Silliman University in Dumaguete City is standing pat on the legality of its Retirement Plan which the Supreme Court invalidated last month, saying it did not violate any labor or social welfare law at the time of its establishment.

In its Motion for Reconsideration, the University said that declaring the Plan null and void will result in a serious impairment of vested rights among the employee-members and the University.

The Retirement Plan, which has been in effect for over 30 years, called for the compulsory retirement of an employee who was rendered 35 years of continuous service to the University or who has reached the age of 65.

Under this plan, the University retired Alpha Jaculbe, a nurse at the Silliman University Medical Center, who was 57 years old.

The Supreme Court said the retirement was tantamount to a termination and ordered the University to pay her back wages and separation pay for a total of eight years. The University, however, said that Jaculbe had availed of her benefits under this Plan in December 2004, which, in effect, negates the Supreme Court decision.

The University's Retirement Plan, which was established in 1970, was a landmark social benefit at that time as the granting of compulsory retirement benefits was not yet required by law, as Republic Act 7641 which took effect only on January 7, 1993, the university said.

To render the SU Retirement Plan null and void would cause grave prejudice to the many who have already received their benefits, as well as to the University which sought only the greatest welfare for its thousands of employees through the years, the university added.*AP

back to top