401(K) ROLLOVER (Philippine Perspective)
“Money, money, that’s all it matters.” In our country, I have encountered many retiring personnel who automatically opted to apply for retirement by way of a five-year lump sum payment from the Services Insurance Company or based on a computed basic salary times the number of years in service. However, after a period of five years or whatsoever, they will definitely receive monthly pension for a lifetime. For as long as they reach the age of sixty (60) and thirty (30) years in service, the Insurance Company of which they are members during their term of service will compute all outstanding life and retirement premiums they made.
In the event that the member who applied for retirement has loan obligations or payables to the agency they work, it will also be deducted from the proceeds of the retirement. Hence, the amount receive will be free from any liability from the Company.
In cases like early retirement will take place prior to the age of sixty (60), proceeds can be transferred to another company they wish to work with. They will still pay for the life and retirement premiums every month and accumulate funds for their own future use.
Almost all of the retirees will get their net proceeds and take home for a living while waiting for their monthly pension. They have the right to enter into the business investment climate or enjoy the money they got from their years of effort. I know for a fact that they keep their money in bank with interest as savings or current account for health reasons as they grow old.
