EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
]
SENATE 
S. No.
"i9 JUL 24 All ••44
RElc: . 3!
Introduced by SEN. SHERWIN T. GATCHALIAN
AN ACT
LOWERING THE COMPULSORY AND OPTIONAL RETIREMENT AGE OF 
GOVERNMENT EMPLOYEES, AMENDING FOR THE PURPOSE SECTIONS 
13(b) AND 13-A OF REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS THE 
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
EXPLANATORY NOTE
This legislative measure seeks to reduce the optional retirement age of all 
government employees from sixty (60) years to fifty-five (55) years, and the 
compulsory retirement age from sixty-five (65) to sixty (60) years.
Lowering 
the 
compulsory 
and 
optional 
retirement age 
would 
allow 
government employees to fully reap the fruits of their retirement benefits after 
dedicating long years in government service. Furthermore, the retirees would be 
given a chance to venture into other fields of endeavor, making them self-sufficient 
and financially independent.
This bill also seeks to address the unemployment problem in our country. An 
independent survey reveals that despite reports of economic growth, the Philippines 
still relatively has one of the highest unemployment rates in Asia. Based on the


latest labor force survey (LFS) data,1 the official unemployment rate in the country is 
at 5.1% in April 2019. The latest available data from the IMF2 reveals that ASEAN 
economies are exhibiting lower unemployment rates, for instance: China (3.8%), 
Vietnam (2.2%), Indonesia (5.2%), Malaysia (3.3%), and Thaiiand (1.2%).
If approved into law, and when the elder set retires early, there will be 
employment opportunities for more Filipinos, particularly the younger generation 
who are more adept in new methods and technological advancements which are 
now becoming essential in the workplace.
Flence, the immediate passage of this bill is earnestly sought.
’ http://www.psa.gov.ph/content/employment-rate-april-2019-estimated-949-percent
2 https://www.imf.0rg/external/datamapper/LUR@WEO/APQ/VNM/THA/MYS/CHN/IDN/PHL


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
ta;
fe i T M arp
S. No.
SENATE
738
;.:L 24 All 45
Introduced by SEN. SHERWIN T. GATCHALIAN
AN ACT
LOWERING THE COMPULSORY AND OPTIONAL RETIREMENT AGE OF 
GOVERNMENT EMPLOYEES, AMENDING FOR THE PURPOSE 
SECTIONS 13(b) AND 13-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 o f Representatives o f the 
Philippines in Congress assembled:
SEC. 1. Section 13 (B) and 13-A of Republic Act 8291, or The 
Government Service Insurance System Act of 1997, is hereby further 
amended to read as follows:
"REHREMENT BENEFITS
"SECTION 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


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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 (6 0 ) [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 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 W ITH IN  THE AGES OF SIXTY-FOUR (64)
TO SIXTY-FIVE YEARS (6 5 ) OLD SHALL BE RETIRED 
DURING THE FIRST YEAR OF IMPLEMENTATION OF 
THIS ACT;
"(2 ) THOSE W ITH IN  THE AGES OF SIXTY-TWO (62)
TO 
SIXTY-THREE 
(6 3 ) 
YEARS 
OLD 
SHALL 
BE 
RETIRED 
ON 
THE 
SECOND 
YEAR 
OF 
IMPLEMENTATION, AND
"(3 ) THOSE WHO ARE SIXTY-ONE (6 1 ) YEARS OF AGE 
SHALL 
BE 
RETIRED 
ON 
THE 
THIRD 
YEAR 
OF 
IMPLEMENTATION."
"SECTION 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 FIFTY-FIVE (5 5 ) [sixty (60) years] of age 
at the time of retirement; and
(3) he is not receiving a monthly pension benefit from 
permanent total disability.
SEC. 2. Im p le m e n tin g  Rules a n d  R egulations. - Within sixty (60) 
days upon the approval of this Act, the Government Service Insurance 
System shall, in consultation with the various stakeholders, formulate the 
rules and regulations necessary for the proper implementation of this Act.
SEC. 3. R epealing Clause. - 
All laws, acts, presidential decrees.


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executive orders, administrative orders, rules and regulations, or parts
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thereof, inconsistent with or contrary to the provisions of this Act are hereby
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amended, modified or repealed accordingly.
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SEC. 4. E ffe c tiv ity - This Act shall take effect fifteen (15) days after its
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publication in at least two (2) newspapers of general circulation.
Approved,