[ Act No. 3050, March 10, 1922 ]
AN ACT TO PROVIDE ANNUAL PENSIONS FOR TEACHERS EMPLOYED IN THE PHILIPPINE PUBLIC SCHOOLS; TO APPROPRIATE MONEY AND REGULATE THE DISBURSEMENT THEREOF
Be it enacted by the Senate and House of Representatives of the Philippines in
Legislature assembled and by the authority of the same:
Section 1. Beginning on the first day of April next following the date of the approval of this Act, all teachers, principals, supervisors, inspectors, superintendents, and other persons employed in supervising and directing the school work of teachers in the public school service of municipalities, provinces, and the Insular government of the Philippine Islands, whose positions are not classified as purely clerical, without regard as to status in the classified civil service of the Philippine Islands, who have on that day, or who shall have on any date thereafter, rendered at least twenty years of service as computed in section seven of this Act, shall be eligible for retirement on an annuity as provided in section two hereof: Provided, That lecturers and other special instructors who render provisional service shall not be eligible for pension nor shall such services be counted as teaching service in computing the length of service of a teacher; Provided, further, That the provisions of this Act shall not include persons who are not citizens of the Philippine Islands or of the United States of America.
Section 2. For the purpose of determining the amount of annuity which a retired employee shall receive the following classifications and rates shall be established upon the basis of the annuity consisting of a fractional part of the average pay, salary or compensation, for the three years of service rendered prior to the granting of the pension with maximum average pay, salary or compensation in no case exceeding four thousand pesos per annum. The annual annuity as computed under this Act shall be four-tenths of the aver- age salary for twenty years of service; five-tenths of the average salary for twenty-three years of service; six-tenths of the average salary for twenty-six years of service; seven-tenths of the average salary for twenty-nine years of service; eight-tenths of the average salary for thirty-two or more years of service.ℒαwρhi৷
Section 3. All eligible persons shall be automatically insured and shall upon their own volition apply for the pension status under the provisions of this Act, advising the Director of Education of their intention to retire with pension at least three months prior to the effective date, and shall render service until the close of a school year unless retired at the expiration of such accrued leave*of absence with pay as entitled to, or for reasons of unfitness for service: Provided, That the Director of Education may require continued service until the retiring employee can be relieved by a competent person, making the effective date of retirement not later than six months after the date requested.
Section 4. An employee to whom this Act applies who has rendered not less than fifteen years of service as computed is in this Act, and who becomes totally disabled for useful and efficient service regardless of the age of the employee upon his own application approved by the Director of Education or upon the request of the Director of Education, may be retired for unfitness for service due to total physical or mental disability, on an annuity of two-tenths of his computed average salary under the provisions of this Act if the disability has not been due to vicious habits, intemperance, or wilful misconduct of the employee: Provided, That the unfitness shall be certified to by both the Director of Education and a government health officer, and the person so retired shall present himself personally during the months of January and July of each calendar year to a public health officer during the period he receives a pension for unfitness for service to determine his fitness to return to the service and to cease receiving the pension benefit. Pension for unfitness for service shall not be granted for a longer period than ten years and shall cease when the employee returns to the service or neglects to return to the service when requested to do so, or engages in another gainful occupation with compensation equal to the amount of pension. In all cases where the annuity is discontinued by causes other than death or the return of the employee to the service before the annuitant has received a sum equals to the total amount of his or her contributions with accrued interest, the difference shall be paid to the retired employee, upon application therefor in such form and manner as the "Pension and Investment Board" may direct.
Section 5. Upon death of an employee entitled to the provision of this Act who is rendering service at time of death or who is retired on pension, he shall have fifty per cent of the pension to which the employee would be entitled if alive, paid to surviving acknowledged children of his or her issue for a period of not to exceed ten years, or to the surviving lawful husband or wife if there are no children eligible under the provisions of this Act to receive the same: Provided, That pension funds shall not be paid to children over eighteen years of age or to married children, or to a remarried surviving wife or husband.
Section 6. All employees eligible for the provisions of this Act shall receive full credit for service rendered in the Philippine public school system prior to the date this Act shall become operative, and the date of the first day of service shall be the date when such service first began and continuity of service shall not be required in computing the length of service except for the last three years prior to the granting of the pension.
Section 7. In computing the length of service for the purposes of this Act all periods of separation from the service and so much of any leave as is without pay, except regular school vacation periods for classroom teachers with temporary civil service status, shall be excluded.
Section 8. Beginning on the first day of the fiscal year following the approval of this Act and annually thereafter there shall be included in the total sums appropriated for or pay compensation of employees to whom this Act applies a sum equal to three per centum of the total sum for pay or compensation made by Insular, provincial, or municipal legislation, and the said sum shall be transferred on the books of the Insular Treasurer to the credit of a special fund to be known as the "Teachers Retirement and Disability Fund," and said fund is hereby appropriated for the payment of annuities, allowances, and expenses as provided in this Act, and for investment by the "Pension and Investment Board" created in section twelve of this Act. The "Pension and Investment Board" is hereby directed to invest from time to time in interest-bearing securities of the government of the Philippine Islands or of the United States of America such portion of the fund as cannot be immediately required for the payment of annuities and other expenses incident to carrying on the provisions of this Act.
Section 9. The Insular Treasurer is hereby authorized and empowered in carrying out the provisions of this Act to supplement the direct government contribution with moneys resulting from fines, leaves of absence without pay, unfilled positions, and other salary savings for positions the holders of which are or will be entitled to the provisions of this Act, and with donations, gifts, legacies, or bequeathes of individuals, corporations, or organizations.
Section 10. Beginning on the first day of the third month next following the approval of this Act and monthly thereafter there shall be deducted and withheld from each monthly basic salary, pay or compensation of each employee to whom this Act applies a sum equal to three per centum of such employee's monthly basic salary, pay or compensation. The Insular Treasurer shall cause the said deductions to be withheld from all specific appropriations for the particular salaries or compensations from which the deductions are made and from all allotments out of lump sum appropriations for payment of such salaries or compensations for each fiscal year, and said sums shall be transferred on the books of the Insular Treasurer to the credit of the "Teachers Pension and Disability Fund" created in this Act.
Section 11. In the case of an employee to whom this Act applies becoming absolutely separated from the service by death or otherwise before becoming eligible for retirement on an annuity the total amount of deductions of salary, pay, or compensation, with accrued interest computed at four per cent per annum, and compounded on June thirtieth of each fiscal year, shall, upon application, be returned to such of employee or his heirs in one lump sum: Provided, That in case of death, if there has been no demand upon the Director of Education or the Insular Treasurer by a duly appointed executor or administrator, the payment shall be made after the expiration of three months from date of death, to such person or persons as may appear to be entitled to the proceeds of the estate and such payment may be a bar to recovery by another person.
Section 12. There is hereby constituted for the enforcement of this Act a "Pension and Investment Board," composed of the Secretary of Public Instruction, who shall be chairman, ex-officio, the Director of Education, the Insular Treasurer, the Insular Auditor, and three persons appointed by the Governor-General, two of whom shall be persons entitled to the benefits of this Act. The "Pension and Investment Board" shall during the month of July of each fiscal year submit to the Governor-General a report of operations under the provisions of this Act and shall recommend to the Governor-General for including in the Insular budget for the fiscal year to follow, a sum sufficient to pay the retirement allowances and other expenses for that fiscal year whenever the funds made available by the operation of sections eight, nine, and ten of this Act are insufficient.
Section 13. All pensions shall be paid in quarterly installments on January first, April first, July first, and October first of every fiscal year by government warrant or other means which will guarantee safe delivery with no reduction in the pension for exchange or for transmitting the same. Persons receiving lifelong annual pensions from the Philippine Government or from any branch of the United States Federal Government shall have the amount of the same deducted from the pension they receive through the operation of this Act. Persons reemployed in the Government service and receiving salary, pay or compensation for services rendered as an employee of any branch of the Government of these Islands, including municipalities and provinces in the Philippines shall have the pension discontinued for such periods of employment in each case where the pay, salary or compensation is equal to or greater than fifty per centum of the pension received under the provisions of this Act.
All records of manipulations of the "Teachers Pension and Disability Fund" and disbursements from the same and all accounts of payments made out of said fund shall be kept and made by the Director of Education, under the supervision of the "Pension and Investment Board."
The term "basic salary, pay or compensation" whenever used in this Act shall be so construed as to exclude ™ from the operation of this Act the provisions of Act Numbered Twenty-five hundred and eighty-nine, all bonus, allowances, overtime pay, or other compensation given in addition to the basic pay or other compensation of the position as fixed by law or regulation.
Section 14. All eligibles who have attained the age of sixty- five years or who shall attain that age, and who have rendered eighteen years or more of service as computed under the provisions of this Act shall have the retirement made compulsory at the age of sixty-five except when the teacher requests to remain in the service and the Director of Education specifically recommends favorable action.
Section 15. All acts and parts of acts inconsistent- with this Act are hereby repealed.
Section 16. This Act shall take effect on its approval.
Approved, March 10, 1922.
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