A.M. No. 07-6-10-SC - Re: Andres R. Narvasa

Retired Chief Justice (CJ) Andres R. Narvasa (Ret.) had previously received his monthly pension, Special Allowance for the Judiciary (SAJ), and monthly annuities with SAJ components starting December 1, 2003, with payments reflected on February 16, 2008.
In his letter dated March 10, 2008, CJ Narvasa expressed gratitude for the earlier resolution approving his pension and informed the Court that he had already received accumulated payments.
The retired CJ then requested the re-computation of his retirement benefits, asserting that his Basic Monthly Salary (BMS) should include step increments he had earned pursuant to the Salary Standardization Law (R.A. No. 6758).

CJ Narvasa’s own computations detailed his monthly pension, SAJ, and the monetary value of 142 leave days he had to reimburse.
His computation indicated a total deficiency amounting to P224,198.74 as of February 29, 2008.
The Court, through its resolution, referred the request for comments to the Deputy Clerk of Court and FMBO Chief Atty. Corazon Ferrer-Flores.

FMBO’s Comment (May 28, 2008) stressed that the computation of the retired CJ’s benefits was based on the OAS memorandum dated January 30, 2008, which tracked creditable services and supported voucher preparation.
With respect to the 142 leave credits, FMBO verified that the correct monetary value was P386,963.61—as computed by the retired CJ—as opposed to P393,752.45 originally deducted, thus necessitating an adjustment of P6,788.84.
The adjustment factors included the Personnel Emergency Relief Allowance (PERA) and the Additional Compensation (ADCOM), which had been incorporated in the OAS computation in consonance with a prior resolution (A.M. No. 99-8-05-SC).

CJ Narvasa asserted that his pension should be computed using the BMS of an incumbent CJ at SG 32, Step 3 (P48,539), which would reflect the accrued step increments as provided by Section 13(c) of R.A. No. 6758 and various accompanying CSC and DBM circulars.
The FMBO’s comment acknowledged that his service record—serving as Chief Justice from December 8, 1991 to November 29, 1998—entitled him to step increments (three steps, one step for every three years of continuous satisfactory service).
The dispute arose as to whether these step increments, earned before January 1, 1999, should form part of the BMS for the purpose of computing retirement benefits.

The computation of the terminal leave pay initially canceled the inclusion of PERA and ADCOM, although these components were separately recognized in other benefit computations such as pension and longevity pay.
Additionally, the Court noted that an adjustment was necessary to incorporate a 10% salary increase authorized under Executive Order (E.O.) No. 611 and the corresponding deduction from the SAJ component.
These adjustments also involved updating other elements such as the Representation and Traveling Allowance (RATA), reflective of successive increases between 2005 and 2007, and changes in ADCOM effective January 1, 2006.

Whether CJ Narvasa is entitled to a re-computation of his retirement benefits, especially his monthly pension and terminal leave, to account for the step increments he claims.
Whether the calculations based on the lower salary grade (SG 32, Step 1) should be replaced by computations based on SG 32, Step 3.

Whether the original computation that deducted an amount for the 142 leave credits was proper, given that the deducted amount differed from the actual computed value, hence necessitating a deficiency adjustment of P6,788.84.

Whether the PERA and ADCOM should be included in the computation of both retirement benefits and terminal leave pay, as guided by prior resolutions and interpretations—especially considering the different treatments in the terminal leave voucher and re-computation of the pension.

Whether the 10% salary increase under E.O. No. 611, including its impact on the SAJ component, should be reflected in the re-computation, thereby necessitating an adjustment in the pension computation mechanism.