1. Beyond public service: the GSIS Retirement Program

2. Basis for computation of retirement claims

3. RECORD OF CREDITABLE SERVICE
Computation of Retirement Claims
basis:
RECORD OF CREDITABLE SERVICE
Years of service with corresponding premium payment
(Premium-Based Policy)
AVERAGE MONTHLY COMPENSATION
Average salary received with correct premium payment for the last 3 years prior to retirement

4. Retirement laws

5. Retirement laws RA 660 or the “Magic 87” RA 1616 or the “Take all”
PD 1146 which has “Old Age Pension & Cash Payment”
RA 8291or the GSIS Act of 1997

6. Must be in service on or before May 31, 1977
Retirement laws
RA 660 or the “Magic 87”
Age plus service = 87
Starting age is 52 y/o
AGE 52 53 54 55 56 57 58 59 60 61 62 63 64 65
YOS 35 34 33 32 31 30 28 26 24 22 20 18 16 15
Must be in service on or before May 31, 1977

7. Retirement laws RA 660 or the “Magic 87”
Continuous service in the last 3 years prior to retirement
Appointment status should be permanent in nature
Exceptions: death, disability, abolition of position, reorganization, phaseout

8. Retirement laws RA 660 or the “Magic 87”
Max. monthly pension for 57 above is 80% of AMC
Max. monthly pension for 57 below is 75% of AMC
The benefit is any one of the following:
Retirement Age
Annuity Benefit
below 60
1 yr lump sum
60 and below 63
3 year lump sum
63 and above
5 year lump sum

9. R = P30.00 + [(2%xM)+(1.2%xP)] (A)
Retirement laws
RA 660 or the “Magic 87”
Computation of monthly annuity
R = P [(2%xM)+(1.2%xP)] (A)
where:
R = Monthly annuity at age 57
A = Average monthly salary for the last 3 yrs
M = No. of yrs after 6/16/1951
P = No. of yrs of service before 6/16/1951

10. TABLE OF ACTUARIAL ADJUSTMENT FACTORS
Retirement laws
RA 660 or the “Magic 87”
TABLE OF ACTUARIAL ADJUSTMENT FACTORS
AGE 52 53 54 55 56 57 58 59 60 61 62 63 64 65
FACTOR
.87
.89
.92
.94
.97
1.00
1.03
1.06
1.08
1.11
1.15
1.16
1.20
1.24

11. Retirement laws RA 1616 or “Take all”
Age and employment status not a requirement
At least 20 yrs of service, last 3 yrs continuous
In service on or before May 31, 1977
Exception: death, disability, abolition of position, reorganization, phaseout

12. Refund of retirement premiums
Retirement laws
RA 1616 or “Take all”
Two retirement benefits:
Gratuity
and
Refund of retirement premiums
No pension
Burial benefit if retiree died after RA 8291, had 20 years of service, and is at least 60 years old

13. Retirement laws RA 1616 or “Take all”
Computation of Gratuity from employer:
1st 20 yrs of service x 1
21-30 years of service x 1.5
31-above years of service x 2

14. Retirement laws RA 1616 or “Take all”
Refund of retirement premiums payable by the GSIS
Personal contributions plus interest
Government share without interest

15. Monthly pension after 5 years
Retirement laws
PD 1146
OLD AGE PENSION and CASH PAYMENT
Must have at least 15 years of service, at least 60 years old
Monthly pension after 5 years
Retiree may request lump sum payment for 5 years at a rate of not less than 6%

16. Retirement laws PD 1146 AMC =
OLD AGE PENSION and CASH PAYMENT
Computation OLD AGE PENSION
If total service is at least 15 years: BMP= 37.5% RAMC RAMC
x (total years of service - 15 years)
Where AMC is computed as:
Total compensation received with premium payments during the last 3 years prior to date of retirement/separation
AMC =
36 months

17. Retirement laws PD 1146 RAMC = 170% (AMC) if AMC is not more than P200
OLD AGE PENSION and CASH PAYMENT
Where: RAMC is revalued AMC and computed as
RAMC = 170% (AMC) if AMC is not more than P200
RAMC = AMC + P140, if AMC is more than P200
but less than P3,000 (but not to exceed P3,000)

18. CP = (record of creditable service) x AMC, but not less than P500
Retirement laws
PD 1146
OLD AGE PENSION and CASH PAYMENT
Computation: CASH PAYMENT (CP)
For 60 years old and above and had at least 3 years
but less than 15 years of service
CP = (record of creditable service) x AMC, but not less than P500

19. RA 8291which has “GSIS Act of 1997”
Retirement laws
RA 8291which has “GSIS Act of 1997”
at least 15 years of service
at least 60 years old upon retirement
not a permanent total disability pensioner
Two options:
1. Lump sum and Old age Pension
2. Cash payment and Pension

20. RA 8291which has “GSIS Act of 1997”
Retirement laws
RA 8291which has “GSIS Act of 1997”
OPTION 1: LUMP SUM and OLD AGE PENSION
60 months Basic Monthly Pension payable upon retirement and Pension for life after 5 years, if still living

21. RA 8291which has “GSIS Act of 1997”
Retirement laws
RA 8291which has “GSIS Act of 1997”
OPTION 2: CASH PAYMENT & PENSION
18 months Cash payment payable upon retirement and Pension for life a MONTH after the DATE of retirement

22. RA 8291which has “GSIS Act of 1997”
Retirement laws
RA 8291which has “GSIS Act of 1997”
If total service is at least 15 years:
BMP= (0.025) x (AMC + P700) x
Record of Creditable Service
computation
BMP not to exceed 90% of AMC
35 years in service to enjoy BMP of 90% AMC
Cash gift and pension increase after 5 years

23. RA 8291which has “GSIS Act of 1997”
Retirement laws
RA 8291which has “GSIS Act of 1997”
Where: AMC is computed as:
1. If total length of service is less than 36 months:
Total compensation received with premium payments prior to unemployment/disability/death
AMC =
Actual number of months member received such compensation

24. RA 8291which has “GSIS Act of 1997”
Retirement laws
RA 8291which has “GSIS Act of 1997”
Where: AMC is computed as:
1. If total length of service is 36 months or more:
Total compensation received for the last 36 months with premium payments preceding unemployment/disability/death
AMC =
36 months

25. Separation benefits CASH PAYMENT
other Social Insurance Benefits
Separation benefits
CASH PAYMENT
3 yrs but less than 15 yrs of service and below 60 y/o
= 100% of the AMC per year of service payable at age 60
at least 15 yrs of service and below 60 y/o
= 18x BMP payable immediately; monthly pension at age 60
Prescription period: 4 years