SOP Library
SOP NO:
HR-PB26
(List of Exhibits/Attachments)
Missi
on
:
Finance and Administration
Area:
Human Resource (HR)
Activity:
Personnel Benefits and Services (HR-PB)
Title:
Revised SOP on the Filing and Processing of Application for Retirement
Date Approved/Issued:
08/12/1996
Date Effective:
09/01/1996
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
II.
THE DIFFERENT RETIREMENT LAWS
A
.
Retirement Under RA 1616 or the Gratuity Retirement Benefit
1
.
Qualifications for Retirement
Any executive or worker who was employed prior to May 31, 1977 regardless of age and employment status provide he has rendered at least twenty (20) years of service, the last three (3) years of which are continuous (leaves of absences without pay during the last 3 years immediately preceding retirement shall not exceed 1 year) are qualified to retire under RA 1616.
2
. Benefits
The retiree shall be entitled to the following benefits :
a. Gratuity benefit equivalent to one month salary for each year of service for the first 20 years, one and one half months (1.5) salary for each year of service in excess of 20 up to 30 years, and two (2) months salary for each year of service over 30 years,
based on the highest salary rate received.
The last employer or office of the retiree shall pay the gratuity benefit.
b. Refund of retiree's personal contributions with interest and the
corresponding government contributions without interest.
(Refer
for
Sample Computation
)
B.
Retirement Under RA 660 or the annuity (Pension) Benefit Plan as amended
1.
Qualifications for Retirement
The applicant should meet the following conditions :
a. he is a member of the GSIS Retirement Insurance Fund and employed prior to May 31, 1977.
b. he has attained and/or completed the required age and length of service as indicated below :
AGE 52 53 54 55 56 57 58 59 60 61 63 64 65 or
SERVICE 35 34 33 32 31 30 28 26 24 22 18 16 15 over
c. his last three (3 ) years of service are continuous
d. leaves of absences without pay during the last 3 years immediately preceding retirement shall not exceed one (1) year.
2.
Benefits
The retiree shall be entitled to annuity benefits computed as follows :
a. For age 57
The amount of monthly annuity (pension) shall be P30.00 plus 1.2 percent of each year of service rendered before June 16, 1951 and 2% for each year of service from June 16, 1951 of the average monthly salary received during the last three years prior to the date of retirement, but amount must not exceed 75% of average monthly salary.
b.
For other ages
The annuity shall be adjusted actuarially but the amount must not exceed 80% of the average monthly salary.
(Refer
for
Sample Computation)
3.
Types of Annuity Benefits
a.
Automatic Annuity
-
Pension is payable monthly guaranteed for five years from date of retirement. After the five-year period, payment of the monthly annuity benefit will continue if retiree is still living. It will automatically stop in case of death of the retiree.
b.
Five-year Lump sum
- This is available only to those who are at least 63 year of age or over on the date of retirement. After five years if still living, retiree will be paid monthly annuity for life.
c.
Initial three-year Lump sum
- This is available to those who are at least 60 years of age or over on the date of retirement. The subsequent two-year lump sum shall be paid to retiree on his 63rd birthday. If after the five-year period, the retiree is still living, he will be paid the monthly annuity for life.
C.
Retirement Under PD 1146
1
. Qualifications for Retirement
Any executive or worker regardless of age may retire under PD 1146 provided that he has rendered at least 15 years service. However, if he is below 60 years of age upon retirement, he shall avail of the retirement benefit only upon attainment of age 60.
2
.
Benefit
The retiree shall be entitled to old-age benefit which may either be a basic monthly pension guaranteed for five (5) years and which may be converted into a lump sum upon request, subject to a discount of not less than 6% per annum compounded monthly ; or a cash payment for those who have rendered less than 15 years service.
a.
Basic Monthly Pension
-
shall be equal to thirty seven and a half percent
(37.5%) of the revalued average monthly compensation (which is AMC of not more than P3,000.00 plus P140.00) plus two and one half percent (2.5% of the said revalued average monthly compensation for each year of service in excess of 15 years but not to exceed ninety (90%) percent of the average monthly compensation, or :
BMP = 37.5% (RAMC), if the total service is 15 years of less ; or
= 37.5% (RAMC) + 2.5% (RAMC) Total years of service - 15), if total service is more than 15 years ; but BMP must not exceed 90% of AMC, where,
AMP = Average Monthly Compensation
AMC = Total Compensation received during the last 3 years
-------------------------------------------------------------------------------------------------------
Total number of months during which compensation was received but in no case to exceed P3,000
RAMC = Revalued Average Monthly Compensation
RAMC = 170% (AMC), if AMC is not more than P200 ; or
= AMC + P140, if AMC is more than P200 but not more than
P3,000
b.
Cash Payment
- shall be equal to one hundred (100%) of the average monthly compensation for every year of service with an employer.
CP = total years of service x AMC
3.
Who are Entitled to the Basic Monthly Pension Benefit ?
A. Retiree who fulfils the following conditions is entitled to the basic monthly pension :
a. he has rendered at least 15 years service
b. he is at least 60 years old and
c. he is separated from the service
4.
Who are Entitled to the Cash Payment Benefit ?
A retiree is entitled to the Cash Payment Benefit if :
a. he is at least 60 years of age
b. he has rendered at least three years but less than 15 years
of service and
c. he is separated from the service
D.
Other Basic Information
1. All services of a GSIS member with an employer from the date of his original appointment, whether full time or part time, are creditable.
2. Retirement shall be compulsory for an executive or worker at age sixty-five (65) with
at least fifteen years of service. Any request for the extension of service of compulsory retirees to complete the fifteen (15) years service requirement for retirement shall be allowed only to permanent appointees in the career service who are regular members of the GSIS, and shall be granted for a period not exceeding one (1) year.
3. Any request for the extension of service of a compulsory retiree to complete the fifteen (15) years service requirement for retirement who entered the government service at 57 years of age or over upon prior grant of authority to appoint him or her, shall no longer be granted.
4. Any request for the extension of service to complete the fifteen (15) years service requirement of retirement shall be filed not later than three (3) years prior to the date of compulsory retirement.
5. Any request for the extension of service of a compulsory retiree who meets the minimum number of years of service for retirement purposes may be granted for six months with no further extension. (Reference Item nos. 2-5 ; CSC Circular No. 27, Series 1990).
6. A member is not entitled to the old-age benefit if he has rendered less than three (3) years of service, or his separation from the service provides for forfeiture of the benefit.
7. In case of death, the designated beneficiaries/legal heirs/primary beneficiaries shall be entitled to receive Funeral Benefit of P1,000.00 and a bereavement aid of P9,000.00.
8. In case of accidental death, the designated beneficiaries/legal heirs shall receive the following additional benefits under his life insurance policy :
a. Double indemnity
b. Free Accidental Death Insurance of P10,000.00
9. If a pensioner who has received a lump sum is re-employed, GSIS shall deduct the amount corresponding to the unexpired portions covered by the lump sum from the retirement benefits he will receive upon termination of his reemployment.
10. Members in the service at the time of the effectivity of PD 1146 have the option to retire under PD 1146 or under CA 186 as previously amended.
III.
PRE-RETIREMENT SERVICES TO BE PROVIDED BY NFA
1. The Provincial Administrative Officer of each NFA Provincial Office shall generate a
List of Retirable/Employees
every year based on the personnel data available at their end. Basically, the listing will include employees who will reach the compulsory retirement age of 65 years for the following year. Other employees who have the intention to retire under any of the retirement laws shall notify their Administrative Officers of such intention, on or before October 31 of each year, so their names could be included in the said list. They shall accomplish the
Intention to Retire Form
to officially convey said intention.
2. The List of Retirable NFA Officials and Employees shall be forwarded by the PAO to the regional office not later than November 30 of each year. The Regional Administrative Officer shall prepare the
consolidated Regional List of Retirable NFA officials and employees
which shall be submitted to HRMD not later than December 15 of each year.
3. HRMD shall prepare an Annual Masterlist of Retirable NFA Officials and Employees which shall contain all the names of central and field offices retirable officials and employees. It shall furnish all concerned departments and offices with a copy of the list to facilitate the issuance of clearances to the employees. The following offices shall immediately undertake their corresponding task as follows :
Department for Legal Affairs
- verifies records to check if any of the listed employees has a pending criminal/civil/administrative case.
Internal Audit Services/tCommission on Audit
- confirms if retirable employees who have been designated as accountable officers have fully liquidated their accountabilities an
d
tolerable allowances on stock accountabilities has been granted.
Accounting Department
- verifies the financial accounts/outstanding obligations of retiring employees.
General Services Department
- audit retiring employees records of property accountabilities.
HRMD
- checks if retiring employees who have service contracts with NFA have completed the required length of service and retrieves original copies of leave cards from Executive Assistants and PAOs/RAOs. Asks retired officials and employees to surrender their NFA IDs.
For field offices, the counterpart section/unit of the above offices or departments shall perform the specified task.
4. Provincial/Regional Offices shall also be given the Masterlist of Retirable Officials and Employees. Based on this list, the Administrative Officer of each province/region shall determine which employees are presently or have been previously assigned in their respective offices and coordinate with the corresponding sections/units the issuance of clearances to the concerned employees.
5. All offices which have been furnished with the said List of Retirables shall, then, notify retiring employees directly, copy furnished HRMD, in case there are matters or requirements which have to be settled so they can be issued the needed clearances.
6. HRMD shall audit the service records and perpetual leave cards of all retirable central office employees and of retirable field officials and RAOs. Service records and perpetual leave cards of retirable PAOs shall be audited by the RAOs. The PAOs and RAOs shall audit the service records and leave cards of retirable field office employees. It shall determine, beforehand, if the casual services rendered, if any, by these employees have been accredited by the Civil Service Commission. Otherwise, it shall notify the concerned retiree to apply for accreditation citing the procedures or requirements for the same. Retiring employees shall be reminded to keep certified true copies of Special Orders and Appointment papers to be presented to GSIS for verification purposes.
7. HRMD shall further undertake the following tasks :
a. Submit on or before December 30 of each year a copy of the List of Retirables and Summary Schedule of Retirement and Terminal Leave Benefits to the Budget Division (DTBFM) for purposes of funding allocation ;
b. Provide retirable employees with a checklist of requirements for retirement ; give counselling services as requested by the employees ;
c. Generate the service records four (4) months before the employee's retirement date
8. The Provincial Administrative Officers and Regional Administrative officers shall submit a
list of Retired Officials and Employees
to HRMD on or before January 15 of each year, for updating of NFA plantilla.
IV.
FILING OF APPLICATIONS FOR RETIREMENT
1. The employee shall submit the application for retirement in the prescribed GSIS form to HRMD at least four (4) months before the effective date of retirement.
2. To be submitted in seven (7) copies each to HRMD together with the application for retirement are the following documents :
a. NFA Certificate of Clearance
b. Authority to Deduct
c. Latest Statement of Assets and Liabilities
d. Ombudsman Clearance
e. GSIS Clearance for Terminal Leave Pay
f. Certification of non-collection of gratuity pay
g. Certificate of Audit from COA, if accountable officer
3. The NFA authorized officer with specimen signature at GSIS shall endorse the retirement application with the following documentary requirements to GSIS two (2) months before the effective date of retirement :
a. Application for Retirement duly accomplished and properly endorsed by the Head of Office or authorized official. For retiring Central office employees, the endorsing official shall be the HRMD Director, for field employees, the Regional Director.
b. Complete Service Record certified correct by HRMD for Central office rank and file employees and all executives and by the Administrative Officer, for field office rank and file employees, indicating Leave of Absences Without Pay (LAWOP), if any. Certified true copies of SOs and appointment papers shall be attached to the Service Record.
c. NFA Certificate of Clearance
d. Statement of Assets and Liabilities
e. Ombudsman Clearance
4. In cases of deceased retirees, or when a GSIS member dies, the beneficiaries and/or legal heirs shall submit, in addition to a complete statement of service record of the deceased, the following requirements :
a. Death certificate of member or retiree issued by the Local Civil Registrar
b. Birth Certificate of children issued of deceased member/retiree
c. Marriage contract/certificate issued by the Local Civil Registrar
c.1 Of parents of the deceased (if deceased is single) ;
c.2 Of claimant spouse with the deceased
d. Proofs of surviving legal heirs/guardianship
e. Bond of indemnity (in case of guardianship)
f. Such other requirements as may be needed in certain cases
V.
UPDATING OF RETIREMENT DOCUMENTS
A.
Service Records
1. HRMD shall prepare updated service records of all NFA employees to cover the complete history of employment, i.e., period of service and office/agency where such was rendered duly certified by authorized officials whose specimen signatures are filed with GSIS.
2. Such updating shall include services of elective officials whose service records shall be prepared by the Personnel Officer/Administrative Officer or its equivalent position in the local government unit, duly certified by authorized local official concerned. A COMELEC certification or oath of office may be submitted as supporting documents.
3. The preparation /updating of records) of NFA employee's previous employment or service in another government agency or agencies shall be the responsibility of HRMD. If such records are not available, the employee concerned is given fifteen (15) working days to submit to HRMD all records of his/her previous government service duly authenticated by the Personnel and/or Administrative Officer of his previous offices or agencies.
4. Copies of appointments or notices of salary adjustments duly certified by the Personnel Officer/Administrative Officer of the agency concerned may be submitted in lieu of the service records of previous employment if such are not available/obtainable.
5. Original copies of all updated service records in the original form shall be submitted to the Government Service Insurance System.
6. HRMD shall, thereafter, regularly update all service records.
B.
Accountability and Other Documents
1. Accountability documents shall refer to records of all money and property accountabilities and other responsibilities for which an employee is liable or answerable upon separation from the service . These may be in the form of loans, membership fees, cash advances (including travel expenses), and other legal dues supported by the necessary receipts and/or memorandum receipts in the case of equipment, motor vehicles, office furniture and other materials issued to an employee.
2. Updating of such records shall be done as may be needed and shall be the responsibility of both the employee concerned and the unit involved in the transactions and in the maintenance of said records. A summary report, however, shall be made by the unit concerned, e.g., Accounting for money accountabilities and Property for property accountabilities, at the end of the year.
C.
Other Documentary Requirement for Retirement
1. The Administrative Officer/Assistant of each department./office shall be responsible for keeping an updated record of each employee's leave credits and of furnishing all employees in his/her department/office a record or certification of same every six (6) months.
2. Copies of Statements of Assets, Liabilities and Net Worth of employees shall be kept by HRMD and updated yearly. These shall be stored by 10-year periods.
3. HRMD shall likewise keep file copies of each employee's latest appointment and notice of salary adjustment.
VI.
CERTIFICATION OF SERVICES RENDERED
A. HRMD shall be responsible for determining the authenticity of services rendered for purposes of updating and issuing certifications on same.
B. Certifications of services rendered by NFA employees in NFA field offices shall be made by their respective Administrative Officers or their equivalent positions, duly signed by the Regional/Provincial Manager whose specimen signature shall likewise be submitted to GSIS.
C. In certifying services rendered, HRMD and Administrative Officers of field offices shall be guided by the existing laws, rules and regulations followed by GSIS in determining creditable services for retirement purposes which are as follows :
1. All previous services rendered by an official/employee pursuant to a duly approved appointment, including those of Presidential appointee, to a position or pay whether on permanent, compensation, temporary, emergency, substitute, or casual status, and whether paid monthly, daily or hourly, subject to these conditions :
1.1 The services are supported by appointments duly approved by the Civil Service Commission (except those of Presidential appointees), official records and/or other competent evidence which GSIS and/or CSC may require in case of doubt/discrepancies.
1.2 Said services are on full-time or part-time basis, of which the three (3) years immediately before retirement are continuous.
2. The period during which an employee is on official leave of absence with pay.
3. The period during which an official/employee was on an authorized sick leave of absence without pay provided that it shall not exceed one year in a single instance, except in the case of teachers who are allowed three (3) years of sick leave without pay.
4. The period during which an official/employee was out of the service as a result of an illegal termination of his services as finally decided by the proper authorities, provided the official/employee concerned was paid for the said period.
5. The period of active service in the military of reserve officers and enlisted men who were integrated in the regular force of the Armed Forces of the Philippines but were honorably discharged or separated from the military service without receiving any benefits under RA 340, as amended, or other retirement laws covering military personnel, as duly certified to by the Armed Forces of the Philippines.
6. Period of cadet training and training for a commission in the reserve force of the Armed Forces of the Philippines.
7. Period of cadet training and training for a commission in the reserve force of the Armed Forces of the Phillipines.
8. Period of student-assistanship, with compensation in state-owned colleges and universities pursuant to a valid appointment.
9. The period during which an official/employee was in the service of an international organization and/or foreign government, in compliance with an international commitment of the Philippine |Government, provided that the salary received from the foreign government or international organization with which the Phillipines has a commitment/agreement shall not be considered in computing the money value of the employee's
retirement benefit.
10. Period during which an employee is on authorized study leave with pay.
D. All cases not covered by the procedures/guidelines above shall be referred to GSIS for final determination.
E. The GSIS holds Agency Heads and Personnel Officers/Administrative Offices liable for any certification made without appropriate basis or for any false statement and misrepresentation of facts in certifying to services rendered.
VII.
PAYMENT OF RETIREMENT BENEFITS
A. Gratuity Benefits
1. The GSIS processes all retirement applications supported by complete documentary requirements within a period of one (1) month upon receipt of same. Gratuity benefits of retirees under RA 660 and PD 1146 are also paid directly by GSIS. Approved applications for retirement under RA 1616 are forwarded to the concerned agency for processing of payment of gratuity benefits.
2.
The Head office shall process the payment of gratuity benefits of Central Office employees and field officials retiring under RA 1616 within fifteen(15) days upon receipt of the GSIS approval. This includes the preparation of voucher by HRMD, the voucher processing by Department of Accounting and the preparation of check by DTBM
3. Processing of payment of gratuity benefits of NFA field office employees retiring under RA 1616 shall be decentralized at the NFA provincial office. It shall request for the remittance of funds from the NFA Head Office.
B. Terminal Leave Benefits
1. For the payment of the terminal leave benefits, the retiree shall submit, in addition to GSIS requirements, the original copy of his leave card, latest appointment, NOSI/NOSA and a Certification of Latest Salary received.
2. Head of Offices/Department Heads and their Personnel Officers/Administrative Officers are held responsible for any payment of terminal leave benefits not in accordance with the provisions of pertinent laws, rules and regulations.
C. Pag-ibig Fund Provident Benefits
1. A retiree may file an application for Provident Benefits with the Pag-ibig Fund. It shall consist of his Total/Member Accumulated Value which includes his personal contributions to the Fund, his employer's counterpart contributions and all the fixed and variable dividends earnings of the total contributions. When membership is terminated by death, an additional benefit of P6,000.00 shall be granted to the beneficiary.
2. To apply for Provident Benefits, the claimant shall :
a. Secure an application for Provident Benefits (HDMF 430-88-1) from any Pag-ibig NCR Branch or any Pag-ibig Regional or Extension Office.
b. Accomplish the application form in duplicate. (For regional applications, in triplicate).
c. Attach the required documents. (Refer to C.3). In cases where xerox or photocopies are submitted, the original copy must be presented for authentication. Falsification of documents or any untruthful statements made therein shall be a basis for disapproval of the application.
d. Submit complete application, together with the required documents to any Pag-ibig-NCR Branch or any Pag-ibig Regional or Extension Office. Processing of claims will commence only upon submission of complete documents.
e. Await notice of the availability of check from Pag-ibig-NCR Branch or from the Regional Office where the application was filed.
f. For a member saver, the benefits shall be paid directly to the member, or any authorized representatived. In the event of death of a member, payment shall be made to his beneficiary/ies or the latter's guardian/s authorized representative or any duly appointed court administrator or executor.
3. Together with the application form, the retiree shall submit the following documents :
a) Certificate of Remittance (HDMF 430-83-1)
b) Service Record (for national government employee
c) Certified True Copy of Member's Birth Certificate
d) GSIS Retirement Approval/Retirement Voucher
4. For claims of Provident Benefits because of death, the following shall be submitted
in addition to
3.a,b, and d above.
a. Special Power of Attorney (HDMF 620-10-1)
b. Affidavit of Guardianship (HDMF 620-08-1) for minor children
c. Certified True Copy of Death Certificate issued by local Civil Registrar
d. Proofs of Surviving Legal Heirs (HDMF 620-09-1)
e. Certified true copy of member's marriage contract/certificate issued
by local registrar, if member is married.
In all, instances wherein xerox or photocopies are submitted, the original must be presented for comparison or authentication.
D.
Cash Surrender Value of Renewed GSIS Policy (For Policies that have matured prior to retirement and were renewed)
A retiree with a Renewed GSIS Policy can apply for its Cash Surrender Value by submitting the following requirements to GSIS
a. NFA Certificate of Clearance
b. Service Record
c. Letter Request for Cash Surrender Value
d. Cash Surrender Value Form
VIII.
RETIRING EMPLOYEES WITH NO MONEY AND PROPERTY ACCOUNTABILITY BUT WITH PENDING ADMINISTRATIVE AND/OR CRIMINAL CASE WITH NFA
A retiring employee who has no money and property accountability but with pending administrative and or criminal case with NFA shall be issued a clearance by the Department for Legal Affairs (DLA) after the employee concerned submits an Affidavit of Undertaking of an NFA official or employee, who obliges himself to assume the accountabilities of the retiring employee in the event that the employee will be adjudged guilty as charged and the penalty imposed is a fine or a monetary restitution.
IX.
RETIRING EMPLOYEES WITH MONEY AND PROPERTY ACCOUNTABILITY AND WITH PENDING ADMINISTRATIVE AND/OR CRIMINAL CASE WITH NFA
Retiring employees with money and property accountability and with pending administrative and/or criminal case with NFA shall be issued a clearance by DLA with a notation that the retiring employee has pending administrative/criminal case with the agency,
ONLY AFTER
the employee secures from GSIS a Surety Bond in favor of NFA, which shall restitute, in the event that he is found guilty, any and all amounts representing retirement benefits that may have been released to him by NFA during the pendency of the criminal or administrative case.
X.
SECTION 33 OF PRESIDENTIAL DECREE NO. 1146
Pursuant to Section 33 of PD No. 1146, as amended (The Revised Government Service Insurance Act of 1977) the benefits granted under this act shall not be subject among others, to attachment, garnishment, levy or other process.
This however, shall not apply to obligations of the member to the System or to the employer or when the benefits granted herein are assigned by the member with the Authority of the System.
The said provision applies to all government employees who desire to retire under any of the existing retirement laws. By virtue of said provision, NFA may have the retirement benefits of the retiring employee attached, garnished and levied in case he has a pending property/monetary obligation with NFA and his liability/accountability is
properly adjudged by the court
.
All ruling and/or issuances inconsistent herewith are hereby superseded.
III. RESPONSIBILITIES
IV. FLOW CHART
Top Page
EXHIBITS
Sample Computation of Gratuity Benefits Under RA 660
Sorsogon Provincial Office
List of Retirable Employees for the Year ______
As of November 30, _____
REGION V
Consolidated List of Retirable Officials and Employees
for the Year ______
As of December 15, 19 ____
Region/Province
List of Retired Officials and Employees
As of December 31, 1995
Intention to Retire