GSIS ASSURES MEMBERS ON PENSION BENEFITS
MANILA, NOVEMBER 4, 2007 (STAR) By Iris C. Gonzales - The Government Service Insurance System (GSIS) has assured its members that it will retain its policy of removing the ceiling on pension benefits so that pensioners may enjoy real income upon retirement.
This means that employees who have served at least 15 years in service and are at least 60 years old can now retire without worrying about their source of income.
In the past, GSIS only allows a maximum of P14,400 in monthly pension, regardless of the lengthy years of service and the substantial compensation of an employee qualified for pension.
This pension ceiling, called the average monthly compensation (AMC) limit, resulted in less income for GSIS pensioners. AMC is computed based on salary the member received for the last 36 months prior to retirement.
However, with the removal of the AMC limit, members have the chance to get up to 90 percent of their AMC.
Retiring members who have at least 15 years of service, with corresponding premiums paid, stand to receive pension equivalent to 37.5 percent of his AMC plus P700.
The amount increases by 2.5 percent for each creditable year of service in excess of 15 years with a maximum pension pegged at 90 percent of AMC which can be reached if a member has at least 36 years of creditable service.
Thus, retiring employees who have an AMC of P25,000 and have 36 years of creditable service would be entitled to a monthly pension of P22,500.
GSIS said this is a substantial amount that would make retirement more enjoyable.
The removal of the AMC limit is part of the innovations in the new GSIS law or Republic Act 8291.
Chief News Editor: Sol Jose Vanzi
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