MANILA, Philippines - The Government Service Insurance System (GSIS), the state-owned pension fund for government employees, reminded yesterday agencies to submit the names of members availing of early retirement at least 60 days prior to their preferred retirement date to ensure the judicious settlement of their benefits.
This as the agency has been deluged by various loan applications and claims of benefits.
The pension fund said the early notification mechanism is also meant to facilitate the reconciliation of the members’ accounts.
GSIS President and General Manager Winston Garcia said government agencies must fully comply with all the requirements to ensure the success of the retirement program.
“The success of this activity would require the cooperation and full support of all agencies by providing us the names of their employees below 65 years old who intend to avail of early retirement,” he said.
On the other hand, Garcia said agencies do not have to submit the names of their employees who will retire at age 65 which is the compulsory age of retirement.
He also said the agency is prioritizing the reconciliation of premium and loan payments of prospective retirees to facilitate the timely and accurate computation of their benefits.
For further details on this program, the pension fund has advised the Authorized Agency Officers of different agencies to coordinate with the Membership Group of the GSIS.
The GSIS has four retirement modes as mandated under RA 660 that took effect in 1951; R.A. 1616 which took effect in 1957; Presidential Decree 1146 which took effect in 1977; and R.A. 8291 which took effect in 1997.
Under R.A. 660, the so-called Magic 87 is used, wherein the age of the member and the years in service he has rendered will be added. If the sum is 87, he will be qualified to retire under R.A. 660 with pension. This mode is applicable only to employees who entered government service before June 1, 1977.
For R.A. 1616, the retiree must have rendered at least 20 years of service regardless of age and employment status. His last three years of service prior to retirement must also be continuous, except in cases of death, disability, abolition or phase out of position due to reorganization.
On the other hand, P.D. 1146 involves the pension benefit from the amended R.A. 660. Under this mode, a member can retire if he is 60 years old, a permanent employee, and has rendered at least 15 years in service.
Meanwhile, under R.A. 8291, there are two options: the five-year lump sum and the 18-month cash payment and pension. The requirements under this mode include a minimum years in service of 15 years and the retiree must be at least 60 years old.