Title
Supreme Court
Manila City Retirement Gratuities Act
Law
Acts No. 4270
Decision Date
Nov 14, 1935
The Philippine Jurisprudence case examines Act No. 4270, which provides retirement gratuities to officers and employees of the Government of the City of Manila, including the calculation of gratuity amounts, transferability of payments, choice between benefits, payment in case of death, reappointment and refund policies, abolishment of vacated positions, exclusions, appropriation of funds, and the effective date of the Act.

Law Summary

Preference in Retirement or Separation

  • Department Head must prioritize retirement/separation of those unfit due to age, mental, or physical incapacity
  • Governor-General appointees require Governor-General approval for retirement

Gratuity Calculation and Payment

  • Based on highest basic salary received during service
  • Paid monthly at 33⅓% of monthly salary except those entitled to one month or less, paid immediately
  • Secretary of the Interior may approve selling, transferring, or ceding gratuity rights to investment funds or banks
  • Gratuity payments are exempt from attachment or execution

Choice Between Gratuity and Other Pension Benefits

  • Retiring employees entitled to other pension benefits (e.g., Teachers' Retirement, Philippine Health Service) may choose between those benefits or gratuity under this Act
  • Cannot receive benefits under more than one law
  • Choosing special pension entails retirement under that law; choosing gratuity requires refunding contributions made to other pension funds

Payment of Gratuity Upon Death

  • Unpaid gratuity or balance due upon death paid to legitimate heirs
  • If gratuity rights sold or discounted, payments go to the investment fund or bank holding the rights

Reappointment and Waiver of Future Gratuities

  • Reappointed persons waive future gratuity claims
  • Those who discounted gratuity must refund unexpired portion upon reappointment

Abolition of Vacated Positions

  • Positions vacated by retirement or separation under this Act considered abolished automatically
  • Exceptions for Police and Fire Department members retiring at age 60
  • Salaries for refilled Police/Fire positions capped at two-thirds of former incumbent’s salary

Limitations on Applicability

  • Voluntary resignation due to reduced pay (less than 30%) or transfers do not entitle to gratuity
  • Abolition of double compensation or other causes not covered do not grant benefits

Appropriation of Funds

  • City of Manila municipal board to appropriate necessary funds from unappropriated City Treasury funds

Effectivity

  • The Act took effect upon approval on November 14, 1935

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