Government Service Insurance System (gsis) Retirement 15i25
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Government Service Insurance System (GSIS) Basic Retirement Framework This article attempts to present that in applying for eligible retirement from the government service for the purpose of availing of benefits from the employer (gratuity pay or incentive award) and the GSIS (pension for life), the stakeholders who are the employee, employer and GSIS should know and understand the basic legislative, executive and judicial framework for retirement. It will serve as the proper guide in 1) filling up the employer’s retirement letter form indicating the applicable mode of retirement and availing of gratuity pay or incentive award, approved by the head of agency, 2) filling up the form on GSIS application for retirement duly endorsed or recommended by employer to GSIS as basis for approval, 3) understanding that conversion from one mode of retirement to another is not allowed, 4) preventing GSIS to process and approve any application for retirement to which a retiree is not eligible to avoid any form of oversight, 5) filing an appropriate appeal to GSIS on claim in cases of oversight or istrative lapses, 6) executing any waiver on retirement: the civil code stipulates that rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law, 7) filing of an istrative case with the proper authorities, if warranted, and 8) filing of appropriate case in courts for highly controversial issues or there is grave abuse of discretion. This is in line with P-Noy istration’s general campaign to uphold and promote good governance that leads to an unprecedented improvement in the Corruption Perception Index from 2.4 in 2010, 2.6 in 2011 and 3.4 in 2012. The GSIS which is under the jurisdiction of the Office of the President has embarked on good management measures that led to the significant improvement in its annual income and reduced, to a certain extent, inequity by way of expanding, increasing and integrating the social security and insurance benefits of government employees, increasing pension benefits and facilitating payment as well as expanding and increasing the coverage and benefits of the GSIS, instituting reforms therein and for other purposes. I.
LEGISLATIVE (Laws ed by Congress and Approved by the President)
A.
COMMONWEALTH ACT NO. 186 (Approved: November 14, 1936)
AN ACT TO CREATE AND ESTABLISH A "GOVERNMENT SERVICE INSURANCE SYSTEM," TO PROVIDE FOR ITS ISTRATION, AND TO APPROPRIATE THE NECESSARY FUNDS THEREFOR II. Retirement Insurance Benefit Section12. Conditions for retirement (c) Retirement is likewise allowed to any official or employee, appointive or elective, regardless of age and employment status, who has rendered a total of at least twenty years of service, the
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last three years of which are continuous. The benefit shall, in addition to the return of his personal contributions with interest compounded monthly and the payment of the corresponding employer's s described in subsection (a) of Section five hereof, without interest, be only a gratuity equivalent to one month's salary for every year of the first twenty years of service, plus one and one-half month's salary for every year of service over twenty but below thirty years and two month's salary for every year of service over thirty years in case of employees based on the highest rate received and in case of elected officials on the rates of pay as provided by law. This gratuity is payable on the rates of pay as provided by law. This gratuity is payable by the employer or officer concerned which is hereby authorized to provide the necessary appropriation or pay the same from any unexpended items of appropriations or savings in its appropriations. Officials and employees retired under this Act shall be entitled to the commutation of the unused vacation and sick leave, based on the highest rate received, which they may have to their credit at the time of retirement. An employee who retires under this Subsection (c) may not be eligible for retirement with gratuity or pension under Subsection (a) of Section eleven of this Act, as amended, or vice versa, unless he makes a written application therefore within one year after retirement and reimburses the retirement gratuity or pension previously received by him, as well as refunds the personal and employer's s as the case may be. Section30. Effective date. — This Act shall take effect upon its approval. B.
REPUBLIC ACT 660 (Approved: June 16, 1951)
AN ACT TO AMEND COMMONWEALTH ACT NUMBERED ONE HUNDRED AND EIGHTY-SIX ENTITLED "AN ACT TO CREATE AND ESTABLISH A GOVERNMENT SERVICE INSURANCE SYSTEM, TO PROVIDE FOR ITS ISTRATION, AND TO APPROPRIATE THE NECESSARY FUNDS THEREFOR," AND TO PROVIDE RETIREMENT INSURANCE AND FOR OTHER PURPOSES Retiring under RA 660 requires the following: 1. The retiree's last 3 years of service prior to retirement must be continuous, except in cases of death, disability, abolition, and phase- out of position due to reorganization. 2. His/her appointment status must be permanent in nature. 3. He/she must meet the age and service requirements under the "Magic 87" formula. Based on the formula, a retiree’s age and years in service should be added up and should total at least 87. Under RA 660, GSIS as young as 52 years old can already avail of a retirement package for as long as they have already been in government service for the past 35 years. The ―Magic 87‖ formula is shown below: A g e 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Service 35 34 33 32 31 30 28 26 24 22 20 18 16 15 The maximum monthly pension for those above 57 years old shall be 80% of the Average Monthly Salary (AMS) received during the last 3 years immediately preceding retirement. The Maximum pension for those aged 57 and below shall be 75% of the AMS. Packages in store for you
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RA 660 lets you choose among the following options to let you enjoy a new beginning: Option 1: Automatic Pension - Under this option, pensioners below 60 years old may choose to receive either an automatic monthly pension for life or an option to avail of a lump sum. The lump sum, which can be requested every six months, means they can receive their oneyear worth of monthly pension in advance for a period of five years. On the sixth year, they will start receiving their lifetime monthly pension. Option 2: Initial three-year lump sum - For those who are at least 60 years old but less than 63 years on date of retirement, the benefit is a 3-year lump sum. The subsequent two -year lump-sum shall be paid to the retiree on his 63rd birthday. If the retiree is still living after the 5year guaranteed period, he shall be entitled to a monthly pension for life. Option 3: 5-Year Lumpsum - For those who are 63-65 years old, they can avail of a five-year lump sum then after five years, they will receive a monthly pension for life. Section 8. The following new sections are hereby inserted in Commonwealth Act Numbered One hundred and eighty-six: II. — Retirement Insurance Benefit "Section 11. (a) Amount of annuity. — Upon retirement a member shall be automatically entitled to a life annuity payable monthly for at least five years and thereafter as long as he live. The amount of the monthly annuity at the age of fifty-seven years shall be twenty pesos, plus, for each year of service rendered after the approval of this Act, one and six-tenths per centum of the average monthly salary received by him during the last five years of service, plus, for each year of service rendered prior to the approval of this Act, if said service was at least seven years, one and two-tenths per centum of said average monthly salary: Provided, That this amount shall be adjusted actuarially if retirement be at an age other than fifty-seven years: Provided, further, That the maximum amount of monthly annuity at age fifty-seven shall not in any case exceed twothirds of said average monthly salary or five hundred pesos, whichever is the smaller amount: And provided, finally, That retirement benefit shall be paid not earlier than one year after the approval of this Act. In lieu of this annuity, he may prior to his retirement elect one of the following equivalent benefits: "(1) Monthly annuity during his lifetime; "(2) Monthly annuity during the t-lives of the employee and his wife or other designated beneficiary, which annuity, however, shall be reduced upon the death of either to one-half and be paid to the survivor; "(3) For those who are at least sixty-five years of age, lump sum payment of present value of annuity for first five years and future annuity to be paid monthly or "(4) Such other benefit as may be approved by the System. "(b) Survivors benefit. — Upon death before he becomes eligible for retirement, his beneficiaries as recorded in the application of retirement annuity filed with the System shall be paid his own s with interest of three per centum per annum, compounded monthly. If on
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his death he is eligible for retirement, then the automatic retirement annuity or the annuity chosen by him previously shall be paid accordingly. "(c) Disability benefit. — If he becomes permanently and totally disabled and his services are no longer desirable, he shall be discharged and paid his own contributions with interest of three per centum per annum, compounded monthly, if he has served less than five years; if he has served at least five years but less than fifteen years, he shall be paid also the corresponding employer's s, without interest, described in subsection (a) of section five hereof; and if he has served at least fifteen years he shall be retired and be entitled to the benefit provided under subsection (a) of this section. "(d) Upon dismissal for cause or on voluntary separation, he shall be entitled only to his own s and voluntary deposits, if any, plus interest of three per centum per centum per annum, compounded monthly C.
REPUBLIC ACT No. 1616 (Approved: May 31, 1957)
AN ACT FURTHER AMENDING SECTION TWELVE OF COMMONWEALTH ACT NUMBERED ONE HUNDRED EIGHTY-SIX, AS AMENDED, BY PRESCRIBING TWO OTHER MODES OF RETIREMENT AND FOR OTHER PURPOSES. Section 1. Section twelve of CA 186, as amended, is hereby further amended by adding two new paragraphs after paragraph (a) which reads as follows: "(b) Notwithstanding the provisions of the preceding paragraph, a member may be allowed to retire after rendering a total service of thirty years, regardless of age, the retiring employee to receive a monthly annuity for life, but the benefit for service rendered after June sixteen, nineteen hundred and fifty-one, shall be whatever amount of annuity can be purchased by the accumulated government and personal contributions to the credit of a member plus interest allowed by the system on the date of retirement. Said annuity shall be computed in accordance with the mortality table and the rate of interest adopted by the system. This benefit shall be in addition to the benefit for service rendered prior to June sixteen, nineteen hundred and fifty-one as provided in section eleven (A) of this Act. "(c) Retirement is likewise allowed to a member, regardless of age, who has rendered at least twenty years of service. The benefit shall, in addition to the return of his personal contributions plus interest, be only a gratuity equivalent to one month salary for every year of service, based on the highest rate received, but not to exceed twenty-four months. This gratuity is payable by the employer or office concerned which is hereby authorized to provide the necessary appropriation or pay the same from savings in its appropriations." Section 2. Officials and employees paid gratuity under this Act shall be entitled to the commutation of the unused vacation and sick leave which they may have to their credit at the time of retirement. Section 3. Paragraphs b, c, d and e of section twelve of Commonwealth Act Numbered One hundred eighty-six, as amended, are hereby changed to paragraphs d, e, f and g, respectively. Section 4. This Act shall take effect upon its approval.
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D.
REPUBLIC ACT No. 4968 (Approved: June 17, 1967)
AN ACT AMENDING FURTHER COMMONWEALTH ACT NUMBERED ONE HUNDRED AND EIGHTY-SIX, AS AMENDED. Section 5. Subsections (a), (b) and (c) of Section eleven of the same Act, as amended are hereby further amended to read as follows: "Sec. 11(a). Amount of annuity. Upon retirement after faithful and satisfactory service a member shall be automatically entitled to a life annuity guaranteed for at least five years and thereafter as long as he lives. The amount of the monthly annuity at the age of fifty-seven years shall be thirty pesos, plus for each year of service after the sixteenth of June, nineteen hundred and fifty-one, two per centum of the average monthly salary received by him during the last three years of service, plus for each year of service rendered prior to the sixteenth of June, nineteen hundred and fifty-one, one and two-tenths per centum of said average monthly salary: Provided, That this amount shall be adjusted actuarially if retirement be at an age other than fifty-seven years: Provided, further, That the maximum amount of monthly annuity at age fifty-seven shall not in any case exceed three fourths of said average monthly salary: And provided, finally, That retirement benefit shall be paid not earlier than one year after the approval of this Act. In lieu of this annuity, he may prior to his retirement elect one of the following equivalent benefits: "(1) Monthly annuity during his lifetime; "(2) Monthly annuity during the t-lives of the employee and his or her spouse guaranteed for at least five years, which annuity, however, shall, upon the death of either and after the five-year guaranteed period, be reduced to one-half and be paid to the survivor "(3) For those who are at least sixty-three years of age, lump-sum payment of present value of annuity for first five years, and for those who are at least sixty but below sixty-three years of age, lump-sum payment of the present value of the annuity for the first three years, with the balance of the five-year guaranteed annuity payable in lump sum upon reaching sixty-three years of age, and annuity after the guaranteed period to be paid monthly: Provided, That said lump-sum payment of annuity may be made to a retired employee only if the s paid by and for him are sufficient to cover said payment or payments: Provided, further, That it shall be compulsory for an employer to pay on the date of retirement in preference to all other obligations, except salaries and wages of its employees, its share of at least the s required to permit an employee to enjoy this option:. "(4) Such other benefits as may be approved by the System. "(b) Survivors benefit. Upon death before he becomes eligible for retirement, his beneficiaries as recorded in the application for retirement annuity filed with the System shall be paid his own s with interest of three per centum per annum,
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compounded monthly. If he has served at least five years and his death is not due to his own misconduct, gross negligence, intemperate use of drugs or alcoholic liquor, or vicious or immoral habits, his beneficiaries shall also be paid by the employer his one month's salary for every year of service, based on the highest rate he received. If on his death he is eligible for retirement, then the automatic retirement annuity or the annuity previously chosen by him shall be paid accordingly. "(c) Disability benefit. If he becomes permanently and totally disabled and his services are no longer desirable, he shall be discharged and paid his own contributions with interest of three per centum per annum, compounded monthly, if he has served less than five years. If he has served at least five years but less than fifteen years, he shall be paid also the corresponding employer's s, without interest, described in subsection five hereof: Provided, That if his disability is not due to his own misconduct, gross negligence, intemperate use of drugs or alcoholic liquor, or vicious or immoral habits, he shall also be paid by the employer one month's salary for every year of service, based on the highest rate received. If he has served at least fifteen years he shall be retired and be entitled to the benefit provided under subsection (a) of this section, unless he is qualified to receive and choose the benefit provided for in the next preceding sentence." Deleted ―(d) – Upon dismissal for cause or on voluntary separation Section 6. Subsection (c) of Section twelve of the same Act, as inserted by Republic Act Numbered One thousand six hundred and sixteen, as amended, is hereby further amended to read as follows: "(c) Retirement is likewise allowed to any official or employee, appointive or elective, regardless of age and employment status, who has rendered a total of at least twenty years of service, the last three years of which are continuous. The benefit shall, in addition to the return of his personal contributions with interest compounded monthly and the payment of the corresponding employer's s described in subsection (a) of Section five hereof, without interest, be only a gratuity equivalent to one month's salary for every year of the first twenty years of service, plus one and one-half month's salary for every year of service over twenty but below thirty years and two month's salary for every year of service over thirty years in case of employees based on the highest rate received and in case of elected officials on the rates of pay as provided by law. This gratuity is payable by the employer or office concerned which is hereby authorized to provide the necessary appropriation or pay the same from any unexpended items of appropriations or savings in its appropriations. Officials and employees retired under this Act shall be entitled to the commutation of the unused vacation and sick leave, based on the highest rate received, which they may have to their credit at the time of retirement. "An employee who retires under this subsection (c) may not be eligible for retirement with gratuity or pension under Subsection (a) of Section eleven of this Act, as amended, or vice versa, unless he makes a written application therefore within one year after retirement and reimburses the retirement gratuity or pension previously received by him, as well as refunds the personal and employer's s as the case may be."
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E. PRESIDENTIAL DECREE No. 1146 (Government Service Insurance Act of 1977: Approved May 31, 1977: Effectivity: June 1, 1977 to June 23, 1997) which is the only retirement law that specifies the rationale and main objective AMENDING, EXPANDING, INCREASING AND INTEGRATING THE SOCIAL SECURITY AND INSURANCE BENEFITS OF GOVERNMENT EMPLOYEES AND FACILITATING THE PAYMENT THEREOF UNDER COMMONWEALTH ACT NO. 186, AS AMENDED, AND FOR OTHER PURPOSES WHEREAS, provisions of existing laws have impeded the efficient and effective discharge by the System of its functions and have unduly hampered the System from being more responsive to the dramatic changes of the times and from meeting the increasing needs and expectations of the Filipino public servant; WHEREAS, provisions of existing laws that have prejudiced, rather than benefited, the government employee; restricted, rather than broadened, his benefits, prolonged, rather than facilitated the payment of benefits, must now yield to his paramount welfare; WHEREAS, the social security and insurance benefits of government employees must be continuously re-examined and improved to assure comprehensive and integrated social security and insurance programs that will provide benefits responsive to their needs and those of their dependents in the event of sickness, disability, death, retirement, and other contingencies; and to serve as a filing reward for dedicated public service; WHEREAS, in the light of existing economic conditions affecting the welfare of government employees, there is need to expand and improve the social security and insurance programs istered by the Government Service Insurance System, specifically, among others, by increasing pension benefits, expanding disability benefits, introducing survivorship benefits, introducing sickness income benefits, and eventually extending the compulsory coverage of these programs to all government employees regardless of employment status; Section 4. Effect of Separation from the Service. A member shall continue to be a member, notwithstanding his separation from the service and, unless the of his separation provide otherwise, he shall be entitled to whatever benefits which shall have accrued or been earned at the time of his separation in the event of any contingency compensable under this Act. RETIREMENT BENEFITS Section 11. Conditions for Old-Age Pension. (a) Old-age pension shall be paid to a member who: (1) has at least fifteen years of service; (2) is at least sixty years of age; and (3) is separated from the service. (b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee at sixty-five years of age with at least fifteen years of service: Provided, That if he has less than fifteen years of service, he shall be allowed to continue in the service to complete the fifteen years. Section 12. Old-Age Pension.
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(a) A member entitled to old-age pension shall receive the basic monthly pension for life but in no case for a period less than five years: Provided, That, the member shall have the option to convert the basic monthly pensions for the first five years into a lump sum as defined in this Act: Provided, further, That, in case the pensioner dies before the expiration of the five-year period, his primary beneficiaries shall be entitled to the balance of the amount still due to him. In default of primary beneficiaries, the amount shall be paid to his legal heirs. (b) A member who has rendered at least three years but less than fifteen years of service at the time of separation shall, upon reaching sixty years of age or upon separation after age sixty, receive a cash payment equivalent to one hundred percent of his average monthly compensation for every year of service with an employer. (c) If a pensioner receiving a monthly pension is re-employed by an employer, the payment of his pension shall be suspended. When a pensioner who receives a lump sum is re-employed by an employer prior to the expiration of the period covered by such lump-sum, he shall refund to the System the amount corresponding to the unexpired period. In either case, when his compensation is less than the pension, he shall receive the difference: Provided, That, upon the termination of his re-employment, the pension shall be resumed. Section 13. Retirement Option. Employees who are in the government service upon the effectivity of this Act shall, at the time of their retirement, have the option to retire under this Act or under Commonwealth Act No. 186, as previously amended (like RA 660 and RA 1616) F.
Repeal of Section 11 (d) under CA 186 and Section 8 of R.A. 660 in P.D. 1146
P.D. 1146 Section 14 to Section 20 covers disability benefits, survivorship benefits, sickness benefits and funeral benefits. This amends the benefits provided under CA 186, R.A. 660 and R.A. 4968 Section 11 by retaining annuity (pension), survivors benefit and disability benefits and adding sickness benefits and funeral benefits; but deleted subsection (d) Entitlement of only refund of personal share with interest to those dismissed from the service for cause as explained below. Under Commonwealth Act (CA) 186, R.A. 660 of 1951 and R.A. 4968 of 1967: Retirement benefits include Section 11 (a) annuity (pension) (b) survivors benefits, (c) disability benefits and d) Entitled only to his own s and voluntary deposits, if any, plus interest (upon dismissal for cause or on voluntary separation) PD 1146 of 1977 which is the ―Revised Government Service Insurance Act of 1977‖ has amended has expanded the benefits covering Section 9 to Section 20 that include Section 11-13, Retirement benefits ( pension) Section 14-15, Permanent disability benefits Section 16-18, Survivorship benefits, Section 19, Sickness benefits,
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Section 20, Funeral benefit G. PRESIDENTIAL DECREE NO. 1981 - FURTHER AMENDING PD NO. 1146, AS AMENDED, OTHERWISE KNOWN AS THE REVISED GOVERNMENT SERVICE INSURANCE ACT OF 1977 Sec. 3. Sec. 4 is hereby amended to read as follows: "Sec. 4. Effect of Separation from the Service. — A member separated from the service shall continue to be a member, and he shall be entitled to whatever benefits which shall have accrued or been earned at the time of his separation in the event of any contingency compensable under this Act: Provided, however, That if he is separated for cause or considered resigned, he automatically forfeits said benefits, unless the of his resignation or separation provide otherwise. In case of forfeiture of benefits, the separated employee shall still be entitled to receive one-half of the cash surrender value of his life insurance." (deletes Section 11 (d) of CA 186 and Section 8 (d) of RA 660) H. RA 8291 approved May 30, 1997 - (Government Service Insurance Act of 1997; effectivity – June 24, 1997 up to present which carries the rationale and main objective of PD 1146)
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER PURPOSES "SEPARATION BENEFITS (for those below 60 years of age; whether thru resignation or separation) "SEC. 11. Separation Benefits. - The separation benefits shall consist of: (a) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon separation, whichever comes later: Provided, that the member resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years; or "(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or separation, plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided, that the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or separation. "RETIREMENT BENEFITS (retirement age of 60 or 65 years) "SEC. 13. Retirement Benefits. (a) Retirement benefits shall be:
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"(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed period covered by the lump sum; or "(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immediately with no five-year (5) guarantee. "(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee of sixty-five (65) years of age with at least fifteen (15) years of service: Provided, That if he has less than fifteen (15) years of service, he may be allowed to continue in the service in accordance with existing civil service rules and regulations. "SEC. 13-A. Conditions for Entitlement. - A member who retires from the service shall be entitled to the retirement benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That: (1) he has rendered at least fifteen years of service; (2) he is at least sixty (60) years of age at the time of retirement; and (3) he is not receiving a monthly pension benefit from permanent total disability. "SEC. 14. Periodic Pension Adjustment. - The monthly pension of all pensioners including all those receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS. I.
RA 8291 Implementing Rules and Regulations on Conversion
20.3 Conversion in the Mode of Retirement. Conversion in the mode of retirement from R.A. No. 8291 to any other retirement laws and vice versa istered by the GSIS shall not be allowed. Those who became GSIS prior to the implementation of this Act shall have the option to retire under PD 1146, RA 660, or RA 1616, subject to eligibility. J.
RULE V (ADJUDICATION OF CLAIMS AND DISPUTES - RA 8291)
Section 26 Committee on Claims - The Committee on Claims (CoC) shall evaluate and resolve issues / complaints arising from any dispute in the settlement of claims, such as, but not limited to the following: a. interpretation of an existing policy or procedure; b. no existing program or system to process a claim; c. no existing policy as basis to process a claim; d. appeal from an aggrieved party to a settled claim; e. findings from either the Internal Audit Services Office or the Commission on Audit that are disputable; and f. implementation of and Order from any Court, quasi-judicial body or duly authorized entity due to its being in conflict or inconsistent with existing GSIS laws, policies, rules and regulations; g. any other matter related to any or all of the foregoing which is necessary for their determination
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The CoC shall report to the Board on a regular basis the actions taken on issues/complaints elevated to the said Committee. 26.1. Disputes on claims shall be appealed to the Committee on Claims within 60 days from date the member received the check representing payment of claim benefit or notice of disapproval. The Committee on Claims shall evaluate the appeal and shall notify the claimant of Committee’s decision. 26.2. Further appeal on the Committee’s decision shall be filed to the Board within 60 days from receipt of Committee’s decision. II.
EXECUTIVE – (Implementation of Laws through the Bureaucracy)
A. APPLICATION FOR RETIREMENT AND OTHER SOCIAL INSURANCE BENEFITS New GSIS Form TO BE FILLED UP BY THE PERSONNEL OFFICER OF THE AGENCY The undersigned hereby certifies that M _________________, an employee of this office and who has/has not reached the compulsory age of retirement, who is in active status has filed for CSV ( ) resigned from this agency ( ) applied for Separation Benefit and has been separated from the service ( ) has applied for unemployment benefit and has been involuntarily separated from the service as a result of ( ) abolition/reorganization of his office; ( ) abolition of his position in this agency; effective ________________, and this office was duly informed of such. ________________________ _______________________ ______________ Signature of Personnel Officer Name of Agency/Last Office Date Over Printed Name Before Retirement ________________________ Address of Agency INSTRUCTIONS: (1) Ensure that the application form is properly filled up. (2)Agency to submit two (2) copies of the accomplished application form to the nearest GSIS/Handling Office. 3.
AND CONDITIONS
I. RETIREMENT A. ELIGIBILITY REQUIREMENTS 1. Member shall be entitled to the retirement benefit, provided he/she is separated from the service at the time of application, and on condition that:
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2, NOTE; Under P.D. 1146, it says he/she should have been separated //retired. According to Teachers Handbook 2003, separation from the service can be through resignation or retirement. The GSIS B.R. Res. No. 160 dtd 17 Feb 1977 mentioned that ―an application for retirement or resignation once approved can not be withdrawn, rescinded or recalled for any reason whatsoever‖ which indicates that resignation is not equated with voluntary separation or dismissal for cause which is the subject of C.A 186 Section 11 (d) and Section 8 of R.A. 660 of 1951 providing the refund of personal contributions plus interest. But this provision has been deleted under R.A/ 4968 of 1967 and P.D. 1146 of 1977 or much earlier. Under R.A. 8291 of 1997, separated and resigned employees can avail of retirement pension upon reaching age 60 years. 3. Request for conversion from one mode of retirement to another shall not be allowed. NOTE: GSIS is allowed to process retirement (resignation or separation) application of a retiree under only 1 of the 4 modes of retirement in which he/she is qualified or eligible
B.
Excerpt from REPUBLIC ACT No. 6713 (Approved, February 20, 1989)
ACT ESTABLISHING A CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES, TO UPHOLD THE TIME-HONORED PRINCIPLE OF PUBLIC OFFICE BEING A PUBLIC TRUST, GRANTING INCENTIVES AND REWARDS FOR EXEMPLARY SERVICE, ENUMERATING PROHIBITED ACTS AND TRANSACTIONS AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF AND FOR OTHER PURPOSES
Section 4. Norms of Conduct of Public Officials and Employees. - (A) Every public official and employee shall observe the following as standards of personal conduct in the discharge and execution of official duties: (c) Justness and sincerity. - Public officials and employees shall remain true to the people at all times. They must act with justness and sincerity and shall not discriminate against anyone, especially the poor and the underprivileged. They shall at all times respect the rights of others, and shall refrain from doing acts contrary to law, good morals, good customs, public policy, public order, public safety and public interest. They shall not dispense or extend undue favors on of their office to their relatives whether by consanguinity or affinity except with respect to appointments of such relatives to positions considered strictly
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confidential or as of their personal staff whose are coterminous with theirs. C.
Extension of Service by CSC to meet 20 years requirement under RA 1616
RESOLUTION No. 97-2824 -- Ramon F. Nieva, Assistant Secretary for Personnel, Department of National Defense, requests the Commission to allow the extension of services rendered by Jose A. Aldave, Plumber I, Naval Intelligence and Security Force, Philippine Navy, for a period of six (6) months reckoned from his 65th birthday on June 11, 1995. The said request of Nieva, reads in part, as follows: "This refers to the representations in behalf of MR. JOSE A. ALDAVE, a casual employee (Plumber I) of the Naval Intelligence and Security Force, Philippine Navy whose application for retirement could not be acted upon by the GSIS in view of his failure to meet the years of service as prescribed under the provisions of RA 1616, as amended. "The records of the Philippine Navy showed that he retired last 31 December 1995 after rendering a total of 20 years and 2 months of service. However, a further scrutiny of the personal records of subject employee showed that he should have retired 11 June 1995 (which was his 65th birthday) but which is six (6) months and twenty (20) days short of the prescribed period in order to qualify him for retirement under RA 1616. "Further, it will be noted from the records available that there was an istrative oversight on the part of the Philippine Navy for allowing subject employee to continue his service beyond June 1995 - thus extending his service by six (6) months without CSC authority. "With these facts on the one hand and the request for humanitarian considerations on the other, subject Mr. Aldave sought the advise of GSIS authorities and CSC personnel on what could be done to resolve his case hence, this representation. "It is therefore in an effort to extend all possible assistance to this low salaried personnel that the matter elevates to that Office for your humanitarian consideration the request that the six (6) months service rendered by him after his 65th birthday last June 1995 be favorably counted in his favor so that he could avail of the retirement benefits." After a careful evaluation of the justifications presented and considering the willingness of the agency to extend Aldave's service, the Commission finds the request meritorious. Moreover, inasmuch as the services had already been rendered, Aldave therefore served as a de jure officer during the said period of extension. However, under MC No. 37, s. 1992 the services of any employee may be extended for a maximum period of six months following his 65th birthday only upon request by the proper appointing authority. It appears, however, that Asst. Secretary Nieva has made this request for the Secretary and therefore presumably upon his authority. WHEREFORE, the instant request of Asst. Secretary Ramon F. Nieva is hereby granted.
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Accordingly, Aldave's service rendered from June 12, 1995 to December 11, 1995 is deemed as an extension of service for purposes of retirement. However, the period covering December 2, 1995 to December 31, 1995 shall not be considered as government service in favor of Aldave for purposes of computing his retirement benefits and that no vacation and sick leave credits shall accrue in his favor within said period. Furthermore, Philippine Navy officials who allowed Aldave to continue working in the service shall reimburse the government the corresponding amount representing payment of salaries made to Aldave. Quezon City, May 20, 1997
(Signed) JOSE F. ERESTAIN, JR. Commissioner
(Signed) THELMA P. GAMINDE Commissioner (Signed) CORAZON ALMA G. DE LEON Chairman Attested by: (Signed) CARMENCITA GISELLE E.B. BRINGAS Board Secretary VI
D. REPUBLIC ACT NO. 386 -- AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE PHILIPPINES Article 3. Ignorance of the law excuses no one from compliance therewith. Presumption of Knowledge of Law. – Everyone is conclusively presumed to know the law. This presumption is very far from reality; but it has been established because of the obligatory force of law. Once the law has been promulgated and has taken effect, it is the duty of everyone to know it. Compliance with it becomes unavoidable, and nobody can escape its effects by alleging, in good faith or in bad faith, that he does not know its provisions (1 Tolentino 18 citing 1 Oyuelos 2; 1 Nunez 97; Fernandez, p. 67; Sentencia of Nov. 23, 1912). Reasons for Article. – Evasion of the law would be facilitated, and the istration of justice defeated, if persons could successfully plead ignorance of the law to escape the legal consequences of their acts, or to excuse non-performance of their legal duties. Actual ignorance of the law would thus afford immunity from punishment for crimes and from liability for violations of personal and property rights of others. The rule in this article is, therefore, dictated not only by expediency but also by necessity (ibid., citing Zulueta vs. Zulueta, 1 Phil. 254). The following reasons have thus been advanced for this article, which is a logical consequence of the conclusive presumption of knowledge of the law: (1) If laws will not be binding until they are actually known, then social life will be impossible, because most laws cannot be enforced due to their being unknown to many. (2) It is absurd to absolve those who do not know the law and increase the obligations of those who know it. (3) It is almost impossible to prove the contrary, when a person claims ignorance of the law.
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(4) In our conscience, we carry norms of right and wrong, and a sense of duty, so that our reason indicates many times what we have to do; and in more complicated juridical relations, there are lawyers who should be consulted (1 Tolentino 18 citing 1 Valverde 131-133). What Laws Covered. – Local laws only, foreign laws not covered. And with respect to local laws, the article is limited to mandatory and prohibitory laws. It does not include those which are merely permissive (id., citing 1 Manresa 56). Application of Rule. – The ignorance suffered by contracting parties because of their ignorance of the law must be borned by them, because ignorance of the law does not favor or prejudice anyone, nor justify the amendment or annulment of a contract (Sentencias of Feb. 20, 1861, May 9, 1867, and December 8, 1867; Luna vs. Linatoc, 74 Phil. 15). No Exceptions itted. – Some writers, as Toullier and Goyena, believe that when for some reason, as flood, fire, war, etc., the official newspaper does not reach some region, and the interruption of communication is clearly shown, the article should not be applied because it would be unjust to do so. However, the rule is based on public interest and is designed precisely to avoid abuse through allegation that the law has not come to the knowledge of a party (1 Tolentino 20 citing 1 Manresa 55) Irrevocability of Acts. – If, through mistake or ignorance of law, a person does an act which prejudices himself, and the injury cannot be remedied without impairing another’s rights, the mistake cannot be corrected to the prejudice of the latter (1 Tolentino 20). Mistake of Fact. – Ignorance may either be of law or of fact…. Ignorance of fact (ignorantia facti) may excuse a party from the legal consequences of his conduct; but not ignorance of law, for ignorantia juris neminem excusat. Republic Act (R.A.) No. 394 recognized validity of Mohammedan divorces. Difficult Questions of Law. – In specific instances provided by law, mistake as to difficult legal questions has been given the same effect as a mistake of fact. The following articles of the Code may be cited as examples: ART. 526. He is deemed a possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it. He is deemed a possessor in bad faith who possesses in any case contrary to the foregoing. Mistake upon a doubtful or difficult question of law may be the basis of good faith. ART. 1334. Mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrated, may vitiate (destroy or impair legal validity) consent (approval or agreement). ART. 2154. If something is received when there is no right to demand it, and it was unduly delivered through mistake, the obligation to return it arises. ART. 2155. Payment by reason of a mistake in the construction of a doubtful or difficult question of law may come within the scope of the preceding article.
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Mistake of Lawyer. – No man is supposed to know any branch of the law perfectly, particularly when called upon to act at once without time for reflection, The knowledge which we use the utmost industry to acquire, is often forgotten at the moment when most needed. The science of law is a most extensive and difficult one. Cases frequently occur when learned men differ, after the greatest pains is taken to arrive at a correct result. No one, therefore, would dare to pursue the profession of law, if he were held responsible for the consequences of a casual Article 6. Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law. (4a) E.
Deletion of Section 11 (d) of C.A. 186 of 1936 and Section 8 of R.A. 660 of 1951
1. Secretary of Justice Opinion No. 5, s. 1962 stating that "retirement of an officer or employee does not, ... nullify or render moot the investigation of the istrative charges filed against him for delinquency or misconduct in Office . . .The consequential penalties of forfeiture of retirement benefits and leave privileges incidental to dismissal from the service for cause may still be given effect." 2. Forfeiture of retirement benefits on cases of dismissal from the service for cause can be gleaned from case: Aquino vs. General Manager, GSIS ( L-24859, January 31, 1968, 22 SCRA 415). F.
GSIS Board Resolution No. 160 (Board Meeting NO. 5 February 17, 1977)
1. After deliberation, the Board RESOLVED TO DENY the request of Mrs. Gloria A. Leonor to withdraw her application for retirement, the same having been accepted / approved. 2. Further, the Board RESOLVED TO ADOPT the following policy: That, henceforth, an application for retirement or resignation once approved cannot be withdrawn, rescinded, or recalled for any reason whatsoever. G.
GSIS LEGAL OVERSIGHT COMMITTEE
1. In 2008, the BOT approved the creation of a fourth committee, the Legal Oversight Committee, to further strengthen the pursuit for just and equitable decision-making processes and protect the interest of and stakeholders of the state pension fund, particularly those relating to legal matters. The Legal Oversight Committee is a welcome addition to the Corporate Governance, Audit and Risk Oversight Committees, all of which have made significant contributions to professionalize the state pension fund and enhance its delivery of efficient service to the 1.5 million and pensioners of the GSIS. 2. Example of Certain Oversights in the Processing of Retirement Application Under P.D. 1146 and R.A. 1616
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a. In the GSIS Annual Report it says that ―Since the formation in 2006 of committees to assist the GSIS Board of Trustees in carrying out its mandate of assuring the viability of the state pension fund and the development of corporate governance principles in the exercise of the Board’s oversight responsibilities, the committees have become indispensable tools to ensure transparency, fairness and ability in all aspects of GSIS operations. . . In 2008, the Board of Trustees approved the creation of a fourth committee, the Legal Oversight Committee, to further strengthen the pursuit for just and equitable decision-making processes and protect the interest of and stakeholders of the state pension fund, particularly those relating to legal matters. b. An example of retirement application approved under P.D. 1146 and then later approved under R.A. 1616 with several oversights in presented below by illustration.
Actions, reason and result in the interrelationship and application of different retirement laws 1) Actions: Action 1 – Approval of retirement application under P.D. 1146 per letter of GSIS dtd 16 Feb 1987; Action 2 – Letter of Withdrawal / opted to leave the service thru
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resignation per letter dtd 26 Feb 1987 – indorsed by DBP recommending favorable consideration by GSIS Pres..&Gen.Mgr, Action 3 – Letter of indorsement by GSIS per letter dtd 27 Feb 1987, and Action 3 – Filing of application for retirement under R.A. 1616 (Take All). But using the clause: withdrawal of retirement application under P.D. 1146, it was assumed that the retirement application under P.D. 1146 was not yet approved by the GSIS. Since it was already approved, said letter of withdrawal of approved application for retirement under P.D. 1146 for any reason whatsoever should not have been considered in the first place. Nevertheless, the 3 actions led to the withdrawal of the approved retirement application under P.D. 1146 by disregarding the GSIS Bd. Res. No. 160, there was the Oversight No. 1. . 2) Reason for the withdrawal and filing of application under RA 1616 was to avail of the Take All retirement benefits immediately. But since there is no rider under R.A. 1616 that a retiree with only 17 years of service could still retire under R.A. 1616, approving his application under R.A. 1616 was the Oversight No.2 3) Result was the granting of only the refund of personal share plus interest since retiree has less than 20 years in the service, but this statement cannot be found as a rider under R.A. 1616, hence the Oversight No. 3. The refund of personal share plus interest was covered by provision under RA 1616 of 1957 but was amended by RA 4968 of 1967 as the Take All option. It could be covered under RA 660 of 1951 Section 8 (d) for those subjected to dismissal for cause or on voluntary separation as against my retirement or resignation; but said provision was repealed under P.D. 1146 of 1977 and PD 1981 of 1985. Therefore, payment of only the personal share plus interest was not covered by any law, hence, it was erroneous which was the Oversight No. 4. III.
JUDICIARY (settle controversies and determine grave abuse of discretion)
Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government. A.
Excerpt from G.R. No. L-40648 May 20, l987
MERCEDES S. MARASIGAN, represented by Attorney-in-fact EUGENIA S. MARASIGAN, plaintiff-appellee, vs. HON. AMADEO H. CRUZ, DR. JOSE R. CRUZ and JOSE R. REYES MEMORIAL HOSPITAL, defendants-appellants. In its decision, the trial court set out the perspective that is appropriate in respect of a retirement law like C.A. No. 186, as amended: A retirement law such as C.A. 186 and amendatory laws is in the nature of a contract between the government and its employees. When an employee s the government service he has a right to expect that after rendering the required length of service and fulfilled the conditions stated in the laws on retirement, he would be able to enjoy the benefits provided in said laws. He
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regularly pays the dues prescribed therefore. It would be cruel to deny him the benefits he had been expecting at the end of his service by imposing conditions for his retirement which are not found in the law. It is believed to be a legal duty as well as a moral obligation on the part of the government to honor its commitments to its employees when as in this case, they have met all the conditions prescribed by law and are therefore entitled to receive their retirement benefits. We agree with the trial court in this respect. WHEREFORE, the decision appealed from is hereby AFFIRMED. SO ORDERED. Yap (Chairman), Narvasa, Melencio-Herrera, Cruz, Gancayco and Sarmiento, JJ., concur. B.
Excerpt from G.R. No. 186560, November 17, 2010
GOVERNMENT SERVICE INSURANCE SYSTEM, Petitioner, vs. FERNANDO P. DE LEON, Respondent. NACHURA, J.: Before this Court is a Petition for Review on Certiorari under Rule 45 of the Rules of Court. Petitioner Government Service Insurance System (GSIS) seeks the nullification of the Decision1 dated October 28, 2008 and the Resolution2 dated February 18, 2009 of the Court of Appeals (CA) in CA-G.R. SP No. 101811 Finally, GSIS would like this Court to believe that because it has returned respondent’s contributions, it is now legally impossible for it to comply with the CA’s directive. Given the fact that respondent is ineligible to retire under R.A. No. 910, the refund by GSIS of respondent’s payments was erroneous. Hence, GSIS can demand the return of the erroneous payment or it may opt to deduct the amount earlier received by respondent from the benefits which he will receive in the future. Considering its expertise on the matter, GSIS can device a scheme that will facilitate either the reimbursement or the deduction in the most costefficient and beneficial manner. WHEREFORE, the foregoing premises considered, the Decision dated October 28, 2008 and the Resolution dated February 18, 2009 of the Court of Appeals in CA-G.R. SP No. 101811 are hereby AFFIRMED WITH MODIFICATION. Government Service Insurance System is ORDERED to (1) pay respondent’s retirement benefits in accordance with P.D. No. 1146, subject to deductions, if any, computed from the time the same were withheld until April 7, 2010; and (2) pay respondent’s retirement benefits in accordance with R.A. No. 910, computed from April 8, 2010 onwards. In order that respondent may not be further deprived of his monthly pension benefits, this Decision is IMMEDIATELY EXECUTORY. SO ORDERED. ANTONIO EDUARDO B. NACHURA Associate Justice
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WE CONCUR:
ANTONIO T. CARPIO Associate Justice Chairperson ROBERTO A. ABAD DIOSDADO M. PERALTA Associate Justice Associate Justice MARTIN S. VILLARAMA, JR. Associate Justice
ATTESTATION I attest that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division. ANTONIO T. CARPIO Associate Justice Chairperson, Second Division CERTIFICATION Pursuant to Section 13, Article VIII of the Constitution and the Division Chairperson’s Attestation, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division. RENATO C. CORONA Chief Justice C. Excerpt from G.R. No. 92284 July 12, 1991 TEODORO J. SANTIAGO, petitioner, vs. THE COMMISSION ON AUDIT, and the GOVERNMENT SERVICE INSURANCE SYSTEM, respondents. Leven S. Puno for petitioner. Cesar R. Vidal for respondent GSIS Retirement laws should be interpreted liberally in favor of the retiree because their intention is to provide for his sustenance, and hopefully even comfort, when he no longer has the stamina to continue earning his livelihood. After devoting the best years of his life to the public service, he deserves the appreciation of a grateful government as best concretely expressed in a generous retirement gratuity commensurate with the value and length of his services. That generosity is the least he should expect now that his work is done and his youth is gone. Even as he feels the weariness in his bones and glimpses the approach of the lengthening shadows, he should be able to luxuriate in the thought that he did his task well, and was rewarded for it. WHEREFORE, the petition is GRANTED. The challenged resolution is SET ASIDE and judgment is hereby rendered DIRECTING the computation of the petitioner's retirement benefits on the basis of his Highest Basic Salary Rate of P13,068.00, It is so ordered. Fernan, C.J., Narvasa, Melencio-Herrera, Gutierrez, Jr., Paras, Feliciano, Padilla, Bidin, Sarmiento, Griño-Aquino, Medialdea, Regalado and Davide, Jr., JJ., concur. Gancayco, J., is on leave. ================================================================== Prepared by: Edmundo Enderez June 19, 2013
Government Service Insurance System (GSIS) Basic Retirement Framework This article attempts to present that in applying for eligible retirement from the government service for the purpose of availing of benefits from the employer (gratuity pay or incentive award) and the GSIS (pension for life), the stakeholders who are the employee, employer and GSIS should know and understand the basic legislative, executive and judicial framework for retirement. It will serve as the proper guide in 1) filling up the employer’s retirement letter form indicating the applicable mode of retirement and availing of gratuity pay or incentive award, approved by the head of agency, 2) filling up the form on GSIS application for retirement duly endorsed or recommended by employer to GSIS as basis for approval, 3) understanding that conversion from one mode of retirement to another is not allowed, 4) preventing GSIS to process and approve any application for retirement to which a retiree is not eligible to avoid any form of oversight, 5) filing an appropriate appeal to GSIS on claim in cases of oversight or istrative lapses, 6) executing any waiver on retirement: the civil code stipulates that rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law, 7) filing of an istrative case with the proper authorities, if warranted, and 8) filing of appropriate case in courts for highly controversial issues or there is grave abuse of discretion. This is in line with P-Noy istration’s general campaign to uphold and promote good governance that leads to an unprecedented improvement in the Corruption Perception Index from 2.4 in 2010, 2.6 in 2011 and 3.4 in 2012. The GSIS which is under the jurisdiction of the Office of the President has embarked on good management measures that led to the significant improvement in its annual income and reduced, to a certain extent, inequity by way of expanding, increasing and integrating the social security and insurance benefits of government employees, increasing pension benefits and facilitating payment as well as expanding and increasing the coverage and benefits of the GSIS, instituting reforms therein and for other purposes. I.
LEGISLATIVE (Laws ed by Congress and Approved by the President)
A.
COMMONWEALTH ACT NO. 186 (Approved: November 14, 1936)
AN ACT TO CREATE AND ESTABLISH A "GOVERNMENT SERVICE INSURANCE SYSTEM," TO PROVIDE FOR ITS ISTRATION, AND TO APPROPRIATE THE NECESSARY FUNDS THEREFOR II. Retirement Insurance Benefit Section12. Conditions for retirement (c) Retirement is likewise allowed to any official or employee, appointive or elective, regardless of age and employment status, who has rendered a total of at least twenty years of service, the
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last three years of which are continuous. The benefit shall, in addition to the return of his personal contributions with interest compounded monthly and the payment of the corresponding employer's s described in subsection (a) of Section five hereof, without interest, be only a gratuity equivalent to one month's salary for every year of the first twenty years of service, plus one and one-half month's salary for every year of service over twenty but below thirty years and two month's salary for every year of service over thirty years in case of employees based on the highest rate received and in case of elected officials on the rates of pay as provided by law. This gratuity is payable on the rates of pay as provided by law. This gratuity is payable by the employer or officer concerned which is hereby authorized to provide the necessary appropriation or pay the same from any unexpended items of appropriations or savings in its appropriations. Officials and employees retired under this Act shall be entitled to the commutation of the unused vacation and sick leave, based on the highest rate received, which they may have to their credit at the time of retirement. An employee who retires under this Subsection (c) may not be eligible for retirement with gratuity or pension under Subsection (a) of Section eleven of this Act, as amended, or vice versa, unless he makes a written application therefore within one year after retirement and reimburses the retirement gratuity or pension previously received by him, as well as refunds the personal and employer's s as the case may be. Section30. Effective date. — This Act shall take effect upon its approval. B.
REPUBLIC ACT 660 (Approved: June 16, 1951)
AN ACT TO AMEND COMMONWEALTH ACT NUMBERED ONE HUNDRED AND EIGHTY-SIX ENTITLED "AN ACT TO CREATE AND ESTABLISH A GOVERNMENT SERVICE INSURANCE SYSTEM, TO PROVIDE FOR ITS ISTRATION, AND TO APPROPRIATE THE NECESSARY FUNDS THEREFOR," AND TO PROVIDE RETIREMENT INSURANCE AND FOR OTHER PURPOSES Retiring under RA 660 requires the following: 1. The retiree's last 3 years of service prior to retirement must be continuous, except in cases of death, disability, abolition, and phase- out of position due to reorganization. 2. His/her appointment status must be permanent in nature. 3. He/she must meet the age and service requirements under the "Magic 87" formula. Based on the formula, a retiree’s age and years in service should be added up and should total at least 87. Under RA 660, GSIS as young as 52 years old can already avail of a retirement package for as long as they have already been in government service for the past 35 years. The ―Magic 87‖ formula is shown below: A g e 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Service 35 34 33 32 31 30 28 26 24 22 20 18 16 15 The maximum monthly pension for those above 57 years old shall be 80% of the Average Monthly Salary (AMS) received during the last 3 years immediately preceding retirement. The Maximum pension for those aged 57 and below shall be 75% of the AMS. Packages in store for you
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RA 660 lets you choose among the following options to let you enjoy a new beginning: Option 1: Automatic Pension - Under this option, pensioners below 60 years old may choose to receive either an automatic monthly pension for life or an option to avail of a lump sum. The lump sum, which can be requested every six months, means they can receive their oneyear worth of monthly pension in advance for a period of five years. On the sixth year, they will start receiving their lifetime monthly pension. Option 2: Initial three-year lump sum - For those who are at least 60 years old but less than 63 years on date of retirement, the benefit is a 3-year lump sum. The subsequent two -year lump-sum shall be paid to the retiree on his 63rd birthday. If the retiree is still living after the 5year guaranteed period, he shall be entitled to a monthly pension for life. Option 3: 5-Year Lumpsum - For those who are 63-65 years old, they can avail of a five-year lump sum then after five years, they will receive a monthly pension for life. Section 8. The following new sections are hereby inserted in Commonwealth Act Numbered One hundred and eighty-six: II. — Retirement Insurance Benefit "Section 11. (a) Amount of annuity. — Upon retirement a member shall be automatically entitled to a life annuity payable monthly for at least five years and thereafter as long as he live. The amount of the monthly annuity at the age of fifty-seven years shall be twenty pesos, plus, for each year of service rendered after the approval of this Act, one and six-tenths per centum of the average monthly salary received by him during the last five years of service, plus, for each year of service rendered prior to the approval of this Act, if said service was at least seven years, one and two-tenths per centum of said average monthly salary: Provided, That this amount shall be adjusted actuarially if retirement be at an age other than fifty-seven years: Provided, further, That the maximum amount of monthly annuity at age fifty-seven shall not in any case exceed twothirds of said average monthly salary or five hundred pesos, whichever is the smaller amount: And provided, finally, That retirement benefit shall be paid not earlier than one year after the approval of this Act. In lieu of this annuity, he may prior to his retirement elect one of the following equivalent benefits: "(1) Monthly annuity during his lifetime; "(2) Monthly annuity during the t-lives of the employee and his wife or other designated beneficiary, which annuity, however, shall be reduced upon the death of either to one-half and be paid to the survivor; "(3) For those who are at least sixty-five years of age, lump sum payment of present value of annuity for first five years and future annuity to be paid monthly or "(4) Such other benefit as may be approved by the System. "(b) Survivors benefit. — Upon death before he becomes eligible for retirement, his beneficiaries as recorded in the application of retirement annuity filed with the System shall be paid his own s with interest of three per centum per annum, compounded monthly. If on
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his death he is eligible for retirement, then the automatic retirement annuity or the annuity chosen by him previously shall be paid accordingly. "(c) Disability benefit. — If he becomes permanently and totally disabled and his services are no longer desirable, he shall be discharged and paid his own contributions with interest of three per centum per annum, compounded monthly, if he has served less than five years; if he has served at least five years but less than fifteen years, he shall be paid also the corresponding employer's s, without interest, described in subsection (a) of section five hereof; and if he has served at least fifteen years he shall be retired and be entitled to the benefit provided under subsection (a) of this section. "(d) Upon dismissal for cause or on voluntary separation, he shall be entitled only to his own s and voluntary deposits, if any, plus interest of three per centum per centum per annum, compounded monthly C.
REPUBLIC ACT No. 1616 (Approved: May 31, 1957)
AN ACT FURTHER AMENDING SECTION TWELVE OF COMMONWEALTH ACT NUMBERED ONE HUNDRED EIGHTY-SIX, AS AMENDED, BY PRESCRIBING TWO OTHER MODES OF RETIREMENT AND FOR OTHER PURPOSES. Section 1. Section twelve of CA 186, as amended, is hereby further amended by adding two new paragraphs after paragraph (a) which reads as follows: "(b) Notwithstanding the provisions of the preceding paragraph, a member may be allowed to retire after rendering a total service of thirty years, regardless of age, the retiring employee to receive a monthly annuity for life, but the benefit for service rendered after June sixteen, nineteen hundred and fifty-one, shall be whatever amount of annuity can be purchased by the accumulated government and personal contributions to the credit of a member plus interest allowed by the system on the date of retirement. Said annuity shall be computed in accordance with the mortality table and the rate of interest adopted by the system. This benefit shall be in addition to the benefit for service rendered prior to June sixteen, nineteen hundred and fifty-one as provided in section eleven (A) of this Act. "(c) Retirement is likewise allowed to a member, regardless of age, who has rendered at least twenty years of service. The benefit shall, in addition to the return of his personal contributions plus interest, be only a gratuity equivalent to one month salary for every year of service, based on the highest rate received, but not to exceed twenty-four months. This gratuity is payable by the employer or office concerned which is hereby authorized to provide the necessary appropriation or pay the same from savings in its appropriations." Section 2. Officials and employees paid gratuity under this Act shall be entitled to the commutation of the unused vacation and sick leave which they may have to their credit at the time of retirement. Section 3. Paragraphs b, c, d and e of section twelve of Commonwealth Act Numbered One hundred eighty-six, as amended, are hereby changed to paragraphs d, e, f and g, respectively. Section 4. This Act shall take effect upon its approval.
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D.
REPUBLIC ACT No. 4968 (Approved: June 17, 1967)
AN ACT AMENDING FURTHER COMMONWEALTH ACT NUMBERED ONE HUNDRED AND EIGHTY-SIX, AS AMENDED. Section 5. Subsections (a), (b) and (c) of Section eleven of the same Act, as amended are hereby further amended to read as follows: "Sec. 11(a). Amount of annuity. Upon retirement after faithful and satisfactory service a member shall be automatically entitled to a life annuity guaranteed for at least five years and thereafter as long as he lives. The amount of the monthly annuity at the age of fifty-seven years shall be thirty pesos, plus for each year of service after the sixteenth of June, nineteen hundred and fifty-one, two per centum of the average monthly salary received by him during the last three years of service, plus for each year of service rendered prior to the sixteenth of June, nineteen hundred and fifty-one, one and two-tenths per centum of said average monthly salary: Provided, That this amount shall be adjusted actuarially if retirement be at an age other than fifty-seven years: Provided, further, That the maximum amount of monthly annuity at age fifty-seven shall not in any case exceed three fourths of said average monthly salary: And provided, finally, That retirement benefit shall be paid not earlier than one year after the approval of this Act. In lieu of this annuity, he may prior to his retirement elect one of the following equivalent benefits: "(1) Monthly annuity during his lifetime; "(2) Monthly annuity during the t-lives of the employee and his or her spouse guaranteed for at least five years, which annuity, however, shall, upon the death of either and after the five-year guaranteed period, be reduced to one-half and be paid to the survivor "(3) For those who are at least sixty-three years of age, lump-sum payment of present value of annuity for first five years, and for those who are at least sixty but below sixty-three years of age, lump-sum payment of the present value of the annuity for the first three years, with the balance of the five-year guaranteed annuity payable in lump sum upon reaching sixty-three years of age, and annuity after the guaranteed period to be paid monthly: Provided, That said lump-sum payment of annuity may be made to a retired employee only if the s paid by and for him are sufficient to cover said payment or payments: Provided, further, That it shall be compulsory for an employer to pay on the date of retirement in preference to all other obligations, except salaries and wages of its employees, its share of at least the s required to permit an employee to enjoy this option:. "(4) Such other benefits as may be approved by the System. "(b) Survivors benefit. Upon death before he becomes eligible for retirement, his beneficiaries as recorded in the application for retirement annuity filed with the System shall be paid his own s with interest of three per centum per annum,
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compounded monthly. If he has served at least five years and his death is not due to his own misconduct, gross negligence, intemperate use of drugs or alcoholic liquor, or vicious or immoral habits, his beneficiaries shall also be paid by the employer his one month's salary for every year of service, based on the highest rate he received. If on his death he is eligible for retirement, then the automatic retirement annuity or the annuity previously chosen by him shall be paid accordingly. "(c) Disability benefit. If he becomes permanently and totally disabled and his services are no longer desirable, he shall be discharged and paid his own contributions with interest of three per centum per annum, compounded monthly, if he has served less than five years. If he has served at least five years but less than fifteen years, he shall be paid also the corresponding employer's s, without interest, described in subsection five hereof: Provided, That if his disability is not due to his own misconduct, gross negligence, intemperate use of drugs or alcoholic liquor, or vicious or immoral habits, he shall also be paid by the employer one month's salary for every year of service, based on the highest rate received. If he has served at least fifteen years he shall be retired and be entitled to the benefit provided under subsection (a) of this section, unless he is qualified to receive and choose the benefit provided for in the next preceding sentence." Deleted ―(d) – Upon dismissal for cause or on voluntary separation Section 6. Subsection (c) of Section twelve of the same Act, as inserted by Republic Act Numbered One thousand six hundred and sixteen, as amended, is hereby further amended to read as follows: "(c) Retirement is likewise allowed to any official or employee, appointive or elective, regardless of age and employment status, who has rendered a total of at least twenty years of service, the last three years of which are continuous. The benefit shall, in addition to the return of his personal contributions with interest compounded monthly and the payment of the corresponding employer's s described in subsection (a) of Section five hereof, without interest, be only a gratuity equivalent to one month's salary for every year of the first twenty years of service, plus one and one-half month's salary for every year of service over twenty but below thirty years and two month's salary for every year of service over thirty years in case of employees based on the highest rate received and in case of elected officials on the rates of pay as provided by law. This gratuity is payable by the employer or office concerned which is hereby authorized to provide the necessary appropriation or pay the same from any unexpended items of appropriations or savings in its appropriations. Officials and employees retired under this Act shall be entitled to the commutation of the unused vacation and sick leave, based on the highest rate received, which they may have to their credit at the time of retirement. "An employee who retires under this subsection (c) may not be eligible for retirement with gratuity or pension under Subsection (a) of Section eleven of this Act, as amended, or vice versa, unless he makes a written application therefore within one year after retirement and reimburses the retirement gratuity or pension previously received by him, as well as refunds the personal and employer's s as the case may be."
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E. PRESIDENTIAL DECREE No. 1146 (Government Service Insurance Act of 1977: Approved May 31, 1977: Effectivity: June 1, 1977 to June 23, 1997) which is the only retirement law that specifies the rationale and main objective AMENDING, EXPANDING, INCREASING AND INTEGRATING THE SOCIAL SECURITY AND INSURANCE BENEFITS OF GOVERNMENT EMPLOYEES AND FACILITATING THE PAYMENT THEREOF UNDER COMMONWEALTH ACT NO. 186, AS AMENDED, AND FOR OTHER PURPOSES WHEREAS, provisions of existing laws have impeded the efficient and effective discharge by the System of its functions and have unduly hampered the System from being more responsive to the dramatic changes of the times and from meeting the increasing needs and expectations of the Filipino public servant; WHEREAS, provisions of existing laws that have prejudiced, rather than benefited, the government employee; restricted, rather than broadened, his benefits, prolonged, rather than facilitated the payment of benefits, must now yield to his paramount welfare; WHEREAS, the social security and insurance benefits of government employees must be continuously re-examined and improved to assure comprehensive and integrated social security and insurance programs that will provide benefits responsive to their needs and those of their dependents in the event of sickness, disability, death, retirement, and other contingencies; and to serve as a filing reward for dedicated public service; WHEREAS, in the light of existing economic conditions affecting the welfare of government employees, there is need to expand and improve the social security and insurance programs istered by the Government Service Insurance System, specifically, among others, by increasing pension benefits, expanding disability benefits, introducing survivorship benefits, introducing sickness income benefits, and eventually extending the compulsory coverage of these programs to all government employees regardless of employment status; Section 4. Effect of Separation from the Service. A member shall continue to be a member, notwithstanding his separation from the service and, unless the of his separation provide otherwise, he shall be entitled to whatever benefits which shall have accrued or been earned at the time of his separation in the event of any contingency compensable under this Act. RETIREMENT BENEFITS Section 11. Conditions for Old-Age Pension. (a) Old-age pension shall be paid to a member who: (1) has at least fifteen years of service; (2) is at least sixty years of age; and (3) is separated from the service. (b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee at sixty-five years of age with at least fifteen years of service: Provided, That if he has less than fifteen years of service, he shall be allowed to continue in the service to complete the fifteen years. Section 12. Old-Age Pension.
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(a) A member entitled to old-age pension shall receive the basic monthly pension for life but in no case for a period less than five years: Provided, That, the member shall have the option to convert the basic monthly pensions for the first five years into a lump sum as defined in this Act: Provided, further, That, in case the pensioner dies before the expiration of the five-year period, his primary beneficiaries shall be entitled to the balance of the amount still due to him. In default of primary beneficiaries, the amount shall be paid to his legal heirs. (b) A member who has rendered at least three years but less than fifteen years of service at the time of separation shall, upon reaching sixty years of age or upon separation after age sixty, receive a cash payment equivalent to one hundred percent of his average monthly compensation for every year of service with an employer. (c) If a pensioner receiving a monthly pension is re-employed by an employer, the payment of his pension shall be suspended. When a pensioner who receives a lump sum is re-employed by an employer prior to the expiration of the period covered by such lump-sum, he shall refund to the System the amount corresponding to the unexpired period. In either case, when his compensation is less than the pension, he shall receive the difference: Provided, That, upon the termination of his re-employment, the pension shall be resumed. Section 13. Retirement Option. Employees who are in the government service upon the effectivity of this Act shall, at the time of their retirement, have the option to retire under this Act or under Commonwealth Act No. 186, as previously amended (like RA 660 and RA 1616) F.
Repeal of Section 11 (d) under CA 186 and Section 8 of R.A. 660 in P.D. 1146
P.D. 1146 Section 14 to Section 20 covers disability benefits, survivorship benefits, sickness benefits and funeral benefits. This amends the benefits provided under CA 186, R.A. 660 and R.A. 4968 Section 11 by retaining annuity (pension), survivors benefit and disability benefits and adding sickness benefits and funeral benefits; but deleted subsection (d) Entitlement of only refund of personal share with interest to those dismissed from the service for cause as explained below. Under Commonwealth Act (CA) 186, R.A. 660 of 1951 and R.A. 4968 of 1967: Retirement benefits include Section 11 (a) annuity (pension) (b) survivors benefits, (c) disability benefits and d) Entitled only to his own s and voluntary deposits, if any, plus interest (upon dismissal for cause or on voluntary separation) PD 1146 of 1977 which is the ―Revised Government Service Insurance Act of 1977‖ has amended has expanded the benefits covering Section 9 to Section 20 that include Section 11-13, Retirement benefits ( pension) Section 14-15, Permanent disability benefits Section 16-18, Survivorship benefits, Section 19, Sickness benefits,
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Section 20, Funeral benefit G. PRESIDENTIAL DECREE NO. 1981 - FURTHER AMENDING PD NO. 1146, AS AMENDED, OTHERWISE KNOWN AS THE REVISED GOVERNMENT SERVICE INSURANCE ACT OF 1977 Sec. 3. Sec. 4 is hereby amended to read as follows: "Sec. 4. Effect of Separation from the Service. — A member separated from the service shall continue to be a member, and he shall be entitled to whatever benefits which shall have accrued or been earned at the time of his separation in the event of any contingency compensable under this Act: Provided, however, That if he is separated for cause or considered resigned, he automatically forfeits said benefits, unless the of his resignation or separation provide otherwise. In case of forfeiture of benefits, the separated employee shall still be entitled to receive one-half of the cash surrender value of his life insurance." (deletes Section 11 (d) of CA 186 and Section 8 (d) of RA 660) H. RA 8291 approved May 30, 1997 - (Government Service Insurance Act of 1997; effectivity – June 24, 1997 up to present which carries the rationale and main objective of PD 1146)
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER PURPOSES "SEPARATION BENEFITS (for those below 60 years of age; whether thru resignation or separation) "SEC. 11. Separation Benefits. - The separation benefits shall consist of: (a) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon separation, whichever comes later: Provided, that the member resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years; or "(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or separation, plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided, that the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or separation. "RETIREMENT BENEFITS (retirement age of 60 or 65 years) "SEC. 13. Retirement Benefits. (a) Retirement benefits shall be:
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"(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed period covered by the lump sum; or "(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immediately with no five-year (5) guarantee. "(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee of sixty-five (65) years of age with at least fifteen (15) years of service: Provided, That if he has less than fifteen (15) years of service, he may be allowed to continue in the service in accordance with existing civil service rules and regulations. "SEC. 13-A. Conditions for Entitlement. - A member who retires from the service shall be entitled to the retirement benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That: (1) he has rendered at least fifteen years of service; (2) he is at least sixty (60) years of age at the time of retirement; and (3) he is not receiving a monthly pension benefit from permanent total disability. "SEC. 14. Periodic Pension Adjustment. - The monthly pension of all pensioners including all those receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS. I.
RA 8291 Implementing Rules and Regulations on Conversion
20.3 Conversion in the Mode of Retirement. Conversion in the mode of retirement from R.A. No. 8291 to any other retirement laws and vice versa istered by the GSIS shall not be allowed. Those who became GSIS prior to the implementation of this Act shall have the option to retire under PD 1146, RA 660, or RA 1616, subject to eligibility. J.
RULE V (ADJUDICATION OF CLAIMS AND DISPUTES - RA 8291)
Section 26 Committee on Claims - The Committee on Claims (CoC) shall evaluate and resolve issues / complaints arising from any dispute in the settlement of claims, such as, but not limited to the following: a. interpretation of an existing policy or procedure; b. no existing program or system to process a claim; c. no existing policy as basis to process a claim; d. appeal from an aggrieved party to a settled claim; e. findings from either the Internal Audit Services Office or the Commission on Audit that are disputable; and f. implementation of and Order from any Court, quasi-judicial body or duly authorized entity due to its being in conflict or inconsistent with existing GSIS laws, policies, rules and regulations; g. any other matter related to any or all of the foregoing which is necessary for their determination
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The CoC shall report to the Board on a regular basis the actions taken on issues/complaints elevated to the said Committee. 26.1. Disputes on claims shall be appealed to the Committee on Claims within 60 days from date the member received the check representing payment of claim benefit or notice of disapproval. The Committee on Claims shall evaluate the appeal and shall notify the claimant of Committee’s decision. 26.2. Further appeal on the Committee’s decision shall be filed to the Board within 60 days from receipt of Committee’s decision. II.
EXECUTIVE – (Implementation of Laws through the Bureaucracy)
A. APPLICATION FOR RETIREMENT AND OTHER SOCIAL INSURANCE BENEFITS New GSIS Form TO BE FILLED UP BY THE PERSONNEL OFFICER OF THE AGENCY The undersigned hereby certifies that M _________________, an employee of this office and who has/has not reached the compulsory age of retirement, who is in active status has filed for CSV ( ) resigned from this agency ( ) applied for Separation Benefit and has been separated from the service ( ) has applied for unemployment benefit and has been involuntarily separated from the service as a result of ( ) abolition/reorganization of his office; ( ) abolition of his position in this agency; effective ________________, and this office was duly informed of such. ________________________ _______________________ ______________ Signature of Personnel Officer Name of Agency/Last Office Date Over Printed Name Before Retirement ________________________ Address of Agency INSTRUCTIONS: (1) Ensure that the application form is properly filled up. (2)Agency to submit two (2) copies of the accomplished application form to the nearest GSIS/Handling Office. 3.
AND CONDITIONS
I. RETIREMENT A. ELIGIBILITY REQUIREMENTS 1. Member shall be entitled to the retirement benefit, provided he/she is separated from the service at the time of application, and on condition that:
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2, NOTE; Under P.D. 1146, it says he/she should have been separated //retired. According to Teachers Handbook 2003, separation from the service can be through resignation or retirement. The GSIS B.R. Res. No. 160 dtd 17 Feb 1977 mentioned that ―an application for retirement or resignation once approved can not be withdrawn, rescinded or recalled for any reason whatsoever‖ which indicates that resignation is not equated with voluntary separation or dismissal for cause which is the subject of C.A 186 Section 11 (d) and Section 8 of R.A. 660 of 1951 providing the refund of personal contributions plus interest. But this provision has been deleted under R.A/ 4968 of 1967 and P.D. 1146 of 1977 or much earlier. Under R.A. 8291 of 1997, separated and resigned employees can avail of retirement pension upon reaching age 60 years. 3. Request for conversion from one mode of retirement to another shall not be allowed. NOTE: GSIS is allowed to process retirement (resignation or separation) application of a retiree under only 1 of the 4 modes of retirement in which he/she is qualified or eligible
B.
Excerpt from REPUBLIC ACT No. 6713 (Approved, February 20, 1989)
ACT ESTABLISHING A CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES, TO UPHOLD THE TIME-HONORED PRINCIPLE OF PUBLIC OFFICE BEING A PUBLIC TRUST, GRANTING INCENTIVES AND REWARDS FOR EXEMPLARY SERVICE, ENUMERATING PROHIBITED ACTS AND TRANSACTIONS AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF AND FOR OTHER PURPOSES
Section 4. Norms of Conduct of Public Officials and Employees. - (A) Every public official and employee shall observe the following as standards of personal conduct in the discharge and execution of official duties: (c) Justness and sincerity. - Public officials and employees shall remain true to the people at all times. They must act with justness and sincerity and shall not discriminate against anyone, especially the poor and the underprivileged. They shall at all times respect the rights of others, and shall refrain from doing acts contrary to law, good morals, good customs, public policy, public order, public safety and public interest. They shall not dispense or extend undue favors on of their office to their relatives whether by consanguinity or affinity except with respect to appointments of such relatives to positions considered strictly
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confidential or as of their personal staff whose are coterminous with theirs. C.
Extension of Service by CSC to meet 20 years requirement under RA 1616
RESOLUTION No. 97-2824 -- Ramon F. Nieva, Assistant Secretary for Personnel, Department of National Defense, requests the Commission to allow the extension of services rendered by Jose A. Aldave, Plumber I, Naval Intelligence and Security Force, Philippine Navy, for a period of six (6) months reckoned from his 65th birthday on June 11, 1995. The said request of Nieva, reads in part, as follows: "This refers to the representations in behalf of MR. JOSE A. ALDAVE, a casual employee (Plumber I) of the Naval Intelligence and Security Force, Philippine Navy whose application for retirement could not be acted upon by the GSIS in view of his failure to meet the years of service as prescribed under the provisions of RA 1616, as amended. "The records of the Philippine Navy showed that he retired last 31 December 1995 after rendering a total of 20 years and 2 months of service. However, a further scrutiny of the personal records of subject employee showed that he should have retired 11 June 1995 (which was his 65th birthday) but which is six (6) months and twenty (20) days short of the prescribed period in order to qualify him for retirement under RA 1616. "Further, it will be noted from the records available that there was an istrative oversight on the part of the Philippine Navy for allowing subject employee to continue his service beyond June 1995 - thus extending his service by six (6) months without CSC authority. "With these facts on the one hand and the request for humanitarian considerations on the other, subject Mr. Aldave sought the advise of GSIS authorities and CSC personnel on what could be done to resolve his case hence, this representation. "It is therefore in an effort to extend all possible assistance to this low salaried personnel that the matter elevates to that Office for your humanitarian consideration the request that the six (6) months service rendered by him after his 65th birthday last June 1995 be favorably counted in his favor so that he could avail of the retirement benefits." After a careful evaluation of the justifications presented and considering the willingness of the agency to extend Aldave's service, the Commission finds the request meritorious. Moreover, inasmuch as the services had already been rendered, Aldave therefore served as a de jure officer during the said period of extension. However, under MC No. 37, s. 1992 the services of any employee may be extended for a maximum period of six months following his 65th birthday only upon request by the proper appointing authority. It appears, however, that Asst. Secretary Nieva has made this request for the Secretary and therefore presumably upon his authority. WHEREFORE, the instant request of Asst. Secretary Ramon F. Nieva is hereby granted.
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Accordingly, Aldave's service rendered from June 12, 1995 to December 11, 1995 is deemed as an extension of service for purposes of retirement. However, the period covering December 2, 1995 to December 31, 1995 shall not be considered as government service in favor of Aldave for purposes of computing his retirement benefits and that no vacation and sick leave credits shall accrue in his favor within said period. Furthermore, Philippine Navy officials who allowed Aldave to continue working in the service shall reimburse the government the corresponding amount representing payment of salaries made to Aldave. Quezon City, May 20, 1997
(Signed) JOSE F. ERESTAIN, JR. Commissioner
(Signed) THELMA P. GAMINDE Commissioner (Signed) CORAZON ALMA G. DE LEON Chairman Attested by: (Signed) CARMENCITA GISELLE E.B. BRINGAS Board Secretary VI
D. REPUBLIC ACT NO. 386 -- AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE PHILIPPINES Article 3. Ignorance of the law excuses no one from compliance therewith. Presumption of Knowledge of Law. – Everyone is conclusively presumed to know the law. This presumption is very far from reality; but it has been established because of the obligatory force of law. Once the law has been promulgated and has taken effect, it is the duty of everyone to know it. Compliance with it becomes unavoidable, and nobody can escape its effects by alleging, in good faith or in bad faith, that he does not know its provisions (1 Tolentino 18 citing 1 Oyuelos 2; 1 Nunez 97; Fernandez, p. 67; Sentencia of Nov. 23, 1912). Reasons for Article. – Evasion of the law would be facilitated, and the istration of justice defeated, if persons could successfully plead ignorance of the law to escape the legal consequences of their acts, or to excuse non-performance of their legal duties. Actual ignorance of the law would thus afford immunity from punishment for crimes and from liability for violations of personal and property rights of others. The rule in this article is, therefore, dictated not only by expediency but also by necessity (ibid., citing Zulueta vs. Zulueta, 1 Phil. 254). The following reasons have thus been advanced for this article, which is a logical consequence of the conclusive presumption of knowledge of the law: (1) If laws will not be binding until they are actually known, then social life will be impossible, because most laws cannot be enforced due to their being unknown to many. (2) It is absurd to absolve those who do not know the law and increase the obligations of those who know it. (3) It is almost impossible to prove the contrary, when a person claims ignorance of the law.
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(4) In our conscience, we carry norms of right and wrong, and a sense of duty, so that our reason indicates many times what we have to do; and in more complicated juridical relations, there are lawyers who should be consulted (1 Tolentino 18 citing 1 Valverde 131-133). What Laws Covered. – Local laws only, foreign laws not covered. And with respect to local laws, the article is limited to mandatory and prohibitory laws. It does not include those which are merely permissive (id., citing 1 Manresa 56). Application of Rule. – The ignorance suffered by contracting parties because of their ignorance of the law must be borned by them, because ignorance of the law does not favor or prejudice anyone, nor justify the amendment or annulment of a contract (Sentencias of Feb. 20, 1861, May 9, 1867, and December 8, 1867; Luna vs. Linatoc, 74 Phil. 15). No Exceptions itted. – Some writers, as Toullier and Goyena, believe that when for some reason, as flood, fire, war, etc., the official newspaper does not reach some region, and the interruption of communication is clearly shown, the article should not be applied because it would be unjust to do so. However, the rule is based on public interest and is designed precisely to avoid abuse through allegation that the law has not come to the knowledge of a party (1 Tolentino 20 citing 1 Manresa 55) Irrevocability of Acts. – If, through mistake or ignorance of law, a person does an act which prejudices himself, and the injury cannot be remedied without impairing another’s rights, the mistake cannot be corrected to the prejudice of the latter (1 Tolentino 20). Mistake of Fact. – Ignorance may either be of law or of fact…. Ignorance of fact (ignorantia facti) may excuse a party from the legal consequences of his conduct; but not ignorance of law, for ignorantia juris neminem excusat. Republic Act (R.A.) No. 394 recognized validity of Mohammedan divorces. Difficult Questions of Law. – In specific instances provided by law, mistake as to difficult legal questions has been given the same effect as a mistake of fact. The following articles of the Code may be cited as examples: ART. 526. He is deemed a possessor in good faith who is not aware that there exists in his title or mode of acquisition any flaw which invalidates it. He is deemed a possessor in bad faith who possesses in any case contrary to the foregoing. Mistake upon a doubtful or difficult question of law may be the basis of good faith. ART. 1334. Mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrated, may vitiate (destroy or impair legal validity) consent (approval or agreement). ART. 2154. If something is received when there is no right to demand it, and it was unduly delivered through mistake, the obligation to return it arises. ART. 2155. Payment by reason of a mistake in the construction of a doubtful or difficult question of law may come within the scope of the preceding article.
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Mistake of Lawyer. – No man is supposed to know any branch of the law perfectly, particularly when called upon to act at once without time for reflection, The knowledge which we use the utmost industry to acquire, is often forgotten at the moment when most needed. The science of law is a most extensive and difficult one. Cases frequently occur when learned men differ, after the greatest pains is taken to arrive at a correct result. No one, therefore, would dare to pursue the profession of law, if he were held responsible for the consequences of a casual Article 6. Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law. (4a) E.
Deletion of Section 11 (d) of C.A. 186 of 1936 and Section 8 of R.A. 660 of 1951
1. Secretary of Justice Opinion No. 5, s. 1962 stating that "retirement of an officer or employee does not, ... nullify or render moot the investigation of the istrative charges filed against him for delinquency or misconduct in Office . . .The consequential penalties of forfeiture of retirement benefits and leave privileges incidental to dismissal from the service for cause may still be given effect." 2. Forfeiture of retirement benefits on cases of dismissal from the service for cause can be gleaned from case: Aquino vs. General Manager, GSIS ( L-24859, January 31, 1968, 22 SCRA 415). F.
GSIS Board Resolution No. 160 (Board Meeting NO. 5 February 17, 1977)
1. After deliberation, the Board RESOLVED TO DENY the request of Mrs. Gloria A. Leonor to withdraw her application for retirement, the same having been accepted / approved. 2. Further, the Board RESOLVED TO ADOPT the following policy: That, henceforth, an application for retirement or resignation once approved cannot be withdrawn, rescinded, or recalled for any reason whatsoever. G.
GSIS LEGAL OVERSIGHT COMMITTEE
1. In 2008, the BOT approved the creation of a fourth committee, the Legal Oversight Committee, to further strengthen the pursuit for just and equitable decision-making processes and protect the interest of and stakeholders of the state pension fund, particularly those relating to legal matters. The Legal Oversight Committee is a welcome addition to the Corporate Governance, Audit and Risk Oversight Committees, all of which have made significant contributions to professionalize the state pension fund and enhance its delivery of efficient service to the 1.5 million and pensioners of the GSIS. 2. Example of Certain Oversights in the Processing of Retirement Application Under P.D. 1146 and R.A. 1616
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a. In the GSIS Annual Report it says that ―Since the formation in 2006 of committees to assist the GSIS Board of Trustees in carrying out its mandate of assuring the viability of the state pension fund and the development of corporate governance principles in the exercise of the Board’s oversight responsibilities, the committees have become indispensable tools to ensure transparency, fairness and ability in all aspects of GSIS operations. . . In 2008, the Board of Trustees approved the creation of a fourth committee, the Legal Oversight Committee, to further strengthen the pursuit for just and equitable decision-making processes and protect the interest of and stakeholders of the state pension fund, particularly those relating to legal matters. b. An example of retirement application approved under P.D. 1146 and then later approved under R.A. 1616 with several oversights in presented below by illustration.
Actions, reason and result in the interrelationship and application of different retirement laws 1) Actions: Action 1 – Approval of retirement application under P.D. 1146 per letter of GSIS dtd 16 Feb 1987; Action 2 – Letter of Withdrawal / opted to leave the service thru
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resignation per letter dtd 26 Feb 1987 – indorsed by DBP recommending favorable consideration by GSIS Pres..&Gen.Mgr, Action 3 – Letter of indorsement by GSIS per letter dtd 27 Feb 1987, and Action 3 – Filing of application for retirement under R.A. 1616 (Take All). But using the clause: withdrawal of retirement application under P.D. 1146, it was assumed that the retirement application under P.D. 1146 was not yet approved by the GSIS. Since it was already approved, said letter of withdrawal of approved application for retirement under P.D. 1146 for any reason whatsoever should not have been considered in the first place. Nevertheless, the 3 actions led to the withdrawal of the approved retirement application under P.D. 1146 by disregarding the GSIS Bd. Res. No. 160, there was the Oversight No. 1. . 2) Reason for the withdrawal and filing of application under RA 1616 was to avail of the Take All retirement benefits immediately. But since there is no rider under R.A. 1616 that a retiree with only 17 years of service could still retire under R.A. 1616, approving his application under R.A. 1616 was the Oversight No.2 3) Result was the granting of only the refund of personal share plus interest since retiree has less than 20 years in the service, but this statement cannot be found as a rider under R.A. 1616, hence the Oversight No. 3. The refund of personal share plus interest was covered by provision under RA 1616 of 1957 but was amended by RA 4968 of 1967 as the Take All option. It could be covered under RA 660 of 1951 Section 8 (d) for those subjected to dismissal for cause or on voluntary separation as against my retirement or resignation; but said provision was repealed under P.D. 1146 of 1977 and PD 1981 of 1985. Therefore, payment of only the personal share plus interest was not covered by any law, hence, it was erroneous which was the Oversight No. 4. III.
JUDICIARY (settle controversies and determine grave abuse of discretion)
Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government. A.
Excerpt from G.R. No. L-40648 May 20, l987
MERCEDES S. MARASIGAN, represented by Attorney-in-fact EUGENIA S. MARASIGAN, plaintiff-appellee, vs. HON. AMADEO H. CRUZ, DR. JOSE R. CRUZ and JOSE R. REYES MEMORIAL HOSPITAL, defendants-appellants. In its decision, the trial court set out the perspective that is appropriate in respect of a retirement law like C.A. No. 186, as amended: A retirement law such as C.A. 186 and amendatory laws is in the nature of a contract between the government and its employees. When an employee s the government service he has a right to expect that after rendering the required length of service and fulfilled the conditions stated in the laws on retirement, he would be able to enjoy the benefits provided in said laws. He
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regularly pays the dues prescribed therefore. It would be cruel to deny him the benefits he had been expecting at the end of his service by imposing conditions for his retirement which are not found in the law. It is believed to be a legal duty as well as a moral obligation on the part of the government to honor its commitments to its employees when as in this case, they have met all the conditions prescribed by law and are therefore entitled to receive their retirement benefits. We agree with the trial court in this respect. WHEREFORE, the decision appealed from is hereby AFFIRMED. SO ORDERED. Yap (Chairman), Narvasa, Melencio-Herrera, Cruz, Gancayco and Sarmiento, JJ., concur. B.
Excerpt from G.R. No. 186560, November 17, 2010
GOVERNMENT SERVICE INSURANCE SYSTEM, Petitioner, vs. FERNANDO P. DE LEON, Respondent. NACHURA, J.: Before this Court is a Petition for Review on Certiorari under Rule 45 of the Rules of Court. Petitioner Government Service Insurance System (GSIS) seeks the nullification of the Decision1 dated October 28, 2008 and the Resolution2 dated February 18, 2009 of the Court of Appeals (CA) in CA-G.R. SP No. 101811 Finally, GSIS would like this Court to believe that because it has returned respondent’s contributions, it is now legally impossible for it to comply with the CA’s directive. Given the fact that respondent is ineligible to retire under R.A. No. 910, the refund by GSIS of respondent’s payments was erroneous. Hence, GSIS can demand the return of the erroneous payment or it may opt to deduct the amount earlier received by respondent from the benefits which he will receive in the future. Considering its expertise on the matter, GSIS can device a scheme that will facilitate either the reimbursement or the deduction in the most costefficient and beneficial manner. WHEREFORE, the foregoing premises considered, the Decision dated October 28, 2008 and the Resolution dated February 18, 2009 of the Court of Appeals in CA-G.R. SP No. 101811 are hereby AFFIRMED WITH MODIFICATION. Government Service Insurance System is ORDERED to (1) pay respondent’s retirement benefits in accordance with P.D. No. 1146, subject to deductions, if any, computed from the time the same were withheld until April 7, 2010; and (2) pay respondent’s retirement benefits in accordance with R.A. No. 910, computed from April 8, 2010 onwards. In order that respondent may not be further deprived of his monthly pension benefits, this Decision is IMMEDIATELY EXECUTORY. SO ORDERED. ANTONIO EDUARDO B. NACHURA Associate Justice
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WE CONCUR:
ANTONIO T. CARPIO Associate Justice Chairperson ROBERTO A. ABAD DIOSDADO M. PERALTA Associate Justice Associate Justice MARTIN S. VILLARAMA, JR. Associate Justice
ATTESTATION I attest that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division. ANTONIO T. CARPIO Associate Justice Chairperson, Second Division CERTIFICATION Pursuant to Section 13, Article VIII of the Constitution and the Division Chairperson’s Attestation, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division. RENATO C. CORONA Chief Justice C. Excerpt from G.R. No. 92284 July 12, 1991 TEODORO J. SANTIAGO, petitioner, vs. THE COMMISSION ON AUDIT, and the GOVERNMENT SERVICE INSURANCE SYSTEM, respondents. Leven S. Puno for petitioner. Cesar R. Vidal for respondent GSIS Retirement laws should be interpreted liberally in favor of the retiree because their intention is to provide for his sustenance, and hopefully even comfort, when he no longer has the stamina to continue earning his livelihood. After devoting the best years of his life to the public service, he deserves the appreciation of a grateful government as best concretely expressed in a generous retirement gratuity commensurate with the value and length of his services. That generosity is the least he should expect now that his work is done and his youth is gone. Even as he feels the weariness in his bones and glimpses the approach of the lengthening shadows, he should be able to luxuriate in the thought that he did his task well, and was rewarded for it. WHEREFORE, the petition is GRANTED. The challenged resolution is SET ASIDE and judgment is hereby rendered DIRECTING the computation of the petitioner's retirement benefits on the basis of his Highest Basic Salary Rate of P13,068.00, It is so ordered. Fernan, C.J., Narvasa, Melencio-Herrera, Gutierrez, Jr., Paras, Feliciano, Padilla, Bidin, Sarmiento, Griño-Aquino, Medialdea, Regalado and Davide, Jr., JJ., concur. Gancayco, J., is on leave. ================================================================== Prepared by: Edmundo Enderez June 19, 2013
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