Republic Act 6653

1. Republic Act No. 6683
NANETH D. OBRERO

2. Goals:
 Discuss Republic Act 6683 (Coverage, Early
Retirement & Voluntary Separation Benefits, &
Additional Benefits)
Be familiar with the GSIS Act Of 1997
Know how to compute the Basic Monthly Pension
(BMP)

3. Republic Act No. 6683
An act providing benefits for early retirement and voluntary
separation from the government service, as well as involuntary
separation of civil service officers and employees pursuant to
various executive orders authorizing government reorganization
after the ratification of the 1987 constitution appropriating funds
therefore, and for other purposes
Approved, December 2, 1988

4. SECTION 1. Declaration of Policy
It is hereby declared the policy of the State to promote economy,
efficiency and effectiveness in government operations,
particularly in the delivery of essential public services.
For this purpose, the State shall endeavor to streamline
government functions and to maintain necessary positions through
an appropriate retirement and voluntary separation scheme.

5. SEC. 2. Coverage
ALL appointive officials and employees of the
National Government
(Including government-owned or controlled corporations,
as well as the personnel of all local government units)

6. SEC. 2. Coverage
The benefits authorized under this Act shall apply to:
 all regular, temporary, casual and emergency employees,
regardless of age, who have rendered at least a total of two (2)
consecutive years of government service as of the date of
separation.
*Uniformed personnel of the Armed Forces of the Philippines
including those of the PC-INP are excluded from the coverage of
this Act.

7. SEC. 3. Early Retirement and Voluntary
Separation Benefits
All appointive government officials and employees who
voluntarily elect in writing to be retired or separated from the service
and whose retirement has been approved shall be paid retirement
or separation benefits equivalent to one and one-fourth (1 1/4)
month basic salary for every year of their respective government
services.

8. SEC. 3. Early Retirement and Voluntary
Separation Benefits
OR the nearest equivalent fraction favorable to them on
the basis of the highest salary which they respectively
received in the course of their employment in the
government.

9. SEC. 3. Early Retirement and Voluntary
Separation Benefits
Provided:
That in no case shall the benefit to be paid to any appointive
official or employee be less than Ten thousand pesos
(P10,000):
 That any appointive official or employee who has previously
been found guilty in an administrative proceeding and whose
rank or salary has been reduced shall be paid on the basis of his
last salary.

10. SEC. 4. Additional Benefits
They shall be entitled to the return of GSIS personal
contributions pertaining to retirement only and the payment
of the corresponding share of the government with interest
earned pursuant to existing rules and regulations of the
Government Service Insurance System.

11. SEC. 4. Additional Benefits
Commutation of unused vacation and sick leaves (Provided,
however, That should the government agency concerned lack the
necessary funds for this)
Those who retire after rendering government service for
thirty-one (31) years or more shall be entitled to an additional
ten percent (10%) of the amount corresponding to what they will
receive from the thirty-first year onward.

12. SEC. 5. Exclusiveness of Benefits
An appointive official or employee who:
 Retires or elects to be separated from the
service shall not be eligible for optional
retirement.

13. Period of Applicability and Effectivity of
the Incentive Benefits.
Applications for early retirement and voluntary separation
benefits hereunder shall be entertained only if filed within a
period of two (2) months from the issuance of the rules and
regulations for the implementation of this Act pursuant to Section
13 hereof.
The oldest employees who are the most senior in the service
will be given priority in the payment of benefits.

14. Funding
For national government employees:
The sum of Three billion pesos, or so much thereof as may be
necessary, is hereby authorized to be appropriated out of any
funds in the National Treasury not otherwise appropriated for
payment of early retirement and separation incentive benefits
authorized in this Act.

15. Funding
For employees of government-owned or controlled
corporations,
The benefits herein granted shall be paid from the
internal funds of the respective corporations.

16. Funding
For employees of local government units:
The benefits shall be paid from available funds of
each local government unit.

17. Penalties
Any government official who forces an employee to retire or
be separated from government service, upon conviction, be
punished by a fine not exceeding One thousand pesos
(P1,000), or by imprisonment not exceeding six (6)
months or both such fine and imprisonment in the
discretion of the court.

18. RETIREMENT UNDER REPUBLIC
ACT 8291(GSIS ACT OF 1997)
Retirement under RA 8291 may be availed by those who have
rendered at least 15 years of service in government and must be at
least 60 years of age upon retirement. Also, they must not be
permanent total disability pensioners.
The last three years of service need not be continuous under RA 8291.

19. Retirement Packages
1.Option 1: 5-Year Lump Sum and Old Age Pension
Under this option, retirees can get their five-year pension in advance.
The lump sum is equivalent to 60 months of the Basic Monthly Pension
(BMP) payable at the time of retirement. After five years, retirees will
start receiving their monthly pension.
2.Option 2: Cash payment and Basic Monthly
In option 2, retirees will receive a Cash Payment equivalent to 18 times
the Basic Monthly Pension (BMP) payable upon retirement and then a
monthly pension for life, payable immediately after retirement date.

20. BMP is computed as follows:
1.Option 1: 5-Year Lump Sum and Old Age Pension
Under this option, retirees can get their five-year pension in advance.
The lump sum is equivalent to 60 months of the Basic Monthly Pension
(BMP) payable at the time of retirement. After five years, retirees will
start receiving their monthly pension.
2.Option 2: Cash payment and Basic Monthly
In option 2, retirees will receive a Cash Payment equivalent to 18 times
the Basic Monthly Pension (BMP) payable upon retirement and then a
monthly pension for life, payable immediately after retirement date.