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GSIS Pension and Retirement Benefits and Programs
The GSIS, Government Service Insurance System in the Philippines has wonderful and worthy retirement programs for all its members when they reached the age of retirement. There are also gratuities and pension benefits to be given for entitled beneficiaries in case the GSIS member died before he reached retirement. That is called survivorship benefits and pension. But in this page, we’re gonna talk about old age pension which focuses on cash pension, lumpsum for qualified retirees. Bonded and knotted with the government, the GSIS and the government have made some laws to best serve and give every government employee what they deserve.
Pensioners and retirees can now enjoy amazing perks the GSIS grants for them like the great convenience of having the GSIS ecard plus you can use anywhere nationwide and globally and the yearly pensioner bonus. It’s now 2012 and I can’t miss to publish this important hub especially to the retired teachers who request about this.
GSIS Retirement Plans: What is Best for You?
The Government Service Insurance System (GSIS) offers five types of retirement programs for all its members who wish to retire and start a new exciting phase of career. Lots of government employees, sad to say though aren’t really aware of what type of retirement plans they’re gonna have... How much pension are they entitled to receive…what are their other options…what are their rights and benefits…I’ve worked in the GSIS, and I know this is true. Lots of government employees who file their retirement applications don’t even know what are those RA 8291. 660 etc. In other words, members lack information regarding their benefits and options. Everyone really must know what kind of life those monthly premiums would bring them in the future or in the call of time. That’s why I created this page. No worries, now you can know what type of GSIS pension scheme that would suit you and best for you. You can compute and assess your pension to each plan available for you. Read on and understand the retirement plan of your choice.
Retirement under R.A. 8291 – a GSIS member have the option to receive a 5 year lump sum or cash payment with instant pension
Retirement under R.A. 660 – known as “magic 87” (retiree’s age plus years in service must sum up 87)
Retirement under R.A. 1616 – you can take all your GSIS premiums and receive gratuity payments from your employer at the same time
Retirement under P.D. 1146 – only those who have been in government service after May 31, 1977 but before June 24, 1997 can avail of this retirement program. It gives you a choice between a basic monthly pension (BMP) and cash payment.
Retirement under R.A. 7699 – known as ‘Portability Law’. SSS years of service plus your GSIS years of service can qualify you for retirement pension.
GSIS Retirement under R.A. 8291
A GSIS member have the option to receive a 5 year lump sum or cash payment with instant pension.
Wow! Right? I don’t think you can have that in the SSS. Anywayz, under this Republic Act 8291, the last three years of service of a retiree need not to be continuous. This retirement scheme seems so cool heh. Compared to other retirement program of GSIS, this is the only one that allows you that. So what are the requirements to make you qualify for this very nice plan?
- You must have rendered at least 15 years of service and must be at least 60 years of age upon retirement.
- You must not be a permanent total disability pensioner.
And now the very rewarding pension options offered to you if you chose this retirement plan:
Option 1: 5-Year Lump Sum and Old Age Pension
With this, you can get your 5-year worth of pension in advance in a lump sum amount. The lump sum is equivalent to 60 months of the Basic Monthly Pension (BMP) payable at the time of retirement. After 5 years, you will start receiving your monthly pension then.
Option 2: Cash payment and Basic Monthly
Under this option, you will receive a Cash Payment equivalent to 18 times the Basic Monthly Pension (BMP) payable at the time of your retirement and then a monthly pension for life payable immediately after your retirement date. The computation of the GSIS retirement monthly pension for this type of plan is simple.
This is the most common choice of pension plans retirees choose. If you want to put up a business or travel overseas, this plan will be perfect for you. You can use the lump sum amount to anything you desire and just receive the pension for life if not after five years from option 1.
You can watch or listen to the video on the right while reading the rest of retirement plans.
GSIS Retirement under R.A. 660
known as “magic 87” (retiree’s age plus years in service must sum up 87)
This one is amazing! Let’s say you’re 55 and you have worked in the government for 32 years, you can avail this retirement plan. That’s “magic 87” is all about. Now you ask me what are the amazing options for this kind of retirement in the GSIS…here they are:
Option 1: Automatic pension. A pensioner below 60 has the option either to receive automatic pension or a lump sum of one year monthly pension in advance for 5 years. After the 5-year lump sum, they will start receiving their monthly pension for life.
Option 2: Initial 3-year lump sum. To those who are 60 but below 63 years old upon the date of their retirement, they will receive a 3-year lump sum. On their 63rd birthday, they will then receive the subsequent 2-year lump sum. If the pensioner is still living after the 5-year guaranteed period, he shall be entitled to a monthly pension for life.
Option 3: 5-year lump sum. This is intended for those who are 63-65 years old. They can receive a 5-year lump sum of cash upon retirement. After 5 years, they will receive their monthly pension for life then.
Conditions with this pension plan must be met:
- The maximum monthly pension for those above 57 years old shall be 80% of the Average Monthly Salary (AMS) received during the last 3 years immediately preceding retirement.
- The Maximum pension for those aged 57 and below shall be 75% of the AMS.
The requirements for this type of retirement plan will be:
1. The retiree's last 3 years of service before retirement must be continuous, except in cases of death, disability, abolition, and phase- out of position due to reorganization.
2. His/her appointment status must be permanent in nature.
3. Must be under the ‘magic 87’ as shown below:
RA 660 a.k.a Magic 87 is summarized on the video at the right.
GSIS Retirement under R.A. 1616
You can take all your GSIS premiums and receive gratuity payments from your employer at the same time
This one sounds so hip, too. With this retirement plan, you can refund all your GSIS premiums and contributions plus you can receive a splendid gratuity payment from your last employer. This is perhaps ideal for those who wish to retire early as long as they meet the qualifications listed below. You can invest a business and take all your premiums. This though does not give you a forever monthly pension just like the other plans.
The requirements for the RA 1616 retirement option are:
- The retiree must be in the government service on or before May 31, 1977
- The retiree must have rendered at least 20 years of service regardless of age and employment status
- The retiree's last 3 years of service before his retirement must be continuous, except in cases of disability, death, abolition or phase out of position due to reorganization.
*** Retirement under PD 1146 and Republic Act 7699 will be added soon...
Retirement Age | When is the Best Time to Retire?
When is the best time to retire really? Is 60 the best retirement age? Someone would say, by the time I’m forty-ish I’ll retire and just travel wherever I want to. After all, life is about pleasure and enjoyment. And few would say, no 50 something is the perfect time to retire. And they say 60 is the best. Someone would object, no way I retire at 60. I’ll retire at 65. I’ll die at boredom without doing something at 60. But then who said about doing nothing after retirement? Hmmmm... What about you…any plans for your retirement? Take the poll and let’s see the majority’s choice.