Question & AnswerQ&A (Republic Act No. 3096)
The member is entitled to the return of personal contributions plus interest, the corresponding employer's premiums without interest, and a gratuity equivalent to one month's salary for every year of service based on the highest rate received, not exceeding twenty-four months. The gratuity is payable by the employer or office concerned.
Retirement is automatic and compulsory at the age of sixty-five years.
Optional retirement at sixty-three is allowed with lump sum payment of the present value of annuity for the first five years, monthly payment of future annuity, and other benefits given to compulsory retired members if the employee has completed fifteen years of service and has not been separated from service during the last three years prior to retirement.
No, the compulsory retirement provision does not apply to members of the judiciary and constitutional officers whose tenure of office is guaranteed.
The System is managed by a Board of Trustees consisting of the General Manager and four other members appointed by the President with the consent of the Commission on Appointments. Trustees hold office for three years except initial appointments with staggered terms.
Loans on the security of real estate cannot exceed 60% of the fair appraised value and total assets invested in such loans shall not exceed 70%.
They are declared inoperative or abolished, with rights of those already retired unaffected. Employees in local governments admitted to the System will be covered under this Act instead.
No insurance or retirement plan for employees shall be created by any employer without prior approval of the System. Also, no gratuity or benefit in excess of one month's salary per year of service or two years’ salary in aggregate may be paid.
They are entitled to the commutation of unused vacation and sick leave based on the highest rate of salary received at the time of retirement.
It is the duty of the employer to notify the employee at least sixty days in advance of the date of automatic separation from the service.