Retirement Under R.A. 8291
When availing of the retirement program under RA 8291, two things should be considered: age and the length of service.
To qualify for this retirement mode:
- The retiree must have rendered at least 15 years of service and must be at least 60 years of age upon retirement.
- He /she must not be a permanent total disability pensioner.
Unlike other retirement modes, the last three years of service of a retiree need not to be continuous under RA 8291
Packages in store for you
Retiring members who will opt to retire under RA 8291 are entitled to either of the following:
Option 1: 5-Year Lump Sum and Old Age Pension
Under this option, the retiree can get his/her five-year worth of pension in advance. The lump sum is equivalent to 60 months of the Basic Monthly Pension (BMP) payable at the time of retirement. After five years, the retiree will start receiving his/her monthly pension.
Option 2: Cash payment and Basic Monthly
In option 2, the retiree will receive a Cash Payment equivalent to 18 times the Basic Monthly Pension (BMP) payable upon retirement and then a monthly pension for life payable immediately after his retirement date.
The BMP is computed as follows:
a) If period with premium payments is less than 15 years:
BMP = .375 x RAMC (Revalued Average Monthly Compensation)
b) If period with premium payments is 15 years and more : BMP = .025 x RAMC x period with premium payments
The BMP, however, shall NOT exceed 90% of the Average Monthly Compensation (AMC).
RAMC stands for Revalued Average Monthly Compensation and is computed as follows :
RAMC= P700 + AMC (Average Monthly Compensation)
= Average Monthly Compensation
= Total Monthly Compensation received during the
last 36 months of service divided by 36
Application of the AMC Limit
The maximum amount of the Average Monthly Compensation (AMC) to be used as the base for computing pensions and other benefits of a member shall be the AMC limit prevailing at the time the contingency/ies occurred. Thus, pursuant to the lifting of the AMC limit, the monthly pension of a member with at least 15 years of creditable service who is in the service on or after January 1, 2003 shall be computed on the basis of his/her AMCs without limit.