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					   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
     Average salary received with correct premium
     payment for the last 3 years prior to retirement
Retirement laws
      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
 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
 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
    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
   Retirement   laws

            • RA 660 or 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
       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
 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
    Retirement        laws

                • RA 1616 or “Take         all”
Two retirement benefits:
                and
     Gratuity         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
    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
    Retirement      laws

               • RA 1616 or “Take         all”
Refund of retirement premiums payable by the GSIS

 • Personal contributions plus interest
 • Government share without interest
   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%
   Retirement 1146
          • PD
                       laws



                  OLD AGE PENSION and CASH PAYMENT
Computation OLD AGE PENSION


If total service is at least 15 years:
          BMP= 37.5% RAMC + 2.5 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
        Retirement     laws

                  • PD   1146
                    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)
     Retirement        laws

                 • PD    1146
                  OLD AGE PENSION and CASH PAYMENT
        : CASH PAYMENT (CP)
Computation

     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
 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
  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
 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
      Retirement      laws

              • RA 8291which has “GSIS Act of 1997”

If total service is at least 15 years:

computation
               BMP= (0.025) x (AMC + P700) x
                Record of Creditable Service
                  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
            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
           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
 AMC =                   unemployment/disability/death

                                   36 months
    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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posted:8/31/2012
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