Retirement under PD 1146 may be availed by those who were separated / retired from service before June 24, 1997.
Option 1: Basic Monthly Pension (BMP)
This option is available for retirees who are at least 60 years old and who have rendered 15 years of service. Those qualified under this option will receive a Basic Monthly Pension (BMP) guaranteed for five (5) years. After the five-year guaranteed period, retirees will receive a basic monthly pension for life. Retirees may also request to convert their five-year guaranteed BMP into a lump sum subject to a six (6) percent discount rate.
BMP is computed as follows:
a) If period with paid premiums is less than 15 years: BMP= .375 x RAMC
b) If period with paid premiums (PPP) is 15 years or more: BMP= .025 x RAMC x PPP
RAMC stands for Revalued Average Monthly Compensation. It is computed as follows:
RAMC = AMC+ P140.00 The maximum RAMC is P3,140.00
In either case, BMP shall not exceed 90% of the Average Monthly Compensation (AMC).
AMC is computed as follows:
|AMC =||Total compensation received during the last 3 years|
|Total number of months during which compensation was received|
Option 2: Cash Payment (CP)
This option is available to retirees who are at least 60 years old and who have rendered at least three (3) years but less than 15 years of service. Those who are qualified under this option will receive a cash payment equal to 100% of the Average Monthly Compensation (AMC) for every year of service.
The Cash Payment is computed as follows:
CP = Total monthly contributions paid x AMC