1.
If the contributions have been made for a period of one
GSIS Benefits/Health Benefits
Life Insurance
All members of GSIS have compulsory life insurance coverage
classified into two types:
• Life Endowment Policy (LEP). GSIS started with the
LEP program. Designed to provide members with life
insurance coverage while still in active service, LEP
provides maturity benefits to policy holders upon reaching
the maturity of their policy.
• Enhanced Life Policy (ELP). ELP took effect on August
1, 2003. It provides an automatic yearly insurance
coverage to new members of GSIS based on their
monthly compensation. ELP is designed to provide an
enhanced death benefit for the family of the deceased
member.
The following members are covered under this program:
• Those who entered the service starting August 1, 2003;
• Those whose policies matured on or after July 31, 2003,
and who will continue to be active members after the
maturity date; and
• Those who opted or will opt to convert their LEP into ELP.
Separation
The Separation benefit is given to employees who have
not reached the retirement age of 60 but have been separated from
the service. The benefit can either be in the form of cash payment
or both cash payment and pension.
Eligibility and Benefits
1. If the member has been in the service for at least three
years but less than 15 years, and below 60 years of age:
Cash payment equivalent to 100% of the Average
Monthly Compensation (average salary in the last three
years) for every year of service payable upon reaching
age 60.
2. If the member has been in the service for at least 15 years
and is below 60 years of age:
Cash payment equivalent to 18 times the Basic Monthly
Pension (BMP) payable upon separation and monthly
pension for life starting at age 60.
BMP= (.025) x (AMC +700) x Period with Paid Premiums
Unemployment of Involuntary Separation
The unemployment benefit is paid when permanent
government employees who have paid the required 12 months
integrated contributions under RA 8291 are involuntarily separated
from the service as a result of the abolition of their office or position
usually resulting from reorganization. The benefit is in the form of
monthly cash payments equivalent to 50% of the average monthly
compensation (AMC). The duration of the benefit depends on the
length of service and ranges from two months to a maximum of six
months.
The unemployment benefit shall be paid in accordance with
the following schedule:
Page 1 of 4
year but less than three years, the benefit duration is for
two months;
2. If the contributions have been made for a period of three
or more years but less than six years, the benefit duration
is for three months;
3. If the contributions have been made for a period of six
years or more but less than nine years, the benefit
duration is for four months;
4. If the contributions have been made for a period of nine
years or more but less than 11 years, the benefit duration
is for five months; and
5. If the contributions have been made for a period of 11
years or more but less than 15 years, the benefit duration
is for six months.
Disability
Disability refers to any loss or impairment of the normal
functions of the physical and/or mental faculties of members, which
permanently or temporarily prevents them to continue with work or
engage in any other gainful occupation resulting in the loss of
income. The corresponding disability benefits for each kind of
disability granted to members are based on the duration of
incapacity to work and actual loss of income.
There are three kinds of disability determined by GSIS
based on established medical standards: a) Permanent Total
Disability, b) Permanent Partial Disability, and c) Temporary Total
Disability.
1. Permanent Total Disability (PTD) – disability due to
injury or disease causing complete, irreversible and
permanent incapacity that will permanently disable a
member to work or to engage in any gainful occupation
resulting to loss of income. The following disabilities are
deemed total and permanent:
➢ complete loss of sight for both eyes;
➢ loss of two limbs at or above the ankle or wrists;
➢ permanent complete paralysis of two limbs;
➢ brain injury resulting in incurable imbecility or
insanity; and
➢ such other cases as may be determined and
approved by GSIS
Eligibilities. Members who become permanently and
totally disabled are entitled to PTD benefits when:
➢ In the service at the time of disability; or
➢ If separated from the service, have paid at least
36 months contributions within the five-year
period immediately preceding the disability; or
have paid a total of at least 180 months
contributions prior to the disability;
Provided, however, that the following conditions are met:
➢ Gainfully employed prior to the commencement
of disability resulting in loss of income;
➢ Not a registered member of any social insurance
institution; and
➢ Not receiving any other pension either from
GSIS or another local or foreign institution or
organization
➢
[SUB] 1.01 TITLE OF LECTURE – Dr. Professor
Benefit.
➢ Members who become permanently and totally disabled
are entitled to the monthly income benefits for life
equivalent to the basic monthly pension (BMP) effective
from the date of disability. In addition to the monthly
income benefits for life, a cash payment equivalent to 18
times the basic monthly pension (BMP), will be paid to
members who were in the service at the time of the
permanent total disability and who have paid a total of 180
monthly contributions.
➢ Separated members who have at least three years of
service and become permanently and totally disabled but
have not paid a total of at least 180 monthly contributions
prior to the disability are entitled only to cash payment
equivalent to 100% of their average monthly
compensation for each year of service with paid
contributions but not less than twelve thousand pesos
(Php12,000.00).
2. Permanent Partial Disability (PPD) – arises due to the
complete and permanent loss of the use of any of the
following resulting to the disability to work for a limited
period of time:
➢ any finger
➢ one arm
➢ one foot
➢ any toe
➢ one hand
➢ one leg
➢ one or both ears
➢ hearing of one or both ears
➢ sight of one eye
➢ such other cases as may be determined and
approved by the GSIS
Eligibilities. Members whose disability are partial are
entitled to PPD benefit when:
➢ In the service at the time of disability; or
➢ If separated from the service, have paid at least
36 months contributions within the five year
period immediately preceding the disability; or
have paid a total of at least 180 months
contributions prior to the disability.
Provided, however, that the following conditions are met:
➢ Gainfully employed prior to the commencement
of disability resulting in loss of income as
evidenced by any incontrovertible proof thereof;
➢ Not a registered member of any social insurance
institution; and
➢ Not receiving any other pension either from
GSIS or another local or foreign institution or
organization
Benefit.
➢ The period of entitlement to PPD benefit is
determined after due medical evaluation; but
such period of entitlement to the benefit will not
exceed 12 months for the same contingency.
Only the leave of absence/s without pay incurred
during the period of entitlement, duly certified by
Page 2 of 4
the authorized officer of the agency where
members are employed, is compensable.
➢ The amount of PPD benefit is computed by
dividing the BMP by 30 days and multiplying the
quotient by the number of compensable
calendar days of leave of absence without pay
(LWOP).
3. Temporary Total Disability (TTD) – accrues or arises
when the impaired physical and/or mental faculties can be
rehabilitated and/or restored to their normal functions, but
such disability will result in temporary incapacity to work
or to engage in any gainful occupation.
Eligibilities. Members are entitled to the TTD benefit
when:
➢ In the service at the time of disability; or
➢ If separated from the service, have paid at least
36 months contributions within the five year
period immediately preceding the disability; or
have paid a total of at least 180 months
contributions prior to the disability;
Provided, however, that the following conditions will be
met:
➢ Gainfully employed prior to the commencement
of disability resulting in loss of income;
➢ Not a registered member of any social insurance
institution; and
➢ Not receiving any other pension either from
GSIS or another local or foreign institution or
organization.
The payment of TTD benefit may be extended by GSIS
up to a maximum of 240 days, subject to medical
evaluation.
Benefit.
➢ The period of entitlement to TTD benefit is
determined after due medical evaluation and
proof of actual loss of work resulting in loss of
income by way of the incurred actual number of
days of leave of absence/s without pay duly
certified by the authorized officer of the agency
where members are employed; but such period
of entitlement to the benefit should not exceed
120 days in one calendar year.
➢ However, if the disability requires more
extensive treatment that lasts beyond 120 days,
the payment of TTD may be extended by GSIS
but not to exceed a total of 240 days. Only the
leave of absence/s without pay incurred during
the period of entitlement is compensable.
➢ Entitlement, however, starts from the fourth day
of the disability. The amount of TTD benefit is
computed by multiplying 75% of the daily salary
of members by the number of days of disability
based on the medical evaluation but not to
exceed 240 days for the same contingency.
However, the computed daily salary shall not be
less than Php70.00 but not to exceed Php340.00
per day.
[SUB] 1.01 TITLE OF LECTURE – Dr. Professor
Employees Compensation
The employees’ compensation benefit (or disability
benefit) is a compensation package for public and private sector
employees and their dependents in the event of work-related injury,
sickness, disability or death.
EC is a purely employer-based contribution benefit. Thus,
employees do not contribute any amount to the program. GSIS
administers the employees compensation (EC) fund as provided
for under Presidential Decree No. 626.
Benefits.
➢ Medical services, appliances and supplies;
➢ Rehabilitation services;
➢ Temporary total disability benefit;
➢ Permanent total disability benefit;
➢ Permanent partial disability benefit;
➢ Death benefit; and
➢ Funeral Benefit
Beneficiaries. In case of death and funeral benefits, the
beneficiaries may either be one of the following:
1. Primary
a. Legitimate spouse until he or she remarries
b. Dependent children (legitimate, legitimated or
adopted, and illegitimate):
c. Below 18 years old, unmarried, not gainfully
employed; or
d. More than 18 years old but incapacitated and
incapable of self-support due to mental or
physical defect acquired prior to age of majority.
2. Secondary
a. Dependent parents
b. Legitimate descendants
Eligibilities. The conditions for payment are as follows:
• Injury must be the result of accident arising out of and in
the course of employment
• Sickness must be listed /considered an “occupational
disease”; or even if not listed as one, it must be shown
that the risk of contracting the sickness is increased by
the working conditions
• Disability/Death is caused by work-connected injury or
sickness
Exceptions. When any of these is due to the employee’s:
• Intoxication or drunkenness
• Willful intention to injure or kill himself or another
• Notorious negligence
• Not work-related
•
List of Occupational Diseases (under PD 626)
• Papilloma of the bladder
• Cancer, epithellomatous or ulceration of the skin or of the
• corneal surface of the eye
• Cataract
• Deafness
• Decompression sickness
• Caisson disease
• Aeroembolism
• Dermatitis due to irritants and sensitizers
Page 3 of 4
• Infections: Anthrax, Brucellosis, Glanders, Rabies,
Tuberculosis, Tularemia, Weill’s disease,Q Fever or
equine encephalomyelitis, Mite dermatitis
• Ionizing radiation disease, inflammation, ulceration or
malignant disease of the skin or subcutaneous tissues of
the bones or leukemia or anemia of the aplastic type due
to X-rays, ionizing particles, radium or other radioactive
substances Acute radiation syndrome: Chronic radiation
syndrome and Glass blower’s cataract.
• Poisoning
• Pneumoconiosis
• Diseases caused by abnormalities in temperature and
humidity
• Vascular disturbance in the upper extremities due to
continuous vibration from pneumatic tools or power drills,
riveting machines or hammers
• Viral hepatitis
• Poisoning by cadmium
• Leukemia and lymphoma
• Cancer of the stomach and other lymphatic and blood
forming vessels, nasal cavities and sinuses
• Cancer of the lungs, liver and brain
• Cardio-vascular diseases
• Cerebro-vascular accidents
• Malaria and schistosomiasis
• Pneumonia
• Hernia
• Bronchial asthma
• Osteoarthritis
• Viral encephalitis
• Peptic ulcer
• Pulmonary tuberculosis
• Viral hepatitis
• Essential hypertension
• Asbestosis
No claim for compensation will be given due course
unless said claim is filed with the GSIS within three years from the
time the cause of action accrued. (ECC Resolution No. 2799, July
25, 1984)
Increase in EC Benefits
On 26 May 2014, President Benigno Simeon Aquino III
issued Executive Order 167 which approved the increase of
Employees’ Compensation Funeral Benefit from Php10,000 to
Php20,000 for both the employees in the private and public sectors
and a 10% across-the-board increase in EC pension for all EC
permanent partial disability, permanent total disability and
survivorship pension in the private sector.
In 2017, the EC funeral benefit was further increased to
P30,000 by virtue of EXECUTIVE ORDER NO. 33 s. 2017 signed
by President Rodrigo Roa Duterte.
Retirement Benefits
GSIS offers various retirement programs that retiring members
may choose from depending on their age and length of service.
Retirement Under RA 8291
Five-year lump sum or cash payment with instant pension.
[SUB] 1.01 TITLE OF LECTURE – Dr. Professor
Retirement under Republic Act 660
Also called “Magic 87,” this option provides both annuity and
lifetime pension.

Retirement under Republic Act 1616

Refund of GSIS premiums and gratuity payment from employers.

Retirement under Presidential Decree 1146

Only those who have been in government service after May 31,
1977 but before June 24, 1997 may avail of this retirement
program. Retirement under PD 1146 gives members a choice
between a Basic Monthly Pension (BMP) and Cash Payment.

Retirement under Republic Act 7699 (Portability Law)

Combining GSIS and SSS periods with paid premiums to qualify
for retirement programs offered by both pension funds.

Links/References (if you want to read and explore further):

https://www.gsis.gov.ph/active-members/benefits/life-insurance/

https://www.gsis.gov.ph/active-members/benefits/separation/

https://www.gsis.gov.ph/active-members/benefits/unemployment-
or-involuntary-separation/

https://www.gsis.gov.ph/active-members/benefits/disability/

https://www.gsis.gov.ph/active-members/benefits/employees-
compensation/

For survivorship:
https://www.gsis.gov.ph/active-members/benefits/survivorship/

For further information about retirement and pension:

https://www.gsis.gov.ph/downloads/publications/20161228-GSIS-
Pensioners-Brochure-2016.pdf
(pdf will also be uploaded in the gdrive)

Page 4 of 4
A. Republic Act 8291 (GSIS Act of 1997)
effective June 24, 1997

Eligibility
1. You must have rendered at least 15 years of service and must be at least 60 years old upon retirement; and

2. You must not be a permanent total disability pensioner.

Retirement Benefit
There are two choices under this law.

Option 1: Lump sum and old-age (basic monthly) pension

This consists of the following:

 Lump sum – equivalent to your 60-month (or 5-year) basic monthly pension (BMP) payable at the time of retirement;
and
 BMP – payable for life after the 5-year guaranteed period

Option 2: Cash payment and old-age (basic monthly) pension

This consists of the following:

 Cash Payment – equivalent to 18-month BMP payable upon retirement; and

 Immediate BMP – payable for life from the date of retirement.

Here is how BMP is computed.

BMP = (0.025) (AMC + P700) (PPP)

where:
AMC = average monthly compensation
and PPP = periods with paid premiums.

Your AMC is computed as follows:

1. If your PPP is less than 36 months:

Member’s total compensation (with corresponding paid premiums)

prior to unemployment/disability/death
AMC = ____________________________________________
Actual number of months
such compensation was received

2. If your PPP is 36 months or more:

Member’s total compensation (with corresponding paid premiums)

prior to unemployment/disability/death
AMC = ____________________________________________
36 months

Under this law, the BMP should not exceed 90% of the AMC.
 Sample Computation of Benefit Under RA 8291

Basic Data

Name : Juan de la 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

1. BMP = (0.025) (RAMC) (PPP)

= (0.025) (24,505.55) (31.86574)
= P19,522.18

2. 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.
B. Presidential Decree 1146
(Pension or Cash Payment)
effective May 31, 1977

Eligibility

1. You must have rendered at least 15 years of service and must at least be 60 years old upon retirement; and

2. Your date of retirement or separation is prior to June 24, 1997.

Benefits

You are entitled to any of the two benefits discussed below depending on your age and length of service.

1. Pension

For pension payment, you can choose from two options.

Option 1: Annuity - the monthly pension paid annually for 5 years, after which, your BMP for life shall commence.

Option 2: Five-year lump sum - the amount to be received within the 5-year guaranteed period.

Your old-age pension is computed as follows:

BMP = (0.025) (RAMC) (Total years of service)

where:

RAMC = 170% AMC or RAMC = AMC + P140
(if AMC is not more (if AMC is more than P200
than P200) but less than P3,000)

(Under PD 1146, AMC should not be more than P5,000.)

2. Cash payment

If you are at least 60 years old and had at least 3 years but less than 15 years of government service, you are
ineligible for retirement benefit under PD 1146. You may be entitled, however, to Cash Payment equivalent to
100% of your AMC multiplied by your PPP, as follows:

Cash Payment = (AMC) (PPP)

C. Republic Act 1616 (Gratuity Benefit)
effective May 31, 1957

Among the five retirement laws, this is the only mode, dubbed “Take All,” that does not provide pension benefit to retirees.

Eligibility

1. You must have entered government service before June 1, 1977;

2. You must have rendered at least 20 years of service regardless of age and employment status; and

3. Your last 3 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
If qualified, you are entitled to receive the following:

1. Gratuity pay or benefit. This is payable by your last employer. Its computation is based on your total length of service
(converted into gratuity months), as follows:

Gratuity Months Factor

First 20 years of service X 1 month
21-30 years of service X 1.5 months
In excess of 30 years of service X 2 months

The total gratuity months shall be multiplied then by the highest compensation you received.

2. Refund of retirement premiums. These consist of your personal share with interest) and government share (without
interest), both of which are payable by the GSIS.
D. Republic Act 660 (Magic 87)
effective June 16, 1951

Eligibility

1. You must have entered government service before June 1, 1977;

2. Your appointment status must be permanent;
3. Your last 3 years of service prior to retirement must be continuous, except in cases of death, disability, abolition, or
phase-out of position due to reorganization; and
4. You must be at least 52 years old and meet the corresponding years of service (YOS) required for eligibility.

Under this law, your age when you retired (from age 52 to 57) and YOS should be equal to 87, hence, the “Magic 87” formula:

Age + Service = 87

Benefits

Your annuity under this law depends on your retirement age. It is detailed in the table below.
Retirement age Benefit
63 and above 5-year lump sum
 Initial 3-year lump sum payable upon retirement; and
Below 63 but at least 60
 Subsequent 2-year balance payable at age 63
Below 60 Monthly pension paid annually – with discount

Note that after the 5-year guaranteed period, within which you obtained any of the above benefit, you shall be entitled to a
monthly pension for life.

Your monthly pension under RA 660 is computed as follows:

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

where:

R = Monthly pension at age 57

M = Number of years after June 16, 1951 (effectivity date of RA 660)
P = Number of years before June 16, 1951
A = Average monthly salary for the last 3 years

An actuarial adjustment factor, which varies with age, is used in computing annuity. The factors are shown in the
table below.
 Table of Actuarial Adjustment Factors
Age 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Factor 0.87 0.89 0.92 0.94 0.97 1.00 1.03 1.06 1.08 1.11 1.15 1.16 1.20 1.24

Sample Computation of Benefit Under RA 660

Basic Data

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.
E. Republic Act 7699 (The Portability Law)
effective May 1, 1994

RA 7699 is another retirement law that you can apply for only if:

1. You are not entitled for pension benefit from either or both the GSIS or Social Security System (SSS)
because you are unable to meet the required periods of service or number of contributions; and

2. You have less than 120 months of SSS contributions or less than 180 months of creditable government
service (GSIS) at the time of retirement. (In computing, there should be no overlapping of periods of
service or contributions under the GSIS and SSS.)

The Portability Law provides for totalization, the process of adding up the period of creditable services or
contributions under both SSS and GSIS for purposes of eligibility and computation of benefits.

The amount of benefit to be paid by the GSIS or SSS shall be proportionate to the services rendered or periods
of contributions made to each of them.

Hence, all services you rendered or contributions you personally paid as a GSIS member, as well as those that were
paid by your agency-employer, shall be considered in the computation and payment of GSIS benefits. The SSS, on
the other hand, shall shoulder the portion corresponding to your services or contributions to that system.

Your benefit under this law is in the form of monthly pension payable at age 60.

Sample Computations of Benefit Under RA 7699

Sample 1

Basic Data

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 : 7 years (December 10, 1979
private sector (under SSS) 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

Basic Data

Name : Pedro Jose

Office : DepEd Pulang Lupa
Date of birth : June 20, 1952
Date of entry in service : July 1, 1998
Under RA 7699 (Continued)

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

Basic Data

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

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.
E. Republic Act 7699 (The Portability Law)
effective May 1, 1994

RA 7699 is another retirement law that you can apply for only if:

3. You are not entitled for pension benefit from either or both the GSIS or Social Security System (SSS)
because you are unable to meet the required periods of service or number of contributions; and

4. You have less than 120 months of SSS contributions or less than 180 months of creditable government
service (GSIS) at the time of retirement. (In computing, there should be no overlapping of periods of
service or contributions under the GSIS and SSS.)

The Portability Law provides for totalization, the process of adding up the period of creditable services or
contributions under both SSS and GSIS for purposes of eligibility and computation of benefits.

The amount of benefit to be paid by the GSIS or SSS shall be proportionate to the services rendered or periods
of contributions made to each of them.

Hence, all services you rendered or contributions you personally paid as a GSIS member, as well as those that were
paid by your agency-employer, shall be considered in the computation and payment of GSIS benefits. The SSS, on
the other hand, shall shoulder the portion corresponding to your services or contributions to that system.

Your benefit under this law is in the form of monthly pension payable at age 60.

Sample Computations of Benefit Under RA 7699

Sample 1

Basic Data

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 : 7 years (December 10, 1979
private sector (under SSS) 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

Basic Data

Name : Pedro Jose

Office : DepEd Pulang Lupa
Date of birth : June 20, 1952
Date of entry in service : 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.