Question & AnswerQ&A (Act No. 3050)
Teachers, principals, supervisors, inspectors, superintendents, and other persons supervising and directing school work in the Philippine public schools, excluding purely clerical positions, lecturers, special instructors rendering provisional service, and non-citizens of the Philippine Islands or the United States, who have rendered at least twenty years of service.
The length of service excludes periods of separation from service and any leave without pay, except regular school vacation periods for classroom teachers with temporary civil service status. Continuity of service is not required except for the last three years prior to granting the pension.
The pension is a fraction of the average salary for the last three years before retirement, with a maximum salary cap of 4,000 pesos per annum: 0.4 for 20 years, 0.5 for 23 years, 0.6 for 26 years, 0.7 for 29 years, and 0.8 for 32 or more years.
Yes, a teacher with at least fifteen years of service who becomes totally disabled for service due to physical or mental disability (not arising from vicious habits, intemperance, or willful misconduct) may retire on an annuity of 0.2 of the average salary.
Fifty percent of the pension is paid to surviving acknowledged children (for up to 10 years, not over 18 years old or married) or, if no eligible children, to the surviving lawful spouse (not remarried).
Three percent of total pay or compensation appropriated for eligible employees by Insular, provincial, or municipal legislation is transferred annually to the Teachers Retirement and Disability Fund. Additionally, three percent is deducted from the monthly basic salary of each employee.
The Pension and Investment Board, composed of the Secretary of Public Instruction, Director of Education, Insular Treasurer, Insular Auditor, and three appointees (two must be entitled to the benefits), administers and invests the fund.
The total amount of salary deductions with four percent interest compounded annually is refunded to the employee or their heirs upon application.
The pension ceases after 10 years, when the employee returns to service, neglects to return when requested, or engages in gainful employment with compensation equal to or greater than the pension amount.
Yes, retirement is compulsory at age 65 for eligible employees who have rendered 18 or more years of service unless the teacher requests to remain and the Director of Education recommends favorable action.
Yes, the pension shall be discontinued during periods of reemployment in the government where salary equals or exceeds 50% of the pension.
Bonuses, allowances, overtime pay, or other additional compensation given beyond the basic salary fixed by law or regulation are excluded.