BACOLOD CITY, June 18 (PNA) –- The Government Service Insurance System on Tuesday belied anew the reports that they adjusted the computation of the benefits of their retiring members this year.
In an advisory, GSIS Negros Occidental Branch Manager Maria Vilma Fuentes said there is no truth to speculations that the Average Monthly Compensation will soon be based on their member’s salary for the last ten years.
“Please be advised that AMC that is used as basis in computing the amount of GSIS retirement and pension benefit is the average of the member’s basic salary in the last three years or 36 months of his or her service in government,” Fuentes clarified.
She then assured that “GSIS has no intention of revising the definition of the AMC under Republic Act 8291”.
The AMC is one of the factors in the computation of the Basic Monthly Pension (BMP) of a GSIS member. The formula for computing the BMP is (.025) x (AMC + P700) x Period of Paid Premium.
Meanwhile, Fuentes said the disbursement of checks for retirement benefits will be ready for pick-up on the 30th day from the date of filing, provided, that the retiree concerned will inform GSIS his/her intention to retire 90 days prior to actual date of retirement.
Fuentes stressed it will always be an advantage if the retiree will inform GSIS even a month prior to his/her retirement so they can reconcile their records in due time. If followed, retirees can also get their benefits on time and without hustle, she added.
GSIS is following Republic Act 8291 or the Government Service Insurance System Act of 1997 in granting the retirement benefits of government employees.
Under the law, employees qualified are those who have rendered at least 15 years in government service and must be at least 60 years old upon retirement.
Retirees have two options in availing their retirement benefits. First is the five-year lump sum and old age pension wherein applicant can get his/her five-year worth of pension in advance.
The lump sum is equivalent to 60 months of basic monthly pension (BMP) payable at the time of retirement. After five years, the retiree will start receiving his/her monthly pension.
The other option is the cash payment and basic monthly wherein the retiree can receive cash payment equivalent to 18 times of the basic monthly pension payable upon retirement and a monthly pension for life payable immediately after his retirement date. (PNA)