Case Summary (A.M. No. 07-6-10-SC)
Background and Initial Request
On March 10, 2008, Chief Justice Narvasa expressed gratitude to the Supreme Court for a prior resolution that approved his monthly pension and addressed his required reimbursement of 142 days of leave credits. He subsequently submitted a request for the re-computation of his retirement benefits to account for step increments as outlined in Republic Act No. 6758, the Salary Standardization Law. His detailed computations indicated a deficiency in pension benefits amounting to P224,198.74 as of February 29, 2008.
Court Referral and Office Commentary
The Court, through a resolution dated March 25, 2008, acknowledged Narvasa's claims and referred his request to Atty. Ferrer-Flores for a formal comment. In a detailed response dated May 28, 2008, Flores clarified the computation methods of the pension and terminal leave benefits, including the necessary adjustments such as the value of the 142 leave credits, which she calculated to be P386,963.61, necessitating an adjustment to the previous deductions.
Consideration of Allowances and Payment Differences
Flores highlighted that both the Personnel Emergency Relief Allowance (PERA) and Additional Compensation (ADCOM) should be factored into the computations for retirement benefits. Citing the Court's prior rulings, she stated these allowances were integral to pension calculations. The retired Chief Justice, however, noted a discrepancy where his received payments did not include these allowances, resulting in the identification of a deficiency rather than an overpayment.
Step Increments and Their Impact
The response from Flores emphasized that Narvasa had earned step increments during his tenure as Chief Justice, specifically during the period from December 8, 1991, to November 29, 1998. According to existing regulations, step increments are based on merit or length of service and should be factored into the final computation of monthly pensions.
Legal Basis for Computation Adjustments
Flores referenced multiple resolutions and circulars, specifying laws that govern the adjustment of retirement benefits, including the recognition of earned step increments. She articulated that while back pay for step increments accrued between 1990 and 1999 was waived, the increments should still contribute to the calculation of the basic monthly salary at the time of retirement.
Conclusion and Fina
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Case Overview
- The case revolves around the request of retired Chief Justice (CJ) Andres R. Narvasa for the re-computation of his retirement benefits.
- The request follows a previous resolution that approved his entitlement to a monthly pension and addressed the reimbursement for his accumulated leave credits.
Background of the Case
- CJ Narvasa expressed gratitude to the Court for approving his monthly pension in a letter dated March 10, 2008.
- He reported receiving payments pertaining to his accumulated pensions, Special Allowance for the Judiciary (SAJ), and monthly annuities.
- The retired CJ, with assistance from Justice Bernardo P. Pardo (Ret.), sought re-computation based on his claims of accrued step increments under Republic Act No. 6758 (Salary Standardization Law).
Issues Raised
- Narvasa presented his computations indicating a deficiency of P224,198.74 as of February 29, 2008, which he believes is still due to him.
- The Court referred his request for comment to the Fiscal Management and Budget Office (FMBO).
FMBO's Response
- Atty. Corazon Ferrer-Flores of FMBO clarified that the computation of Narvasa's monthly pension was based on a memorandum from the Office of the Administrative Services (OAS).
- The monetary value of the 142 leave credits he was required to reimburse was corrected to P386,963.61, leading to a reimbursement difference of P6,788.84.