Section 6
SEC. 6. Subsections (a) and (c) of section eleven of the same Act, as amended, are hereby further amended to read as follows: "SEC. 11. (a) Amount of annuity.—Upon retirement after faithful and satisfactory service a member shall be automatically entitled to a life annuity guaranteed for at least five years and thereafter as long as he lives. The amount of the monthly annuity at the age of fifty seven years shall be twenty pesos, plus, for each year of service rendered after the approval of this Act, one and six-tenths per centum of the average monthly salary received by him during the last five years of service, plus, for each year of service rendered prior to the approval of this Act, if said service was at least seven years, one and two-tenths per centum of said average monthly salary: Provided, That this amount shall be adjusted actuarially if retirement be at an age ether than fifty-seven years: Provided, further, That the maximum amount of monthly annuity at age fifty seven shall not in any case exceed two thirds of said average monthly salary or five hundred pesos, whichever is the smaller amount: And provided, finally, That retirement benefit shall be paid not earlier than one year after the approval of this Act. In lieu of this annuity, he may prior to his retirement elect one of the following equivalent benefits: "(1) Monthly annuity during his lifetime; "(2) Monthly annuity during the joint-lives of the employee and his wife or other designated beneficiary, which annuity, however, shall be reduced upon the death of either to one-half and be paid to the survivor; "(3) For those who are at least sixty-five years of age, lump sum payment of present value of annuity for first five years and annuity thereafter to be paid monthly; and for those who are at least sixty years of age and have rendered thirty-three years of service or more, the present value of the annuity for the first five years to be paid in five equal annual installments, each payable at the beginning of each year, and the annuity thereafter to be paid monthly: Provided, That said lump sum payment or annual installments of annuity may be made to a retired employee only if the premiums paid by and for him are sufficient to cover said payment or payments: Provided, further, That it shall be compulsory for an employer to pay on the date of retirement, in preference to all other obligations, except salaries and wages of its employees, its share of at least the premiums required to permit an employee to enjoy this option. "(4) Such other benefit as may be approved by the System. * * * * * * * * * * "(c) Disability benefit.—If he becomes permanently and totally disabled and his services are no longer desirable, he shall be discharged and paid his own contributions with interest of three per centum per annum, compounded monthly, if he has served less than five years; if he has served at least five years but less than fifteen years, he shall be paid also the corresponding employer's premiums, without interest, described in subsection (a) of section five hereof and if he has served at least fifteen years he shall be retired and be entitled to the benefit provided' under subsection (a) of this section. The Board is hereby empowered to fix and determine the nature and scope of the total and permanent disability contemplated in this subsection and to prescribe terms and conditions relative to the payment of the annuity payable on account of disability retirement."