SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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F irst R eg u lar Session 
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SENATE
S.B. No. 1289
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Intro d u ced  by SEN. SHERWIN T. GATCHALIAN
AN ACT
LOWERING THE COMPULSORY AND OPTIONAL RETIREMENT AGE OF 
GOVERNMENT EMPLOYEES, AMENDING FOR THE PURPOSE SECTIONS 13(B) 
AND13-A OF REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS THE 
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
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.
Lowering the com pulsory and optional retirem ent age would allow government 
employees to fully reap the fruits of their retirem ent benefits after dedicating long years 
in government service. This m easure not only allows them  to enjoy their retirem ent pay, 
it also gives them  a chance to venture into other fields of endeavor, such as starting 
their own business. Thus, m aking them  self-sufficient and fmancially independent.
This m easure also seeks to address the unem ploym ent problem in our country. 
An independent survey reveals th a t despite reports of economic growth, the Philippines 
still has the lowest unem ploym ent rate in Asia. The latest labor force survey (LFS) data 
h as official unem ploym ent in the countiy at 5.8% in Jan u ary  2016. The latest available


data from slower-growing Asian economies shows lower unem ploym ent rates, for 
instance: China (4.0%), Vietnam (2.3%), Indonesia (5.5%), M alaysia (3.5%), Thailand 
(1.0%). Furtherm ore, The group reiterated th at official unem ploym ent figures do not 
even capture the true extent of joblessness in the country.1
Through this bill, when the elder set retire early, there will be employment 
opportunities for more Filipinos, particularly the younger generation who are more 
adept in new m ethods and technological advancem ents which are now becoming 
essential in a workplace. In effect, this legislative m easure if approved into law will 
enhance efficiency and productivity in the government.
Hence, the im m ediate passage of this bUl is earnestly sought:
SHERWIN T. GATCHALIAN
1 http;//ibon.org/2016/05/amid-growth-ph-unempIoyment-still-worst-in-asia-ibon/


SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
F irst R eg u lar Session
1
SENATE
S.B. No. 1289
S°DATE:I
l( 0  TIME:
BILLS
INDEX
Introduced by SEN. SHERWIN T. GATCHALIAN
AN ACT
LOWERING THE COMPULSORY AND OPTIONAL RETIREMENT AGE OF 
GOVERNMENT EMPLOYEES, AMENDING FOR THE PURPOSE SECTION 13(B) 
AND13-A OF REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS THE 
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
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Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
SECTION 1. Section 13 (B) and 13-A of Republic Act 8291, or The Government 
Service Insurance System Act of 1997, is hereby further am ended to read as follows:
"RETIREMENT BENEFITS
"SECTION 13. Retirement Benefits. — (a) Retirement benefit shall be:
"(1) the lum p sum  paym ent as defined in this Act payable at the time 
of retirem ent plus an old-age pension benefit equal to the basic 
m onthly pension payable m onthly for life, starting upon expiration of 
the five-year (5) guaranteed period covered by the lum p sum ; or 
"(2) cash paym ent equivalent to eighteen (18) m onths of his basic 
m onthly pension plus m onthly pension for life payable immediately 
with no five-year (5) guarantee.
"(b) Unless the service is extended by appropriate authorities, 
retirem ent shall be com pulsory for an employee at SIXTY (60) [sixty- 
five (65)] years of age with at least fifteen (15) years of service:
Provided, That if he has less than fifteen (15) years of service, he may


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be allowed to continue in the service in accordance with existing civil 
service rules and regulations; PROVIDED, FURTHER, THAT ALL 
EMPLOYEES WHO, AT THE TIME OF EFFECTVITY OF THIS ACT 
ARE SIXTY-ONE YEARS OF AGE AND ABOVE SHALL RETIRE 
UNDER THE FOLLOWING PHASES:
“(1) THOSE WITHIN THE AGES OF SIXTY-FOUR (64) TO SIXTY- 
FIVE YEARS (65) OLD SHALL BE RETIRED DURING THE FIRST 
YEAR OF IMPLEMENTATION OF THIS ACT;
“(2) THOSE WITHIN THE AGES OF SIXTY-TWO (62) TO SIXTY- 
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.”
"SECTION 13-A. Conditions for Entitlem ent. — A m em ber who retires 
from the service shall be entitled to the retirem ent benefits in 
paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen (15) years of service;
(2) he is at least FIFTY-FIVE (55) [sixty (60) years] of age at the time 
of retirem ent; and
(3) he is not receiving a m onthly pension benefit from perm anent total 
disability.
SEC. 2. Im plem enting R ules a n d  R egu latio n s. - W ithin sixty (60) days upon 
the approval of this Act, the Government Service Insurance System shall, in 
consultation with the various stakeholders, form ulate the rules and regulations 
necessary for the proper im plem entation of this Act.
SEC. 3. R epealing C lause. - All laws, acts, presidential decrees, executive 
orders, adm inistrative orders, rules and regulations, or parts thereof, inconsistent with 
or contrary to the provisions of this Act are hereby am ended, modified or repealed 
accordingly.
SEC. 4. E ffectivity - This Act shall take effect fifteen (15) days after its publication 
in at least two (2) new spapers of general circulation.
Approved,