Lowering gov’t employees’ retirement age

I am delighted to devote a prominent space in my column to bestow my humble praise and respect to a good friend of mine, Mr. Roy Lansang Carbungco, president Pampangueno Club of Melbourne Australia (PCMA) and alumnus of Holy Angel University High School Batch 1974, for sponsoring two students for SY 2020-2021 under the HAU’s Adopt-A-Scholar Program to help them realized their dreams amid the COVID19 pandemic. “It is the selfless acts of kindness of people like you that constantly remind humanity that God is very much alive…You have not only provided the material needs of our students but more importantly you have also taught them the values of compassion, generosity, gratitude, hope and love…We are each of us angels with one wing and we can only fly by embracing one another. Thank you so much for lending that wing and being a blessing to others!” – Dr. Luis Maria R. Calling, HAU University President.

Bro. Roy has initiated laudable projects for many years not only in Pampanga but all over the Philippines during natural disasters as PCMA president and head of the Emergency Relief Fund for Philippines. No pandemic and calamity can stop your good deeds. God bless your heart!

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ACCORDING TO the inventory of the Civil Service Commission, as of May 31, 2019 the total number of career and non-career government employees is 1,728,641. Over the past 41 years, the number of government employees grew at a faster rate than did the population. 

The most telling indicator of the period of rapid expansion of the bureaucracy is reflected in the growth rate of government’s cash disbursements for personal services.  Since 1992, growth in size has been arrested due to the combined effects of a number of right-sizing initiatives which include: the 5-year effectivity of RA 7041 or the Attrition Law; agency-specific streamlining programs; changes in budgetary allotments which funded only the filled positions; and to some extent, the exit of positions in the disposed or privatized units of government.

In the last 10 years, increases in number of personnel have been attributed to the population-based personnel teachers and policemen and to the local government units, the last due to devolution by the national government of certain functions and activities. Outside of those classes of personnel, the increase in national employees (NGAs) and those employed by government-owned or controlled corporations (GOCCs) has switched into a decelerating mode.

There is a pending measure in the upper house, Senate Bill No. 738, seeking to reduce the optional retirement age of all government employees from sixty (60) years to fifty-five (55) years, and the compulsory retirement age from sixty-five (65) to sixty (60) years. 

According to Senator Sherwin Gatchalian, principal author, lowering the compulsory and optional retirement age would allow government employees to fully reap the fruits of their retirement benefits after dedicating long years in government service. Furthermore, the retirees would be given a chance to venture into other fields of endeavor, making them self-sufficient and financially independent. 

He added this bill also seeks to address the unemployment problem in our country. An independent survey reveals that despite reports of economic growth, the Philippines still relatively has one of the highest unemployment rates in Asia. Based on the latest labor force survey (LFS) data, the official unemployment rate in the country is at 5.1% in April 2019. The latest available data from the IMF reveals that ASEAN economies are exhibiting lower unemployment rates, for instance: China (3.8%), Vietnam (2.2%), Indonesia (5.2%), Malaysia (3.3%), and Thailand (1.2%). If approved into law, and when the elder set retires early, there will be employment opportunities for more Filipinos, particularly the younger generation who are more adept in new methods and technological advancements which are now becoming essential in the workplace. 

The Government Service Insurance System Act of 1997 is amended and the retirement benefits shall be: (1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed period covered by the lump sum; or (2) cash payment equivalent to eighteen (18) months of his/her basic monthly pension plus monthly pension for life payable immediately with no five-year (5) guarantee.  (b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee at SIXTY (60) [sixty-five (65)] years of age with at least fifteen (15) years of service: Provided, That if he/she has less than fifteen (15) years of service, he/she may be allowed to continue in the service in accordance with existing civil service rules and regulations; PROVIDED, FURTHER, THAT ALL EMPLOYEES WHO, AT THE TIME OF EFFECTIVITY OF THIS ACT ARE SIXTY-ONE YEARS OF AGE AND ABOVE SHALL RETIRE UNDER THE FOLLOWING PHASES: (1) THOSE WITH IN THE AGES OF SIXTY-FOUR (64) TO SIXTY-FIVE YEARS (65) OLD SHALL BE RETIRED DURING THE FIRST YEAR OF IMPLEMENTATION OF THIS ACT; (2) THOSE WITH IN THE AGES OF SIXTY-TWO (62) TO SIXTY-THREE (63) YEARS OLD SHALL BE RETIRED ON THE SECOND YEAR OF IMPLEMENTATION, AND (3) THOSE WHO ARE SIXTY-ONE (61) YEARS OF AGE SHALL BE RETIRED ON THE THIRD YEAR OF IMPLEMENTATION.  In Section13-A, a member who retires from the service shall be entitled to the retirement benefits in paragraph (a) of Section 13 hereof: Provided, That: (1) he/she has rendered at least fifteen (15) years of service; (2) he/she is at least FIFTY-FIVE (55) [sixty (60) years] of age at the time of retirement; and (3) he/she is not receiving a monthly pension benefit from permanent total disability.

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