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Option 2 initial three year lump sum those who are at

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Option 2: Initial three-year lump sumThose who are at least 60 years old but less than 63 years on thedate of retirement are entitled to a three-year lump sum. The subsequent two-year lump sum will be paid toretirees on their 63rd birthday. Retirees still living after the five-year guaranteed period, will be entitled to amonthly pension for life.Option 3: 5-Year Lump sum- Those who are 63-65 years old may avail of a five-year lump sum. After fiveyears, they will receive a monthly pension for life.
Law 150: Principles of Social Legislations and Labor LawsStudent Activity Sheets: Module #8Name: ___________________________________________________________Section: ____________Schedule: ____________________________________Class number: _______Date: ______________This document is the property ofPHINMA EDUCATION3.Retirement under Republic Act 1616 -Retirement under RA 1616 may be availed by those whoentered government service on or before May 31, 1977 and who rendered at least 20 years of serviceregardless of age and employment status. Further, the last three years of service prior to retirementmust be continuous, except in cases of death, disability, abolition or phase out of position due toreorganization.Benefits -Gratuity payable by the last employer based on the total period with paid premiumsconverted into gratuity months multiplied by the highest compensation received. The gratuity monthsshall be computed as follows:Years of ServiceGratuity (Months)First 20 yearsOne (1) month salary20 years to 30 yearsOne point five (1.5) months salaryOver 30 yearsTwo (2) months salary2. Refund of retirement premiums consisting of personal contributions of retirees plus interest, andgovernment share without interest, payable by the GSIS.Refund of GSIS premiums and gratuity paymentfrom employers.4.Retirement under Presidential Decree 1146 -Only those who have been in government service afterMay 31, 1977 but before June 24, 1997 may avail of this retirement program. Retirement under PD 1146gives members a choice between a Basic Monthly Pension (BMP) and Cash Payment.Retirement underPD 1146 may be availed by those who were separated / retired from service before June 24, 1997.Retirement packages -Option 1: Basic Monthly Pension (BMP)This option is available for retirees who are at least 60 years old and who have rendered 15 years of service.Those qualified under this option will receive a Basic Monthly Pension (BMP) guaranteed for five (5) years.After the five-year guaranteed period, retirees will receive a basic monthly pension for life.Retirees mayalso request to convert their five-year guaranteed BMP into a lump sum subject to a six (6) percent discountrate.BMP is computed as follows:a)If period with paid premiums is less than 15 years: BMP= .375 x RAMCb)If period with paid premiums (PPP) is 15 years or more: BMP= .025 x RAMC x PPPRAMC stands for Revalued Average Monthly Compensation. It is computed as follows:RAMC = AMC+ P140.00 The maximum RAMC is P3,140.00In either case, BMP shall not exceed 90% of the Average Monthly Compensation (AMC).

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Term
Winter
Professor
professor_unknown
Tags
Law, PHINMA Education

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