Beyond public service:
the GSIS Retirement Program
Basis for computation
of retirement claims

Computation of
basis:
Retirement Claims
RECORD OF CREDITABLE SERVICE
Years of service with corresponding
premium payment
(Premium-Based Policy)
AVERAGE MONTHLY COMPENSATION
Average salary received with correct premium
payment for the last 3 years prior to retirement
Retirement laws

Retirement
laws
• RA 660 or the “Magic 87”
• RA 1616 or the “Take all”
• PD 1146 which has “Old Age
Pension & Cash Payment”
• RA 8291or the GSIS
Act of 1997
 Retirement
laws
• RA 660 or the “Magic 87”
Age plus service = 87
Starting age is 52 y/o
AGE
52
53
54
55
56
57
58
59
60
61
62
63
64
65
YOS
35
34
33
32
31
30
28
26
24
22
20
18
16
15
Must be in service on or
before May 31, 1977
 Retirement
laws
• RA 660 or the “Magic 87”
Continuous service in the last 3 years
prior to retirement
Appointment status should be
permanent in nature
Exceptions: death,
disability, abolition of
position, reorganization,
phaseout
 Retirement
laws
• RA 660 or the “Magic 87”
Max. monthly pension for 57 above is 80% of AMC
Max. monthly pension for 57 below is 75% of AMC
The benefit is any one of the following:
Retirement Age
below 60
Annuity Benefit
1 yr lump sum
60 and below 63 3 year lump sum
63 and above
5 year lump sum
 Retirement
laws
• RA 660 or the “Magic 87”
Computation of monthly annuity
R = P30.00 + [(2%xM)+(1.2%xP)] (A)
where:
R = Monthly annuity at age 57
A = Average monthly salary for the last 3 yrs
M = No. of yrs after 6/16/1951
P = No. of yrs of service before 6/16/1951
 Retirement
laws
• RA 660 or the “Magic
87”
TABLE OF ACTUARIAL ADJUSTMENT FACTORS
AGE
52
53
54
55
56
57
58
59
60
61
62
63
64
65
FACTOR
.87 .89
.92
.94
.97
1.00
1.03
1.06
1.08
1.11
1.15
1.16
1.20
1.24
 Retirement
laws
• RA 1616 or “Take
all”
Age and employment status not a requirement
At least 20 yrs of service, last 3 yrs continuous
In service on or before May 31, 1977
Exception: death, disability,
abolition of position,
reorganization, phaseout
 Retirement
laws
• RA 1616 or “Take
all”
Two retirement benefits:
Gratuity
and
Refund of retirement premiums
No pension
Burial benefit if retiree
died after RA 8291, had
20 years of service, and
is at least 60 years old
 Retirement
laws
• RA 1616 or “Take
Computation of Gratuity from employer:
1st 20 yrs of service x
1
21-30 years of service x 1.5
31-above years of service x 2
all”
 Retirement
laws
• RA 1616 or “Take
all”
Refund of retirement premiums payable by the GSIS
• Personal contributions plus interest
• Government share without interest
 Retirement
laws
• PD
1146
OLD AGE PENSION and CASH PAYMENT
Must have at least 15 years of service, at least 60 years old
Monthly pension after 5 years
Retiree may request lump sum payment for 5
years at a rate of not less than 6%
 Retirement
• PD 1146
laws
OLD AGE PENSION and CASH PAYMENT
Computation OLD AGE PENSION
If total service is at least 15 years:
BMP= 37.5% RAMC + 2.5 RAMC
x (total years of service - 15 years)
Where AMC
AMC =
is computed as:
Total compensation received with premium
payments during the last 3 years prior to
date of retirement/separation
36 months

Retirement
laws
• PD
1146
OLD AGE PENSION and CASH PAYMENT
Where: RAMC is revalued AMC and computed as
RAMC = 170% (AMC) if AMC is not more than P200
RAMC = AMC + P140, if AMC is more than P200
but less than P3,000 (but not to exceed P3,000)
 Retirement
laws
• PD
1146
OLD AGE PENSION and CASH PAYMENT
: CASH PAYMENT (CP)
For 60 years old and above and had at least 3 years
but less than 15 years of service
Computation
CP = (record of creditable service) x AMC,
but not less than P500
 Retirement
laws
• RA 8291which has “GSIS Act of 1997”
at least 15 years of service
at least 60 years old upon retirement
not a permanent total disability pensioner
Two options:
1. Lump sum and Old age Pension
2. Cash payment and Pension
 Retirement
laws
• RA 8291which has “GSIS Act of 1997”
OPTION 1: LUMP
SUM and OLD AGE PENSION
60 months Basic Monthly Pension payable upon
retirement and Pension for life after 5 years, if still
living
 Retirement
laws
• RA 8291which has “GSIS Act of 1997”
OPTION 2: CASH
PAYMENT & PENSION
18 months Cash payment payable upon retirement and
Pension for life a MONTH after the DATE of retirement

Retirement
laws
• RA 8291which has “GSIS Act of 1997”
If total service is at least 15 years:
computation
BMP= (0.025) x (AMC + P700) x
Record of Creditable Service
BMP not to exceed 90% of AMC
35 years in service to enjoy
BMP of 90% AMC
Cash gift and pension
increase after 5 years

Where
Retirement
laws
• RA 8291which has “GSIS Act of 1997”
: AMC is computed as:
1. If total length of service is less than 36 months:
Total compensation received with premium
payments prior to unemployment/disability/death
AMC =
Actual number of months member
received such compensation

Where
Retirement
laws
• RA 8291which has “GSIS Act of 1997”
: AMC is computed as:
1. If total length of service is 36 months or more:
AMC =
Total compensation received for the last 36
months with premium payments preceding
unemployment/disability/death
36 months

other
Social Insurance Benefits
• Separation
benefits
CASH PAYMENT
3 yrs but less than 15 yrs of service and below 60 y/o
= 100% of the AMC per year of service payable at age 60
at least 15 yrs of service and below 60 y/o
= 18x BMP payable immediately; monthly pension at age 60
Prescription period: 4 years