Retirement Benefits for Napocor Employees Lower Than P10-B Budget

Article excerpt

Byline: MYRNA M. VELASCO

As debates on the power sector mess have been taking a queasy twist and turns, state-owned National Power Corporation clarified that the scale of retirement benefits and separation packages paid to its employees only reached a little over R10 billion; as compared to what was originally budgeted at P12 billion.

"As of today, the total amount of retirement pay released to employees is a little over R10 billion," stressed NPC Vice President for Human Resources and Finance Edmund P. Anguluan.

He has further emphasized that the amount already covered roughly P7 billion worth of separation benefits, P2 billion worth of terminal leave credits earned by employees for the duration of their service in government, and R1 billion worth of escrow.

As a matter of recollection, Anguluan noted that the retirement packages for NPC employees were paid only after extensive consultations with the National Power Board and the House Committee on Energy.

Referring to latest sweeping allegations that NPC paid off P12 billion only to its top employees, the power firms human resource chief took the chance of debunking such reports, noting "that although the NPC allocated some P12 billion in retirement pay of its employees, what was actually released was just a portion of that amount."

Section 33 of the implementing rules and regulations (IRR) of the Electric Power Industry Reform Act (EPIRA) provides for separation benefits to all NPC employees "regardless of position, designation or status, who are displaced or separated from the service as a result of the Restructuring of the electricity industry and Privatization of NPC assets."

The same law also guaranteed the payment of such benefits. …