Punta told to fine tune retirement pay proposal

While it found the proposed ordinance in consonance with the Local Government Code, the city council Committee on Laws recommended returning to Barangay Punta Princesa the proposed ordinance that seeks to grant retirement gratuity to its officials.

In its report, the committee said that Barangay Punta Princesa should make the adjustments to the proposal, taking into consideration the comments of the council's Committee on Budget and Management and Committee on Barangay Affairs.

The Committee on Budget and Management commented that should it be approved, the granting of retirement gratuity should be prospective in nature. The committee further commented that the law does not specifically mention retirement gratuity, thus, the term "terminal pay" should be used instead.

Meanwhile, the Committee on Barangay Affairs observed that the proposal lacks the provision specifying the date of effectivity should the proposal be eventually approved by the city council.

Nevertheless, the Committee of Laws said that that as long as the required length of service is met, both elective and appointive barangay officials can be eligible for the retirement gratuity.

Punta Princesa barangay captain Jose Navarro earlier said the barangay council filed an ordinance, known as retirement gratuity plan, for barangay officials in recognition of their contributions to community development and to set equality in retirement benefits.

Navarro said that while barangay officials are entitled to leave credits or benefits equivalent to 30 days for every year of service in the barangay, they are not given any form of gratuity when they retire from service.

Pursuant to Section 393 of the Local Government Code, barangay officials are only compensated in the form of honoraria. However, for purposes of determining the monetary value as well as the accreditation of services in the barangay as government service, the honoraria they receive shall be treated as fixed salary.

Under the barangay ordinance, the officials and appointed members who had served three years and below, the amount equivalent to monthly honorarium shall be three months. For over three to six years, six to nine years, and above nine years, the amount equivalent to monthly honorarium shall be six, nine, and 12 months, respectively. - Joeberth M. Ocao