An Act to Authorize the Payment of Retirement Gratuities to Officers and Employees of Chartered Cities, Amending thereby Act Numbered Four Thousand One Hundred and Eighty-Three

June 7, 1941

COMMONWEALTH ACT NO. 623

AN ACT TO AUTHORIZE THE PAYMENT OF RETIREMENT GRATUITIES TO OFFICERS AND EMPLOYEES OF CHARTERED CITIES, AMENDING THEREBY ACT NUMBERED FOUR THOUSAND ONE HUNDRED AND EIGHTY-THREE

SECTION 1. Sections one, two, four, and five of Act Numbered Four thousand one hundred and eighty-three are amended to read as follows: SAHITC

"SECTION 1. In order to grant a gratuity to provincial, municipal and city officers and employees who resign or are separated from the service by reason of a reorganization thereof, the provincial boards, municipal and city boards or councils may, with the approval of the Secretary of the Interior, retire their officers and employees, granting them, in consideration of satisfactory service rendered, a gratuity equivalent to one month's salary for each year or fraction of a year of service, but not to exceed twenty-four months in any case, on the basis of the salary they receive at the time of leaving the service, to be paid monthly at the rate of thirty-three and one-third per centum of the monthly salary."

"SEC. 2. With the approval of the Secretary of the Interior, such officer or employee may, in conformity with regulations to be approved by the Secretary of Finance, sell, transfer, or assign his right to the gratuity payments to any investment fund under the control of the National Government, or to any bank duly authorized to do business in the Philippines."

"SEC. 4. If a provincial, municipal or city officer or employee retired under the provisions of this Act is entitled to the benefits of any other law or any special pension fund created by authority of law, he shall have the right to choose one of the several benefits but in no case shall the payment of gratuity under more than one Act be authorized."

"SEC. 5. In case the position of the retired officer or employee cannot be abolished or left vacant without detriment to the service, it may be filled, with the approval of the Secretary of the Interior and of the provincial board, municipal or city board or council concerned first had: Provided, That the salary of the successor shall not be greater than two-thirds of the salary of the vacant position."

SECTION 2. This Act shall take effect upon approval.

Approved, June 7, 1941.