Re: Benefits; Extension of Service
RESOLUTION NO. 974643
Briccio D. Supremo, City Assessor of Ormoc City, in a letter-query dated August 29, 1997, seeks clarification whether or not he is entitled to receive the benefits pertaining to his position during the period of his six-month extension in the service. Records show that Supremo was allowed to extend his government service for a period of six (6) months from his 65th birthday on July 9, 1997, per CSC Resolution No. 97-3422 dated July 24, 1997.
The pertinent portion of the letter of Supremo is quoted as follows:
"For clarification purposes of some people in the HRM and Accountant Offices, please inform the undersigned if he is still entitled to following up to January 9, 1998, to wit;
"1. Salary increase in 1998 if there is any, even if my services are no longer credited;
"5. Year End Benefits
"6. Productive Incentive Bonus
"7. Loyalty Cash Bonus
"8. Anniversary Bonus
"9. Clothing Allowance
"10. Step Increment (CSC-DBM Circular No. 1, s. 1990)
"Please kindly enlighten the above issue (sic) for my and their guidance."
x x x
Florenda S. Bragas, HRMO IV, Office of the City Administrator, Ormoc City, also made the same query.
The relevant portion of the letter of Florenda S. Bragas is as follows:
x x x
"Apropos the decision, is Mr. Supremo still entitled to the following benefits during the extension period from July 10, 1997 to January 9, 1998?
"d) Year-End Benefits
"f) Loyalty Cash Bonus
"g) Anniversary Bonus
"h) Clothing Allowance
"I) Step Increment (CSC-DBM Circular No. 1, s. 1990)
"j) Leave Credits and Leave Privileges
"Kindly enlighten us on the above issue for our guidance and information."
x x x
Specifically cited for clarification is the second paragraph of the dispositive portion of the CSC Resolution No. 97-3422, which reads as follows:
"However, services rendered shall not be credited as part of Supremo's government services nor the salary rate existing at the time of extension be used as basis for computing his retirement benefits."
The aforecited proviso should be taken to meant what it exactly says. That is, (1) for the purpose of computing the length of government service, the six months extension period shall not be included in the computation of retirement benefits; and 2) the salary rate at time Supremo reached the age of 65 shall be used as basis in computing his retirement benefits.
The intent of the Commission in including said stipulation, is to forestall the situation whereby the privilege of having an employee's service extended may just be used to unscrupulously increase retirement benefits.
However, it must be understood that the Commission does not intend to deprive the government employee of the emoluments and incentives which he is ordinarily entitled in the course of his employment. Otherwise, it should have been expressly so stated in the same resolution.
First of all, Supremo asks whether or not he is still entitled to receive the RATA and PERA for the period July 10, 1997 to January 9, 1998.
CSC Resolution No. 97-3422 does not state nor does it even imply the Supremo would cease to receive the benefits and privilege which is ordinarily attached to his position as City Assessor. As such, aside from his salary which he receives for actual services rendered, the Commission holds that Supremo is still entitled to receive the RATA and PERA during the six-month extension period, being normally considered as part of an employee's compensation package.
Relevant to the issue at hand is the pronouncement of the Commission in CSC Resolution No. 962411 which provides:
"It should be noted that the term salary covers all compensation for services including RATA. This means that withdrawal or non-payment of RATA results in reduction of salary which can not be allowed under Civil Service Law and Rules unless the employee agrees thereto."
With regard to the other benefits, i.e., year and benefits, productivity incentive bonus (PIB), loyalty cash bonus, anniversary bonus, the Commission also rules that Supremo is entitled to receive the same, these being in the nature of awards or incentives.
Considering that his service has been extended due to the exigencies of his work, and upon the request of the head of office, it would be the height of inequity and injustice to deny him these incentives if he meets the required qualification. In this respect, it becomes inconsequential if an employee like Supremo, Qualifies for a certain privilege or benefit only during the six month extension period. (e.g., 10 years continuous service in case of Loyalty Award).
It bears stressing, however, that Supremo is no longer entitled to salary increases, step increments and clothing allowance during the six-month extension period since he is already officially considered retired as of July 9, 1997.
The above-mentioned privileges are contemplated to benefit an employee in the long term and not within a predetermined period of six-month. The fact that he is still actually rendering service beyond the compulsory age of retirement is deemed an exception to the general rule.
On the question whether or not Supremo is entitled to vacation and sick leave credits during the extension period, the Commission in CSC Resolution No. 972824 dated March 20, 1997, had the occasion to say that no vacation and sick leave credits shall accrue in favor of the person whose service has been extended from the compulsory retirement age of 65.
Hence, the dispositive portion of the said decision states:
"WHEREFORE, the instant request of Assistant Secretary Ramon F. Nieva is hereby granted. Accordingly, Aldave's services rendered from June 12, 1995 to December 11, 1995 is deemed as an extension of service for purposes of retirement. However, the period covering December 12, 1995 to December 31, 1995 shall not be considered as government service in favor of Aldave for purposes of computing his retirement benefits and that no vacation and sick leave credits shall accrue in his favor within the said period."
WHEREFORE, the Commission hereby resolves that Briccio D. Supremo is entitled to receive during the six (6)-month period of his Extended services, the following:
1. Salary for actual services rendered; and
For benefits and Incentives including year-end benefits, productivity incentive bonus, loyalty cash bonus and anniversary bonus his privilege to receive the same shall be subject to the rules implementing the receipt of said benefits.
He shall not be entitled during the 6-month period to the following:
1. Salary increase
2. Step increment
3. Clothing allowance
4. Sick and vacation leave credits.
Quezon City, DEC 18 1997
CORAZON ALMA G. DE LEON
THELMA P. GAMINDE
JOSE F. ERESTAIN, JR.
CARMENCITA GISELLE E.B. BRINGAS
Board Secretary VI