BIR Ruling [DA-106-99]

February 18, 1999 BIR RULING [DA-106-99] Mr. Eduardo P. Pamittan 253 Kaibigan St., Calumpang Marikina City S i r : This refers to your letter dated February 17, 1999 requesting for a modification of BIR Ruling No. DA-099-99 dated February 16, 1999 to include not only the payment of terminal leave benefits but also your retirement benefits. It appears that notwithstanding the categorical pronouncement in said ruling that the payment of retirement benefits of a retiree cannot be withheld, the Personnel Division has entertained some doubts concerning the payment of your retirement benefits and continues to withhold the same. Accordingly, this Office hereby modifies the dispositive portion of last paragraph of BIR Ruling No. DA-099-99 dated February 16, 1999, to read as follows: "It is very clear that retirement benefits specially, the terminal leave benefits & retirement gratuity of Mr. Eduardo P. Pamittan are exempt from garnishment, attachment or other legal processes except when there is a court order to that effect or an express consent on the part of the retiree, Mr. Eduardo Pamittan, and which cannot be withheld by mere administrative fiat. Hence, unless and until there is an order of the Court that Mr. Eduardo Pamittan is held liable for his above accountability, no executive officer or administrative body can withhold the payment of his retirement benefits (terminal leave benefits and retirement gratuity). It is axiomatic that all doubts as to the intent of the law in treating retirement benefits (terminal leave benefits and retirement gratuity) should be resolved in favor of the retiree in order to achieve its humanitarian purpose (DA-244-97 dated July 16, 1997)." Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue