PNB retirees urge SC to decide on unpaid allowances petition

Retired employees of the Philippine National Bank (PNB) have urged the Supreme Court (SC) to decide on their petition for the release of their unpaid cost of living allowance (COLA).

In an ambush interview, lawyer Goldelio Rivera, former PNB branch manager and petitioners’ counsel, said they held a prayer rally to “express their sentiment against the delaying tactics of the PNB.”

“Actually, we have a prayer rally before the SC to express our sentiment to the tactic of the PNB. The release of our COLA and amelioration allowance,” he said.

According to Rivera, they estimate they require P1 billion in payment for 8,000 retired and incumbent employees.

In 2006, 60 incumbent officers and 15 former PNB employees sought the payment of their COLA, back pay, and amelioration allowance from November 1989 to May 1996, or until their separation from service, whichever is earlier.

Rivera and others argued that prior to the enactment of the Salary Standardization Law, they were receiving allowances and COLA equivalent to 40% of their basic salary ot P300, whichever is higher.

However, they said that after the enactment of the law and the consequent circular of the Department of Budget and Management, PNB discontinued the payment of their COLA and other allowances despite the SC’s pronouncement that the circular is unenforceable.

Rivera said that the regional trial court directed the PNB to pay the petitioners and its former and incumbent officers the back pay of their COLA and special amelioration allowance of 40% and 10% respective of their basic salary from 1989 to 1996 or up to the separation of their service.

The ruling was affirmed by the CA, prompting the PNB to raise the matter before the SC.

In 2023, the SC Third Division denied the PNB’s motion and affirmed the ruling of the CA.

The SC said that PNB was given several opportunities to show how respondents were not entitled to their monetary claims, but instead it “insisted on employing delays, filing unnecessary pleadings, and asking for several postponements.”

GMA News Online reached out to PNB for comment and will publish it once available. —AOL, GMA News