Legal basis and invoked rules
- PNP Circular No. 2002-001 cites Ombudsman Memorandum Circular No. 10, s. 1995 (dated January 24, 1995) on a revised Ombudsman clearance framework.
- Republic Act No. 3019 (dated August 17, 1960), the “Anti Graft and Corrupt Practices Act,” is cited as a reference for possible liability in improper acts affecting processing.
Policy and objective
- PNP Circular No. 2002-001 establishes policies and procedures for paying retirement benefits of PNP personnel (retirees) who have pending administrative and/or criminal cases.
- PNP Circular No. 2002-001 institutionalizes a system for releasing retirement benefits to PNP personnel who will retire from active service by optional or compulsory retirement, even if cases are pending, subject to the circular’s conditions.
Definitions governing retirement payments
- Retirement is the official separation or severance from active police or government service either:
- Optional on the part of the individual; or
- Compulsory due to age or service accumulation.
- Retirees are PNP personnel who retire from the service, whether compulsory or optional.
- Retirement Benefit means monthly retirement pay equal to:
- 50% of the base pay and longevity pay of the retired grade for twenty (20) years of active service; and
- increases by 2.5% for every year of active service beyond twenty (20) years, up to a maximum of 90% for thirty-six (36) years of active service and over.
- Compulsory Retirement (for uniformed personnel) occurs upon attainment of age 56; for non-uniformed personnel, upon attainment of age 65.
- Optional Retirement occurs upon accumulation of at least twenty (20) years of satisfactory active service, at the officer or non-officer’s request and with NAPOLCOM approval.
- Permanent Physical Disability triggers compulsory retirement for officers or non-officers who have accumulated at least twenty (20) years of active service; if less than twenty (20) years, the person is separated and entitled to:
- separation pay of 1 1/4 months of base pay for every year of service, or a fraction thereof; and
- longevity pay of the permanent grade held.
- Lump sum retirement entitlement exists at the retiree’s option: advance payment of annual retirement pay for the first five (5) years, with thereafter annual retirement pay payable in equal monthly installments as they accrue.
- Commutation of Leave Credits allows PNP members who retire voluntarily or are separated through no fault of their own and are not covered by special law to commute all leave credits, excluding Saturdays/Sundays/Holidays, without limitation and regardless of when the credits were earned.
- Pending Administrative Case exists once a formal charge is filed with the appropriate disciplinary authority.
- Pending Criminal Case exists from the date the information is filed with the appropriate civil court.
- Restitution is the returning of benefits or compensation received due to a personnel by reason of forfeiture/conviction by competent authority.
- Guarantor is one who pledges to replace or pay for another’s debt or obligation.
Coverage and core rule on release
- PNP Circular No. 2002-001 covers the policies and procedures for paying retirement benefits of PNP personnel (retirees) who have pending cases.
- The pendency of a criminal and/or administrative case against a retiree is not a bar to payment of retirement benefits except as provided in the circular.
- The Chief, PNP is the approving authority for the release of retirement benefits of PNP personnel with any pending case.
- Claim processing offices must process retirement benefit claims without delay from the time the claims/retirement papers are filed until the issuance of checks.
Criminal case payment conditions
- If the pending case is a criminal case and the penalty prescribed is lesser than prision mayor, retirement benefits must be released to the retiree.
- If the pending case is a criminal case and the penalty prescribed is prision mayor or higher, no retirement benefits shall be paid unless a guarantor meets these conditions:
- the guarantor must be a PNP personnel of equal rank or higher than the retiree; and
- the guarantor must have at least five (5) years more in service before compulsory retirement.
- The guarantor must execute an undertaking stating that, in case of conviction, the guarantor binds himself jointly and solidarily with the retiree for restitution of the amount received from the government.
Administrative case payment conditions
- If the pending case is an administrative case and the penalty prescribed upon conviction is dismissal from the service, the retiree must not be paid retirement benefits until final resolution of the case before PNP, PLEB, Ombudsman, NAPOLCOM, or CSC.
- This administrative-with-dismissal restriction is applied in consonance with Section 6(a) of NAPOLCOM Memorandum Circular No. 93-024 and Section 9, Rule XIV of the Omnibus Rules Implementing Book V of EO No. 292, where dismissal-related administrative penalties carry forfeiture of leave credits and retirement benefits.
- If the administrative case penalty prescribed is not dismissal, the retiree may be paid retirement benefits under a condition:
- where the penalty imposed is suspension or demotion, the amount to be forfeited in favor of the government must be charged and deducted from the retiree’s monthly pension; and
- an undertaking must be signed by the retiree as a precondition for payment of benefits.
Clearance certification and processing speed
- For clearance purposes, personnel with pending cases must be issued a certification stipulating the pending cases instead of the traditional clearance approach.
- Processing offices must not delay processing due to the non-issuance of clearance, and must process claims regardless of the mode of retirement without delay from filing until check issuance.
Penalties for delaying benefits
- Any personnel who delays the processing of a retiree’s retirement benefit claims is subject to criminal and/or administrative prosecution.
- The immediate superior officer of the personnel involved must be included as a co-respondent under the principle of command responsibility.