Retirement under RA 8291 may be availed by those who have rendered at least 15 years of service in government and must be at least 60 years of age upon retirement. Also, they must not be permanent total disability pensioners.
The last three years of service need not be continuous under RA 8291.
Option 1: 5-Year Lump Sum and Old Age Pension
Under this option, retirees can get their five-year 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, retirees will start receiving their monthly pension.
Option 2: Cash payment and Basic Monthly
In option 2, retirees 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 retirement date.
BMP is computed as follows:
a) If period with paid premiums is less than 15 years:
BMP = .375 x RAMC (Revalued Average Monthly Compensation)
b) If period with paid premiums is 15 years and more:
BMP = .375 x RAMC BMP = .025 x RAMC x Period with Paid Premiums
BMP, however, shall NOT exceed 90% of the Average Monthly Compensation.
RAMC stands for Revalued Average Monthly Compensation and is computed as follows :
RAMC=Php700 + AMC (Average Monthly Compensation)
AMC=Total Monthly Compensation received during the last 36 months of service divided by 36