beyond public service: the gsis retirement program

Beyond public service: the GSIS Retirement Program

Basis for computation Basis for computation of retirement claimsof retirement claimsBasis for computation Basis for computation of retirement claimsof retirement claims

Computation of Retirement Claims RECORD OF CREDITABLE SERVICE

basis:

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

RetirementRetirement lawslawsRetirementRetirement lawslaws

• RA 660 or the “Magic 87”“Magic 87”

Retirement laws

• RA 1616 or the “Take all”“Take all”

• RA 8291or the

GSIS Act of 1997GSIS Act of 1997

• PD 1146 which has “Old Age “Old Age Pension & Cash Payment”Pension & Cash Payment”

• RA 660 or the “Magic 87”“Magic 87” Retirement laws

Age plus service = 87Age plus service = 87

Starting age is 52 y/o 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 Must be in service on or before May 31, 1977before May 31, 1977


Continuous service in the last 3 years Continuous service in the last 3 years prior to retirement prior to retirement

Appointment status should be Appointment status should be permanent in nature permanent in nature

Exceptions: death, Exceptions: death, disability, abolition of disability, abolition of position, reorganization, position, reorganization, phaseout phaseout


Max. monthly pension for 57 above is 80% of AMC Max. monthly pension for 57 above is 80% of AMC

Max. monthly pension for 57 below is 75% of AMC Max. monthly pension for 57 below is 75% of AMC

The benefit is any one of the following: 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

• RA 660 or the “Magic 87”“Magic 87”

Retirement laws

R = P30.00 + [(2%xM)+(1.2%xP)] (A)

where:where:

R = Monthly annuity at age 57R = Monthly annuity at age 57

A = Average monthly salary for the last 3 yrsA = Average monthly salary for the last 3 yrs

M = No. of yrs after 6/16/1951M = No. of yrs after 6/16/1951

P = No. of yrs of service before 6/16/1951P = No. of yrs of service before 6/16/1951

Computation of monthly annuity Computation of monthly annuity


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

• RA 1616 or “Take all”“Take all” Retirement laws

Age and employment status not a requirementAge and employment status not a requirement

In service on or before May 31, 1977 In service on or before May 31, 1977

At least 20 yrs of service, last 3 yrs continuous At least 20 yrs of service, last 3 yrs continuous

Exception: death, Exception: death, disability, abolition of disability, abolition of

position, reorganization, position, reorganization, phaseout phaseout


Two retirement benefits: Two retirement benefits:

GratuityGratuity Refund of retirement premiumsRefund of retirement premiums and and

No pensionNo pension

Burial benefit if retiBurial benefit if retirree ee died after RA 8291, had died after RA 8291, had 20 years of service, and 20 years of service, and is at least 60 years old is at least 60 years old


Computation of Gratuity from employer: Computation of Gratuity from employer:

11stst 20 yrs of service x 1 20 yrs of service x 1

21-30 years of service x 1.5 21-30 years of service x 1.5

31-above years of service x 231-above years of service x 2


Refund of retirement premiums payable by the GSISRefund of retirement premiums payable by the GSIS

• Personal contributions plus interest Personal contributions plus interest • Government share without interestGovernment share without interest

Retirement laws

Must have at least 15 years of service, at least 60 years oldMust have at least 15 years of service, at least 60 years old

Monthly pension after 5 years Monthly pension after 5 years

Retiree may request lump sum payment for 5 Retiree may request lump sum payment for 5 years at a rate of not less than 6%years at a rate of not less than 6%

• PD 1146 OLD AGE PENSIONOLD AGE PENSION andand CASH PAYMENTCASH PAYMENT

• PD 1146 Retirement laws

OLD AGE PENSIONOLD AGE PENSION andand CASH PAYMENTCASH PAYMENT

ComputationComputation OLD AGE PENSIONOLD AGE PENSION

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

x (total years of service - 15 years)x (total years of service - 15 years)

WhereWhere AMC is computed as:AMC is computed as:

AMC =

Total compensation received with premium payments during the last 3 years prior to

date of retirement/separation

36 months



WhereWhere:: RAMC is revalued AMC and computed as 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)



For 60 years old and above and had at least 3 years For 60 years old and above and had at least 3 years but less than 15 years of service but less than 15 years of service

CP = (record of creditable service) x AMC, CP = (record of creditable service) x AMC, but not less than P500but not less than P500

ComputationComputation: : CASH PAYMENT (CP)CASH PAYMENT (CP)

• RA 8291which has “GSIS Act of 1997”“GSIS Act of 1997” Retirement laws

at least 15 years of serviceat least 15 years of service

at least 60 years old upon retirementat least 60 years old upon retirement

not a permanent total disability pensioner not a permanent total disability pensioner

Two options:Two options:1. Lump sum and Old age Pension1. Lump sum and Old age Pension2. Cash payment and Pension2. Cash payment and Pension

Retirement laws

OPTION 1: OPTION 1: LUMP SUM and OLD AGE PENSIONLUMP SUM and OLD AGE PENSION

60 months60 months Basic Monthly PensionBasic Monthly Pension payable upon payable upon

retirement and retirement and Pension for life after 5 yearsPension for life after 5 years, if still , if still livingliving

• RA 8291which has “GSIS Act of 1997”“GSIS Act of 1997”

Retirement laws

OPTION 2: OPTION 2: CASH PAYMENT & PENSIONCASH PAYMENT & PENSION

18 months18 months Cash payment Cash payment payable upon retirement and payable upon retirement and

Pension for lifePension for life a MONTH after the DATE of retirement a MONTH after the DATE of retirement


Retirement laws

BMP= (0.025) x (AMC + P700) x Record of Creditable Service

35 years in service to enjoy 35 years in service to enjoy BMP of 90% AMCBMP of 90% AMC

computation

BMP not to exceed 90% of AMCBMP not to exceed 90% of AMC


Cash gift and pension increase after 5 years

If total service is at least 15 years:

Retirement laws • RA 8291which has “GSIS Act of 1997”“GSIS Act of 1997”

WhereWhere:: AMC is computed as:AMC is computed as:

AMC =

Total compensation received with premium payments prior to unemployment/disability/death

Actual number of months member received such compensation

1. If total length of service is less than 36 months:

Retirement laws • RA 8291which has “GSIS Act of 1997”“GSIS Act of 1997”

WhereWhere:: AMC is computed as:AMC is computed as:

AMC =

Total compensation received for the last 36 months with premium payments preceding

unemployment/disability/death

36 months

1. If total length of service is 36 months or more:

• Separation benefitsSeparation benefits

3 yrs but less than 15 yrs of service and below 60 y/o3 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= 100% of the AMC per year of service payable at age 60

CASH PAYMENTCASH PAYMENT

at least 15 yrs of service and below 60 y/oat least 15 yrs of service and below 60 y/o= 18x BMP payable immediately; monthly pension at age 60= 18x BMP payable immediately; monthly pension at age 60

Prescription period: 4 yearsPrescription period: 4 years

other Social Insurance Benefits

beyond public service: the gsis retirement program

Documents

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