Teachers' Pension Act of 1922

Annuity is a fractional part of the average salary over the last 3 years prior to retirement.
Maximum salary considered is ₱4,000 per annum.
Rates vary by years of service:
- 20 years: 40% of average salary
- 23 years: 50%
- 26 years: 60%
- 29 years: 70%
- 32 years or more: 80%

Eligible employees must notify the Director of Education at least 3 months before retirement.
Employees must serve until the end of the school year unless using accrued leave or retired for unfitness.
Director of Education may require service up to 6 months beyond notice to find replacement.

Employees with 15 or more years may retire early due to total disability (physical or mental).
Disability pension is 20% of average salary.
Disability must not be due to misconduct or intemperance and requires certification by Director of Education and a government health officer.
Retiree must submit to fitness evaluations twice yearly.
Pension for disability limited to 10 years and may be discontinued if the retiree returns to work or earns equivalent income.
Remaining contributions with interest payable if pension ceases before total contributions are received.

Upon death of an eligible employee, 50% of the pension is paid to surviving acknowledged children for up to 10 years.
If no children are eligible, surviving lawful spouse receives the benefit.
Pension benefits do not extend to children over 18 years old, married children, or remarried spouses.

Full credit given for service rendered before this Act's operative date.
Continuity of service not required except for the last 3 years before retirement.
Periods of separation and unpaid leave counted out except regular school vacations for temporary civil service teachers.

Starting fiscal year after approval, 3% of total pay appropriated for teachers is credited to the "Teachers Retirement and Disability Fund."
Fund used to pay annuities and related expenses.
Pension and Investment Board invests fund in government securities when not used immediately.

Government may supplement the fund from fines, leaves without pay, unfilled positions, donations, gifts, legacies, or bequests.

Monthly deduction of 3% of basic salary from employees' pay beginning 3 months after approval.
Deductions credited to the "Teachers Pension and Disability Fund."

If separation occurs before eligibility, total deductions plus 4% compounded interest are returned in lump sum.
In death cases, payment made to rightful heirs if no executor or administrator claims within 3 months.

Formation of the Pension and Investment Board including Secretary of Public Instruction (chair), Director of Education, Insular Treasurer, Insular Auditor, and three Governor-General appointees.
Board reports annually and recommends budget requirements.

Paid quarterly on specified dates by government warrant or safe method.
Prior pensions from Philippine or U.S. federal government deducted from this pension.
Pension suspended if reemployed with pay equal or exceeding 50% of pension.
Records kept under supervision of Pension and Investment Board.
Basic salary excludes bonuses, allowances, and overtime.