EN BANC

[A.M. No. 19-02-03-CA. June 25, 2019.]

RE: EXPENSES OF RETIREMENT OF COURT OF APPEALS JUSTICES.

RESOLUTION

HERNANDO , J : p

In a letter dated February 15, 2019 to Chief Justice Lucas P. Bersamin, Presiding
Justice Romeo F. Barza (Barza) of the Court of Appeals made the following request:
May I respectfully request that the Court of Appeals be allowed to budget
the following amounts to defray the cost of the expenses relative to the
retirement of the Presiding Justice and Associate Justices, to wit:
a) For a retiring Presiding Justice — not to exceed Two Million Pesos
(P2,000,000.00); and
b) For a retiring Associate Justice — not to exceed One Million Eight
Hundred [Thousand] Pesos (P1,800,000.00)
subject to liquidation in accordance with applicable accounting and auditing
rules.
May I further request for a yearly increase of ten percent (10%) in the
aforesaid budget to cushion the effects of inflation.
A certi cation from our Chief of Fiscal Management and Budget Division
and the Chief Accountant as to the availability of funds for the said purpose is
attached to this letter. 1
Acting on the aforequoted letter, the Court issued a Resolution 2 dated February
19, 2019 requiring the Fiscal Management and Budget O ce (FMBO) to comment
thereon within 30 days from notice.
Atty. Corazon G. Ferrer-Flores (Ferrer-Flores), Deputy Clerk of Court and Chief,
FMBO, submitted her Comment dated May 21, 2019. Taking into account the current
budgets of the Sandiganbayan, the Court of Tax Appeals (CTA), and the Supreme Court
for their respective Retirement Programs; plus the budgetary history of the Court of
Appeals and the impact of the proposed increase in the retirement program budgets
for retiring Court of Appeals Presiding and Associate Justices on the present as well as
future overall budgets of the said appellate court, Atty. Ferrer-Flores ultimately made
the following recommendations: CAIHTE

IN VIEW OF THE FOREGOING , we respectfully recommend the

following budgets for the activities in connection with the retirement of the
Presiding Justice and Associate Justice of the Court of Appeals, subject to a
yearly increase of ten percent (10%) to cushion the effects of in ation,
chargeable against the savings from the regular appropriations of the Court of
Appeals and subject further to availability of funds:
1) For a retiring Presiding Justice — not to exceed ONE MILLION
TWO HUNDRED THOUSAND PESOS (P1,200,000.00) ; and
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 2) For a retiring Associate Justice — not to exceed ONE MILLION
PESOS (P1,000,000.00) . 3
After a judicious consideration of all important factors, the Court deems it
appropriate to grant an increase in the retirement program budgets for the retiring
members of the Court of Appeals in the amounts of One Million Five Hundred Thousand
Pesos (PhP1,500,000.00) for a Presiding Justice and One Million Two Hundred
Thousand Pesos (PhP1,200,000.00) for an Associate Justice. These amounts are
partway between Presiding Justice Barza's proposed budgets and Atty. Ferrer-Flores's
recommended budgets.
The current retirement program budget for the retiring Presiding and Associate
Justices of the Court of Appeals is Two Hundred Thousand Pesos (PhP200,000.00)
each, which is below what Justices of other courts of equal and higher ranks receive, to
wit:

Current
Number of
Court/Position Budget
Justices
(PhP)

Supreme Court Chief Justice 1 2,420,000.00

Supreme Court Associate

14
Justice 2,200,000.00

Court of Appeals Presiding or

69
Associate Justice 200,000.00

Sandiganbayan Presiding or
21
Associate Justice 450,000.00

CTA Presiding or Associate

9
Justice 650,000.00

Thus, it is readily apparent that the retirement program budget for retiring members of
the Court of Appeals is due for an update and/or adjustment.
Per the Chief of the Fiscal Management and Budget Division of the Court of
Appeals, the increased retirement program budget for the retiring Presiding or
Associate Justice will cover his/her (a) luncheon/dinner reception; (b) judicial tokens;
(c) miscellaneous expenses of the En Banc Special Session; (d) souvenir for guests;
and (e) food stubs for employees. Given that the Sandiganbayan, with 421 employees,
has a retirement program budget of Four Hundred Fifty Thousand Pesos
(PhP450,000.00) for each of its retiring Presiding or Associate Justice; and the CTA,
with 271 employees, has a retirement program budget of Six Hundred Fifty Thousand
Pesos (PhP650,000.00) for each of its retiring Presiding or Associate Justice, it is
justi able that the Court of Appeals, with 1,660 employees (four and six times more
than those in the Sandiganbayan and the CTA, respectively) will need a higher
retirement program budget for its retiring Presiding or Associate Justice compared to
the two other courts. DETACa

The Court, however, refrains from granting the Court of Appeals the automatic
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 ten percent (10%) annual increase on its new retirement program budget purportedly to
cushion the effects of in ation. Any subsequent increase will still be subject to the
review and approval of the Court and will depend on the availability of funds and
prevailing circumstances.
WHEREFORE , the Court resolves to GRANT, effective on July 1, 2019, the
request of the Court of Appeals, through Presiding Justice Romeo F. Barza, to increase
its allocated retirement program budget, as follows:
a) For a retiring Presiding Justice — not to exceed ONE MILLION FIVE
HUNDRED THOUSAND PESOS (PhP1,500,000.00) ; and
b) For a retiring Associate Justice — not to exceed ONE MILLION TWO
HUNDRED THOUSAND PESOS (PhP1,200,000.00) .
SO ORDERED .
Bersamin, C.J., Carpio, Peralta, Del Castillo, Perlas-Bernabe, Leonen, Caguioa, A.B.
Reyes, Jr., Gesmundo, J.C. Reyes, Jr., Carandang, Lazaro-Javier and Inting, JJ., concur.
Jardeleza, * J., is on wellness leave.

Footnotes
* On wellness leave.

1. Rollo, p. 1.

2. Id. at 3.

3. Id. at 10.

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