Villanueva: Lowering optional retirement age for gov't workers won't result in staffing

shortage

Adjusting the optional retirement age for government workers would open up opportunities for the next
generation of civil servants and allow retirees to enjoy the next phase of their lives, according to Senator
Joel Villanueva.

Villanueva asked resource persons at Thursday's hearing of the Senate civil service committee on the
likelihood of staffing shortage should several bills seeking to lower the optional retirement age are passed
into law.

"It's good to note that proposals to lower the optional retirement age will not result in staffing shortage,"
Villanueva said after Civil Service Commissioner Aileen Lizada explained that there was a high demand for
government workers.

Lizada shared that on one instance, there were about 200 applicants for a single vacancy they opened
recently, which showed that there were a lot of people looking for jobs.

On the other hand, Villanueva sought from representatives of the Government Service Insurance System
(GSIS) the reasons often cited by government workers on why they remained in service until they reach
the mandatory retirement age of 65.

Replying to the lawmaker's query, GSIS representatives stated that workers stay until the mandatory
retirement age because they need to meet the 15-year service requirement to be eligible for a state
pension; they need the income to cover their basic needs and pay off debt, and they still desire to work.

Villanueva reiterated that it was the duty of the government to design social security programs for its
elderly population such as those in the civil service.

Given the requirements of tenure before being able to be eligible to state pension and their day-to-day
needs, Villanueva pointed out that "we really must study further on how to make optional retirement a
reliable option for them."

Villanueva filed Senate Bill No. 715 which seeks to lower the optional retirement age for teachers from 60
to 55 years. He cited a study that showed Filipino teachers retire at age 65 while their counterparts in
most ASEAN countries retire at age 60.

"Bigyan din naman po natin ng pagkakataon ang ating mga guro na ma-enjoy ang kanilang retirement
while they are still healthy, agile, and strong," Villanueva said.

CSC official seeks lower gov’t retirement

age
During the consultative meeting hosted by the Senate Committee on Civil Service,
Government Reorganization, and Professional Regulation Thursday, CSC
Commissioner Aileen Lizada asked that bills on the lowering of the age of
retirement be marked as a priority in “consideration of safety and health especially
during the pandemic.”
She said government workers due to retire “are classified as belonging to the
vulnerable group on account of their age.”

“The present pandemic has presented a new and compelling reason for government
workers to opt for early retirement,” she added.

Currently, under Republic Act No. 8291 or the Government Service Insurance Act of 1997,
the optional retirement age for government employees is 60-years-old while the mandatory
retirement age is 65.

The CSC official said changing the retirement age is “long overdue,” noting that the
Philippines has the lowest retirement age in the Association of Southeast Asian Nations.

She said the optional and mandatory retirement ages of most ASEAN member-states range
from 40 to 55 and 50 to 60, respectively.

“This endeavor of lowering the age of retirement is also seen as a step taken b the country
towards becoming at par with other members of the ASEAN,” she said.

Lizada also said that based on their consultations with national government
agencies, employees’ association, local government units, and human resources
practitioners, “98 to 100 percent” have agreed that public workers should be allowed
to retire younger.

“Indeed it is not hard to see that retireable government workers would choose to
start their retirement earlier rather than later so that they may enjoy the fruits of
their hard work with their families,” she said.

During the meeting, Atty. Lucio Yu Jr., assistant chief legal counsel of the
Government Service Insurance System (GSIS), raised “serious reservations” on the
proposed lowering of the retirement age as this might affect the funds and the
actuarial life of the State insurance agency.
At least four Senate bills have been filed seeking lower optional retirement age for
government workers, including public school teachers from 60- to 55-years-old; and
the mandatory retirement age from 65- to 60-years-old.

Last December, the House of Representatives passed on third and final reading its
version of the proposal, lowering the optional retirement age to 56.

Philippine lawmakers to lower government

workers’ retirement age
The proposed measure would lower the optional retirement
age of Filipino government employees from 60 to 56.
A bill that seeks to lower the optional retirement age of government workers in the
Philippines to 56 from the current 60 gained overwhelming support from the country’s
House of Representatives.

The lawmakers voted overwhelmingly on the third and final reading of the measure that
seeks to amend Section 13-A of the Republic Act 8291, also known as the “Government
Service Insurance Act of 1997”.

If passed into law, the bill will allow Filipino government employees who reached the
age of 56 to file for retirement, and be eligible for a life pension from the Government
Service Insurance System (GSIS).

According to the Alliance of Concerned Teachers party-list Representative Antonio

Tinio, who was the principal author of the bill, the proposed law will allow civil servants
to fully enjoy their retirement benefits.

The lowering of the retirement age had been demanded by civil servants for many years.