Request of Retired SC Justices for the Upgrading of Their Retirement Gratuities

January 25, 2005

A.M. No. 04-11-06-SC

Gentlemen:

Quoted hereunder, for your information, is a resolution of the Court En Banc dated January 25, 2005

"A.M. No. 04-11-06-SC: RE: REQUEST OF RETIRED JUSTICES OF THE SUPREME COURT FOR THE UPGRADING OF THEIR RETIREMENT GRATUITIES

On 01 December 2004, the Court En Banc issued a Resolution approving the request of the retired justices of the Supreme Court for inclusion in the computation of their retirement gratuities the special allowance given to incumbent justices. The dispositive portion of said resolution states:

WHEREFORE, the request of the retired justices is APPROVED. The retirement gratuities of the retired justices of the Supreme Court shall include the special allowances given to incumbent justices pursuant to Republic Act No. 9227. A retiree who received a 5-year lump sum payment is likewise entitled to automatic adjustments after retirement.

The retired justices of the Court of Appeals and the Sandiganbayan, through Justices Pedro M. Ramirez, Alfredo Marigomen, "Conrado M. Molina, Narciso Atienza and Romulo S. Quimbo wrote a letter dated 21 December 2004 seeking a similar request for entitlement to the special allowance under Republic Act No. 9227 ("RA 9227"). 2005lawscd

The justification for similar treatment for the retired justices of the Court of Appeals is found in 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, which specifically states:

SEC. 3-A. In case the salary of Justices of the Supreme Court or 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. (emphasis supplied). AIDSTE

As for the retired justices of the Sandiganbayan, they rely on Section 1 of Presidential Decree No. 1606 which states that the Presiding Justice and the Associate Justices of the said Court "shall have the same rank, privileges and other emoluments, be subject to the same inhibitions and disqualifications, and enjoy the same retirement and other benefits provided for under existing laws for the Presiding Justice and Associate Justices of the Court of Appeals." Such that, "[w]henever the salaries of the Presiding Justice and the Associate Justices of the Court of Appeals are increased, such increases shall be correspondingly extended to and enjoyed by the Presiding Justice and the Associate Justices of the Sandiganbayan."

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. The law itself categorically states that "the special allowance equivalent to the increase in the basic salary as may be provided by law shall be converted as part of the I basic salary." And, whenever the salary of an incumbent justice is increased, such increased salary shall be deemed to be the salary or retirement pension which a justice who retired was receiving at the time of his cessation in office.

Since the special allowances that are being received by incumbent justices under RA 9227 are actually part of their increased basic salary, such increased salary of the incumbent Justice becomes the basis of the retirement pension of the retiree at the time of his cessation in office. Thus, a retired justice who has received the 5-year lump sum is likewise entitled to automatic adjustment. This means that payment-of the special allowance shall be made even during, and not after, the 5-year period.

WHEREFORE, the request of the retired justices of the Court of Appeals and the Sandiganbayan is APPROVED. In sum, the retirement gratuities of the retired justices of the Supreme Court, the Court of Appeals, and the Sandiganbayan shall include the special allowance given to incumbent justices under RA 9227. A retiree of the Supreme Court, Court of Appeals and Sandiganbayan, who received a 5-year lump sum payment, is likewise entitled to immediate automatic adjustment at the same 25% annual increment under RA 9227.

Callejo, Sr. J., on official leave.

Very truly yours,

 

(SGD.) LUZVIMINDA D. PUNOClerk of Court

 

By:

 

(SGD.) MA. LUISA D. VILLARAMAAssistant Clerk of CourtSupreme Court of the Philippines