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Republic of the Philippines g ‘ be wana

House of Representatives Dare d
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Quezon City

SEVENTEENTH CONGRESS.
First Regular Session

2765 | aus

2 \TION UNIT
SERVICE

HOUSE BILL NO.

Introduced by Representative EDGAR R. ERICE

EXPLANATORY NOTE

The importance of government officials and employees in the government's
role of delivering public services cannot be overemphasized. The government relies
heavily on these officials and employees to oversee and actually perform the
services ought to be delivered by the government to its constituents.

During the period of their services to the government, it was not unheard of
that these officials and employees are oftentimes made the subject of different forms
of harassment, such as filing of patently baseless criminal, civil or administrative
cases which, more often than not, take several years to resolve. It is also of common
knowledge that for those retiring and resigning officials and employees, the release
of their retirement benefit, separation pay and other benefits would be withheld until
such time that the cases filed against them in connection with their government
functions were dismissed with finality. The value, however, of the benefits that these
exonerated officials and employees would eventually receive were substantially
diminished due to inflation and rising cost of living.

This bill seeks to remedy the glaring injustice and unfairness being done to
innocent government officials and employees who have dedicated their lives to
public service by ensuring that the value of the benefits they would eventually
receive after their exoneration would not be unnecessarily diminished. Under this
House Bill, the benefits of exonerated government officials and employees would
earn compounded interest at the legal interest rate per annum from the date of
withholding to the date of the finality of dismissal of the cases filed against them.

In view of the foregoing, the passage of this bill is earnestly sought.

2" District Caloocan City


Republic uf the Philippines
House of Representatives
Quran City

SEVENTEENTH CONGRESS,
First Regular Session

ee
HOUSE BILL NO. _ 2765

Introduced by Representative EDGAR R. ERICE

AN ACT
MANDATING THE IMPOSITION OF COMPOUNDED INTEREST ON THE
RETIREMENT BENEFITS, SEPARATION PAY AND OTHER AMENITIES OF
RETIRED OR RESIGNED GOVERNMENT OFFICIALS AND EMPLOYEES WHO
WERE EXONERATED OR CLEARED FROM CRIMINAL, CIVIL OR
ADMINISTRATIVE LIABILITY WITH FINALITY FILED IN CONNECTION WITH
THEIR FUNCTIONS AND RESPONSIBILITIES.

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

Section 1. Declaration of Policy. ~ It is hereby declared a policy of the state
to give ample protection to government officials and employees who, in the diligent
performance of their duties and responsibilities, are exposed to and recipients of
indiscriminate filing of cases for the purpose of harassment.

Sec. 2. Objectives. -- Pursuant to the above declared policy, retiring or
resigning government officials and employees against whom criminal, civil or
administrative cases were filed but were eventually exonerated or cleared therefrom
shall receive their retirement benefits, separation pay and other amenities with
compounded interest prevailing at the time of the final termination of the case for the
whole period said benefits were withheld by reason of pendency of such case/s.

Sec. 3. Interest Rate. -- The interest provided in Sec. 2 shall be at the legal
interest rate.

Sec. 4. Funds to Cover Compounded Interest. -- The additional amount
needed to cover the interest payment shall be taken from the retirement/separation
fund and budgetary savings of the agency or office concerned.

Sec. 5. Implementing Rules and Regulations. -- The Civil Service
Commission, together with the Department of Budget and Management and the
Department of Finance, in coordination with the accredited public sector employees
or labor unions, shall prepare and issue the implementing rules and regulations
necessary for the effective and efficient implementation of this act


Sec. 6. Repealing Clause.-- All other laws, decrees, proclamations, and
regulations inconsistent with this Act are hereby considered repealed, amended or
modified accordingly.

Sec.7. Effectivity. -- This Act shall take effect after fifteen (15) days. following

its publication in the Official Gazette or in at least two (2) national newspapers of
general circulation, whichever comes earlier.

Approved,