Benefits In General, Retirement Benefits, Other Privileges

Submitted by Ira Agting

I. BENEFITS IN GENERAL
Benefits granted by law to government officials: vacation leaves, sick leaves, maternity leaves,
terminal leaves, termination pay, retirement benefits, others as provided by law

A. Vacation and Sick Leaves

- All employees required to go on a minimum of a 5 day vacation leave per year
- Elective and appointive local officials enjoy the same leave privileges
- Commutative: Any part not taken within the calendar year may be carried over to
succeeding years
 Employees retiring under CA 186: Commutation based on highest rate received
 Members of Judiciary and Constitutional Commissions: Commutation based on
highest monthly salary plus highest monthly aggregate of transportation, living,
representation allowances
- Memorandum Circular 54: Voluntary resignation or separation without the employee’s
fault will still entitle employee to commutation without limitation
 EXCEPT employees covered by special laws
 EXCEPTION TO THE EXCEPTION: MC 54 will still apply if the special law
provides lesser privileges

B. Terminal Leave Pay

- Cash value of the retiree’s accumulated leave credits
- Employee has already severed their connection with their employer
- Not compensation, but accumulation of credits intended for old age separation
- Different from commutation of salary (applied for during employment for ordinary leave)
- Basis: Highest monthly salary while in government service, no matter how short, even if
in acting capacity

C. Merit and Monetary Awards System

- Sec. 6, RA 6713: Establishment of a system of annual incentives and rewards
- To motivate and inspire public servants to uphold the highest standards of ethics
- May take form of bonuses, citations, directorships in GOCCs, scholarship grants, paid
vacations, automatic promotions, Dangal ng Bayan Award (employees who have
demonstrated exemplary conduct based on the 8 norms of behavior under RA 6713)

D. Allowances in Case of Injury, Death, Sickness:

Sec 699, Revised Admin Code in addition to GSIS Employee’s Compensation

Sec 699, Revised Admin Code GSIS Employee’s Compensation Program

Injury in the performance of duty (physical hurt Injury from an employment accident
or wound) - Sustained injury during working hour
- Absence not more than 6 months is with - Injured at the place where his work
full pay (charged first against vacation requires him to be
leaves, if any) - Employee performing official functions
- Payment of medical expenses,
transportation, subsistence Place and time immaterial if shown that
employee acting within purview of

Death from injury or sickness in the line of
duty
- Payment of reasonable burial expenses
- 6 months’ salary no less than P1000 to
surviving spouse or dependent children
Sickness caused by or connected directly with
the performance of an act in the line of duty
- Payment of necessary hospital fees
Granted by recommendation of the Municipal
Board/Council (for cities), Provincial Board
(for provincial gov’t), or Municipal
Council/Municipal District Mayor (for
municipal district government)
employment
Disability or death from sickness
- Sickness must be the result of an
occupational disease
- Risk of contracting the disease is increased
by working conditions
Illness must be
- Definitely accepted as an occupational
disease
- Caused by employment, subject to proof
that illness is increased by working
conditions
No compensation if injury, sickness, disability,
or death occasioned by intoxication or wilful
intention to injure or kill themselves, or
notorious negligence

II. RETIREMENT BENEFITS

A. Nature of retirement benefits
- Reward for giving the best years of their lives to service of the country
- Not gratuity, but deferred compensation for services
- Double purpose:
1. To entice competent men and women to enter government service
2. To permit them to retire from service with relative security
- Pension and retirement benefits are exempt from attachment, garnishment, levy, execution
and cannot be withheld to be applied to indebtedness to the government
- Benefits including money value of leave credits are exempt from income withholding tax
- Pensions and gratuities shall not be considered additional, double, or indirect
compensation. A pensioner who re-enters government service and retires after meeting all
requirements, is entitled to receive double retirement benefits

B. Optional Retirement under the GSIS

- Retiree’s choice of scheme of retirement binds the employer because retirement is for the
benefit of the employee
- Once filed by the officer, cannot be unilaterally withdrawn without approval of the head
of office
- Employer is authorized to request the optional retirement of an employee who is unable to
perform satisfactorily and efficiently due to disqualification
- Employer does not have the right to veto an application of person qualified for optional
retirement. Phrases “may be allowed to retire” or “retirement is likewise allowed” do not
connote implied authority to deny retirement.
- Refusal to approve or pay benefits of a qualified retirement officer is compellable by
mandamus because it is a vested right
- Requirement of physical incapacity for those below 65 years of age is invalid
 1. 30 years of service, 57 years old
a. At least 3 years of continuous service before retirement
i. Not interrupted by LOA without pay if total LOA or separation during last 3
years not more than 1 year
ii. Still entitled to retirement if separated from service before completion of 3
years due to abolition of position or reduction of force
b. At least 5 years of contributions
c. For service less than 30 years: ½ increase in age over 57 years for each year
decrease
d. For age less than 57: 1 year increase in service over 30 years
i. Ages may be decreased by more than 5 years if the work is mostly manual
e. No one is entitled to retirement benefits if below 52 years old or less than 15 years
of total service

2. 30 years of service, regardless of age

a. Monthly annuity for life
b. If service rendered after June 16, 1951, benefit is whatever amount of annuity can
be purchased by accumulated government and personal contributions to credit
c. In addition to benefit for service prior to June 16, 1951

3. 20 years of service, regardless of age (RA 1616)

a. Last 3 years of continuous service before retirement
b. Gratuity equivalent of 1 month’s salary for every year of service for first 20 years
c. Plus 1 ½ month’s salary for every year over 20 years but below 30
d. Plus 2 month’s salary for every year over 30
e. Basis: highest rate received or as provided by law for elective officials
f. Commutation of unused vacation or sick leaves allowed
g. If application is denied, employee is entitled to reinstatement with backwages.
Head of office may not refuse reinstatement on ground of misconduct RA 6683
h. Early retirement, voluntary separation, and involuntary separation due to
reorganization
i. Coverage:
- All appointive officials and employees of the national gov’t, including
GOCCs with original charters
- Personnel of all LGUs
- All regular, temporary, casual, coterminous, emergency employees regardless
of age, who have rendered at least 2 consecutive years of government service
- EXCLUDED: Uniformed personnel of AFP, including PC-INP

C. Automatic and Compulsory Retirement

1. 65 years old, 15 years of service

a. Under CA 186
b. Lump sum payment of present value of annuity for first 5 years and future annuity
to be paid monthly
c. Must not have been separated from service during last 3 years
d. If service less than 15 years, shall be allowed to continue to complete 15 years
 i. UNLESS eligible for disability requirement
ii. Cena v CSC (overturned): Circular No. 27 limiting the extension of service
to 1 year is invalid because it created conditions not provided in law
iii. Rabor v CSC: Extension of service cannot be more than 1 year (66 years old
at most), even if employee has not completed 15 years
iv. Toledo v CSC: Cena ruling will create very strange rules. A 64-year-old may
be appointed and extension for 14 years, allowing him to retire at the age of
79.
e. Founded under public policy, to maintain efficiency in government service and
give public servants opportunity to enjoy during the remainder of their lives
f. NOT APPLICABLE to elective officials and constitutional officers whose tenure
is guaranteed

2. Compulsory GSIS coverage for old age pension benefit under PD 1146
a. 60 years old, 15 years of service
b. Basic monthly pension for life, but for not less than 5 years
c. If less than 15 years of service but at least 3 years of service, entitled to cash
payment of 100% the average monthly compensation for every year of service
d. Computation of service includes full time, part time, and other services with
compensation

D. Computation of Benefits: Based on highest rate received, which is highest monthly salary
1. Grant of retirement benefits necessitates obligation of employee to contribute to
insurance fund, and such obligation only arises when employee is receiving salary
2. Salary excludes bonuses, per diems, allowances, overtime pay, compensation in
addition to the base pay
3. Includes additional compensation given in the nature of salary when received as a
matter of right or authorized by law, including in an acting capacity. Also Includes
authorized salary adjustments
4. GSIS, not CSC has power to determine which service is creditable

E. Retirement of Members of the Judiciary:

A member shall qualify for retirement in any of the following cases:
1. 20 years of service in judiciary or any branch of government and either:
a. 70 years of age or
b. Resigned by reason of incapacity
2. 20 years of service, 60 years old
c. Last five years of service must be continuous in the judiciary

3. Benefits
a. 5-year lump sum gratuity based on highest monthly salary plus highest monthly
aggregate of transportation, living, and representation allowance
b. After 5 years, monthly annuity for life
c. If retirement caused by permanent disability during incumbency, he shall receive a
10-year gratuity and monthly annuity for life after 10-year period
 d. RA 910: Automatic increase in pension when incumbent justices receive salary
increases, plus an upward adjustment of the 5-year lump sum if the increase is
during the 5-year period
e. Monthly pension is equivalent to current salary allowance of an incumbent justice

4. Restrictions
a. While receiving pension, cannot appear as counsel in:
i. Civil case against the Government or any subdivision or instrumentality
ii. Criminal case against an officer or employee of the government for an
offense committed in relation to his office
b. Cannot collect any fee for appearance in any administrative proceeding to
maintain an interest against the government, national, provincial, or municipal, or
legally constituted officers
c. If elected, cannot receive monthly pension upon assumption of office and during
term

F. Retirement Benefits of Constitutional Officers

1. Chairman or members of Constitutional Commissions (COA, COMELEC, CSC) are
entitled to retirement and pension benefits:
a. Upon completion of term or
b. By reason of inability to discharge office or
c. If he dies while in service or
d. If he resigns after reaching 60 years of age but before expiration of term and
having rendered not less than 20 years of service in the government

2. A courtesy resignation is not resignation in the legal sense: No intention to

surrender, but a submission to the will of political authority and appointing power,
acceptance of which renders the term completed

3. Benefits
a. 5-year lump sum based on last annual salary plus representation and living
allowances
b. After 5 years, monthly pension for life
c. Automatic increase in monthly pensions equivalent to salary increases of
incumbent, plus adjustment of 5-year lump sum if increase is during the 5-year
period

4. Retirement laws should be construed liberally in favor of the retiree

a. Ortiz v COMELEC: Acceptance of the commissioner’s courtesy resignation
resulted in the completion of his term so as to entitle him to all benefits. Courtesy
resignation is not resignation under the law because it lacks the intention to
surrender the position and is a mere submission to the will of the political authority
and appointing power
b. In Re Gratuity Benefits of Associate Justice Plana: Despite lacking a few months
to meet the age requirement, Justice Plana is entitled to full retirement benefits
because his accrued leave credits have entitled him to go on leave beyond the age
requirement
 c. In Re Martin: An application for disability retirement in order to receive a 10-year
lump sum should not result in forfeiture of the right to a lifetime pension. The law
is not intended to deprive the person of his lifetime pension if alive after 10 years.

III. OTHER PRIVILEGES

1. Legal services from the Solicitor general and government lawyers
a. For suits including a claim for damages arising from the performance of duties
b. Not for a civil suit for damages arising from a felony allegedly committed by the
official.
c. LGU officials are entitled to representation if sued in their official capacity and no
damages are sought. Not entitled if personally liable

2. Legislative privileges
a. Immunity from Arrest
i. Senator or member of HoR privileged from arrest if 2 conditions are present:
- Crime charged is punishable by not more than 6 years imprisonment
o If charged with a crime with a penalty more than 6 years, he can
be arrested, but may post bail if bailable to attend congressional
duties
o Immunity from arrest does not extend to immunity from being
preventively suspended for his crime
- Congress is in session
o If congress is in recess, can be arrested for a crime with a penalty
of 6 years imprisonment
ii. Members of the Senate or HoR shall not be held liable for any speech or
debate in Congress or in any committee
iii. Election while a criminal case is on appeal does not amount to a condonation
of the offense, nor entitlement to freedom from confinement because people
elected him with awareness of the limitations on his freedom

b. Immunity from civil and criminal action for speech or debate (speech and debate
clause)
i. Utterances made by Congressmen in performance of official functions,
including speeches, opinions, votes, and reports, while in session
ii. Bills introduced in Congress, whether in session or not
iii. Acts performed by Congressmen either in Congress or outside, in official
discharge of duties
iv. The privilege is absolute, no conditions or qualifications
v. Osmena v Pendatum: Congressman cannot be held liable for defamatory
speech outside Congress, except by congress itself
vi. Vera v Avelino: Pendatum resolution, which attributed election offenses to
certain Congressmen, is protected and authors cannot be questioned thereon

3. Privileges of impeachable officers

a. Cannot be suspended nor removed except by impeachment and quo warranto (RP
v Sereno)
b. If they are lawyers, they may not be disbarred, except after their terms have
expired