1. PENSION
SYSTEM
PNP

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

3. PRESENT LAWS PROVIDING FOR RETIREMENT & SEPARATION

4. 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 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”

5. 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

6. SALIENT PROVISIONS ON RETIREMENT OF THE PRESENT LAWS

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

8. 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)

9. 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

10. ILLUSTRATIVE CASE COMPUTATION: FOR MONTHLY PENSION
Name: SPO4 Juan Dela Cruz Date Retired: 16 September 2009
LENGTH OF SVC: 34YRS, 7 MONTHS, 18 DAYS = %
BASE PAY: P18, (Pay of INSP - 1RH)
LONG PAY: P9, (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, (Pay of INSP - 1RH)
+ 5th LONG PAY) = P 9,167.00
P 27,501.00
x % (50% + 2.5% increase for every year of active service beyond 20 yrs
but not to exceed 90%) = %
P 23, (MONTHLY PENSION)
COMPUTATION: FOR MONTHLY PENSION
BASE PAY = P18, (Pay of INSP - 1RH)
+ 5th LONG PAY) = P 9,
P 27,501.00
x % (50% + 2.5% increase for every year of active service beyond 20 yrs
but not to exceed 90%) = %
P 23, (MONTHLY PENSION)

11. 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, (Pay of INSP - 1RH)
LONG PAY: P 9, (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, (36) = P 857, (3 YEAR LUMP SUM)
COMPUTATION: FOR 36 MOS./3 YR-LUMP SUM
(MONTHLY PENSION) (36 MONTHS) = 3 YEAR LUMPSUM
(P 23, / MO.) (36 MOS.) = P 857,014.96
(3-YEAR LUMPSUM) P 857,014.96

12. 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, (Pay of INSP - 1RH)
LONG PAY: P 9, (5th LP)
FORMULA FOR COMMUTATION OF LEAVE CREDITS:
(BP + LP) X NR. OF LEAVE CREDITS X =CAL
CONVERSION OF LEAVE CREDITS
NR. OF YEARS SERVICE (34) X DAYS = 1020 DAYS
NR. OF MONTHS SERVICE (7) X DAYS = DAYS
NR. OF DAYS SERVICE (18) X DAYS = DAYS
COMPUTATION: FOR ACCRUED LEAVE CREDITS
(BP + LP) = P27, X 1, DAYS = 28, X =
1,365,984.86
P1,365, (COMMUTATION OF ACCRUED LEAVE)
COMPUTATION: COMMUTATION OF ACCRUED LEAVE (CAL)
(BP + LP) x Nr. Leave Credits X = CAL
P27,501 X 1, DAYS X =
=P1,365, (CAL)

13. 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)

14. 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

15. 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

16. 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, (Pay of INSP - 1RH)
LONG PAY: P 9, (5th LP)
MODE OF RETIREMENT: TPPD
FORMULA FOR TPPD RETIREMENT BENEFITS: ONE YEAR GRATUITY
(BASE PAY + LONG PAY) (12 MONTHS)
(P18, P9,167.00) (12) = P25,001(12)=P330,012
COMPUTATION: FOR MONTHLY PENSION
(BP + LP) (80%) = (P18, 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, P 9,167.00)= P27, X 12 MONTHS
1 YEAR GRATUITY = P330,012
COMPUTATION: FOR MONTHLY PENSION
(BASE PAY+LONG PAY) (80%)= MO. PENSION
(P18, P 9,167.00) = P 27, X 80%
MONTHLY PENSION = P 22,000.80

17. 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)

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. -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)

26. 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

27. 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

28. 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

29. 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

30. Computation of Longevity Pay: (Section 71, RA 6975)
NAPOLCOM MC No 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.

31. 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.

32. END OF PRESENTATION
THANK YOU !