LP) FORMULA FOR 36 MOS./3 YR-LUMP SUM: (MONTHLY PENSION) X (36 MONTHS) = 3 YR-LS COMPUTATION: FOR 36 MOS./3 YR-LUMP SUM (MONTHLY PENSION) (36 MONTHS) = 3 YR LS P 23,805.96 (36) = P 857,014.76 (3 YEAR LUMP SUM) COMPUTATION: FOR 36 MOS./3 YR-LUMP SUM (MONTHLY PENSION) (36 MONTHS) = 3 YEAR LUMPSUM (P 23,805.96 / MO.) (36 MOS.) = P 857,014.96 (3-YEAR LUMPSUM) P 857,014.96

ILLUSTRATIVE CASE COMPUTATION: COMMUTATION OF ACCRUED LEAVE (CAL) Name: SPO4 Juan dela Cruz Date Retired: 16 September 2009 LENGTH OF SVC: 34YRS, 7 MONTHS, 18 DAYS BASE PAY: P18,334.00 (Pay of INSP - 1RH) LONG PAY: P 9,167.00 (5th LP) FORMULA FOR COMMUTATION OF LEAVE CREDITS: (BP + LP) X NR. OF LEAVE CREDITS X .0478087=CAL CONVERSION OF LEAVE CREDITS NR. OF YEARS SERVICE (34) X 30.0 DAYS = 1020 DAYS NR. OF MONTHS SERVICE (7) X 2.5DAYS = 17.5 DAYS NR. OF DAYS SERVICE (18) X 0.08 DAYS = 1.44 DAYS COMPUTATION: FOR ACCRUED LEAVE CREDITS (BP + LP) = P27,501.00 X 1,038.94 DAYS = 28,571.88 X .0478087 = 1,365,984.86 P1,365,984.86 (COMMUTATION OF ACCRUED LEAVE) COMPUTATION: COMMUTATION OF ACCRUED LEAVE (CAL) (BP + LP) x Nr. Leave Credits X .0478087= CAL P27,501 X 1,038.94 DAYS X .0478087= =P1,365,984.86 (CAL)

AREA OF CONCERN PERTINENT PROVISIONS OF LAW Compulsory Retirement 56 years old (Sec.39, RA 6975) Optional Retirement 20 years of active service (Sec 40.RA 6975) Total Permanent Disability Benefits (Section 73 of RA 6975 as amended) (Sec.35, RA 8551) A member who is permanently and totally disabled as a result of injuries suffered or sickness contracted in the performance of his duty shall be entitled to one year’s salary and to lifetime pension equivalent to 80% of his salary; and should said member die within five years from his retirement, his surviving legal spouse or children shall be entitled to the pension for the remainder of the five years guaranteed period. NOTE: NAPOLCOM and PNP Pensions shall be cut-off at the end of 5-yr period TPPD Retirement Applies to a member who is permanently and totally disabled as a result of injuries suffered or sickness contracted in the performance of his duty (Sec.35, RA 8551)

TPPD RETIREMENT BENEFITS Gratuity of one (1) yr salary Commutation of Accrued Leave (CAL) Lifetime Monthly Pension equivalent to 80% of last salary in the active service, upon approval of TPPD Adjustment of Monthly Pension w/ increase in pay of personnel in active service (20 Yrs & above) Old Age Pension Former AFP members - upon attaining age of 65, & have served military for at least 6 years Former INP members, GSIS grants pension upon attaining age of 60 Other benefits payable by the NAPOLCOM pursuant to PD 1184

BENEFITS PAYABLE UNDER PD 1184 Gratuity equivalent to one (1) yr salary or P6,000.00, whichever is higher Lifetime Monthly Pension equivalent to 80% of last salary in the active service, upon approval of TPPD Reimbursement of reasonable expenses for medicines, medical attendance, hosp fees, transportation expenses and subsistence Restoration of deducted leave credits Scholarship grants to dependents

ILLUSTRATIVE CASE 1 YEAR GRATUITY = P330,012 Name: SPO4 Juan dela Cruz JR Date Retired: 16 September 2009 LENGTH OF SVC: 34 YRS, 7 MONTHS, 18 DAYS BASE PAY: P18,334.00 (Pay of INSP - 1RH) LONG PAY: P 9,167.00 (5th LP) MODE OF RETIREMENT: TPPD FORMULA FOR TPPD RETIREMENT BENEFITS: ONE YEAR GRATUITY (BASE PAY + LONG PAY) (12 MONTHS) (P18,334.00 + P9,167.00) (12) = P25,001(12)=P330,012 COMPUTATION: FOR MONTHLY PENSION (BP + LP) (80%) = (P18,334.00 + P9,167.00) (80%) = (P27,501) (.80) = P 22,000.80 NOTE: -ONE YEAR GRATUITY AND LIFETIME MONTHLY PENSION COME FROM BOTH PNP AND NAPOLCOM -FIVE YEAR GUARANTEED PERIOD APPLIES IN CASE OF DEATH WITHIN FIVE YEARS AFTER RETIREMENT COMPUTATION: TPPD RETIREMENT GRATUITY EQUIVALENT TO 1 YEAR SALARY (BASE PAY+LONG PAY)(12 MONTHS)= GRATUITY (P18,334.00 + P 9,167.00)= P27,501.00 X 12 MONTHS 1 YEAR GRATUITY = P330,012 COMPUTATION: FOR MONTHLY PENSION (BASE PAY+LONG PAY) (80%)= MO. PENSION (P18,334.00 + P 9,167.00) = P 27,501.00 X 80% MONTHLY PENSION = P 22,000.80

One Rank Higher Benefits Retirement at one (1) rank higher than the permanent grade last held; requires at least one (1) year of active service in the permanent grade; (Sec 74, RA 6975) AREA OF CONCERN PERTINENT PROVISIONS OF LAW One Rank Higher Benefits Uniformed personnel shall be retired one (1) rank higher than the permanent grade last held; provided that they have served for at least one (1) year of active service in the permanent grade; (Sec 74, RA 6975) Retirement Benefits (Section 75 of RA 6975 as amended) Monthly retirement pay shall be fifty percent (50%) of the base pay and longevity pay of the retired grade in case of 20 years of active service, increasing by 2.5 % for every year of active service rendered beyond 20 yrs to a maximum of 90% for 36 years of active service and over: PROVIDED that the uniformed personnel shall have the option to receive in advance and in lump sum his retirement pay for the first five (5) years; provided further that payment of retirement benefits in lump sum shall be made within six (6) months from effectivity date of retirement and/or completion (Sec.34, RA 8551)

COMPARISON BETWEEN COMPULSORY AND OPTIONAL WITH TPPD TPPD Gratuity or 36 months LP % of pension depends upon length of svc rendered not to exceed 90%, for 36 yrs & over CAL Restoration of monthly pension after 3 yrs to life Adjustment of pension every increase in pay of active PNP members Old age pension - 65 yrs old for former AFP mbrs w/ at least 6 yrs military svc; 60 yrs old for former INP Pension fm PNP only COMPARISON BETWEEN COMPULSORY AND OPTIONAL WITH TPPD COMPULSORY OPTIONAL TPPD Gratuity or 36 months LP Gratuity of one year salary % of pension depends upon length of svc rendered not to exceed 90%, for 36 yrs & over % of pension depends upon length of svc rendered 80% of Base Pay and Long Pay CAL Restoration of monthly pension after 3 yrs to life Lifetime pension equivalent to 80% (BP+LP) starts upon approval of TPPD Adjustment of pension every increase in pay of active PNP members Old age pension - 65 yrs old for former AFP mbrs w/ at least 6 yrs military svc; 60 yrs old for former INP Pension fm PNP only Pension fm BOTH PNP & NAPOLCOM

COMPARISON BETWEEN COMPULSORY AND OPTIONAL WITH TPPD TPPD Gratuity or 36 months LP % of pension depends upon length of svc rendered CAL Restoration of monthly pension after 3 yrs to life Adjustment of pension every increase in pay of active PNP members Old age pension - 65 yrs old for former AFP mbrs w/ at least 6 yrs military svc; 60 yrs old for former INP Pension fm PNP only COMPARISON BETWEEN COMPULSORY AND OPTIONAL WITH TPPD COMPULSORY OPTIONAL TPPD Gratuity or 36 months LP Gratuity of one year salary % of pension depends upon length of svc rendered not to exceed 90%, for 36 yrs & over % of pension depends upon length of svc rendered 80% of Base Pay and Long Pay CAL Restoration of monthly pension after 3 yrs to life Lifetime pension equivalent to 80% (BP+LP) starts upon approval of TPPD Adjustment of pension every increase in pay of active PNP members Old age pension - 65 yrs old for former AFP mbrs w/ at least 6 yrs military svc; 60 yrs old for former INP Pension fm PNP only Pension fm BOTH PNP & NAPOLCOM

COMPARISON BETWEEN COMPULSORY AND OPTIONAL WITH TPPD TPPD Gratuity of one year salary 80% of Base Pay and Long Pay CAL Lifetime pension equivalent to 80% (BP+LP) starts upon approval of TPPD Adjustment of pension every increase in pay of active PNP members Old age pension - 65 yrs old for former AFP mbrs w/ at least 6 yrs military svc; 60 yrs old for former INP Pension fm BOTH PNP & NAPOLCOM COMPARISON BETWEEN COMPULSORY AND OPTIONAL WITH TPPD COMPULSORY OPTIONAL TPPD Gratuity or 36 months LP Gratuity of one year salary % of pension depends upon length of svc rendered not to exceed 90%, for 36 yrs & over % of pension depends upon length of svc rendered 80% of Base Pay and Long Pay CAL Restoration of monthly pension after 3 yrs to life Lifetime pension equivalent to 80% (BP+LP) starts upon approval of TPPD Adjustment of pension every increase in pay of active PNP members Old age pension - 65 yrs old for former AFP mbrs w/ at least 6 yrs military svc; 60 yrs old for former INP Pension fm PNP only Pension fm BOTH PNP & NAPOLCOM

Death & Disability Benefits A uniformed personnel and/or his/her heirs shall be entitled to all benefits relative to the death or permanent incapacity of said personnel. (Sec 76, RA 6975) AREA OF CONCERN PERTINENT PROVISIONS OF LAW Death & Disability Benefits A uniformed personnel and/or his/her heirs shall be entitled to all benefits relative to the death or permanent incapacity of said personnel. (Sec 76, RA 6975) Longevity Pay Uniformed personnel of the PNP shall be entitled to a longevity pay of ten (10%) percent of their basic monthly salaries for every five years of service, which shall be reckoned from the date of the personnel’s original appointment in the AFP or in the police, fire, jail OR OTHER ALLIED SERVICES prior to the integration of the PC/INP; provided that the totality of such longevity pay shall not exceed fifty (50%) percent of the basic pay. (Sec 71, RA 6975) Death considered as compulsory retired for survivorship benefits (Sec. 4 of Res. 8) Any uniformed personnel, with at least 20 yrs active service, who dies in line of duty shall be posthumously retired for purposes of benefits Death considered as separated for survivorship benefits (Sec. 10 of Res. 8) Any uniformed personnel, with less than 20 yrs active service, who dies in line of duty shall be posthumously separated for purposes of benefits

Disability Disability as amended by Sec. 35, RA 8551 (Under Sec. 73, RA 6975) as amended by Sec. 35, RA 8551 TPPD in LOD, with at least 20 yrs active service, shall entitle any uniformed pers to 1 year’s salary & to lifetime pension equivalent to 80% of his last salary AREA OF CONCERN PERTINENT PROVISIONS OF LAW Death & Disability Benefits A uniformed personnel and/or his/her heirs shall be entitled to all benefits relative to the death or permanent incapacity of said personnel. (Sec 76, RA 6975) Longevity Pay Uniformed personnel of the PNP shall be entitled to a longevity pay of ten (10%) percent of their basic monthly salaries for every five years of service, which shall be reckoned from the date of the personnel’s original appointment in the AFP or in the police, fire, jail OR OTHER ALLIED SERVICES prior to the integration of the PC/INP; provided that the totality of such longevity pay shall not exceed fifty (50%) percent of the basic pay. (Sec 71, RA 6975) Disability (Under Sec. 8, Res. 8 in relation to Sec.73, RA 6975) as amended by Sec. 35, RA 8551 (Under Sec. 9 of Res. 8 in relation to Sec. 73, RA 6975) TPPD in LOD, with less than 20 yrs active service, shall entitle any uniformed pers to 1 year’s salary & to lifetime pension equivalent to 80% of his salary Disability other than TPPD, qualifies concerned person for optional separation with a separation gratuity pay equivalent to 1¼ mo. (BP + LP) of the permanent grade held for every year of active service or a fraction thereof

Monthly Pension from PNP Commutation of Accrued Leave (CAL) DEATH BENEFITS Monthly Pension from PNP Commutation of Accrued Leave (CAL) Benefits Payable By The NAPOLCOM pur. to PD 1184 Gratuity equivalent to 1 yr salary in the PNP or Php 6,000 whichever is higher Lifetime monthly pension equivalent to 80% of last salary for a period of five (5) years from date of death Burial expenses equivalent to 3months‘ salary or Php1,000 whichever is higher Reimbursement of reasonable expenses Restoration of deducted leave credits

DEATH BENEFITS for SURVIVORS Transfer of the monthly pension pursuant to Sec. 12, Res. 8 in relation to Sec. 2 & 3 of Res. 8 Equivalent to 75% of monthly retirement pay which the pensioner was receiving prior to death, to be divided equally among the survivors w/ accretion -applies to those who compulsorily or optionally retired Note: pensioner died after retirement -Monthly Pension from PNP

-Monthly Pension from PNP DEATH BENEFITS for SURVIVORS -Monthly Pension from PNP Transfer of the monthly pension pursuant to Sec. 14, Res. 8 in relation to Sec. 4 of Res. 8 Equivalent to 50% of Base Pay & Long Pay based on the grade next higher than the separation grade, to be divided equally among the survivors w/ accretion -applies to those who died in line of duty with at least 20 yrs of active service and thus considered as “compulsory retired” for survivorship benefits Note: pensioner died in line of duty, with at least 20 yrs of active service; (One rank higher benefits apply)

DEATH BENEFITS for SURVIVORS Transfer of the monthly pension pursuant to Sec. 15, Res. 8 in relation to Sec. 10 of Res. Number 8 Equivalent to 50% of Base Pay & Long Pay based on the separation grade, to be divided equally among the survivors w/ accretion -applies to those who died in line of duty with less than 20 yrs of active service and thus considered only as “separated” for survivorship benefits Note: pensioner died in line of duty, with less than 20 yrs of active service; (One rank higher benefits does not apply) -Monthly Pension from PNP

DEATH BENEFITS for SURVIVORS UNDER TPPD Transfer of the monthly pension pursuant to Sec. 35, RA 8551 Equivalent to 100% of the monthly retirement pay which the pensioner was receiving prior to death, to be transferred to surviving legal spouse or if there be none, to the surviving legitimate children, for the remainder of the five (5) years guaranteed period only -applies to those who compulsory retired with TPPD & died within five (5) years after retirement, with or w/o completing 20 years of active service

DEATH BENEFITS for SURVIVORS UNDER TPPD Transfer of the monthly pension for the remainder of the five (5) years guaranteed period DIFFERENCE IN BENEFITS UNDER TPPD (SURVIVORS) -Compulsory retirement with TPPD, for those with at least 20 years of active service, entitles survivors to adjustments in monthly pension whenever there is increase in pay for those still in active service -Compulsory retirement with TPPD, for those with less than 20 years of active service, does not entitle survivors to adjustments in monthly pension

Longevity Pay Death & Disability Benefits Longevity Pay AREA OF CONCERN PERTINENT PROVISIONS OF LAW Death & Disability Benefits A uniformed personnel and/or his/her heirs shall be entitled to all benefits relative to the death or permanent incapacity of said personnel. (Sec 76, RA 6975) Longevity Pay Uniformed personnel of the PNP shall be entitled to a longevity pay of ten (10%) percent of their basic monthly salaries for every five years of service, which shall be reckoned from the date of the personnel’s original appointment in the AFP or in the police, fire, jail OR OTHER ALLIED SERVICES prior to the integration of the PC/INP; provided that the totality of such longevity pay shall not exceed fifty (50%) percent of the basic pay. (Sec 71, RA 6975) Longevity Pay ten (10%) percent of their basic monthly salaries for every five years of service, which shall be reckoned from the date of the personnel’s original appointment in the AFP or in the police, fire, jail OR OTHER ALLIED SERVICES

Computation of Longevity Pay: (Section 71, RA 6975) NAPOLCOM MC No. 89-009 defines “allied services” as referring to functions or duties rendered in a specific position prior to the integration of the PC and INP, which are substantially the same or are related to or similar with the regular functions of the AFP, Police, Fire or Jail. Computation of Longevity Pay: (Section 71, RA 6975) Uniformed personnel of the Department shall be entitled to a longevity pay of ten percent (10%) of their basic monthly salaries for every five (5) years of service, which shall be reckoned from the date of the personnel's original appointment in the AFP, or appointment in the police, fire, jail or other allied services prior to the integration of the PC and the INP: Provided, That the totality of such longevity pay shall not exceed fifty percent (50%) of the basic pay. They shall also continue to enjoy the subsistence allowance, quarters allowance, clothing allowance cost of living allowance, hazard pay, and all other allowances as provided by existing laws.

Services Included in the Computation of Longevity Pay: 1. Officer / Non-officer in the AFP, PNP, Fire, Jail Force, Municipal / City Police Force; 2. Cadet; 3. Trainee / Draftee; 4. Probationary Training; 5. Periods covered by any previously approved leave with pay; 6. Other allied services. Services NOT Included in the Computation of Longevity Pay: Services not substantially the same or are not related to or similar with the regular functions of the AFP, Police, Fire or Jail. E.g. Election Registrar, Teacher, Janitor, Civilian Clerk, Statistician, Agrarian Officer, Etc.

END OF PRESENTATION THANK YOU !