MANILA, Philippines – A case of retired police personnel “barking up the wrong tree” may put the Philippine National Police (PNP) in a precarious fiscal position come August.

On Monday, July 21, the PNP said it is “seeking legal remedy” after a Manila court ordered the garnishment of the PNP’s operating funds to pay for the pension differentials of over 3,344 Integrated National Police (INP) pensioners from 1991 to 2006.

The pensioners, represented in the civil case by the Manila’s Finest Brotherhood Association, sued the PNP and the Department of Budget and Management (DBM) for their inability to pay over P3.9 billion ($ 90.2 million)* in pension differentials.

In a notice of garnishment issued on July 9, 2014, the Manila Regional Trial Court Branch 32 ordered the Land Bank of the Philippines to bar the PNP from making any “withdrawal, release or transfer…deposit accounts, properties or assets” that would make its balance go below or equal to P3.9 billion.

‘Talk to DBM’

The INP is one of the predecessors of the PNP. In 1991, the INP and the Philippine Constabulary (PC) were merged to become the PNP. But, it turned out, INP retirees were not given the same pension as their PNP counterparts.

Prior to 2006, INP pensioners got significantly less than their PNP counterparts. Based on documents submitted before the Supreme Court (SC), INP retirees received P8,000 to P10,000 less in pensions.

The amount was only aligned in 2006, PNP spokesman Chief Superintendent Reuben Theodore Sindac told reporters.

The SC, in a 2007 decision, affirmed an earlier ruling that said INP retirees deserve the same pension as their PNP counterparts. The Department of Budget and Management (DBM), however, has not yet released the pension differential.

“The DBM did not release the funds, we can’t answer why. As far as the PNP is concerned, the funds were never released. They have the right to seek redress from the court, but when we go to the DBM, they tell us that there are no funds available,” Sindac added.

The PNP insists it’s a case of mistaken liability. The PNP funds subject to garnishment by the court, said the PNP, are under the General Appropriations Act (GAA) of 2014, and are thus exempted from garnishment.

“Maybe the judge is not familiar or misinformed on how we are sourcing the funds. Or maybe the petitioners are not aware of how we’re sourcing the funds,” said Sindac.

Funds for pension and gratuity, said Sindac, are under the GAA but not under the PNP’s specific funds. The PNP’s legal team has since made a manifestation before the court.

August funds

With the order, the PNP will be unable to withdraw its operational funds for August. Sindac said as a result, over 66,000 PNP and INP pensioners may not be able to get their August 2014 pension.

For 2014, over P22.9 billion was allocated for PNP and INP pensioners. The amount does not include the amount needed to cover the differential the claimants are needed.

“The amount is barely enough to cover the pension of our retired police force,” said Sindac. He said they will ensure operations continue in the PNP, but added realignment of funds was out of the question. 

The PNP has been sending letters to the DBM requesting a release of funds for the pension differential since 2013. They have also asked help from House of Representatives appropriations committee chairman Representative Isidro Ungab for representation before the DBM. 

“On the side of the DBM, they said they would like to secure a more accurate reporting from the PNP… to make sure that the funds go to the right people. But they are securing the funds,” added Sindac. 

Former police general and current Pangasinan Representative Leopoldo Bataoil has since pushed for an inquiry into the non-release of funds for the pensioners. – Rappler.com

*US$1 USD = P43.4