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[ 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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.

SEC. 15. All acts  and parts of  acts  inconsistent- with this Act are hereby repealed.

SEC. 16. This Act shall take effect on its approval.

Approved, March 10,  1922.
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