GSIS official says policy will remain

The No-AMC (average monthly compensation) limit policy that produced significant increase in the monthly pensions of government retirees will remain, a Government Service Insurance System official said.

In a memorandum to area managers nationwide, Alex Valencerina, GSIS senior vice president for the Field Operations Group, said there has been no plan to stop the policy contrary to several rumors.

Valencerina said that under the No-AMC limit policy, a pensioner could receive a monthly pension of up to 90 percent of his AMC, or the average monthly salary during his last 36 months in government service.

Previously, pensioners receive only a maximum of P14,400 in basic monthly pension regardless of their salary while in government service because the ceiling on computation was based on a maximum P16,000 monthly salary.

With the lifting of the AMC limit, members receiving more than P16,000 monthly salary while in government are entitled to a monthly pension up to a maximum of 90 percent of his AMC aside from other benefits.

Rumors about the scrapping of the policy prompted some government employees to retire immediately from the service to avail themselves of the higher retirement benefits under the policy.

"They would just be inflicting an injustice on themselves if they retire prematurely now, because that would affect their careers and creditable service records in government. There is no truth to the rumor that the GSIS will scrap the policy," Valencerina said.

Valencerina added that there is a strong legal basis for the policy, citing Republic Act 8291, also known as the GSIS Act of 1997, which clearly provides that the basis for the computation of pension benefits shall be the average monthly compensation. - Jasmin R. Uy