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Beyond public service: the GSIS Retirement Program

Beyond public service: the GSIS Retirement Program. Basis for computation of retirement claims. Computation of Retirement Claims. basis:. RECORD OF CREDITABLE SERVICE. Years of service with corresponding premium payment (Premium-Based Policy). AVERAGE MONTHLY COMPENSATION.

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Beyond public service: the GSIS Retirement Program

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  1. Beyond public service: the GSIS Retirement Program

  2. Basis for computation of retirement claims

  3. 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. Retirementlaws

  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. Retirementlaws • RA 660or the“Magic 87” Age plus service = 87 Starting age is 52 y/o Must be in service on or before May 31, 1977

  7. Retirementlaws • RA 660or 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. Retirementlaws • RA 660or 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:

  9. Retirementlaws • RA 660or the“Magic 87” Computation of monthly annuity R = P30.00 + [(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. Retirementlaws • RA 660or the“Magic 87”

  11. Retirementlaws • RA 1616or “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. Retirementlaws • RA 1616or “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. Retirementlaws • RA 1616or “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. Retirementlaws • RA 1616or “Take all” Refund of retirement premiums payable by the GSIS • Personal contributions plus interest • Government share without interest

  15. Retirementlaws • PD 1146 OLD AGE PENSIONandCASH 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. Retirementlaws • PD 1146 OLD AGE PENSIONandCASH PAYMENT ComputationOLD AGE PENSION If total service is at least 15 years: BMP= 37.5% RAMC + 2.5 RAMC x (total years of service - 15 years) WhereAMC is computed as: Total compensation received with premium payments during the last 3 years prior to date of retirement/separation AMC = 36 months

  17. Retirementlaws • PD 1146 OLD AGE PENSIONandCASH 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. Retirementlaws • PD 1146 OLD AGE PENSIONandCASH 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. Retirementlaws • 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. Retirementlaws • RA 8291which has“GSIS Act of 1997” OPTION 1: LUMP SUM and OLD AGE PENSION 60 monthsBasic Monthly Pension payable upon retirement and Pension for life after 5 years, if still living

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

  22. Retirementlaws • 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. Retirementlaws • 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. Retirementlaws • 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. 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

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