Borromeo V. Csc

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Borromeo vs. CSC Facts: Jesus N. Borromeo was the Chairman of the Civil Service Commission until his retirement on 1 April 1986. In 1988, he wrote the Commission on Audit requesting an opinion whether the money value of the terminal leave of retired Constitutional Commission members should include the allowances received at the time of retirement. Borromeo requested for the payment of terminal leave differential representing the unpaid Cost of Living Allowance (COLA) and Representation and Transportation Allownace (RATA) amounting to P111,229.04. The Department of Budget and Management denied the request. Issue: Whether the terminal leave pay of the former CSC Chairman should be computed on the basis of the highest monthly salary plus COLA and RATA, or solely on the basis of highest monthly salary without said allowances. Held: An application for terminal leave is an application for a “commutation of leave credits” and not a “commutation of salary” as the officer or employee has already severed his conncection with his employer and is no longer working. The cash value of his accumulated leave credits should not be treated as compensation for services rendered at that time. Inasmuch as terminal leave payments are given not only at teh same time but also for the same policy considerations governing retirement benefits, the payments therefore should include COLA and RATA. Section 286 of the Revised Administrative Code is not applicable. It cannot be construed as limiting the basis of the computation of terminal leave pay to monthly salary only.

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