An Act Providing for a Gratuity by Reason of Retirement to Officers and Employees of the Philippine Government who have Rendered Satisfactory Service During Six Continuous Years or more, and for Other Purposes

February 4, 1916

ACT NO. 2589

AN ACT PROVIDING FOR A GRATUITY BY REASON OF RETIREMENT TO OFFICERS AND EMPLOYEES OF THE PHILIPPINE GOVERNMENT WHO HAVE RENDERED SATISFACTORY SERVICE DURING SIX CONTINUOUS YEARS OR MORE, AND FOR OTHER PURPOSES

SECTION 1. Whenever a regularly and permanently appointed officer or employee in the Philippine civil service, who is actually in the service and who has rendered continuous faithful and satisfactory service for at least six years applies to the Governor-General for retirement from said service and the Governor-General shall find, after receiving the recommendation of the Director of Civil Service and the chief of the Bureau or Office concerned, that such officer or employee making the application has in every way been efficient up to and including the date of retirement, and the retirement applied for will not prejudice or obstruct the regular and efficient operation of the Bureau affected, the Governor-General, in his discretion, may grant such retirement, and, in consideration of the services rendered, an annual gratuity for three consecutive years according to the following schedule: An officer or employee who at the time of retirement shall have rendered at least ten years of continuous service may receive an annual gratuity of thirty-three and one-third per centum of the salary last received; thirty per centum of such salary when nine but less than ten years of continuous service have been rendered; twenty-six and two-thirds per centum of such salary when eight but less than nine years of continuous service have been rendered; twenty-three and one-third per centum of such salary when seven but less than eight years of continuous service have been rendered; twenty per centum of such salary when six but less than seven years of continuous service have been rendered. The gratuities herein provided for may be paid in the Philippines or in the United States, as the retired official or employee may desire, in monthly installments, and in the event of death shall be payable to his estate: Provided, however, That any officer or employee entitled to the benefits of this Act, and who is entitled to any benefits from any pension fund created by authority of the Philippine Legislature, shall be required to designate which of such benefits he desires to take advantage of, and in such case he shall be entitled only to the benefits so chosen: And provided further, That if he elects the benefits of this law he shall have refunded to him amounts deducted from his salary for the benefit of any other retirement fund: And provided further, That the following officers and employees shall not be entitled to the benefits of this Act: Officers and employees whose full time is not given to the Government service; professional officers or employees who practice their profession for profit; officers and employees detailed from the Army and Navy, or civil service of the United States; and persons now receiving a pension or retirement pay from the Government of the United States.

SECTION 2. Vacancies occurring in the service, as a result of retirements according to the provisions of the next preceding section, shall not be filled, and the positions corresponding thereto shall be considered abolished ipso facto, except when such position is that of Chief Justice or Associate Justice of the Supreme Court or a Judge of First Instance, chief or assistant chief of Bureau, chief clerk, or chief of division: Provided, however, That upon the request of the chief of a Bureau or Office affected, based on the exigencies of the service and favorably recommended by the proper head of Department, the Governor-General may authorize, in his discretion, after hearing by the Emergency Board created by section two of Act Numbered Twenty-five hundred and forty, in lieu of the position or positions abolished, such position or positions as may be deemed necessary but the aggregate of the salaries thus assigned to such positions shall not exceed two-third of the salary authorized by law for the position abolished by reason of retirement. The vacancies of Chief Justice or Associate Justice of the Supreme Court or Judge of First Instance, chief or assistant chief of Bureau, chief clerk, or chief of division, occasioned by retirement, may again be filled but, unless the law provides otherwise, the salary of the new officers or employees shall be understood to have been reduced to two-thirds of the salary received by the officer or employee retired at the time, of his retirement, but in the case of the Chief Justice or Associate Justice of the Supreme Court or of a Judge of First Instance, the Salary of the vacant position shall not be reduced because of the operation of this Act: Provided, however, That in no case shall the salary assigned to a director, assistant director, chief clerk or chief of division be less than that appropriated for the assistant director, chief clerk, assistant chief clerk or assistant chief of division, respectively, but in such case the chief of Bureau shall make such reductions in the expenses of the Bureau as may be necessary to carry into effect the provisions of this proviso without the necessity of an additional appropriation.

SECTION 3. Future reductions in salaries of officers and employees of the Government of the Philippine Islands, if such reductions are agreed upon, as well as any provision of law abolishing the positions of officers or employees, or reducing or abolishing accrued leave, shall in no manner affect officers or employees who have retired or are entitled to such retirement under section six of this Act, who shall continue, during the time provided in section one of this Act to receive their gratuities the same as if their positions had not been reduced in salary or abolished, in addition to the accrued leave authorized at the time of their application for retirement: Provided, however, That excepting by reason of legislative action reducing his salary or accrued leave allowances, if any officer or employee entitled to retirement under the provisions of this Act shall apply therefor, and after being advised that his services are necessary, insist upon the acceptance of his resignation, he shall not in such case be entitled to the retirement gratuity herein provided.

SECTION 4. Such sums as may be necessary to carry into effect the provisions of this Act are hereby appropriated out of any funds in the Insular Treasury, not otherwise appropriated: Provided, however, That no fund shall be set up in the books of the Auditor by virtue of this Act until the sum necessary for the current year shall have been determined.

SECTION 5. No person retired under the provisions of this Act shall be reappointed or reemployed under the Government of the Philippine Islands, until he shall have first refunded the entire amount of his retirement gratuities, and in case of reappointment or reemployment under this condition, his salary for a period of at least three years thereafter shall not exceed the salary at the time of retirement; and by accepting such reappointment or reemployment and refunding the gratuities paid him, he shall waive all future claim to the provisions of this Act and to the payment of such gratuities as were refunded when he again shall retire or resign.

SECTION 6. This Act shall take effect immediately and the provisions hereof shall apply only to such officials and employees as may request retirement on or before the thirtieth day of June, nineteen hundred and sixteen: Provided, however, That, should an application for retirement be presented to the Governor-General prior to July first, nineteen hundred and sixteen, and such application not be granted on account of exigencies of the service, the retirement applied for may be granted by the Governor-General at such future date as in his opinion the requirements of the service may warrant, and for this purpose he may make such administrative orders with reference to the appropriation for the position to be vacated as may be necessary to accomplish the purposes of this Act.

Enacted, February 4, 1916.