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The
original PERAA Plan prior to enactment of R.A. 7641. Adequate
for schools joining PERAA upon institutional establishment and
for schools giving immediate employee coverage.
Employer's
Contribution is fixed and expressed
as a percentage of the employee's basic monthly salary at a minimum
of 3.25%.
Employee's
Contribution is optional.
Amount
of Retirement Benefit varies, depending
on accumulated contributions and net earnings at retirement.
Other
Benefits
Primary
: Disability, Death, Resignation
Auxiliary:
Multi-Purpose Loan, Minimum Death
Benefit (MDB), Group Life
Insurance Plan (optional)
DCP
+ Reserve Fund (RF)
In
addition to premiums under DCP, the employer puts up a Reserve
Fund (RF), amortized over a period of time. RF is a special employer's
account intended to fund employer's Retirement Benefit liability
in case the Accumulated Value (AV) from DCP will not suffice.
It is determined through an Actuarial Valuation.
Amount
of Retirement Benefits is sufficient to cope with R.A.
7641 requirements.
DCP
+ Past Service Benefits (PSB)
On
top of regular premiums under DCP, the employer adds additional
premiums for past services rendered to the school prior to PERAA
participation. The PSB is based on a formula adopted by the school
(Ex. 4% x Basic Monthly Salary x No. of Months Credited Past Services).
Amount
of Retirement Benefits may suffice, may exceed or may
be less than R.A. 7641 requirements.
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