Title
Re: Andres R. Narvasa
Case
A.M. No. 07-6-10-SC
Decision Date
Jul 23, 2008
Retired Chief Justice Narvasa sought re-computation of retirement benefits, including step increments, PERA, ADCOM, and adjustments for a 10% salary increase. The Court granted his request, directing payment of deficiencies and adjustments to reflect earned benefits.

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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