Revised Guidelines in the Payment of Retirement Benefits of Retiring and Retired PNP Personnel with Pending Case/s

November 14, 2016

PNP MEMORANDUM CIRCULAR NO. 073-16

REVISED GUIDELINES IN THE PAYMENT OF RETIREMENT BENEFITS OF RETIRING AND RETIRED PNP PERSONNEL WITH PENDING CASE/S

1. REFERENCES:

a. Republic Act No. 6975 (RA 6975) entitled, "An Act Establishing the Philippine National Police under a Reorganized Department of the Interior and Local Government, and for Other Purposes," as amended by Republic Act No. 8551 (RA 8551) and Republic Act No. 9708 (RA 9708);

b. Republic Act No. 10154 (RA 10154) dated July 14, 2011 entitled "An Act Requiring All Government Agencies to Ensure the Early Release of the Retirement Pay, Pensions, Gratuities, and Other Benefits of Retiring Government Employees";

c. Civil Service Commission (CSC) Resolution 1302242 dated October 1, 2013 entitled "Amendments to Implementing Rules and Regulations of RA 10154 Otherwise Known as an Act Requiring All Government Agencies to Ensure the Early Release of the Retirement Pay, Pensions, Gratuities, and Other Benefits of Retiring Government Employees";

d. CSC Resolution No. 1300237 dated January 30, 2013, entitled "Implementing Rules and Regulations (IRR) of RA 10154";

e. Republic Act No. 3019 (RA 3019) entitled, "Anti-Graft and Corrupt Practices Act";

f. Ombudsman Memorandum Circular No. 10 Series of 1995 Re: "Revised Circular on Ombudsman Clearance";

g. NAPOLCOM Memorandum Circular No. 2016-002, entitled "Revised Rules of Procedure Before the Administrative Disciplinary Authorities and the Internal Affairs Service of the Philippine National Police";and HTcADC

h. NHQ PNP Circular No. 2002-001, entitled "Payment of Retirement Benefits of the Personnel (Retirees) with Pending Cases" as amended by PNP Circular No. 2007-003 dated March 21, 2007 and PNP Memorandum Circular No. 2010-012 dated August 10, 2010.

2. RATIONALE:

It is the government's thrust to ensure the timely and expeditious release of retirement pay, pensions, gratuities, and other benefits of all retiring employees of the government. Correspondingly, it is the responsibility of every office/unit concerned to ensure the timely and efficient processing of the retirement benefit claims of all retiring/retired PNP personnel, including those with pending case/s.

As a matter of policy, the pendency of a criminal and/or administrative case against a retiree is not a bar to the payment of his/her retirement benefits. RA 10154 specifically provides that, in case the concerned agency failed to terminate and/or resolve the case within three months from the date of retirement without justifiable reason(s) and/or fault or delay attributable to the retiring personnel, the retirement benefits due to the retiree shall be immediately released to him/her without prejudice to the ultimate resolution of the case. An appeal taken by the retiree constitutes a justifiable reason for the non-release of his/her retirement benefits.

3. SITUATION:

Pursuant to Section 75 of RA 6975 as amended by Section 34, RA 8551, "....the uniformed personnel shall have the option to receive in advance and in lump sum his retirement benefits." However, the PNP has the responsibility to impose the necessary safeguards of ensuring restitution in the event the retiree is found guilty of the offense charged. This is specially true in cases punishable by dismissal from the service or where the imposable penalty is prision mayor or higher as these penalties entail the accessory penalty of forfeiture of retirement benefits.

In ensuring restitution, the PNP has imposed the requirement of guarantorship. However, this became an additional burden in the processing of the release of retirement benefits of those retiring/retired PNP personnel with pending cases due to unavailability of a guarantor or reluctance of other PNP personnel to act as a guarantor.

With the implementation of RA 10154, the retirement benefits of retiring/retired personnel with pending cases must be released immediately after the lapse of three (3) months from the effective date of his/her retirement, his/her case having not been terminated or resolved without justifiable reasons and/or without fault or delay attributable to him/her. This is subject though to the final resolution of the case.

4. PURPOSE:

This Memorandum Circular (MC) is aimed at providing a comprehensive and institutionalized system of processing the payment of retirement benefits of retiring/retired PNP personnel with pending case/s.

5. DEFINITION OF TERMS:

a. Retirement Benefits — refer to the remuneration, which include pensions, gratuities, terminal leave benefits and other benefits, given to an official or employee by reason of his/her retirement from government service (Section 4 [d], CSC Resolution No. 1300237, as amended by CSC Resolution No. 1302242).

b. Declaration of Pendency/Non-Pendency of Case — refers to a declaration under oath, which may be administered by a notary public or office/unit administrative officer, executed by the retiring personnel declaring whether he/she has a pending case. In the event that he/she has a pending case, he/she shall disclose the nature and status of the same. aScITE

 The retiree shall use the form for the Declaration of Pendency of Case provided in the CSC Resolution No. 1300237. (Annex "A")

c. Pending Case — shall refer to either a criminal or administrative disciplinary case. An administrative disciplinary case is considered pending when the disciplining authority has issued a formal charge or a notice of charge/s to the respondent, while a criminal case shall be considered pending from the time an Information or Complaint is filed in Court (Section 4 [c], CSC Resolution No. 1300237, as amended by CSC Resolution No. 1302242).

d. Pecuniary Liability — refers to a monetary obligation to compensate for any lost, damaged, or destroyed property resulting from fault or neglect or from improper application of funds that results from one's failure to properly discharge assigned responsibilities.

 It is understood that the retirement benefits of the retiring employee, as herein defined, and which do not constitute as pecuniary liability per se,may be withheld but only as a possible source of money to comply with the decision in a pending case where the possible penalty to be imposed is dismissal from the service (Section 4 [c], CSC Resolution No. 1302242).

e. Affidavit of Undertaking — refers to a sworn statement executed by a retiree with pending case as a precondition for the release of retirement benefits pending final resolution of the case. (Annex "B")

f. Waiver — refers to a sworn statement made by the retiree with pending case, waiving his/her right under RA 10154 and its IRR by expressing his/her intention to receive his/her retirement benefits after the final resolution of the case. (Annex "C")

g. Affidavit of Authority to Deduct — refers to a sworn statement executed by a retiree with pending case indicating therein his consent to the deduction of the pecuniary liability that may be imposed against him/her from his/her retirement benefits. (Annex "D")

6. GUIDELINES:

a. General Guidelines:

1) The pendency of a case against a retiree shall not bar the processing and payment of his/her retirement benefits in cases provided herein. In which case, his/her documentary requirements for retirement shall be considered complete if the only lacking document is the clearance of non-pending case. A certification of a pending case must be attached in lieu of said clearance;

2) All retiring personnel shall execute a Declaration of Pendency/Non-Pendency of Case/s;

3) All retiring personnel with pending case/s shall execute an Affidavit of Undertaking and Affidavit of Authority to Deduct;

4) If the pending case has not been terminated/resolved within three (3) months from the date of the retirement without justifiable reason/s and/or without fault or delay attributable to the retiree, the retirement benefits shall immediately be released to the retiree;

5) If the pending case has not been terminated/resolved within three (3) months from the date of the retirement with justifiable reason/s and/or with fault or delay attributable to the retiree, the retirement benefits shall not be released pending resolution of the case;

6) The processing and/or release of the retirement benefits of a retiree shall be stopped or shall not be released if the pending case is resolved within the three (3) months period from retirement and the penalty is dismissal from the service and/or with an accessory penalty of forfeiture of retirement benefits;

7) A guarantor is no longer required for the release of the retirement benefits of a retiree with pending case/s where the imposable penalty is/are dismissal from the service or prision mayor or higher;

8) For cases punishable by suspension, demotion and/or lower than prision mayor,the release of retirement benefits either in lump sum or outright/direct pension, shall be left at the discretion of the retiree; HEITAD

9) For cases punishable by dismissal and/or where the imposable penalty is prision mayor or higher, the release of retirement benefits shall be outright or direct pension;

10) If the retiree intends to avail of his/her retirement benefits after the resolution of the case, an affidavit waiving his/her rights under RA No. 10154 and its IRR must be executed; and

11) If the imposable penalty of the pending case is dismissal from the service and/or prision mayor or higher, the processing of retirement benefits shall be subject to the approval by the Deputy Chief, PNP for Administration (TDCA).

b. Responsibilities:

1) DPRM

a) Upon issuance of order for compulsory retirement, submit the names of retiring personnel to the Ombudsman, NAPOLCOM, and other disciplinary agencies covering PNP personnel for verification of pendency of cases;

b) For those who applied for optional retirement, verification of pendency of cases must be done within one (1) month after the PNP personnel has submitted his/her written expression of intent to retire;

c) Provide concerned PROs/NSUs, copy furnished PRBS, the list of PNP personnel with pending case/s with its status on monthly basis;

d) Request for the early resolution of the case from the disciplinary authorities outside of the PNP;

e) For disciplinary authorities within the PNP, ensure that the pending case against a retiree is terminated/resolved within three (3) months from the effectivity date of the retiree's retirement,

f) Monitor the updates/final resolution of pending cases involving retired personnel and implement the same; and

g) In case of conviction, provide PRBS a copy of the corresponding implementing orders.

2) DC

a) Request fund from the Department of Budget and Management (DBM) at least ninety (90) days prior to the effectivity date of retirement;

b) Ensure fund availability prior to the three months grace period from retirement; and

c) Release of Notice of Fund Allocation (NFA) or Notice of Cash Allocation (NCA).

3) RPHRDD/ADMO (PROs, NHQ, NSUs, P-Staff, and D-Staff)

a) Require all retiring personnel to execute a Declaration of Pendency/Non-Pendency of Case to be included in the retirement folder; ATICcS

b) Require retiring personnel to execute an Affidavit of Undertaking and Affidavit of Authority to Deduct if he/she has a pending administrative and/or criminal case/s;

c) Upon completion of requirements, advise retiring personnel to report to PRBS/PRBUs with their claim folders for evaluation/validation prior issuance of Letter of Introduction (LOI) to open an ATM Pension Account before the Land Bank of the Philippines (LSP) within the Municipality/City of residence. Retiring personnel shall return the folder to the RPHRDD/ADMO with attached copies of STI1 and Bank Confirmation Slip; and

d) Officially transmit the claim folder/s, with attached copies of Statement of Account Information Form 1 (STI1) and Bank Confirmation Slip, to PRBS.

4) PRBS

a) Upon evaluation of the completeness and the authenticity of requirements, shall issue a Letter of Introduction (LOI) to the retiring personnel;

b) Prepare computation and Lump Sum Disbursement Vouchers (DV),if applicable, and transmit the same to the Directorate for Comptrollership (DC) within five (5) days upon receipt thereof;

c) In case the implementing order is fine, demotion or suspension, prepare the necessary computation and pension adjustments and submit a change report to the Information and Technology Management Service (ITMS) no later than every 15th day of the month for implementation on the following month;

d) In case the implementing order is dismissal from the service and/or includes an accessory penalty of forfeiture of retirement benefits, prepares a change report for the deletion of concerned pensioner from the PNP Pensioners' Master List to the ITMS for implementation; and

e) Maintain a list of retired personnel with pending cases whose retirement claims were processed and provide the same to DLOD, DPRM for monitoring of final resolution.

5) ITMS

 Make the necessary pension adjustments based on the PRBS' change report submitted no later than every 15th day of the month for implementation on the following month.

6) FS

a) Submit an Authority to Debit Account (ADA) to LBP for crediting to the retirees' ATM Pension Account;

b) Implement the deduction of the derivative amount from the monthly pension of the retiree;

c) Responsible in instituting appropriate action for the restitution of the retirement benefits received by a retired PNP personnel; and

d) Prepare and make the necessary payment-addressed to the Bureau of Treasury on all collected remunerations and/or forfeited retirement benefits in relation to pending cases.

7. PENAL PROVISION:

Heads of PNP Offices/Units concerned, as well as personnel in charge in the processing of retirement benefits, pension, and other benefits, shall be responsible for the observance of these guidelines and procedures. Any violation/s hereof shall be dealt with accordingly. TIADCc

8. SEPARABILITY CLAUSE:

Any provision of this MC inconsistent with existing laws shall not invalidate its other provisions.

9. REPEALING CLAUSE:

All provisions of existing circulars and other issuances inconsistent with this MC are hereby rescinded/repealed and/or modified accordingly.

10. EFFECTIVITY:

This MC shall take effect after fifteen (15) days from filing of a copy thereof at the University of the Philippines Law Center in consonance with Sections 3 and 4 of Chapter 2, Book VII of Executive Order No. 292, otherwise known as "The Revised Administrative Code of 1987," as amended.

(SGD.) RONALD M. DELA ROSAPolice Director General

ANNEX A

DECLARATION OF PENDENCY/NON-PENDENCY OF CASE

I, __________________________________, Filipino, of legal age, with permanent address at __________________________________________________, and holder of the position ______________________________________________________ at the ___________________________________________________ after being sworn in accordance with law, hereby depose and state that:

1. I am due for my OPTIONAL/COMPULSORY retirement from the government service effective _____________________;

2. I have:

2.1 no pending case [ ]

2.2 a pending case 1 [ ]

• administrative disciplinary case [ ]

• criminal case [ ]

3. The NATURE/SPECIFIC OFFENSE CHARGED in the pending criminal/administrative disciplinary case is _________________________________________________________________________________________________________

4. The venue of the investigation/trial: ________________________________

YES NO

5. On appeal: [ ] [ ]

6. The appeal is pending before: _____________________________________

7. I am executing this declaration of Pendency/Non-Pendency of Case to attest to the truth of the foregoing facts and to eatable me to process and secure the release of my retirement benefits.

8. By executing this declaration of Pendency/Non-Pendency of Case, I hereby authorize the PNP/DILG/DBM to verify the status of any case(s) filed against me in any forum.

9. Further, I am executing this declaration of Pendency/Non-Pendency of Case under pain of criminal and/or administrative liability under existing laws. AIDSTE

___________________________

SUBSCRIBED AND SWORN to before me this _____ day of ________________, affiant exhibiting to me his/her ______________________________.

__________________________

ANNEX B

Republic of the Philippines)

AFFIDAVIT

I, (Rank) _____, (name) ______________________________, (age) ____, (status) __________, (address) ___________________________ and retired from the police service effective ____________________________ pursuant to GO/SO# __________, under oath do hereby voluntarily execute this undertaking as follows:

1. That, I have a pending criminal/administrative case for _________________ (title of the case) before the _________________________ (Ombudsman/IAS/NAPOLCOM/PLEB/DLOD) docketed as ___________;

2. That, the aforementioned case is [ ] not on appeal;[ ] on appeal;

3. That, I intend to avail my benefits through [ ] Lump Sum [ ] Direct or Outright Pension;

4. That, this Affidavit of Undertaking will serve as a pre-condition for the release of my retirement benefits and all other claims related to my retirement for the purpose of restitution or restoration in favor of the government in case of conviction;

5. That, I am binding myself solely liable for the repayment/reimbursement to the government of any and all amount received in advance and allowing PNP Authorities that the corresponding monetary value of the penalty imposed be charged and/or deducted from my lump sum and/or monthly pension pursuant to paragraph 2, Section 13 of RA 3019, even in the absence of a demand and/or court litigation; and

6. That I am executing this affidavit of undertaking to attest to the truthfulness of the foregoing facts and/or whatever legal purpose it may serve.

IN TRUTH WHEREOF, I have hereunto affixed my name and signature this ______________ at ______________________________, Philippines.

___________________Affiant

SUBSCRIBED AND SWORN to before me this _____ day of ________________. Affiant exhibited to me his community tax certificate _____________________ issued on ______________at _______________________.

____________________Notary Public

Doc. No. ______;

ANNEX C

Republic of the Philippines )

WAIVER

I, __________________________________, of legal age, Filipino, and presently residing at ___________________________________________, after having been duly sworn to in accordance with law, do hereby depose and state that:

1. I am a legitimate PNP retiree who compulsorily/optionally retired on _______________________________ pursuant to GO/SO# _________;

2. I have a pending criminal/administrative case for _________________ (title of the case) before the ______________________________ (Ombudsman/IAS/NAPOLCOM/PLEB/DLOD) docketed as __________________;

3. I am waiving my rights under R.A. No. 10154 and its IRR and hereby authorize all office concerned to have my retirement benefits processed and released after the final resolution of the case; and

4. I attest to the truthfulness of this undertaking and submit to the legal and/or administrative consequences thereof if ever the statements above are wanting in truth and in substance or in case I failed to abide by the provisions of this undertaking which I have obligation to observe. AaCTcI

IN WITNESS HEREOF,I hereby affix my signature this ________ day of ________________ 2016 at _____________________________.

____________________

____________________

SUBSCRIBED AND SWORN TO before me this ________________ day of ____________________ 2016 at ______________________ the affiant presented to me his/her ID as abovementioned.

____________________

Doc. No. ______:

ANNEX D

Republic of the Philippines )

AFFIDAVIT OF AUTHORIZATION TO DEDUCT

I, _________________________________ (Ret),of legal age, Filipino, Married/Single formerly assigned at __________________________________ and with a postal address at ___________________________________________________ after having been duly sworn to in accordance with law do hereby depose and state:

That, I retired Compulsory/Optionally/TPPD effective _____________________ Pursuant to S.O./G.O. Number _____________ dated ________________;

That, prior to my retirement, I have an outstanding Loan Balance from the PNP Provident Fund/Firearms Accountability/Salary Overpayment amounting to P_________________;

That, in view of the above, I am authorizing the Philippine National Police (PNP) to deduct said amount from my Commutation of Accumulated Leave (CAL) claim and/or Lump Sum/Retirement Gratuity claims;

That, I am executing this Affidavit to attest to the truthfulness of the foregoing facts for whatever legal purpose this may serve.

IN WITNESS WHEREOF, I have hereunto affixed my signature this _____ day of _____________ 20____ at _____________________________, Philippines.

____________________________

SUBSCRIBED AND SWORN to before me this ____ day of _________________________, 20____ at ___________________________, Philippines.

Doc. No. ______

Footnotes

1. A pending case shall refer to both criminal and administrative disciplinary case. An administrative disciplinary case is considered pending when the disciplining authority has issued a formal charge or a notice of charge to the respondent. While a criminal case shall be considered pending from the time an Information or Complaint is filed in Court.