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MANILA, Philippines – The Supreme Court (SC) ordered the release of P747.17 million in retirement benefits of 141 former Development Bank of the Philippines (DBP) employees.
In a 32-page ruling penned by Associate Justice Alfredo Benjamin Caguioa, the en banc unanimously granted the petition filed by the retired employees questioning the earlier notice of disallowance of the Commission on Audit (COA) on the bank’s Early Retirement Incentive Program IV (ERIP IV).
“In view of the Court’s ruling herein that the ERIP IV is valid, there is nothing that prevents DBP from releasing the benefits under ERIP IV-2010,” the SC said.
In 2007, COA issued an audit observation memorandum stating that ERIP IV violated the Teves Retirement Law, as the retirees would receive double compensation from the Government Insurance Service System and ERIP IV.
The Teves Retirement Law prohibits the creation of an additional retirement plan more than what is allowed under GSIS retirement laws.
While the law prohibits supplementary retirement plans, SC said the DBP Charter allows it.
The Court said the DBP Charter should prevail “not only because it is a later law but also because it is a special law.” – Rappler.com
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