Legal authority and covered pension laws
- The grant of pension adjustment applies to pensioners under R.A. 8291, P.D. 1146, and R.A. 660.
- The entitlement rules also address pensioners under R.A. 7699 for pension portability and pro-rata pensions.
- The resolution expressly references entitlement determination for pensioners connected to R.A. 8291, P.D. 1146, R.A. 660, and R.A. 7699.
Policy justification for the increase
- The Board notes that granting the 2.0% increase based on the 2005 level results in an increase in actuarial life of at least 10 years.
Who is entitled to the 2.0% increase
- Pensioners entitled to the pension adjustment are those under R.A. 8291, P.D. 1146, and R.A. 660 who are receiving their regular monthly pensions.
- Entitled pensioners must remain qualified to their corresponding pensions and must be living as of January 1, 2008.
- Entitled pensioners include old age/retirement pensioners, including joint-life retirees.
- Entitled pensioners include disability pensioners.
- Basic survivorship and dependent pensioners are not entitled to the pension adjustment.
- Joint-life beneficiaries are not entitled to the pension adjustment.
- Retirees who received in advance their guaranteed pensions as lump sums and are still within their guaranteed period are not entitled to pension increases during the guaranteed period.
- Retirees who resuming their monthly pensions within calendar year 2008 receive pension increases only after 2008.
- Retirees of calendar years 2006 to 2008 who availed of 18 times the basic monthly pension as lump sum plus immediate monthly pension receive pension increases only if they have been regular pensioners for at least five (5) years.
- Separated Members who received cash payment of 18 times the basic monthly pensions (BMP) and start monthly pensions within calendar years 2007 and 2008 receive pension increases only if they have been regular pensioners for at least five (5) years.
- Pensioners under R.A. 7699 receiving regular pro-rata pensions, including those receiving pro-rata pensions as a result of the Premium-Based Policy, are not excluded from eligibility categorically; instead, the minimum pension rule does not apply to them (see Minimum Pension below).
Amount of the pension increase
- The resolution grants a 2.0% increase to Old-Age/Retirement/Disability pensions.
- The resolution sets a Minimum Pension amount of PHP 2,500.00.
- The Minimum Pension does not apply to the pro-rata pension of pensioners under R.A. 7699 and R.A. 8291 as a result of the Premium-Based Policy.
Budget and actuarial funding allocations
- The resolution allocates an Additional Monthly Cash Outlay of PHP 19.49 M.
- The resolution allocates an Additional Annual Cash Outlay of PHP 233.83 M.
- The resolution requires an Additional Reserve Requirement of PHP 1.369.31 M.
- The resolution reflects resulting Average Monthly Pensions for Old-Age/Retirement/Disability of PHP 7.876.75.
Approval and adoption details
- The resolution is adopted on December 12, 2007.
- The resolution adoption is identified with Board Meeting No. 22.