HOUSE OF REPRESENTATIVES:
RECEIVED

Dare: 14 JUL 2018

3:24 fon

Seventeenth Congress
First Regular Session

House Bill No. 1608

BY:

Introduced by Honorable Mercedes ¢. Gite BND nose UNIT
EX SERVICE

EXPLANATORY NOTE

This bill seeks to lower the compulsory retirement age of the members of
the Government Service Insurance System (GSIS) from sixty-five to fifty-five
years old, amending for the purpose Presidential Decree No, 1146, as amended
by Republic Act No, 8291, otherwise known as the "Government Service
Insurance System Act of 1997".

Primarily, the bill aims to allow government employees to retire at an
earlier stage of their lives when they are still mentally and physically capable to
reap the fruits of their retirement benefits. Theprofessional expertise, skills and
know-how these prospective retirees have acquired during their employment in
the government service will propel them to greater heights and enable them to
venture into other fields such as entrepreneurial activities that will uplift their
economic status in life. Thus, they will be self-sufficient to finance their
medical sustenance and other personal needs.

The proposed measure will ease the problem of the government to
streamline the bureaucracy andwill accommodate a new breed of competitive
young graduates that will complement government manpower. It will also
address the issues on salaries and compensation because retiring employees
receive higher salaries compared to newly-hired employees.

In view of the foregoing, approval of this bill is earnestly requested.

meine eas


Seventeenth Congress
First Regular Session

House Bill No. 1608

Introduced by Honorable Mercedes C. Cagas

AN ACT
LOWERING THE COMPULSORY RETIREMENT AGE OF THE
MEMBERS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM
(GSIS) FROM SIXTY-FIVE TO FIFTY-FIVE YEARS OLD, AMENDING
FOR THE PURPOSE PRESIDENTIAL DECREE NO. 1146, AS
AMENDED, OTHERWISE KNOWN AS THE "GOVERNMENT
SERVICE INSURANCE SYSTEM ACT OF 1997"

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

SECTION 1. Section 13 of Presidential Decree (PD) No. 1146 as
amended, is hereby further amended to read as follows:
"RETIREMENT BENEFITS"

"SEC. 13.Retirement Benefits — (a) Retirement benefit shall
be:

(1) the lump sum payment as defined in this Act payable at
the time of retirement plus an old-age pension benefit equal to the
basic monthly pension payable monthly for life, starting upon
expiration of the five-year (5) guaranteed period covered by the

lump sum; or


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

"(b) Unless the service is extended by appropriate
authorities, retirement shall be compulsory for an employee at
[sixty-five (65)] FIFTY-FIVE (55) 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 be allowed to continue in the service in

accordance with existing civil service rules and regulations."

SEC. 2. Section 13-A of PD1146, as amended, is also further amended to
read as follows:
"SEC. 13-A. Conditions for Entitlement— A member who
retires from the service shall be entitled to the retirement 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 [sixty (60)] FIFTY (50) years of age at
the time of retirement; and
(3) _ he is not receiving a monthly pension from permanent
total disability."
SEC. 3.This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) newspapers of general circulation.

Approved,