7/17/2019 Portability Law

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 Admittedly most of us move from one job to another in a move to find a higher pay and better career. Manygovernment retirees have had a history in the private sector. In certain cases, they don’t have enough years of service in the government to qualify to any GSIS retirement program.

ith the help of !A "#$$, other%ise &no%n as the 'ortability (a%, government retirees %ho do not meet the requirednumber of years provided under ') **+# and !A -$* can still avail of retirement and other benefits.

nder the scheme, you may combine your years of service in the private sector represented by your contributions tothe Social Security System /SSS0 %ith your government service and contributions to the GSIS to satisfy the requiredyears of service under ') **+# and !A -$*.

1o%ever, if you have satisfied the required years of service under the GSIS retirement option you have chosen, you%ould not be allo%ed to incorporate your contributions to the SSS anymore for availment of additional benefits.

In case of death, disability and old age, the periods of creditable services or contributions to the SSS and GSIS shallbe summed up to entitle you to receive the benefits under either ') **+# or !A -$*.

If qualified under !A -$*, all the benefits shall apply 2342'5 the cash payment. 5he reason for this is that the'ortability (a% or !A "#$$ provides that only benefits common to both Systems /GSIS and SSS0 shall be paid. 4ash

payment is 675 included in the benefits provided by the SSS.

!etirement under ') **+# can only be availed by those %ho %ere in service after May 8*,*$"" but prior to 9une -+,*$$". A retiring member under ') **+# is entitled to either 7ld Age 'ension or 4ash 'ayment, depending on his ageand years in service.

Packages in store for you

Option 1: Basic Monthly Pension (BMP)

5his option is available for retirees %ho are at least #: years old and have rendered *; years of service. 5hosequalified under this option %ill receive a <asic Monthly 'ension /<M'0 guaranteed for five /;0 years. After the ;=year guaranteed period, he>she %ill receive a basic monthly pension for life. A retiree may also request to convert his>her 

five=year guaranteed <M' into a lump sum subject to a si? /#0 percent discount rate.

The BMP is computed as follows:

a0 If period %ith premium payments is less than *; years@ <M' .8"; ? !AM4

b0 If period %ith premium payments is *; years or more@ <M' .:-; ? !AM4 ? (ength of service

!AM4 stands for !evalued Average Monthly 4ompensation. It is computed as follo%s@ !AM4 AM4B '*+:.:: 5hema?imum !AM4 is '8,*+:.::

In either case, the <M' shall not e?ceed $:C of the Average Monthly 4ompensation /AM40.

The AM is computed as follows:

 AM4 5otal compensation received during the last 8 years

5otal number of months during %hich compensation %as received

Option !: ash Payment (P)

5his option is available to retirees %ho are at least #: years old and have rendered at least 8 years but less than *;years of service. Dualified under this mode option %ill receive a cash payment that is equal to *::C of the Average

7/17/2019 Portability Law

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Monthly 4ompensation /AM40 for every year of service.

The ash Payment is computed as follows:

4' 5otal monthly contributions paid ? AM4