Retirement Benefit

Home Ginhawa for All Retirement Benefit

GSIS offers various retirement programs that retiring members may choose from depending on their age and length of service.

There are four different retirement laws to choose from. As a retiring government employee, you may select an option that is applicable to your age and length of government service.

  1. RA 8291 (GSIS Act of 1997)
  2. Presidential Decree (PD) 1146 (Pension or Cash Payment)
  3. RA 1616 (“Take All” Benefit)
  4. RA 660 (Magic 87)

Another law, RA 7699 (The Portability Law), affords members the right to combine their services in the private and public sectors in order to meet the 15-year service requirement for purposes of qualifying to pension benefits.

Even if you have already submitted your retirement application you are allowed to request to change the following:

  1. Retirement Date (as long as you are below 65 years old)
  2. Retirement Mode (RAs 8291, 1616, and 660)
  3. Retirement Benefit option under 8291 (from Option 1 to Option 2, and vice-versa)

GSIS grants the said request provided you have met the two conditions or requirements below:

  1. You have not yet been paid your retirement proceeds through any of the following means:
    • eCrediting to your bank account; or
    • Negotiation of the check either through bank deposit or encashment by you or your authorized representative.
  2. You have submitted a written request to the GSIS branch office or department where the application was filed.

A. Republic Act 8291 (GSIS Act of 1997) – (Effective June 24, 1997)

Eligibility Criteria:

  1. You must have rendered at least 15 years of service and must be at least 60 years old upon retirement; and
  2. You must not be permanent total disability pensioner.
Benefit:

There are two choices under this law.
OPTION 1: Lump sum and Old-Age Pension:
This consist of the following:

  • Lump Sum – equivalent to your 60-months (or 5 year) Old age basic monthly pension (BMP) payable at the time of retirement; and
  • BPM – payable for life after the 5-year guaranteed period.

OPTION 2: Cash Payment and Immediate Old-Age Pension:
This consist of the following:

  • Cash Payment – equivalent to 18-month BMP payable upon retirement; and
  • Immediate BMP – payable for life from the date of retirement.
Here is how your BMP is computed:

BMP = (0.025) (AMC + P700) (PPP)
Where:
AMC = average monthly compensation for the last 3 years with correct premium payment; and

PPP = periods with paid premiums.

Your AMC is computed as follows:
1. If your PPP for the last 3 years is less than 36 months:

AMC = Total compensation (with corresponding paid premiums) ÷ Actual number of months such compensation was received

2. If your PPP for the last 3 years is 36 months or more:

AMC = Total compensation for the last 3 years (with corresponding paid premiums) ÷ 36 Months

Under this retirement law, your BMP should not exceed 90% of your AMC.


B. Presidential Decree 1146 ( Pension or Cash Payment) – (Effective May 31, 1977)

Eligibility Criteria:

  1. You must have rendered at least 15 years of service and must at least be 60 years old upon retirement; and
  2. Your last 3 years of service prior to retirement must be continuous and your employment status is permanent.
Benefit:

You are entitled to any of the two benefits discussed below depending on your age and length of service.
1. Pension
For pension payment, you can choose from 2 options.

  • Option 1: 5-Year Lump Sum- the amount to be received within the 5-year guaranteed period.
  • Option 2: Immediate Pension- the old-age pension that is computed as follows:

BMP = (0.025) (Revalued AMC) (TLS)
Where:
RAMC= AMC+P140
TLS=Total length of service

Under PD 1146, AMC should not be more that P3, 000. BMP should not exceed 90% of the P3, 000 AMC.

2. Cash Payment

If you meet any of the conditions in the table below, you are entitled to separation benefit (Cash Payment) computed as follows:
Cash Payment= (AMC) (TLS)

Condition When is Benefit Payable?
Age: At least 60
Total Length of Service (TLS): At least 3 but less than 15 years of PPP
Immediately
Age: Below 60
Total Length of Service (TLS): At least 3 but less than 15 years of PPP
At age 60

Separation benefit under PD 1146 has a 10-year prescriptive period. Application should be filed upon reaching 60 years old.


C. Republic Act 1616 (“Take All” Benefit) – (Effective May 31, 1957)

Among the four retirement laws, this is the only mode, also known as “Take All” that does not provide pension benefit to retirees.
Eligibility Criteria:

  1. You must have entered government service before June 1, 1977;
  2. You must have rendered at least 20 years of service regardless of age and employment status; and
  3. Your last 3 years of service prior to retirement must be continuous, expect in cases of death, disability, or abolition of position due to reorganization.
Benefit

If qualified, you are entitled to receive the following:

  1. Gratuity Benefit. This is equivalent to gratuity years multiplied by the highest salary received. This is payable by your last employer. Below is the computation of your gratuity years.
    Gratuity Months Factor
    First 20 years of service X 1 month
    21-30 years of service X 1.5 months
    In excess of 30 years of service X 2 months
  2. Refund of retirement premiums. Premiums consist of your personal share (with 3% interest per annum compounded monthly) and government share (without interest), both of which are payable by GSIS.

D. Republic Act 660 (Magic 87) – (Effective June 16, 1951)

Eligibility Criteria:

  1. You must have entered government service before June 1, 1977;
  2. Your appointment status must be permanent;
  3. Your last 3 years of service prior to retirement must be continuous, except in cases of death, disability, or abolition of position due to reorganization; and
  4. You must be at least 52 years old and meet the corresponding years of service (YOS) required for eligibility.

Under this law, your age when you retired (from age 52 to 57) plus YOS should be equal to or more than 87, hence, the “Magic 87” formula:

AGE + SERVICE = 87

Age 52 53 54 55 56 57 58 59 60 61 62 63 64 65
Service 35 34 33 32 31 30 28 26 24 22 20 18 16 15
Benefit

Your benefit under this law depends on your retirement age. It is detailed in the table below.

RETIREMENT AGE BENEFIT
63 and above 5-year Lump Sum
Below 63 but at least 60 -Initial 3-year Lump Sum payable upon retirement; and
-Subsequent 2-year balance payable at age 63
Below 60 Monthly pension paid annually (as lump sum)
-with discount

Note that after the 5-year guaranteed period, within which you obtained any of the above benefit, you shall be entitled to a monthly pension for life.

Your monthly pension under RA 660 is computed as follows:

R= P30.00+ [(2% x M) + (1.2% x P)] (A)

R= Monthly Pension at age 57
M= Number of years after June 16, 1951 (effective date of RA 660)
P= Number of years before June 16, 1951
A= Average monthly salary for the last 3 years

An actuarial adjustment factor, which varies with age, is used in computing the amount of pension paid on a yearly basis. The factors are shown in the table below.

Table of Actuarial Adjustment Factors

Under RA 660, if you are below 60 years old upon retirement, you may request for a yearly lump-sum benefit after every 6 months from the date of payment of your 5-year Lump Sum, subject to discount.


E. Republic Act 7699 (The Portability Law) – (Effective May, 1994)

You may apply if:

  1. You are not entitled for the pension benefit from either or both the GSIS o Social Security System (SSS) because you are unable to meet the requirement period of service or number of contributions; and
  2. You have less than 120 months of SS contributions or less than 180 months of creditable government service (GSIS) at the time of retirement. (In computing, there should be no overlapping of periods of service or contributions under the GSIS and SSS.)

The Portability Law provides for totalization, process of adding up the period of creditable service or contributions under both SSS and GSIS for purposes of eligibility and computations of benefits.

The amount of benefit to be paid by GSIS or SSS shall be proportionate to the services rendered or periods of contributions made to each of them.

Hence, all services you rendered or contributions you personally paid as a GSIS member, as well as those that were paid by your agency-employer, shall be considered, on the other hand, shall shoulder the portion corresponding to your service or contributions to that System.

Your benefit under this law is in the form of monthly pension payable at the age of 60.


Requirements for Application

For Retirement Benefit Under RA 660, RA 1616, PD 1146 and RA 8291 (*Application Form):

  1. Duly accomplished application form for Retirement/Separation/Life Insurance Benefit
  2. Service Record with Leave without Pay (LWOP) certification (indicating specific time and dates of LWOP)
  3. Declaration of Pendency/ Non-Pendency of Case (DPNPC) form (date administered/ notarized should be on or after receipt of notification from GSIS.

For Retirement Benefit Under Portability Law (RA 7669):

  1. Duly accomplished application form for Retirement benefit under RA 7669 (**Application Form)
  2. Certification of SSS premium contributions indicating number and inclusive months of contributions signed by authorized SSS Officer.
  3. Service Record with Leave without Pay (LWOP) certification (indicating specific time and dates of LWOP)
  4. Declaration of Pendency/ Non-Pendency of Case (DPNPC) form (date administered/ notarized should be on or after receipt of notification from GSIS.

Step by Step Procedure on how to apply

APIR via EMAIL

  1. Prepare the following:
    • Documentary Requirements stated above
    • Clear picture of the borrower holding his GSIS UMID eCard (or temporary eCard); if GSIS UMID eCard or temporary eCard is not available, present 2 valid IDs instead and do the following:
    • Take a clear photo of the 2 valid IDs (front and back) and;
    • Take a clear photo of the borrower holding the 2 valid ID cards
  2. Save the Application Form and photos as JPEG or PDF File
  3. Email the documents to your GSIS handling branch (link list here)
  4. Await confirmation email from GSIS for tentative loan computation
APIR via Dropbox

  1. Fill out the Retirement Benefit Application Form
  2. Print the Application Form, other documentary requirements and photocopy your UMID Card
  3. Secure the documents in a brown envelope and properly label it with the following information:

    NAME
    TYPE OF TRANSACTION
    GSIS HANDLING BRANCH
  4. Drop off the envelope in the GSIS Handling Branch’s DROP BOX
  5. Await confirmation email from GSIS for tentative loan computation

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