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.

Case Summary (A.M. No. 07-8-27-SC)

Applicable Laws and Background

The primary legal framework referenced is Section 42 of Batas Pambansa (BP) 129, which stipulates that Justices and Judges are entitled to a monthly longevity pay equivalent to 5% of their basic salary for every five years of continuous and meritorious service in the judiciary. Additionally, Administrative Circular No. 58-2003, which allows for the tacking of earned leave credits to lengthen judicial service for the purpose of calculating longevity pay, provides the legal basis for the queries raised.

Background of the Case

The context for the issue arises from Justice Garcia's impending compulsory retirement on October 19, 2007, after which he would like to include his earned leave credits, totaling approximately 1,500 days, in the computation of his longevity pay, increasing it from 30% to 36%. The FMBO's computations for Justices Garcia and Dacudao did not include these leave credits, prompting both officials to seek clarification.

Prior Administrative Circular and Precedents

The case references a previous Resolution regarding Senior Associate Justice Josue N. Bellosillo, who sought the inclusion of earned leave credits similar to the requests made by Justices Garcia and Dacudao. This led to the establishment of Administrative Circular No. 58-2003, which was envisioned to allow such tacking, reinforcing the liberal interpretation of retirement laws to benefit retirees.

Court’s Affirmation on Inclusion of Leave Credits

The Court noted the necessity to include earned leave credits in the computation of longevity pay as unresolved situations emerged due to prior refusals by the Department of Budget and Management (DBM) to accommodate these provisions. This reflected a broader narrative that the law should favor retired Justices and Judges, underpinning the humanitarian goal of providing for their sustenance and comfort post-retirement.

DBM’s Position and Court Rebuttal

The Department of Budget and Management posited that Section 42 requires continuous service and stressed that earned leave credits should not count as such, posing a challenge to the implementation of A.C. No. 58-2003. The Court dismissed this argument, asserting the clarity of its directives regarding the inclusion of leave credits in longevity pay calculation.

Court’s Directive to DBM

The Supreme Court concluded that the DBM is mandated to comply with A.C. No. 58-2003 and to ensure the longevity pay for Justices and Judges incorporates their total earned le

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