SECTION 1. The Management assures Union members a retirement benefit package equivalent to One Hundred Thirty Five Percent (135%) of their current monthly basic salary for every year of service upon turning 60 years old (mandatory retirement) or upon completing twenty (20) years of service in the University, following applicable laws on taxation on retirement and separation (optional retirement).

SECTION 2. The Management agrees that a Union member who dies or becomes permanently incapacitated, either mental or physically, after reaching 10 years of service but before sixty (60) years old shall be entitled to the separation pay computation of PERAA.

The retirement benefits of the Union members (both mandatory and optional) shall be computed on the basis of their latest monthly basic salary multiplied by their number of years in the service. A fraction of at least six months shall be computed as one year.

SECTION 3. In case a Union member is declared unfit to continue his/her work in the University due to illness or injury and has not completed 10 years of service, he or she shall receive a separation pay equivalent to a quarter (¼) of his/her current monthly salary or Php 20,000, whichever is higher.

SECTION 4. Mandatory retirement of all regular faculty members shall commence at the end of the semester/summer following his or her 60^th birthday. However, if the faculty member’s 60^th birthday falls during summer off, he or she shall still enjoy his/her summer off with pay.