DO 27, s. 2001 – Basic Information on the Different Retirement Schemes Provided for Under RA 1616, RA 660, PD 1146 and RA 8291 Amended by DO 33, s. 2001 – Corrigendum to DECS Order No. 27, s. 2001 (Basic lnformation on the Different Retirement Schemes Provided for Under RA 1616, RA 660, PD 1146 and RA 8291)
To : Undersecretaries
Assistant Secretaries
Bureau Directors
Regional Directors
Directors of Services/Centers and Head of Units School Superintendents
Presidents, State Colleges and Universities
Vocational School Superintendents/Administrators
- RA 8291 and PD 1146 – for those who have rendered at least fifteen (15 ) years of service and is at least sixty years of age upon retirement.
- RA 660 – for those who pass the “Magic 87” criteria, that is, when the length of service and age at retirement are summed up, the total is at least “87”.
- RA 1616 – for those who have rendered at least twenty (20) years of service.
RA 660 | RA 161 | PD 1146 | RA 8291 |
Upon completon of 30 years Service and attainment of age 57 years, the member shall have the Option to retire under the “Magic 87” formula as shown below:
Age : 52 53 54 55 56 57 58 Age : 59 60 61 62 63 64 65 The maximum monthly pension for Those above 57 years of age shall be 80% of the Average Monthly Salary (AMS) received during the Last 3 years immediately preceding Retirement. Maximum pension for Those aged 57 and below shall be 75% of the AMS.
1. Automatic Pension 2. Initial 3-Year Lump Sum 3. Five Year Lump Sum 4. Disability Benefit
Terminal leave, if any shall be paid by the last employer
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Gratuity Benefit (Lump sum to be paid by last Employer) Available to those who :1. have rendered at least 20 years of service regardless of employment status ; and 2. were in the service prior to May 31,1977 The gratuity benefit shall be computed and paid by the last employer, subject to the availability of funds.The refund of the retiree’s personal Contributions with Interest and the Corresponding Government Contributions without Interest shall be paid by the GSIS. The gratuity benefit is computed as follows:
1.5 months salary for the next 10 years up to 30 years Unlimited amount of gratuity benefit but No pension
Terminal leave, if any shall be paid by the last employer
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1. Basic Monthly Pension
Available to those who are 60 years of age with at least 15 years of service. The benefit is a monthly basic pension guaranteed for five years. After the 5 year period, the retiree will receive a basic monthly Pension for life. Lump sum payment However, is discounted at the rate of 6%. If total service is more than 15 years, or BMP = 0.25 X total Service X RAMC The Revalued Average Monthly Compensation (RAMC) is computed as follows : RAMC = AMC The maximum BMP is 90% of Average Monthly Compensation (AMC), which is limited by law to P3,000.00, received during the last 3 years immediately preceding retirement or P2,700.00 (3,000 x 90%) OR 2. Cash Payment (CP) The CP is computed as follows: CP = total service X AMC For those who are less than 60 years of age on date of retirement, payment of the benefit shall be made on their 60th birthday. Terminal leave, if any shall be paid by the last employer
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The BMP is computed as follows:
The Revalued Average Monthly Compensation (RAMC) is computed as follows: RAMC = AMC + 700
AMC = total compensation received Preceding unemployment (disability / death) Actual number of Months membersreceived such-compensation OR
AMC = Total Compensation received during the last 36 months of Service preceding Separation / retirement / Disability / death 36
Terminal leave, if any shall be paid by the last employer
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For further understanding of retirement schemes, below are definition of used in the preceding table.
.AMC – Average Monthly Compensation
AMS – Average Monthly Salary
BMP – Basic Monthly Pension
CP – Cash Payment
RAMC – Revalued Average Monthly Compensation
YOS – Years of Service
Undersecretary
under the following subjects:
OFFICIALS
POLICY
RETIREMENT
SERVICE