Retirement Statement Letter Template for Philippines

The Retirement Statement Letter is a crucial document used in the Philippine employment context when an employee reaches retirement age or opts for voluntary retirement as permitted by law. This document is required to comply with the Labor Code of the Philippines and Republic Act No. 7641 (Retirement Pay Law), which mandate specific retirement benefits and procedures. The letter serves multiple purposes: it officially documents the retirement, confirms the computation of retirement benefits, outlines the payment schedule, and details any continuing obligations or benefits. It's particularly important as it provides both the employer and employee with a clear record of the retirement arrangement and helps ensure compliance with Philippine labor laws and social security regulations. The document typically becomes necessary when an employee reaches the mandatory retirement age of 65 or opts for optional retirement at 60, though some companies may have different retirement ages as established in their company policies or Collective Bargaining Agreements.

1. Letter Header: Company letterhead, date, and formal addressing to the retiring employee

2. Opening Statement: Confirmation of acceptance of retirement and the effective date

3. Employment History: Brief summary of employee's tenure, including start date and positions held

4. Retirement Benefits Statement: Clear outline of all retirement benefits the employee is entitled to receive

5. Payment Details: Information about how and when retirement benefits will be disbursed

6. Company Property: List of company items to be returned and process for handover

7. Final Clearance Requirements: List of necessary documents and clearances needed from various departments

8. Closing Statement: Expression of appreciation and good wishes for retirement

9. Signatures: Space for authorized signatory and employee acknowledgment