Title
Re: Computation of Longevity Pay upon Compulsory Retirement
Case
A.M. No. 07-8-27-SC
Decision Date
Oct 10, 2007
Earned leave credits must be tacked to judicial service for longevity pay computation upon compulsory retirement; DBM must comply with Administrative Circular No. 58-2003.
A

Case Digest (G.R. No. L-49430)

Facts:

Before the Court were two communications—a letter from Associate Justice Garcia dated August 23, 2007, and a memorandum from FMBO Chief Corazon G. Ferrer-Flores dated August 29, 2007—requesting clarification on whether earned leave credits should be added (“tacked”) to the length of judicial service for computing longevity pay upon compulsory retirement. Justice Garcia, whose service record showed both actual judicial service and accumulated earned leave credits, argued that when his earned leave—representing five years, eight months, and 3.5 days—was tacked onto his actual service of 30 years, 10 months, and 26 days, his longevity pay should accordingly increase from 30% to 36% of his basic salary. A similar request had been previously granted to Senior Associate Justice Josue N. Bellosillo in 2003, which led to the issuance and adoption of Supreme Court Administrative Circular No. 58-2003. This circular explicitly allowed for the inclusion of earned leave credits in computing the longevity pay of retiring Justices and Judges. However, the Department of Budget and Management (DBM) objected, arguing that the law required payment only for actual continuous service and that earned leave, being non-service time, should not be included. The FMBO further sought clarification on whether this method of computation under AC No. 58-2003 should universally apply to all retiring judicial officers under RA 910, and recommended that in case of non-compliance by the DBM, payments be sourced from the respective courts’ savings—a recommendation the Court found unfounded.

Issues:

  • Whether earned leave credits, which are accrued during employment, qualify to be added to the actual years of judicial service for the purpose of computing longevity pay upon compulsory retirement.
  • Whether the DBM’s refusal to include such earned leave credits in the computation contravenes the explicit provisions and directive embodied in Administrative Circular No. 58-2003 and prior Court resolutions.
  • Whether the suggestion that payment of the increased longevity pay should be subject to the availability of court savings undermines the compulsory and computed nature of the benefit.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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