Press Release
September 26, 2008

Pimentel backs severance pay for congressional employees

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) is batting for the grant of severance pay for congressional employees to help them cope with financial demands as they go into retirement after faithfully and efficiently serving the government.

Pimentel, together with Majority Leader Francis Pangilinan, filed a bill that will entitle the following to the severance pay to the personnel of the Senate, House of Representatives, Commission on Appointments, Senate Electoral Tribunal and House Electoral Tribunal.

The bill provides that the severance incentive package will be paid to the congressional personnel upon retirement or separation in the following manner:

1. For those who have rendered l0 to l5 years of legislative service, two months of the present adjusted basic salary for every year of service.

2. For those who have rendered 16 to 20 years of legislative service, two and a half months of the present adjusted basic salary for every year of service.

3. For those who have rendered 21 or more years of service, three months of their present adjusted basic salary for every year of service.

Section 2 of the bill states that the employees, regardless of age, can avail of the severance pay provided they have rendered at least l0 years of aggregate legislative service the last three years of which should be continuous.

Employees who have rendered less than l0 years of legislative service shall be entitled to severance pay computed n a pro-rated basis.

As a safeguard against abuses, Pimentel said the bill stipulates restrictions so that those who have availed of benefits under this legislation will no longer be qualified for reappointment.

He said this will avoid the repetition of what happened at the National Power Corporation wherein officials and employees who retired en masse and received retirement or separation benefits upon the enactment of the Electric Power Industry Reform Act in 199l were allowed to be re-employed by the reorganized Napocor.

The bill stipulates that the severance incentive is tax-free and is separate and distinct from benefit claims under the Government Service Insurance System. Also, it can be availed of only once.

Pimentel said the severance incentive may be suspended or forfeited for the following reasons: l. if the employee concerned has unliquidated accounts; and 2. he has a pending criminal or civil case which is connected to his government position.

Priority in the availment of the severance pay will be given to those who have reached the age of 60 and those who have rendered at least 20 years of legislative service.

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