The proposed bill that seeks to lower the retirement age of government workers has reached the Senate plenary on Wednesday, September 20.
Senate Bill No. 2444 seeks to lower the optional retirement age for government employees from 60 to 56 years old.
Senator Ramon 'Bong' Revilla, the sponsor of the bill, said bill is in response to the cries of public employees and educators, who want to enjoy the benefits of their retirement days and benefits at an earlier time.
The bill would amend Section 13-A of the Government Service Insurance System (GSIS) Act of 1997, also known as Republic Act 8291.
“Huwag ipagkait sa ilan na maranasan ang benepisyo ng retirement life sa mas maagang panahon ano man ang kanilang dahilan dito ay marapat lang na galangin ito at pagbigyan. Ika nga, let them enjoy their pension while they are able to enjoy it," Revilla said.
Citing committee hearings and technical working group sessions, he added that the individuals covered by lowering the optional retirement age would not have an impact on the GSIS.
"Wala po tayong talo dito, when we lower retirement age, the GSIS will not die simply because their separation will mean the entry of new and younger Filipinos," the Senator said.
Revilla noted that the bill will strike a balance between giving the civil servants the option to retire earlier while ensuring that the actuarial life of the GSIS remains protected.
GSIS, however, said that any change in the benefit package has a corresponding fund liability that would be hard to sustain, given the present poor investment environment and successive increments in government employees’ monthly salaries.
"Because pension is based on the monthly salary, GSIS’s liability has also increased. GSIS is worried because the increase in its liability coincides with the decrease in the fund income brought about by low interest in the market. Interest rate in the market is beyond GSIS’s control. Previously earning double-digit rates, GSIS is earning merely single-digit rates now," said GSIS.
