Section 12Sec./Art. 12

Old-Age Pension.

(a) A member entitled to old-age pension shall receive the basic monthly pension for life but in no case for a period less than five years: Provided, That, the member shall have the option to convert the basic monthly pensions for the first five years into a lump sum as defined in this Act: Provided, further, That, in case the pensioner dies before the expiration of the five-year period, his primary beneficiaries shall be entitled to the balance of the amount still due to him. In default of primary beneficiaries, the amount shall be paid to his legal heirs.

(b) A member who has rendered at least three years but less than fifteen years of service at the time of separation shall, upon reaching sixty years of age or upon separation after age sixty, receive a cash payment equivalent to one hundred percent of his average monthly compensation for every year of service with an employer.

(c) If a pensioner receiving a monthly pension is re-employed by an employer, the payment of his pension shall be suspended. When a pensioner who receives a lump sum is re-employed by an employer prior to the expiration of the period covered by such lump-sum, he shall refund to the System the amount corresponding to the unexpired period. In either case, when his compensation is less than the pension, he shall receive the difference: Provided, That, upon the termination of his re-employment, the pension shall be resumed.