Press Release
September 3, 2023

Lowering of retirement age for gov't employees should be sustainable--Gatchalian

Senator Win Gatchalian said a proposed measure that would lower the compulsory and optional retirement age for government personnel should entail a careful analysis of how to make the scheme sustainable as majority of public workers are deemed supportive of the proposal.

"It seems everyone supports the reduction of mandatory and compulsory age retirement and everyone agrees that upon retirement, the basis of pension computation should be one salary grade higher," he noted at a public hearing conducted by the Senate Committee on Civil Service on the proposed measure as well as on a separate measure that calls for the automatic promotion of government officials and employees upon retirement from government service.

"The sustainability of such a pension design boils down to the computation of the life of the fund. Also, if you want to maintain the life of the fund, I want to know how much the government is going to subsidize in terms of equity as both proposals call for an early payout or a bigger payout," the senator explained, referring to the Government Service Insurance System (GSIS), which provides social security coverage for employees in the public sector. "That's why we will need the GSIS to enlighten us and provide us with the computations," he added.

As the chairperson of the Senate Committee on Basic Education, he has been receiving calls for legislation that would allow public school teachers to retire early.

At the hearing, Gatchalian also asked the Civil Service Commission (CSC) to study the pension systems in different countries and determine the best practices. "We need to find out the best practices being done in other countries in terms of civil servant retirement so we will have an idea of how other jurisdictions are doing this. Some trends are changing such as life expectancy which will affect pension schemes and we should study those very carefully," he said.

Gatchalian had earlier filed Senate Bill 944 which seeks to amend Republic Act 8291 or the Government Service Insurance Act of 1997 to lower the compulsory and optional retirement age of government employees from 65 to 60 and from 60 to 55, respectively. The measure has already been approved by the House of Representatives in January this year.

"If approved into law, 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," Gatchalian added.


Pagpapababa ng retirement age ng mga kawani ng gobyerno dapat 'sustainable' --Gatchalian

Sinabi ni Senador Win Gatchalian na kailangang pag-aaral nang maigi kung paano gawing sustainable ang panukalang batas na magpapababa sa compulsory at optional retirement age ng mga empleyado ng gobyerno, lalo na't maraming sumusuporta dito.

"Mukhang lahat ay sumusuporta sa panukalang bawasan ang mandatory at compulsory retirement age ng mga nagtatrabaho sa gobyerno at sumasang-ayon din ang marami na ang batayan ng computation ng halaga ng makukuhang pension oras na mag-retire na ay dapat mas mataas ng isang salary grade," sabi ni Gatchalian sa isang pagdinig sa Senado.

"Ang pagiging sustainable ng pension ay magdedepende sa pagkalkula ng buhay ng pondo. Kung nais nating mapanatili ang buhay ng pondo, dapat malaman kung magkano ang ibibigay na subsidiya ng gobyerno bilang equity dahil ang naturang panukala ay hahantong sa mas maaga o mas malaking pagbabayad ng pension," paliwanag ng senador, na tinukoy ang Government Service Insurance System (GSIS) na siyang nagbibigay ng social security coverage para sa mga empleyado ng pampublikong sektor. "Kailangang liwanagin ng GSIS ang computation para magkaroon tayo ng direksyon," dagdag niya.

Bilang chairperson ng Senate Committee on Basic Education, sinabi ni Gatchalian na maraming mga guro sa pampublikong sektor ang humihiling ng mas maagang pagreretiro sa serbisyo.

Sa pagdinig ng Senado, hiniling din ni Gatchalian sa Civil Service Commission (CSC) na pag-aralan ang mga pension system sa iba't ibang bansa at tukuyin ang mga best practices. "Kailangan nating alamin ang mga best practices sa ibang bansa pagdating sa pagreretiro ng mga kawani ng gobyerno upang magkaroon tayo ng ideya kung paano ito ipinapatupad sa ibang mga hurisdiksyon. Nagbabago kasi ang mga trend, tulad halimbawa ng life expectancy, na maaaring makaapekto sa pension scheme kaya dapat pag-aralan nang maigi," sabi niya.

Nauna nang inihain ni Gatchalian ang Senate Bill 944 na naglalayong amyendahan ang Republic Act 8291 o ang Government Service Insurance Act of 1997 para ibaba ang compulsory retirement age ng mga empleyado ng gobyerno mula 65 hanggang 60 at optional retirement age mula 60 hanggang 55. Ang panukala ay inaprubahan na sa Mababang Kapulungan noong Enero ng taon.

"Kung maisabatas ito, magkakaroon ng mas maraming oportunidad sa trabaho ang mas maraming Pilipino, lalo na ang mga nakababatang henerasyon na mas sanay sa mga makabagong teknolohiya na magagamit sa operasyon ng mga ahensya ng gobyerno," pagtatapos ni Gatchalian.

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