Gratuity Schedule Based on Continuous Service
- At least 10 years: 33⅓% of last salary
- 9 to less than 10 years: 30% of last salary
- 8 to less than 9 years: 26⅔% of last salary
- 6 to less than 7 years: 23⅓% of last salary
- Payment options include the Philippines or the United States in monthly installments
- Gratuity payable to the estate upon death
Election of Benefits and Exclusions
- Employees entitled to other pension fund benefits must choose which benefit to avail
- If this Act’s benefit is chosen, amounts deducted for other retirement funds must be refunded
- Certain categories excluded: employees not devoting full time, professionals practicing for profit, military detail officers, and those already receiving US government pensions
Effect of Retirement on Vacant Positions
- Vacancies caused by retirements are generally abolished except for certain high-ranking judicial and bureau positions
- Replacement positions may be authorized upon request and recommendation but salary allocations limited to two-thirds of the abolished position’s salary
- Salaries of successor employees generally reduced to two-thirds except for Supreme Court Justices and First Instance judges
- Salary floor maintained at assistant director/chief clerk levels to prevent excessive reduction
Protection of Retirees from Future Salary or Position Changes
- Reductions in salary or abolition of positions after retirement do not affect retirees’ gratuity or accrued leave
- Retirees insisting on resignation despite being told their services are necessary forgo gratuity entitlement
Appropriations and Funding
- Provision and appropriation of necessary funds out of the Insular Treasury
- No fund setup until the sum necessary for the current year is determined
Conditions on Reemployment
- Retired persons cannot be reappointed or reemployed without refunding full retirement gratuities
- Post-reemployment salary limited to that before retirement for at least three years
- Reemploying retirees waive future claims under this Act
Effectivity and Application Deadline
- Act effective immediately
- Applies only to officials/employees applying for retirement on or before June 30, 1916
- Governor-General may defer retirement approval due to service exigencies but must allow retirement at a later date
- Administrative orders may be issued to manage appropriations related to vacancies