Retirement under Presidential Decree 1146
Retirement under PD 1146 can only be availed by those who were in service after May 31,1977 but prior to June 24, 1997. A retiring member under PD 1146 is entitled to either Old Age Pension or Cash Payment, depending on his age and years in service.
Packages in store for you
Option 1: Basic Monthly Pension (BMP)
This option is available for retirees who are at least 60 years old and 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 5-year guaranteed period, he/she will receive a basic monthly pension for life. A retiree may also request to convert his/her five-year guaranteed BMP into a lump sum subject to a six (6) percent discount rate.
The BMP is computed as follows:
a) If period with premium payments is less than 15 years: BMP= .375 x RAMC
b) If period with premium payments is 15 years or more: BMP= .025 x RAMC x Length of service
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, the BMP shall not exceed 90% of the Average Monthly Compensation (AMC).
The AMC is computed as follows:
|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 have rendered at least 3 years but less than 15 years of service. Qualified under this mode option will receive a cash payment that is 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