Updated GSIS Retirement Packages and Sample Computation

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

Updated GSIS Retirement Packages

Retirement under Republic Act No. 8291 (GSIS Act of 1997)

Retirement under Republic Act No. 8291 may be availed by those who have rendered at least 15 years of service in government and must be at least 60 years of age upon retirement. Also, they must not be permanent total disability pensioners.

The last three years of service need not be continuous under RA 8291.

READ:

Negative Effects of Unpaid GSIS Loans on Members’ Future Benefits
Expanded Magna Carta for Public School Teachers Act

Option 1: 5-Year Lump Sum and Old Age Pension

Under this option, retirees can get their five-year pension in advance. The lump sum is equivalent to 60 months of the Basic Monthly Pension (BMP) payable at the time of retirement. After five years, retirees will start receiving their monthly pension.

Option 2: Cash payment and Basic Monthly

In option 2, retirees will receive a Cash Payment equivalent to 18 times the Basic Monthly Pension (BMP) payable upon retirement and then a monthly pension for life, payable immediately after retirement date.

BMP is computed as follows:

a) If period with paid premiums is less than 15 years:

BMP = .375 x RAMC (Revalued Average Monthly Compensation)

b) If period with paid premiums is 15 years and more:

BMP = .375 x RAMC BMP = .025 x RAMC x Period with Paid Premiums

BMP, however, shall NOT exceed 90% of the Average Monthly Compensation.

RAMC stands for Revalued Average Monthly Compensation and is computed as follows :

RAMC=Php700 + AMC (Average Monthly Compensation)

AMC=Total Monthly Compensation received during the last 36 months of service divided by 36

Sample Computation of Retirement Benefit Under Republic Act No. 8291

Name	Juan Dela Cruz
Office	DepEd Pulang Lupa
Date of birth	June 20,1952
Date of entry in service	March 1,1978
Date of retirement	January 1, 2014
PPP	31.86574
AMC	P23,805.55
RAMC (AMC + 700)	P24,505.55
Highest salary received	P25,000.00
Age at retirement	61.52 years old
COMPUTATION
BMP	(0.025) (RAMC) (PPP)
	(0.025) (24,505.55) (31.86574)
	P19,522.18
Retirement benefit:
	Option 1: 5-year lump sum
	(P19,522.18) (60 months)
	P1,171,330.80 BMP (P19,522.18) to start on January 1, 2019.
	Option 2: 18-month Cash Payment
	(P19,522.18 ) (18 months)
	P351,399.24, plus immediate BMP starting January 1, 2014.

---

Retirement under Republic Act No. 660 (Magic 87)

Retirement under RA 660 (also known as ‘Magic 87’), may be availed by members who are 52 years old for as long as they have already been in government service for the past 35 years.

Qualifications

• Entered government service on or before May 31, 1977;
• Last three years of service prior to retirement should have been continuous, except in cases of death, disability, abolition, and phase- out of position due to reorganization;
• Appointment status should be permanent;
• Meet the age and service requirements under the “Magic 87” formula. Based on the formula, a retiree’s age and years in service should be added up and should total at least 87.

The “Magic 87” formula is shown below:

A g e 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

The maximum monthly pension for those above 57 years old shall be 80% of the Average Monthly Salary (AMS) received during the last three years immediately preceding retirement. The maximum pension for those aged 57 and below shall be 75% of AMS.

Retirement Packages

Option 1: Automatic Pension – Under this option, retirees below 60 years old may choose to receive either an automatic monthly pension for life or an option to avail of a lump sum. The lump sum, which can be requested every six months, means they can receive their one-year monthly pension in advance for a period of five years. On the sixth year, they will start receiving their lifetime monthly pension.

Option 2: Initial three-year lump sum – Those who are at least 60 years old but less than 63 years on the date of retirement are entitled to a three-year lump sum. The subsequent two-year lump sum will be paid to retirees on their 63rd birthday. Retirees still living after the five-year guaranteed period, will be entitled to a monthly 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 five years, they will receive a monthly pension for life.

Sample Computation of Retirement Benefit Under Republic Act No. 660

Name	Pedro Jose
Office	DepEd Pulang Lupa
Date of birth	June 20, 1947
Date of entry in the government	March 1, 1973
Date of retirement	January 1, 2009
PPP	31.86574
Number of years after June 16, 1951 (M)	31.86574
Number of years before June 16, 1951 (P)	0
Average monthly salary (A)	P23,805.55
Age at retirement	61.52 years old
Computation
1. Monthly pension:
R =	P30.00 + [(2% x M) + (1.2% x P)] (A)
	P30.00 + [(2% X 31.86574) + (1.2% x 0)] (23,805.55)
	P30.00 + (0.637315) (23,805.55)
	P30.00 + 15,171.63
	P15,201.63
Then, get the actuarial factor at age 61.52 from the table of Actuarial Adjustment Factors : 1.13
	(R) (Actuarial factor)
	(P15,201.63 ) (1.13)
	P17,177.84
2. Since Mr. Jose is 61.52 years old upon retirement, he is entitled to the following:	3-year lump sum (or 36 months) payable immediately on his retirement (January 2009):
	(Monthly pension) (36 months)
	(P17,177.84 ) (36)
	P618,402.24
	Subsequent 2-year lump sum (or 24 months) payable at age 63 (June 20, 2010) upon request:
	(Monthly pension) (24 months)
	(P17,177.84) (24)
	P412,268.16
	Monthly pension (P17,177.84) to start in January 2014

It is important to remember that if you are claiming for benefits other than retirement under RA 660, you should have made contributions for at least 5 years to qualify for such benefits.

---

Retirement under Republic Act No. 1616 (Take All Retirement Mode)

Retirement under RA 1616 may be availed by those who entered government service on or before May 31, 1977 and who rendered at least 20 years of service regardless of age and employment status. Further, the last three years of service prior to retirement must be continuous, except in cases of death,disability, abolition or phase out of position due to reorganization.

Benefits

Gratuity payable by the last employer based on the total period with paid premiums converted into gratuity months multiplied by the highest compensation received.The gratuity months shall be computed as follows:

Years of Service	Gratuity (Months)
First 20 years	One (1) month salary
20 years to 30 years	One point five (1.5) months salary
Over 30 years	Two (2) months salary

Refund of retirement premiums consisting of personal contributions of retirees plus interest, and government share without interest, payable by the GSIS.

---

Retirement under Presidential Decree 1146

Retirement under PD 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 may also request to convert their five-year guaranteed BMP into a lump sum subject to a six (6) percent discount rate.

BMP is computed as follows:

a) If period with paid premiums is less than 15 years: BMP= .375 x RAMC

b) If period with paid premiums (PPP) is 15 years or more: BMP= .025 x RAMC x PPP

RAMC stands for Revalued Average Monthly Compensation. It is computed as follows:

RAMC = AMC+ P140.00 The maximum RAMC is P3,140.00

In either case, BMP shall not exceed 90% of the Average Monthly Compensation (AMC).

AMC is computed as follows:
AMC = Total compensation received during the last 3 years
Total number of months during which compensation was received

Option 2: Cash Payment (CP)

This option is available to retirees who are at least 60 years old and who have rendered at least three (3) years but less than 15 years of service. Those who are qualified under this option will receive a cash payment equal to 100% of the Average Monthly Compensation (AMC) for every year of service.

The Cash Payment is computed as follows:

CP = Total monthly contributions paid x AMC

---

Retirement under Republic Act No. 7699 (Portability Law)

Under RA 7699, otherwise known as the Portability Law, government retirees who do not meet the required number of years provided under PD 1146 and RA 8291 may still avail themselves of retirement and other benefits.

Under this law, retirees may combine their years of service in the private sector represented by contributions to the Social Security System (SSS) with their government service and contributions to the GSIS to satisfy the required years of service under PD 1146 and RA 8291.

However, if retirees have already satisfied the required years of service under the GSIS retirement option they have chosen, they would not be allowed to incorporate their contributions to the SSS anymore for availment of additional benefits.

In case of death, disability and old age, the periods of creditable services or contributions to the SSS and GSIS shall be added to entitle retirees to receive the benefits under either PD 1146 or RA 8291.

If qualified under RA 8291, all the benefits shall apply EXCEPT the cash payment. The Portability Law provides that only benefits common to both Systems (GSIS and SSS) shall be paid. Cash payment is NOT included in the benefits provided by the SSS.

Sample Computations of Benefit Under Republic Act No. 7699

Sample 1

Name	Juan de la Cruz
Office	DepEd Pulang Lupa
Position	Teacher I
Date of birth	March 21, 1940
Date of entry in government service	March 1, 1987
Date of retirement/separation	March 1, 1996
Period of employment in the private sector (under SSS)	7 years (December 10, 1979 to December 15, 1986)
PPP (under GSIS)	9 years
AMC	P3,000.00
RAMC (AMC + P140)	P3,140.00
Highest salary received	P25,000.00
Age at retirement/separation	56 years old
Date processed	January 16, 2014

Computation using the formula under PD 1146, the prevailing retirement law in 1996:

1. Compute first his BMP (to start at age 60, that is, March 21, 2000).

BMP = (0.025) (RAMC) (Total years of service under GSIS) = (0.025) (3,140.00) (9)

= P706.50

(As a retiree under RA 7699, Mr. de la Cruz is excluded from pension increase and cash gift.)

2. Then, compute his accrued benefit:

Accrued period : March 21, 2000 (his 60th birthday) to January 31, 2014 (last month of BMP covered in the computation when his retirement benefit was processed, after which he shall receive his regular BMP of P706.50 starting February 2014)

: 157.3548387 months
Accrued benefit = (BMP) (Accrued period or months)

= (P706.50) (157.3548387)

= P111,171.19

3. SSS shall compute and grant the benefit for his period of employment under SSS: from December 10,1979 to December 15, 1986.

Sample 2

Name	Pedro Jose
Office	DepEd Pulang Lupa
Date of birth	June 20, 1952
Date of entry in service Under RA 7699 (Continued)	July 1, 1998
Date of retirement/separation	January 1, 2009
PPP	10.5 years
AMC	P23,805.55
RAMC (AMC + P700)	P24,505.55
Highest salary received	P25,000.00
Age at retirement	57.52 years old
Date processed	January 16, 2014

Computation using the formula under RA 8291, the prevailing retirement law when Mr. Jose retired in 2009:

1. Compute first his BMP (to start at age 60, that is, June 20, 2012).

BMP = (0.025) (RAMC) (PPP)

= (0.025) (24,505.55) (10.5)

= P6,432.68

(As a retiree under RA 7699, Mr. Jose is excluded from pension increase and cash gift.)

2. Then, compute his accrued benefit:

Accrued period : June 20, 2012 (his 60th birthday)

to January 31, 2014 (last month of BMP covered in the computation when his retirement benefit was processed, after which he shall receive his regular BMP of P706.50 starting February 2014)

: 19.33333 months

Accrued benefit = (BMP) (Accrued period or months)

= (P6,432.68) (19.33333)

= P124,365.14

3. SSS shall compute and grant the benefit for his period of employment under SSS, if any, prior to his entry in government service.

Sample Computation of Benefit Under RA 660

Name	Pedro Jose
Office	DepEd Pulang Lupa
Date of birth	June 20, 1947
Date of entry in the government	March 1, 1973
Date of retirement	January 1, 2009
PPP	31.86574
Number of years after June 16, 1951 (M)	31.86574
Number of years before June 16, 1951 (P)	0
Average monthly salary (A)	P23,805.55
Age at retirement	61.52 years old

Computation

1. Monthly pension:

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

= P30.00 + [(2% X 31.86574) + (1.2% x 0)] (23,805.55)

= P30.00 + (0.637315) (23,805.55)

= P30.00 + 15,171.63

= P15,201.63

Then, get the actuarial factor at age 61.52 from the table

on page 19: 1.13

= (R) (Actuarial factor)

= (P15,201.63 ) (1.13)

= P17,177.84

2. Since Mr. Jose is 61.52 years old upon retirement, he is entitled

to the following:

3-year lump sum (or 36 months) payable immediately on his retirement (January 2009): = (Monthly pension) (36 months)

= (P17,177.84 ) (36)

= P618,402.24

Subsequent 2-year lump sum (or 24 months) payable at age 63

(June 20, 2010) upon request:

= (Monthly pension) (24 months)

= (P17,177.84) (24)

= P412,268.16

Monthly pension (P17,177.84) to start in January 2014

Download: GSIS Retirement Packages and Sample Computation (PDF File)

READ MORE:

Special Leave Benefits for Women

Policy to Intensify Professional Growth & Development of Teachers

DepEd Guidelines on the Acquisition of New School Sites

Flexible Working Hours of DepEd Non-Teaching Personnel

Kindergarten Education Act

2020 DepEd Kindergarten Curriculum Guide

2020 DepEd Special Program for the Employment of Students (SPES)

Implementing Rules and Regulations of the 105-Day Expanded Maternity Leave Law

Permanent Representative of the DepEd Secretary to the Literacy Coordinating Council

CSC Memorandum Circular on Flag Ceremonies