Common use of Optional Retirement Clause in Contracts

Optional Retirement. At his option, an employee may retire upon reaching the age of fifty-five (55) or more if he has served for at least five (5) years; provided, however, that any employee who is under fifty-five (55) years old may retire if he has rendered at least ten (10) years of continuous service. Such an employee shall be entitled to a retirement benefit of 1/2 month salary plus three (3) days multiplied by the number of years in service. For purposes of computing compulsory and optional retirement benefits and to align the current retirement plan with the minimum standards of Art. 287 of the Labor Code, as amended by R.A. 7641, and Sec. 5 (5.2) of its implementing rules, “1/2 month salary” means 22.5 days — salary, exclusive of leave conversion benefits. Article 287 of the Labor Code, as amended by R.A. 7641, provides —

Optional Retirement. At his option, an employee may retire upon reaching the age of fifty-five (55) or more if he has served for at least five (5) years; providedProvided, however, that any employee who is under fifty-five (55) years old may retire if he has rendered at least ten (10) years of continuous service. Such an employee shall be entitled to a retirement benefit of 1/2 ½ month salary plus three (3) days multiplied by the number of years in service. For purposes of computing compulsory and sand optional retirement benefits and to align the current retirement plan with the minimum standards of Art. 287 of the Labor Code, as amended by R.A. 7641, and Sec. 5 (5.2) of its implementing rules, “1/2 month salary” means 22.5 days — salary, exclusive of leave conversion benefits. Article 287 of the Labor Code, as amended by R.A. 7641, provides —–