Retirement Law Revisited 091910 Ppt97

7/25/2019 Retirement Law Revisited 091910 Ppt97

1/65

RETIREMENT LAWRETIREMENT LAWREVISITEDREVISITED

ATTY. ADA D. ABADATTY. ADA D. ABAD CEAPCEAPLEGAL COUNSELLEGAL COUNSEL

CEAP RETIREMENT FUNDCEBU WATERFRONT HOTEL

21 SEPTEMBER 2010, 4:00-5:30PM

1CEAP RETIREMENT FUND LECTUREOF ATTY. ADA ABAD 092110


2/65

RETIREMENTRETIREMENTDEFINED:DEFINED:

A. w!"#$%w%& '$() (*+ (!(* ($ (//%!(*

($ '$() %/!+ w($* &'+B. T"+ +$(# (' % +$(* &'+ #$* w"/""+"+ *( &(*+$ w($*, ($ !"+/())+*/+)+*! (' !"%! +$(#.



3/65



4/65



5/65

ENERAL RULEENERAL RULE: R.A. 6741

%.OPTIONAL %! 70 8+%$ w!" )*))5 8+%$ (' +$/+9.MANDATOR%! 75 8+%$, *(+$/+ $+;$+)+*!

E


6/65



7/65

ENERAL RULEENERAL RULE: R.A. 6741

>)(*!" '($ ++$8 8+%$ (' +$/+?+@%*#+# /(*/+!

E


8/65

TWO OVERNIN LAWS ONTWO OVERNIN LAWS ON

RETIREMENT BENEFITS:RETIREMENT BENEFITS:

A.A.REPUBLIC ACT NO. 6741REPUBLIC ACT NO. 6741, otherwiseotherwise

known as the RETIREMENT PAY LAknown as the RETIREMENT PAY LAena!te" on #$ De!e%&er '$$(ena!te" on #$ De!e%&er '$$(

B.B.REPUBLIC ACT N(. 416REPUBLIC ACT N(. 416, whi!h a%en"s, whi!h a%en"s

the Nationa) Interna) Re*en+e Co"e onthe Nationa) Interna) Re*en+e Co"e onee%-tion ro% taes o retire%ent &eneitsee%-tion ro% taes o retire%ent &eneits



9/65

COMPANIESCOMPANIESWITHOUTWITHOUT

RETIREMENTRETIREMENT

PLANPLANR.A. 6741R.A. 6741

COMPANIESCOMPANIESWITH AWITH A


PLANPLAN

BUT LESSBUT LESSBENEFITBENEFIT

R.A. 6741R.A. 6741

COMPANIESCOMPANIESWITH AWITH A


PLANPLANR.A. 416R.A. 416



10/65

COMPANIESCOMPANIES

WITHOUTWITHOUTRETIREMENTRETIREMENT

PLANPLANRETIREMENT LAW TORETIREMENT LAW TO

APPLYAPPLY 10CEAP RETIREMENT FUND LECTURE

OF ATTY. ADA ABAD 092110


11/65

COMPANIES WITH ACOMPANIES WITH A

COLLECTIVECOLLECTIVE

BARGAININGBARGAINING

AGREEMENT ORAGREEMENT OR

RETIREMENT PLANRETIREMENT PLANBUT SAME OR LESSBUT SAME OR LESS

BENEFITS THANBENEFITS THAN

MINIMUMMINIMUM 11CEAP RETIREMENT FUND LECTURE



12/65

1.1. WHO MA BENEFITWHO MA BENEFIT

/ ALL EMPLOEES IN THE PRIVATE COMPAN,REARDLESS OF POSITION AND CLASSIFICATION.

They h!"" #$%"&'e (!)*+*#,e e,("-yeee,("-yee -/ e)#%e !$' -*he) - %-$*)!%*-)

!$' '-,e*#% he"(e) -) (e)-$ #$ (e)-$!"e)#%e -/ !$-*he).

2.2. WHO MA NOT BENEFITWHO MA NOT BENEFIT

/OVERNMENT EMPLOEES/EMPLOEES OF RETAIL AND ARICULTURALESTABLISHMENTS EMPLOIN TEN OR LESSEMPLOEES



13/65

3.3. PARAMETERS FOR AVAILMENTPARAMETERS FOR AVAILMENT

/ MANDATOR AT 75 EARS OF AE, NOSERVICE REUIREMENT

/ OPTIONAL AT AE 70, WITH FIVE ?5 EARSSERVICE REUIREMENT

/ IF COMPLIED WITH, BENEFITS ARE TA


14/65

4.4. HOW MUCH IS THE BENEFITHOW MUCH IS THE BENEFIT

4.1 FOR THOSE PAID REULARL -- ONE-HALFMONTH SALAR COMPUTED AT 22.5 DAS PERCAPITOL WIRELESS VS. CONFESOR CASE.?REITERATED IN STA. CATALINA SCHOOL VS. NLRC 2003 CASE

/ Components of one-h!f months!"#

15 #%8 @ &%!+! %&%$8 +$ #%8 5 #%8 &+%+ @ &%!+! %&%$8 +$ #%8 112(' 13!")(*!" %8 A&& (!"+$ 9+*+'! !"%! !"+ +)&(8+$ %*#+)&(8++ )%8 %$++ (* !"%! "( 9+ */+#

* !"+ /()!%!(* (' !"+ +)&(8++= $+!$+)+*!%8. 14CEAP RETIREMENT FUND LECTURE



15/65

NOTE: T"+ ''!++* ?15 #%8 %&%$8 ('

!"+ +)&(8++ !"%! 9%+# (* "&%!+!&%!+! %&%$8 $%!+.

E@/+!01a2 !ost o )i*in3 a))owan!es

1&2 -roit4sharin3 -a5%ents

1!2 other %onetar5 &eneits whi!h are not

!onsi"ere" as -art o or inte3rate" into there3+)ar sa)ar5 o the e%-)o5ees.



16/65

4.2 FOR THOSE PAID B THE RESULTS

AND DO NOT HAVE FI


17/65

5.5. IS THE RETIREMENT PA UNDERIS THE RETIREMENT PA UNDER

RA 6741 TA


18/65

7.7. REUIREMENTS FOR TA


19/65

CEAP RETIREMENT FUND LECTUREOF ATTY. ADA ABAD 092110

19


20/65

COMPANIES WITH ACOMPANIES WITH ACOLLECTIVECOLLECTIVE

BARGAININGBARGAININGAGREEMENT ORAGREEMENT OR

RETIREMENT PLANRETIREMENT PLANRETIREMENT PLAN TO APPLYRETIREMENT PLAN TO APPLYTA$-E$EMPT SUB%ECT TOTA$-E$EMPT SUB%ECT TO

CON&ITIONS UN&ER RA '()*20CEAP RETIREMENT FUND LECTURE



21/65

1.1. WHO MA BENEFITWHO MA BENEFIT

AVAILMENT WILL INDUBITABLDEPEND UPON THEPARAMETERS IVEN B THERETIREMENT PLAN ITSELF



22/65


22

CEAP RETIREMENT PLAN+

ARTICLE ),SEC ). THE NORMALRETIREMENT &ATE UN&ER CEAP

RETIREMENT PLAN IS AGE /,

/ LAST &AY OF THE SEMESTERDURIN IC E ATTAIN AE 60

/IF BIRTDAY I OUTSI&EOF A

EMETER UMMER BREA: OR EM


23/65


23

SEC 0. OPTIONAL ORSEC 0. OPTIONAL OR

EARLYEARLYRETIREMENT &ATERETIREMENT &ATE

/ LAT DAY OF TEEMETER AFTER E ARENDERED TWENTY 10,2

YEARS OF CONTINUOUSSERVICE< OR

/ IF TE LAT DAY OF TET


24/65


24

SEC 3. SEPARATIONSEC 3. SEPARATION

PRIOR TOPRIOR TORETIREMENTRETIREMENT

/ EMPLOYEE REIN/ EMPLOYEE I TERMINATED

FOR REAON OTER TAN

DIMIAL FOR CAUEATTRIBUTABLE TO TE FAULTOF MEMBER

1E$AMPLE. RETRENCHMENT+ RE&UN&ANCY+

INSTALLATION OF LABOR SAVING


25/65


25

WHAT BENEFITS ARE THEYWHAT BENEFITS ARE THEY

ENTITLE& TO4ENTITLE& TO4

/ RETURN OF TOTALCONTRIBUTION OF

EMPLOYEE

/ INCOME ACCRUED FROM I

CONTRIBUTION UNDER TETRUT FUND

/PECIFIED PROPORTION OF


26/65

2.2. PARAMETERS FOR AVAILMENT OFPARAMETERS FOR AVAILMENT OF

TA< E


27/65

3.3. REUIREMENTS FOR TA


28/65

4.4. HOW MUCH IS THE BENEFITHOW MUCH IS THE BENEFIT

/ IF THE RETIREMENT PLAN IVESBETTER RETIREMENT BENEFITS

THAN THE MINIMUM PROVIDED BLAW ?12 MONTH E


29/65



30/65

RECONCILIATIONRECONCILIATIONOFOF

TA$ E$EMPTIONTA$ E$EMPTIONUN&ERUN&ER

RA */') AN& RARA */') AN& RA'()*'()*

PER BIR OPINIONPER BIR OPINION DA-151-2004, M%$/" 31, 2004.30CEAP RETIREMENT FUND LECTURE



31/65

SITUATION ONE:

/COMPAN DOES NOT

HAVE ANRETIREMENT PLAN

/EMPLOEE OPTSFOR EARLRETIREMENT UNDERREP. ACT NO. 6741, 70

EARS PLUS AT LEAST5 EARS SERVICE

EFFECT:EFFECT: RETIREMENT BENEFIT IS TA


32/65

SITUATION TWO:

/EMPLOEE WILL RETIRE

UNDER COMPANRETIREMENT PLAN

/COMPAN RETIREMENT

PLAN IS EUAL TO ORLESS THAN THATPROVIDED B REP. ACTNO. 6741

EFFECT:EFFECT: RETIREMENT BENEFIT IS TA


33/65

SITUATION THREE:

/EMPLOEE WILL RETIREUNDER COMPANRETIREMENT PLAN

/COMPAN RETIREMENTPLAN BENEFIT IS MORETHAN THAT PROVIDED BREP. ACT NO. 6741

EFFECT:EFFECT: RETIREMENT BENEFIT WILL BE TA


34/65

REUIREMENTS FOR TA

or ta ee%-tion.

The Retire%ent P)an R+)es an" Re3+)ations o the

!o%-an5 %a5 -ro*i"e that the nor%a) retire%ent "ate or

ear)5;o-tiona) retire%ent "ate &e %ore than what isre:+ire" &5 the Ta Co"e. Conse:+ent)5, in !ase o !on)i!t

&etween the Ta Co"e an" the Retire%ent P)an R+)es an"

Re3+)ations, it is the )atter that sho+)" -re*ai). 1BIR No.

#9(4(###, O!to&er @#, (###2


54/65

CEAP RETIREMENT FUND LECTUREOF ATTY. ADA ABAD 092110 54

SEPARATION BENEFIT IS ADISTINCT E


55/65


I* /%+ (' %/($($%!(* $(#*'($ +%$&8 $+!$+)+*!$($%) !( !"+$

+)&(8++, (*+ "(#+!+$)*+ ' /" w%% $+!$+)+*! &%* ($ %

+%$%!(*$+!$+*/")+*! $($%).


56/65


IF %$! (' $+!$+)+*! &%*,!"+$+ % *++# !( ( !"$("!"+ $+;$+)+*! $(#+# *!"+ T%@ C(#+ ($ !"+ $+!$+)+*!&%* * ($#+$ !( 9+ !%@ +@+)!.

IF ! )&8 % +%$%!(* ($$+!$+*/")+*! $($%), !"( %!'8 $+;$+)+*!*#+$ S+/!(* 32 ?B ?7 ?9, --+%$%!(* '($ /%+ 9+8(*#/(*!$(& (' !"+ +)&(8++.


57/65


IF EMPLOYEE OF TEN YEARSSERVICE RESIGNS UN&ERCEAP RETIREMENT PLAN+ ISTHIS TA$-E$EMPT4

SINCE THIS IS NOTRETIREMENT+ AN& NEITHER IS

IT A SEPARATION &UE TO&EATH+ SIC


58/65


RA '()*+ Se;t7on )A$y ()-##-$-/ "! *- *he %-$*)!)y

$-*#*h*!$'#$ *he RETIREMENTBENEFITS )e%e#e' y -%#!" !$'e,("-yee -/ ()#!*e G), he*he)#$'##'&!" -) %-)(-)!*e #$ !%%-)'!$%e#*h ! )e!-$!"e ()#!*e e$eG*("!$ ,!#$*!#$e' y *he e,("-ye)

h!"" e e@e,(* /)-, !"" *!@e HHHft e"s of e t the


59/65


Provided, further,Th!* *he e$eG*

)!$*e' &$'e) *h# A%* h!"" e !!#"e' -/y !$ -%#!" -) e,("-yee -$"y -$%e?

Provided, nally,Th!* #$ %!e of

sep"t7on of n o@;7! o" emp!o#eef"om the se"67;e of the emp!o#e" 8:e

to 8eth+ s7;ness o" othe"

ph#s7;! 87s97!7t# o" fo" n#;:se 9e#on8 the ;ont"o! of thes78 o@;7! o" emp!o#ee !$y!,-&$* )e%e#e' y h#, -) y h# he#) /)-, *he

e,("-ye) ! ! %-$e&e$%e -/ &%h e(!)!*#-$


60/65


WHAT IS THERECONINPERIOD FORPURPOSES OFCOMPUTATIONOF BENEFITS


61/65


I* $+/(** !"+ &+*!" (' +$/+, !"++$(# (' +)&(8)+*! w!" !"+ %)++)&(8+$ 9+'($+ !"+ +''+/!!8 #%!+ ('

!"+ &%w (* %*%$8 6, 13 "( 9+*/+#. ?#+&*+ '($ !"+ E''+/!+I)&+)+*!%!(* (' R.A. 6741, T"+ R+!$+)+*! P%8L%w, 24 O/!(9+$ 17


62/65


T"+ )*)) &+*!" (' +$/+ * %*

+!%9&")+*! ($ w!" %* +)&(8+$ ('%! &+%! '+ ?5 8+%$ $+;$+# '($ !"++*!!&+)+*! !( $+!$+)+*! %8 "%&&

*/+ %!"($Q+# %9+*/+ %*#*/+ %!"($Q+# %9+*/+ %*#%/%!(*, $+&%$ "(%8 %*#%/%!(*, $+&%$ "(%8 %*#)%*#%!($8 '&'&&)+*! (' % )&!%$8 ($)%*#%!($8 '&'&&)+*! (' % )&!%$8 ($

// #!8// #!8 e%*#-$ 4 R&"eI,("e,e$*#$ *he Ne Re*#)e,e$* L!;


63/65


ARE ALLOWANCES,ARE ALLOWANCES,

COMMISSIONS ANDCOMMISSIONS ANDOTHER BENEFITSOTHER BENEFITSINCLUDED IN THEINCLUDED IN THE

COMPUTATION OFCOMPUTATION OFTHE RETIREMENTTHE RETIREMENTBENEFITSBENEFITS

ENERAL RULE: THESEARE E


64/65


IF THE COMPAN PLAN

PROVIDES FOR ITS E


65/65

THAN< YOUVERY MUCHFOR THE

OPPORTUNITYTO BE OFSERVICE TO

YOU

HAVE A GOO&EVENING

Documents

Retirement Law Revisited 091910 Ppt97