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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. - PowerPoint PPT Presentation
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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
• RA 660 or the “Magic 87”“Magic 87” Retirement laws
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
• RA 660 or the “Magic 87”“Magic 87” Retirement laws
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
• RA 660 or the “Magic 87”“Magic 87” Retirement laws
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
• RA 1616 or “Take all”“Take all” Retirement laws
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
• RA 1616 or “Take all”“Take all” Retirement laws
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
• RA 1616 or “Take all”“Take all” Retirement laws
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
• PD 1146 Retirement laws
OLD AGE PENSIONOLD AGE PENSION andand CASH PAYMENTCASH PAYMENT
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)
• PD 1146 Retirement laws
OLD AGE PENSIONOLD AGE PENSION andand CASH PAYMENTCASH PAYMENT
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
• RA 8291which has “GSIS Act of 1997”“GSIS Act of 1997”
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
• RA 8291which has “GSIS Act of 1997”“GSIS Act of 1997”
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
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