Guide on How Much You Can Get As GSIS Retirement Benefit Under Republic Act 8291
GSIS RETIREMENT BENEFIT – Here is a guide on how much you can get as a retirement benefit under the Republic Act 8291.
In the Philippines, the people who are working in the government and the public sectors are members of the Government Service Insurance Institution. This social insurance institution is more popularly known as GSIS.
GSIS got a lot of benefits for its members including the pension or the retirement. It is a security that when a member reaches the retirement age, he or she can have something to turn to for financial assistance or allowance.
In availing the GSIS Retirement Benefit, a member may be offered several programs to choose from. One of these programs is the Republic Act No. 8291 which offers two options:
- a 5-year lump sum
- cash payment with instant pension
Based on the official website of the Government Service Insurance System, the members who are eligible for the benefit under R.A. 8291 are those who have rendered at least fifteen(15) years of service. Also, the member should be at least 60 years old upon the retirement.
Option 1 – Lump Sum
If the member would choose the lump sum, he or she will get the equivalent of a 60-month basic monthly pension (BMP). Here is how the BMP can be obtained with AMC referring to average monthly compensation and PPP to periods with paid premiums:
BMP = (0.025) (AMC + P700.00) (PPP)
The AMC is computed based on the number of PPP…
If your PPP is less than 36 months, the member’s total compensation prior to unemployment, disability or death will be divided by the actual number of months such compensation was received. If the PPP is more than 36 months, the member’s total compensation is divided by 36 months.
Sample Computation:
- BMP = (0.025) (RAMC) (PPP)
- (0.025) (24,505.55) (31.86574)
- P19,522.18
- 5-year lump sum
- (P19,522.18) (60 months)
- Php 1,171,330.80
Option 2 – 18-Month Cash Payment
If the member chooses a cash payment as GSIS Retirement Benefit, he or she will get an equivalent of 18-month BMP upon his or her retirement. The member will also obtain an immediate BMP that is payable for life since the member retired.
- (P19,522.18 ) (18 months) = Php 351,399.24 plus immediate BMP
To apply for the retirement benefit, you may proceed to the nearest GSIS office. The set of requirements may differ depending on your eligibility and the program you will choose for your pension.
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