Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Second Regular Session

House Bill No.__ 4965

Introduced by HON, LINABELLE RUTH R. VILLARICA
4TH DISTRICT, BULACAN __

EXPLANATORY NOTE

As a result of the recent advances in medicine and health care, the productive age of employees
have largely been extended to even beyond 70 years old, especially in fields that are not physically
demanding. In a recent study conducted by Dr. Ray Fair of Yale University, he maintained that
septuagenarians show negligible signs of slowing down compared to their 45-year old counterparts, He
concluded that societies may have been too pessimistic about losses from aging for individuals who
stay healthy and fit.

Presently, however, the Government Service Insurance (GSIS) Act expressly provides for the
mandatory retirement age for government employees is sixty five (65) years old. This compulsory
requirement is the age pre-determined by the government when an employee is deemed already unfit to
keep his or her employment. Optional retirement is a benefit available to employees who have
rendered the minimum number of years to service. This would allow them to claim the retirement
benefits at the earliest possible opportunity.

This bill secks io increase the compulsory retirement age to 70 years old, to enable society to
benefit from the expertise of our public servants for a longer period and allow more time for our
insurance system to prepare for their retirement. On the part of the employees, they will be able to
benefit from continued employment and retire at the age when they are more ready to be on their own.

‘Support for the enactment of this bill is earnestly requested,

AO ase

REP. LINABELLE RUTH R. VILLARICA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Second Regular Session

House Bill No,_ 4965

Introduced by HON. LINABELLE RUTH R. VILLARICA
__ 4TH DISTRICT, BULACAN _

AN ACT RAISING THE AGE OF COMPULSORY RETIREMENT FOR GOVERNMENT
EMPLOYEES FROM SIXTY FIVE (65) TO SEVENTY (70) YEARS OLD, AMENDING FOR THE
PURPOSE SECTION 13 OF R.A. No. 8291, OTHERWISE KNOWN AS THE GOVERNMENT
SERVICE INSURANCE SYSTEM (GSIS) ACT OF 1997

¢ Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 13 of Republic Act No. 8291, otherwise known as the Government
Service Insurance System Act of 1997, is hereby amended to read as follows:

“Section 13. Retirement Benefits. - (a) Retirement benefit shall be:
XXX

“(2) cash payment equivalent to eighteen (18) months of his basic
monthly pension plus monthly pension for life payable immediately with
no five (5) — year guarantee.

“(b) Unless the service is extended by appropriate authorities, retirement
shall be compulsory for an employee at SEVENTY (70) years of age with
at least fifteen (15) years of service, he may be allowed to continue in the
service in accordance with existing civil service rules and regulations.”

SEC, 2. Repealing Clause. — All laws, decrees, orders, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 3. Separability Claxse. — If, for any reason, any provision of this Act is declared to be
unconstitutional or invalid, the other sections or provisions hereof which are not affected thereby shall
continue to be in full force and effect.

SEC. 4. Effectivity Clause. — This Act shall take effect after fifteen (15) days following its
publication in two (2) newspapers of general circulation.

Approved,