Photo courtesy of House of Representatives of the Philippines/Facebook.
Former government personnel who leave public service without enough years to qualify for retirement could get a chance to complete their Government Service Insurance System contributions even after their employment ends.
The House of Representatives approved House Bill No. 10744 on third and final reading Tuesday, with all 220 lawmakers present voting in favor of the measure.
Under the proposal, the option would apply to separated members of the non-career service who have not accumulated the 15 years of creditable government service required for retirement benefits.
Eligible former workers could continue contributing to GSIS on their own until they satisfy the minimum service requirement. Unlike active employees, however, they would have to pay both the personal and government portions of the premium.
The measure seeks to revise Republic Act No. 8291, or the GSIS Act of 1997, to recognize voluntary payments from qualified non-career members for purposes of retirement and other applicable benefits.
GSIS would retain authority over how the arrangement is implemented, including its actuarial, administrative and documentary requirements. It could also allow contributions to be calculated using a lower salary grade or compensation level to make payments more manageable for former workers.
The proposed change could particularly benefit personnel whose government appointments do not provide the same employment continuity as career positions. These include certain temporary, co-terminus and project-based workers whose service ends after a prescribed period or alongside the tenure of their appointing authority.
The 15-year requirement has previously raised concerns because some public servants can complete several terms or years in government yet leave without qualifying for a pension. In 2023, then-Senator Aquilino “Koko” Pimentel called attention to local officials and staff who could serve as long as nine years but still fall short of the GSIS requirement.
HB 10744 would not automatically grant a pension to former non-career employees. Instead, it would give qualified members a mechanism to continue paying premiums after separation and eventually accumulate the service credits necessary to become eligible for retirement benefits.