Request for Automatic Adjustment of Retired DCA Bernardo T. Ponferrada's Retirement Benefits to Include Special Allowance

 

December 10, 2008

A.M. No. 11838-Ret.

Sirs/Mesdames :

Quoted hereunder, for your information, is a resolution of the Court En Banc dated December 9, 2008

"A.M. No. 11838-Ret. — Re: REQUEST OF RETIRED DEPUTY COURT ADMINISTRATOR BERNARDO T. PONFERRADA FOR AUTOMATIC ADJUSTMENT OF HIS RETIREMENT BENEFITS TO INCLUDE SPECIAL ALLOWANCE GRANTED UNDER R.A. 9277

On 30 August 2005, this Court issued a Resolution denying the request of retired Deputy Court Administrator Bernardo T. Ponferrada for automatic adjustment of his retirement benefits to include the special allowance under Republic Act No. 9227 (RA 9227).

We reiterate that the special allowance under RA 9227 is intended to be part of the basic salary of the justices, judges and all other positions in the judiciary of equivalent rank. However, there is nothing in RA 9227 that makes the special allowance apply to justices and judges who retired before the effectivity of RA 9227. The exception is when the law expressly provides for retroactivity of the increase to cover those who had already retired at the time of the increase.

Section 3-A of Republic Act No. 910, as amended by Republic Act No. 1797 (RA 910 as amended), the Retirement Law for the Judiciary, specifically states: DaHcAS

SEC. 3-A. In case the salary of Justices of the Supreme Court or of the Court of Appeals is increased or decreased, such increased or decreased salary shall, for the purpose of this Act, be deemed to be the salary or the retirement pension which a Justice who as of June twelve, nineteen hundred fifty-four had ceased to be such to accept another position in the Government or who retired was receiving at the time of his cessation in the office: Provided, That any benefits that have already accrued prior to such increase or decrease shall not be affected thereby.

RA 910 makes the special allowance under RA 9227 applicable to the retirement benefits of the "Justices of the Supreme Court or of the Court of Appeals". There is, however, nothing in RA 910 that makes its provisions applicable to those merely granted "judicial rank".

Automatic adjustment of retirement benefits to match increases in the salaries of the incumbents requires a special law like Section 3-A of RA 910. Such retirement benefits are extended to those appointed as Justices of the Supreme Court or of the appellate courts and not to those who are merely granted judicial rank. Only those appointed as Justices have the power and responsibility to decide cases. Those merely given judicial rank never decide cases as justices. Those appointed as Justices must retire at age 70 with at least 20 years of service or at age 57 with 20 years of government service, the last 10 years of which is with the judiciary before they can avail of the retirement benefits under RA 910. Those merely given judicial rank retire at age 65 with 15 years of government service or they may choose optional retirement at age 60 with 15 years of government service. Applying Section 3-A of RA 910 to those judicially ranked will place them in a more advantageous situation than those appointed as Justices. Those appointed as Justices are nominated by the Judicial and Bar Council (JBC) and then chosen by the President from among the nominees submitted by the JBC. The screening and appointing processes differentiate them from those merely granted judicial rank.

We stress that the grant of judicial rank was merely intended to equalize the salaries of certain officials, while they are in the service, with the Justices of the Supreme Court or of the Court of Appeals. Parity in rank and salaries does not automatically mean parity in retirement benefits under Section 3-A of RA 910. PD 828 which created the Office of the Court Administrator merely provides that the Deputy Court Administrator "shall have the same rank, privileges and compensation as those of Associate Justices of the Court of Appeals". There is nothing in PD 828 that expressly extended the retirement benefits of Section 3-A of RA 910 to the Deputy Court Administrator. ADCEcI

WHEREFORE, premises considered, those granted "judicial rank" by law, without being a judge or justice in the Judiciary, are given the benefits under RA 9227 as long as they are in the service. Upon their retirement, their retirement benefits are computed under RA 910 according to the latest: compensation they have received, including the benefits under RA 9227. However, they are not entitled to receive adjustments in their monthly pension under Section 3-A of RA 910. On the other hand, those granted "judicial rank" by En Banc Resolution, without being a judge or justice in the Judiciary, are also given the benefits under RA 9227 as long as they are in the service. Likewise, upon their retirement, their retirement benefits are computed under RA 910 according to the latest compensation they have received, including the benefits under RA 9227. However, they are not entitled to any monthly pension under any provision of RA 910, but they may do so under other existing laws. The special allowance in RA 9227 does not apply to those who retired before the effectivity of RA 9227, unless they fall under Section 3-A of RA 910. The En Banc Resolution dated 3 August 2004 in A.M. No. 04-6-08-SC is hereby revoked." (adv107)

Corona and Azcuna, JJ., on official leave.

Very truly yours,

 

(SGD.) MA. LUISA D. VILLARAMAClerk of Court