Legal Opinion PERAA
Different Types of PERAA Benefits and the Requirements
WHY WE DO WHAT WE DO
Liza H. Fadol, Vice President
What are the different types of PERAA benefits and the requirements in applying for benefits?
TYPES OF BENEFIT
Benefit will depend on the circumstances/ status when the employee separates from the school.
- Retirement Benefit (Blue Form) — Benefit for employees who retired from the school and the retirement is funded through PERAA.
“There is no such thing as retirement in PERAA.”
- Repurchase or Separation-from-Service Benefit (Green Form) — Given to employees who resigned from the school
- Repurchase — the vesting policy of the school is applied; with possibility of forfeiture of the employer’s share depending on the vesting policy of the school.
- Separation-from-Service — partial withdrawal of account at the option of the employer.
- Separation-from-Service (Total) — Benefit for employees who were terminated by the school. If without cause — the school may use the employer’s share to pay the separation pay of the employee. If with cause — the employer’s share is forfeited in favor of the school.
- Death benefit — benefit given to beneficiaries
- Disability benefit — benefit given to the member in case the member separates from the school due to disability.
REQUIREMENTS IN APPLYING FOR BENEFITS
Identification of the rightful member/ beneficiary
Objective is to determine the rightful member/ beneficiary qualified to apply for benefits as specified in the school’s retirement plan resolution.
- Application form signed by the member and approved by the authorized signatory of the school. (By signing and approving the application form, the identification of the member and beneficiary is confirmed by the signatory of the school and the application for benefit is validated for processing of PERAA.)
- Copy of valid Identification Cards (ID)—At least one government issued cards such as SSS, TIN, Passport, PRC License, Senior Citizen ID, etc. and school ID
Identification of the Type of Benefit of the Member
Objective is to type of benefit that will be given to the member as provided for in the PERAA Plan Agreement and the Retirement Plan Resolution of the school
- Certification from the school that the employee has resigned/ separated/ terminated by the school or certification from the school that the employee/ member is officially retired from the school.
As provided for in BIR Revenue Regulation 1-68 and RA 4917, the certification, together with the service and age requirement, will determine whether the employee’s retirement benefit will qualify for the tax exemption of the benefit.
- Certificate of Employment indicating the first and last day of service with the school. (In case of resignation benefits under Repurchase Benefit, the vested benefit will be determined based on the years of service as specified in the certificate of employment.)
Determination of Age
Objective is to determine the age of the member if he/she is qualified to apply for benefits as specified in the Retirement Plan Resolution of the School. This will also determine if the member is qualified for tax exemption (together with the service requirement), in case of retirement benefit.
- Photocopy of Birth Certificate issued by the Local or the Local Civil Registry Office that no records of birth are available AND an affidavit of Birth attested by two disinterested persons.*
Upon Completion of Benefit
- Notarized Release and Quitclaim Form
- Special Power of Attorney if business is to be transacted by a representative, together with two (2) valid Identification Cards (with picture and signature) of the member and representative.
If payment of benefit is through a Reserve Fund
- Computation of Benefits from the school
- Authorization from the school, if the check will be claimed by the member from PERAA personally.