Retirement Pay Flashcards
What article govern the Retirement Pay?
Article 302
Employees shall be retired upon reaching the age of sixty (60) years or more but not beyond sixty-five (65) years old [and have served the establishment for at least five (5) years]. TRUE OR FALSE?
TRUE
Who are the exempted employees from the retirement pay?
- Government employees; and
- Employees of retail, service and agricultural establishments/ operations
regularly employing not more than ten (10) employees.
What is the equivalent minimum retirement pay?
minimum retirement pay shall be equivalent to one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one (1) whole year.
“one-half month salary” shall include all of the following:
- Fifteen (15) days salary based on the latest salary rate;
- Cash equivalent of five (5) days of service incentive leave; and
- One-twelfth (1/12) or 2.5 daysbb of the thirteenth-month pay.
What equivalent number of days is one-half month pay?
22.5 days
The COLA shall not be included in the computation of retirement pay. True or False?
True.
Illustrate the computation for retirement pay
Minimum Retirement Pay = Daily Ratecc x 22.5 days x number of years in service
Other benefits may be included in the computation of the retirement pay upon agreement of the employer and the employee or if provided in the Collective Bargaining. True or False?
True
State the retirement benefit under CBA
Any employee can may retire or be retired to his or her employee upon reaching the age stipulated at the CBA or other contract. The retirement pay should not be lesser to the stipulated under RA 7641. Any deficiency, the employer should shoulder such responsibility.
State the Retirement Benefit of Workers who are paid by results?
the basis for the determination of the salary for fifteen (15) days shall be their average daily salary (ADS). The ADS is derived by dividing the total salary or earnings for the last twelve months reckoned from the date of retirement by the number of actual working days in that particular period, provided that the determination of rates of payment by results are in accordance with the established regulations.
Total Salary or earnings for the last twelve months/No. Actual working days in that period= ADS.
State the Retirement Benefit for Part-Time workers.
Part-time workers are also entitled to retirement pay of “one-half month salary” for every year of service under RA 7641 after satisfying the following conditions precedent for optional retirement: (a) there is no retirement plan between the employer and the employee and (b) the employee should have reached the age of sixty (60) years, and should have rendered at least five (5) years of service with the employer.
Computation; at least in proportion to the salary and related benefits.
Retirement benefit for the surface mine employee is reduce from 60 to 50 years old. True or False?
True. As long as they rendered 5 years of service to the organization.
State the retirement benefit for racehorse jockeys.
They can retire for at least 55 years of age as long as they rendered 5 years in the service and actively paying premium contribution to the SSS.
Under the law, upon optional or compulsory retirement, the employee is also entitled to the proportionate thirteenth-month pay for the calendar year and to the cash equivalent of accrued leave benefits. TRUE OR FALSE?
TRUE