Annuity Computation and Salary Basis
- Annuity is computed as a fractional part of the average pay for the last three years of service prior to retirement.
- Maximum average pay considered is six thousand pesos per annum.
- For employees in service as of January 1, 1933, the average salary for pension computation shall not be less than the average salary for the three years preceding 1933.
- Employees must contribute three percent of their basic salaries (not less than the December 1932 salary rate) to the Teachers Pension Fund until retirement.
Annuity Rates Relative to Length of Service
- 20 years of service: 40% of average salary.
- 23 years of service: 50% of average salary.
- 26 years of service: 60% of average salary.
- 29 years of service: 70% of average salary.
- 32 or more years of service: 80% of average salary.
Retirement Age and Effectivity
- Sets minimum retirement age at 50 years for appointees from June 1, 1935.
- The Act takes effect on January 1, 1934.
Important Legal Concepts and Provisions
- Establishes a mandatory contribution scheme for pension fund sustainability.
- Provides clear definitions of eligible positions and exclusions.
- Aligns with previous amendments and related Acts to integrate pension provisions.
- Introduces minimum retirement age to regulate pension eligibility and fund liabilities.