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THIRTEENTH CONGRESS OF THE REPUBLI 
1 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
S. No. 
Introduced by Senator S. R. Osmeiia 111 
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EXPLANATORY NOTE 
This bill proposes a reduction in the optional retirement age of all 
government employees from sixty (60) years to fifty-five (55) years, and in the 
compulsory retirement age from sixty five (65) to sixty (60) years. 
Many government employees spend the best years of their lives in the civil 
service to accumulate savings that would enable them to start new businesses 
upon retirement, if such an option were available. This bill allows them the option 
to venture into entrepreneurial businesses at an earlier time while they still have 
the energy and vigor to give them a reasonable chance of success. 
Earlier retirement for government employees will encourage more people 
into entrepreneurial activities in small and medium enterprises (SMEs) and 
contribute towards generating the critical mass of “Entrepinoys” that we need for 
econoqic vigor and competitiveness. 
On the part of government, early retirement of government employees will 
facilitate the streamlining of the bureaucracy and enable government to renew its 
manpower complement with younger labor force entrants. 
In view of the foregoing, early passage of this bill is earnestly requested. 
/t 
SERGIO OSMENA 111 
Senator 
’. . 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
SENATE 
s. No. 
2 
I 
Introduced by Senator S. 
AN ACT 
REDUCING THE 
RETIREMENT AGE 
OF 
GOVERNMENT, AMENDING 
FURTHER FOR THE PURPOSE THE “GOVERNMENT SERVICE INSURANCE 
SYSTEM ACT OF 1997, AND FOR OTHER PURPOSES 
. .  
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines in Congress assembled: 
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SECTION I .  Sections 13 and 13-A of PD No. 1146, as amended by RA 
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8291, otherwise known as the “Government Service Insurance System Act of 
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1997 is hereby further amended to read as follows: 
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“SEC. 13. Retirement Benefits. - (a) Retirement benefits shall be: 
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“(1) the lump sum payment as defined in this Act payable at the time 
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of retirement plus an old-age pension benefits equal to the basic 
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monthly pension payable monthly for life, 
starting upon the 
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expiration of the five(5) -year guaranteed period covered by the 
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lump sum; or 
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“(2) cash payment equivalent to eighteen (18) months of his basic 
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monthly pension plus monthly pension for 
life payable 
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immediately with no five (5) year guarantee. 
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“(b) [Unless the service is extended by appropriate authorities, r] 
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Retirement shall be compulsory for an employee at [sixty-five (65) SIXTY 
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(60) years of age with at least [fifteen (15) TWELVE (12) years of service; 
Provided, however, That if he has less than [fifteen (15) TWELVE (12) 


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years of service’, he may be allowed to continue in service in accordance 
with existing civil service rules and regulations; PROVIDED, FURTHER, 
THAT 
ALL 
SERVICES 
RENDERED 
IN 
THE 
GOVERNMENT 
IRRESPECTIVE OF STATUS OF APPOINTMENT DULY ACCREDITED 
SHALL BE COUNTED AS GOVERNMENT SERVICE FOR RETIREMENT 
UNDER THIS ACT; PROVlDED FURTHER, THAT ALL EMPLOYEES 
WHO, AT THE TIME OF THE EFFECTIVITY OF THIS ACT ARE SIXTY- 
ONE YEARS OF AGE AND ABOVE SHALL 
RETIRE UNDER 
THE 
FOLLOWING PHASES: 
“(I) THOSE WITHIN THE AGES OF SIXTY-FOUR TO SIXTY-FIVE 
YEARS OLD 
SHALL BE RETIRED DURING THE FIRST YEAR OF 
IMPLEMENTATION OF THIS ACT; 
“(2) THOSE WITHIN THE AGES OF SIXTY-TWO (62) TO SIXTY- 
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THREE (63) YEARS OLD SHALL BE RETIRED ON THE SECOND YEAR 
OF IMPLEMENTATION, AND 
“(3) THOSE WHO ARE SIXTY ONE(61) YEARS OF AGE SHALL BE 
RETIRED ON THE THIRD YEAR OF IMPLEMENTATION.’’ 
“SEC. 13-A. Conditions for Entitlement. - A member who retires from 
the service shall be entitled to the retirement benefits enumerated in 
paragraph (a) of Section 13 hereof: Provided, That: 
“(1) he has rendered at least [fifteen 
(15)] TWELVE (12) years of 
service; 
“(2) he is at least [sixty (60) FIFTY-FIVE (5) years of age at the time of 
retirement; and 
“(3) he is not receiving a monthly pension benefit from permanent total 
d isa b ility .” 
Sec. 2. 
The retirement age prescribed by this Act for compulsory or 
optional retirement shall benefit government employees who are covered by 
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other retirement laws to the extent that it is beneficial to them. 


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Sec. 3. 
The provisions under Sections 13 and 13-A as amended, 
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of PD No. I146 and the implementing rules and regulations thereof which are 
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inconsistent with this act are deemed modified, revoked or repealed accordingly. 
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Sec. 4. Effectivity. This Act shall take effect fifteen (15) days after its 
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publication 
in 
two 
(2) 
leading 
newspapers 
of 
national 
circulation. 
Approved, 
‘. . 
,