Question & AnswerQ&A (Republic Act No. 1616)
Republic Act No. 1616 further amends Section Twelve of Commonwealth Act No. 186 by prescribing two additional modes of retirement and other related provisions for government employees.
A member may retire after rendering 30 years of service regardless of age, receiving a monthly annuity for life based on accumulated government and personal contributions plus interest for service rendered after June 16, 1951, in addition to the benefits for service prior to that date.
The annuity is computed using the mortality table and the rate of interest adopted by the retirement system, using the accumulated contributions plus interest.
A member with at least 20 years of service, regardless of age, can retire and receive a gratuity equivalent to one month salary for every year of service, based on the highest rate received, but not exceeding twenty-four months' salary, plus the return of personal contributions with interest.
The employer or office concerned is authorized to pay the gratuity and provide necessary appropriation or pay it from savings in its appropriations.
Yes, under the amendments, employees may retire regardless of age if they have either rendered 30 years of service (paragraph b) or at least 20 years of service (paragraph c) depending on the mode of retirement chosen.
They are entitled to commutation or payment of the unused vacation and sick leave credits at the time of retirement.
RA 1616 took effect upon its approval on May 31, 1957.
Paragraphs b, c, d, and e of the original Section 12 were changed to paragraphs d, e, f, and g respectively to accommodate the new paragraphs b and c.
No, the annuity for service rendered after June 16, 1951, is based on accumulated contributions and interest, and is in addition to benefits for service rendered before that date as per Section 11(A).