AN ACT PROVIDING THAT RETIREMENT BENEFITS OF EMPLOYEES OF PRIVATE FIRMS SHALL NOT BE SUBJECT TO ATTACHMENT

Case Overview and Summary

Summary of Republic Act No. 4917

Exemption of Retirement Benefits from Taxes and Legal Processes
- Retirement benefits received by officials and employees of private firms under a reasonable private benefit plan maintained by the employer shall be:
    - Exempt from all taxes (Section 1)
    - Not subject to attachment, garnishment, levy or seizure by any legal or equitable process (Section 1)

Exceptions to Exemption:
    - To pay a debt to the private benefit plan itself (Section 1)
    - To pay a debt arising from liability imposed in a criminal action (Section 1)

Eligibility Requirements:
    - The retiring official or employee must have been in the service of the same employer for at least 10 years (Section 1)
    - The retiring official or employee must be at least 50 years old at the time of retirement (Section 1)
    - The benefits under this Act can be availed of by an official or employee only once (Section 1)

Coverage in Case of Separation Due to Death, Sickness, Disability or Other Causes:
    - Any amount received by the official or employee, or their heirs, from the employer as a consequence of such separation shall likewise be exempt (Section 1)

Definition of "Reasonable Private Benefit Plan":
    - A pension, gratuity, stock bonus or profit sharing plan maintained by an employer for the benefit of some or all officials and employees (Section 1)
    - Contributions are made by the employer or officials and employees, or both (Section 1)
    - The purpose is to distribute the earnings and principal of the fund to the officials and employees (Section 1)
    - The plan must provide that no part of the corpus or income shall be used for any purpose other than the exclusive benefit of the officials and employees (Section 1)

Effectivity:
    - The Act took effect upon its approval on June 17, 1967 (Section 2)