Senator Win Gatchalian has a filed a bill to reduce the optional and compulsory retirement ages of government workers by five years.
Senate Bill No. 738 seeks to reduce the optional retirement age of all government employees from 60 to 55 years, and the compulsory retirement age from 65 to 60 years.
“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,” Gatchalian said.
“Furthermore, the retirees would be given a chance to venture into other fields of endeavor, making them self-sufficient and financially independent,” he added.
The lawmaker also said his proposed measure also seeks to address the unemployment problem in the country, stressing that that despite reports of economic growth, the Philippines still relatively has one of the highest unemployment rates in Asia.
“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,” he said.
Gatchalian’s bill amends sections 13(b) and 13-A of Republic Act No. 8291, or the Government Service Insurance Act of 1997 effectively lowering the optional and compulsory retirement ages to 55 and 60 years, respectively.
SBN 738’s amendment to the GSIS Act also implements a phased retirement for government employees aged 61 years and above.
Workers within ages of 64 to 65 years shall be retired within the first year of implementation of the law. Those aged 62 to 63 years shall be retired on the second year; while those aged 61 years shall be retired on the third year of the implementation of the law.