Question & AnswerQ&A (Act No. 2589.)
The Act provides for a gratuity by reason of retirement to regularly and permanently appointed officers and employees of the Philippine government who have rendered satisfactory service for six continuous years or more.
Officers and employees who are regularly and permanently appointed in the Philippine civil service, who have rendered faithful and satisfactory service for at least six continuous years, and who apply to the Governor-General for retirement.
The Governor-General must find that the applicant has been efficient up to and including the date of retirement, and the retirement will not prejudice or obstruct the regular and efficient operation of the Bureau affected, based on recommendations from the Director of Civil Service and the chief of the Bureau concerned.
The annual gratuity corresponds to a percentage of the salary last received: 33 1/3% for at least 10 years of service; 30% for 9 but less than 10 years; 26 2/3% for 8 but less than 9 years; 23 1/3% for 6 but less than 7 years of continuous service.
Yes, the gratuities may be paid in the Philippines or the United States, as the retired official or employee may desire, in monthly installments.
Yes, exclusions include officers whose full time is not given to government service, professionals practicing their profession for profit, officers detailed from the US Army and Navy or civil service, and persons already receiving pension or retirement pay from the US Government.
Vacancies are generally not filled and such positions are considered abolished, except for certain high-ranking positions like Chief Justice or judges, chiefs of bureaus or divisions, where replacement may occur subject to conditions and salary reductions.
The new employees usually receive two-thirds of the salary of the retired officer or employee, except for the Chief Justice, Associate Justice, and judges of the First Instance whose salaries are not reduced by this Act.
Yes, future reductions in salary or accumulated leave do not affect retired employees entitled to benefits under this Act; they continue receiving gratuities as if their positions were not reduced or abolished.
They must refund the entire amount of retirement gratuities received before reappointment or reemployment, and their salary thereafter cannot exceed the salary at the time of retirement for at least three years. They also waive any future claims to such gratuities.