Bills on new paying scheme of retirement benefits filed

Senator Sergio Osmeña III and Cebu City north district Rep. Raul del Mar, in two separate bills filed at the Upper and Lower Houses, respectively, introduced a new mode of paying retirement benefits through the gratuity retirement mode, a one-time payment to be made by the last employer of the retiree.

The gratuity retirement mode was intended to accommodate younger government employees who have not as yet reached the minimum number of years of service required for them to qualify for the old-age pension for life retirement mode.

Under Republic Act 1616, the retirement mode is applicable if the beneficiaries were in service on or before May 31, 1977. Also under RA 1616, the retiree must have rendered at least 20 years of service regardless of age and employment status.

However, because of the ambiguous phraseology of RA 1616, its application being restricted to younger employees as intended, the law covered government employees who are already legally qualified to retire under the old-age pension for life retirement mode.

"This ambiguity became prejudicial to the latter because they were granted gratuity when they were already qualified to receive old-age pension for life," the two bills said.

The two legislators added that the passage of the bills is urgent saying that the retirees who were prejudiced under RA 1616 shall be compensated by allowing them to convert their mode of retirement to the more beneficial old-age pension for life retirement with survivorship benefits.

Regional president of Federation of Senior Citizens Associations of the Philippines Felix Abella is calling on all members to a meeting on December 16 to rally support for the bills of the two Cebuano lawmakers.

The meeting will be at the multipurpose hall of the Cebu City Sports Center at 2 p.m. - Garry B. Lao