Subject
Matter: Social Legislation
Petitioner:
GSIS
Respondent:
CSC, Dr. Manuel Baradeo and Matilde S. Belo
Summary:
1.
Powers of the GSIS – The power to determine what service is
creditable for retirement solely belongs to GSIS. CSC‘s power to
accredit government service is merely ministerial.
2.
Liberal Construction of the laws – In cases where the law
invoked is clear, unequivocal and leaves no room for interpretation
or construction, liberal construction can’t be applied because it
will defeat the purpose of the law.
3.
Per diem - The law is clear to exclude per diem in the
definition of compensation.
Facts:
GSIS
advised CSC that it cannot grant the retirement benefits of Dr. Manel
Baradeo and Matilde Belo because they failed to meet the 15-year
retirement benefit requirements. However, CSC insist that both are
entitled to retirement benefits.
Dr.
Manuel Baradeo was a government employee who occupied the position
Medical Officer IV in PMC until he reached the mandatory requirement
age of 65. In addition, was elected as a SBM of the Municipality of
La Castellana, Negros Oriental and served for 2 years and was paid
per diems. He filed a petition with CSC to extend his service in PMC
to meet the 15-year requirement in order to receive retirement
benefits. CSC denied his
petition. Instead, CSC credited his service for the municipality as
SBM for 2 years to enable the erstwhile doctor to complete the
15-year retirement benefit requirement. However,
GSIS contested CSC saying that per diem was expressively excluded in
the definition of compensation in RA 1573. Prior
to the implementation of RA 1573 which took effect on June 16, 1956,
services paid per diem were considered creditable. GSIS
also advised CSC to grant his petition to extend his service in PMC
until he completes the 15-year requirement for retirement benefits.
Matilde
S. Belo retired as a Vice-Governor of Capiz on February 2, 1988 in a
hold-over capacity. She served as Governor of Capiz from January 25,
1972 until February 1, 1988. From
January 25 to December 31, 1976, she recieves a regular salary.
However, from December 31, 1976 to January 1, 1979, she receives only
per diems for every session attended in the Sangguniang Panlalawigan.
On December 31, 1979 up to February 1, 1988, she recieves a fixed
salary. She sought an opinion from CSC if her services rendered on a
per diem basis is creditable for retirement purposes. CSC gave an
affirmative opinion. When
GSIS through its Committee on Claims opposed CSC, CSC
filed indirect contempt against the
President and General-Manager of GSIS. In addition, Belo claimed that
CSC is correct in its findings and that it is the authority in
accrediting government services and evaluating retirement
qualifications.
Issues:
1.
Is GSIS correct in saying that respondents are not entitled to
retirement benefits because they fell short of the 15 years
requirement because their service to the public under a per diem
basis does not qualify for computation purposes?
2.
Is Matilde Belo correct in saying that CSC is the proper government
agency in determining what service is credible for retirement
purposes?
1.
Yes, GSIS is correct. Liberal construction of social legislation only applies
when the law is not clear and unequivocal and when the law leaves a
room for interpretation or construction. In the case, RA 1573 in relation to PD 1146 is
clear on its intent to exclude those government employees who receive
compensation in a per diem basis. Hence, GSIS is correct.
2.
No, Matilde Belo is wrong. According to the Court, the accreditation
of government services is a ministerial duty and that the power to
determine which service is creditable for retirement purposes solely
belong to GSIS. PD 1146 in relation to RA 1573 provides that it is
the power of GSIS to enforce rules and regulations pertaining to
retirement benefits. Hence, Matilde Belo is wrong.
Law:
1.
RA 1573
(c)
"Salary, pay, or compensation" shall be
construed as to exclude all bonuses, per diems,
allowances and overtime pay, or salary, pay or compensation given in
addition to the base pay of the position or rank as fixed by law or
regulations
(i)
Compensation — the basic pay or salary received by an
employee, pursuant to his employment/appointments, excluding per
diems, bonuses, overtime pay, and allowances.
2.
PD 1146
Sec.
10.Computation of Service. —For the purpose of this
section, the term service shall include full time service
with compensation: Provided, That part-time and other
services with compensation may be included under such rules and
regulations prescribed by the System
Sec.
35. Powers and Functions of the System. The System shall have
the following powers and functions specified in this Act and the
usual general corporate powers:
(a)
To adopt, amend and rescind such rules and regulations as may be
necessary to carry out the provisions and purposes of this Act;
(b)
To adopt from time to time a budget for the administration and
operation of the System;
(c)
To invest its funds, directly or indirectly, in accordance with this
Act;
(d)
To acquire, utilize or dispose of, in any manner recognized by law,
real or personal properties in the Philippines or elsewhere
necessary to carry out the purposes of this Act;
(e)
To conduct continuing actuarial and statistical studies and
valuations to determine the financial condition of the System and
taking into consideration such studies and valuations and the
limitations herein provided, re-adjust the benefits, contributions,
premium rates, interest rates or the allocation or the re-allocation
of the funds to the contingencies covered;
(f)
To have the power of succession;
(g)
To sue and be sued;
(h)
To enter into, make, perform and carry out contracts of every kind
and description with any person, firm or association or corporation,
domestic or foreign;
(i)
To carry on any other lawful business whatsoever in pursuance of, or
in connection with the provisions of this Act;
(j)
To have one or more offices in and outside of the Philippines, and
to conduct its business and exercise its powers throughout and in
any part of the Republic of the Philippines and/or in any or all
foreign countries, states and territories;
(k)
To borrow funds from any source, private or government, foreign or
domestic;
(l)
To invest, own or otherwise participate in equity in any
establishment, firm or entity; to form, organize invest in,
establish and maintain subsidiary or subsidiaries;
(m)
To exercise such powers and perform such acts as may be necessary,
useful, incidental or auxiliary to carry out the provisions of this
Act.
3.
Administrative Code, Sec. 12, Chapter 3, Book V
17.
Administer the retirement program for government employees and
accredit government services and evaluate qualifications for
retirement
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