Retirement under RA 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.

Retirement Packages
1. 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.
2. 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

PENSION – A monthly specified cash amount that a qualified member will receive upon retirement or
when considered as a case of permanent total disability.

10.2.4 At the time of his termination as a regular member, he shall be entitled to whatever benefits
accruing to him at the time of his separation. Should the regular member qualify for separation benefits,
filing of claim for the said benefits shall prescribe after four (4) years from the date of contingency.
However, a separated member with 15 years of service can still claim for retirement benefits at age 60
and may choose to receive either the 5 year lump sum and pension after the 5-year guaranteed period
or 18 months BMP and pension immediately, subject to the AMC limit then prevailing at the time of
filing.

Section 20 Retirement Benefits. Under this Act, the retirement benefit consists of a monthly pension
which is computed based on years of creditable service and AMC for the last 3 years.

20.12 Adjustment/Increase in Pension Periodic adjustments of the monthly pension of all existing
pensioners shall be done on the basis of what is sustainable and prudent for the GSIS as recommended
by its Actuary and approved by the Board.

20.13 Policies Affecting Pension Administration

 20.13.1 Regardless of the date of retirement, the monthly pension shall commence on the 1st
day of the month following the month of retirement.

20.13.2 Annual Renewal of Active Status (ARAS) of Old Age and Survivorship Pensioners is
required on their birth month every year.

20.13.3 Effects of Non-renewal of Active Status as Pensioner a. Suspension of payment of

monthly pension b. Non-entitlement to cash gift if status is suspended at the time of declaration c. Non-
entitlement to pension increase if status is suspended at the time of declaration