Res Retirement

download Res Retirement

of 10

Transcript of Res Retirement

  • 7/28/2019 Res Retirement

    1/10

    We agree with the lower court that the deceased had already been retired at the time of

    their death and for that reason plaintiffs herein are not entitled to the death benefits

    contemplated in Article VI, Section 1(a) of the Constitution and By-Laws of thedefendant union. And this is so because from the provisions of said constitution and by-

    laws it is clear that the death benefit is intended to be paid to a member of good standing

    only when he meets death while still a member of the union. It does not apply when hedies after his retirement. Here it is undisputed that at the time of the death of the husbands

    of appellants which took effect on September 26, 1956 and October 10, 1956,

    respectively, they were already deemed retired because their retirement became effectiveon June 1, 1956 and September 16, 1956, respectively. The fact that the widows received

    their official notice of retirement from the GSIS after the death of their husbands is of no

    moment because what determines the date of retirement is the date of its approval if the

    same is made known to the retiree even if the official notice thereof comes afterwards. Ascorrectly observed by the lower court:

    ". . . When they therefore applied for retirement from the union and for payment of their

    gratuity, they were already retired from the Company, and their retirement from the

    service was precisely the basis of their application for retirement gratuity from the union.The union approved their applications for retirement gratuity and paid them the amounts

    due them under applicable provisions of the union constitution and by- laws; therefore,insofar as the union is concerned, it had discharged its obligation under its constitution

    and by-laws."

    If we will follow the theory of appellants we will have a situation wherein they will beallowed to get the retirement pay of their husbands on the dates when the same becomes

    effective, and after the occurrence of their death later they would also be allowed to get

    the death benefits accorded to their beneficiaries under the constitution and by-laws of

    the union on the simple expedient that the official notification of the approval of theirretirement only came after their death. We are not prepared to adopt such interpretation

    which is contrary to logic and sound reasoning.

    25)

    The cited provisions of Act 1870 (the U.P. Charter) must be deemed restricted or limited

    by Commonwealth Act 186, as amended by Republic Act 3096, which makes 65 theautomatic and compulsory age for retirement, the conditions set forth by the law being

    present. The Board of Regents was not, by the applicable statute, Republic Act 3096,

    singled out as an exception, one with sole authority to grant extension of service. In fact,

    even the President of the Philippines, to repeat, was divested of that power. It is becauseof this that we would rather adhere, than depart, from the rule that courts may not

    introduce exceptions or conditions by construction from considerations of convenience,

    public welfare, or for any other laudable purpose. 12This should dispose then of petitioners' contention that policy considerations behind

    compulsory retirement in the government service are not applicable to U.P. by the very

    nature of the conditions of the service rendered therein and these conditions are evendebatable viz.: U.P. faculty members for the most part lead sheltered, quiet lives; that

    owing to the leisurely pace of academic work the faculty members normally are spared

    the rigors of an eight-hour day, their duties being within their energies as a whole; that

    they perform their work with like efficiency as before the age of 65; and that unlike

  • 7/28/2019 Res Retirement

    2/10

    regular bureaus and offices of the government where old age decreases efficiency by the

    very nature of the work, U.P. calls for special services and qualifications, not necessarily

    affected by age. On the other side of the coin, of course, is the thought quite oftenexpressed that no man not even one with the learning and wisdom of a 65-year old

    is indispensable. Anyway, whether or not as a rub the university professors maintain,

    increase or diminish their efficiency as they reach 65 years, is a consideration whichwould not give this Court a desirable approach to the problem before us. Policy that is

    proper for legislation is beyond the ambit of court powers. Suffice it to say that these

    suasions are best addressed to Congress. Because courts cannot simply melt and recast astatute:

    4. Petitioners next assert that their theory that a retired employee may be retained in

    the government beyond 65 years of age finds support from Section 12 (d) of

    Commonwealth Act 186, as amended. This section reads:"(d) An employee separated from the service who is receiving an annuity described

    under section eleven shall not be eligible again to appointment to any appointive position

    or employment under any 'employer' unless the appointing authority determines that he is

    possessed of special qualifications and his medical examination has been approved by theSystem, in which event he shall not be entitled to payments of his annuity during the

    period of his new employment: Provided, however, That nothing in this Act shall be soconstrued as to affect the rights of the annuitant's beneficiary if the annuitant has been

    receiving or had elected, and was otherwise entitled to, a reduced annuity under

    subsection (a) of section eleven: Provided, further, That upon the termination of his newappointment, the payments of the annuity which were discontinued shall be resumed:

    And provided, finally, That if the annuitant's salary in his new position is less than the

    annuity granted to him under this Act, he shall be entitled to receive the difference." 13

    To be observed is that under the above provision, an employee separated from the servicewho is receiving an annuity may be eligible again to another appointment in the

    government if the appointing authority determines that he is possessed of special

    qualifications and his medical examination has been approved by the GSIS. Thisprovision of law must be viewed in the context of other provisions of Commonwealth Act

    186 and in accordance with the history of the law.

    Section 12(e), as we have seen, expressly exacts automatic and compulsory retirement atage 65 if the conditions therein stated are met; that while previous amendments have

    granted the power of extension of service of retirable employees to the four top officials

    of the government, Republic Act 3096 (the law which here governs) eliminated such

    power. To adopt petitioners' view then in reference to Section 12(d) above-quoted wouldbe to make the provisions of Section 12(e) conflict with those of Section 12(d) of the law.

    The former would be rendered nugatory by the latter. This is an effect that should be

    avoided. Consistency in statutes is of prime importance. All laws are presumed to beconsistent with each other. In interpreting laws, courts are hidebound by the rule that

    theirs is to reconcile and to harmonize; and, if possible, to avoid inconsistency and

    repugnancy; to give the laws a conjoint, not discordant effect. As we said in a previouscase, 14 "[w]e have to take the thought conveyed by the statute as a whole; construe the

    constituent parts together; ascertain the legislative intent from the whole act; consider

    each and every provision thereof in the light of the general purpose of the statute; and

    endeavour to make every part effective, harmonious, sensible."

  • 7/28/2019 Res Retirement

    3/10

    To harmonize Section 12(d) with Section 12(e) as it stood amended by Republic Act

    3096 is to hold that a retired employee who is receiving annuity from the GSIS may

    be reappointed to the government service only if he has not yet reached the age of 65years. The prohibition in Section 12(e) against the extension of the service of a retirable

    government employee where the conditions for automatic and compulsory retirement

    exist is so patent and so clear that it will not admit of any other construction that wouldviolate legislative intent.

    We do not discern in the statute just referred to a meaning violative of U.P.'s academic

    freedom. It does not erode the substance of the freedom in any way. It must be stressedthat what we are concerned with here is retirement, not appointment. We hold that the

    law here involved is a reasonable regulation. It is an expression by Congress of sound

    judgment on when an employee shall, because of age, stop. The purpose was summed up

    in the explanatory note to the bill that "continuance in the service of those who arealready eligible to compulsory retirement should no longer be allowed." 15 That law lays

    down the rule that at the age of 65, a person is ripe for retirement. There is no

    discrimination. All government employees who are members of the System and similarly

    situated are governed thereby. U.P. professors are not exempt therefrom.

    68)6. ID.; OPTIONAL RETIREMENT UNDER COMMONWEALTH ACT NO. 180,

    AS AMENDED; EFFECT THEREOF. A claim for workmen's compensation may not

    be denied on the ground that the claimant had already availed of optional retirement atthe age of 62 years. The fact that the application for optional retirement under

    Commonwealth Act No. 180, as amended by Republic Act No. 4968, was duly approved

    by the Government Service Insurance System is a clear indication that at the time his

    application was approved he was below 65 years of age and was physically incapacitatedto render further efficient service.

    3. ID.; ID.; ID.; ID.; ID.; OPTIONAL RETIREMENT; EFFECT OF APPROVAL

    OF OPTIONAL RETIREMENT BY THE OFFICE OF THE PRESIDENT. Where theemployee's application for optional retirement under Commonwealth Act No. 186, as

    amended by Republic Acts Nos. 1616 and 4968 was duly approved by the Office of the

    President the question of petitioner's disability resulting from his illness is placed beyonddispute. For under Memorandum Circular No. 133, such optional retirement can only be

    ultimately allowed if the employee-applicant is below 65 years of age and is physically

    incapacitated to render further efficient service. Rather than weakening or barring

    petitioner's compensation claim that approval invigorates said claim and lays to rest anydoubts on petitioner's state of health at the time he stopped working.

    74)4. ID.; EFFECT OF OPTIONAL RETIREMENT. The approval of a claimant's

    optional retirement simply means that he has met the conditions necessary for retirement,

    namely, physical incapacity to render further efficient service. There is, thus, no betterproof of petitioner's disability than the approval of his optional retirement as the

    Government Service Insurance System, is presumed to have looked into the

    circumstances of the case before such approval.

  • 7/28/2019 Res Retirement

    4/10

    75)*

    5. ID.; OPTIONAL RETIREMENT; EFFECT ON FACT OF DISABILITY. It

    has been held in a litany of decisions that with the approval of the employee's optionalretirement before his scheduled compulsory retirement at the age of 65, the fact of said

    employee's disability is placed beyond question of doubt considering that under

    Commonwealth Act 180 as amended by R.A. 1616 and No. 4968 in conjunction withMemorandum Circular No. 133 of the Office of the President, October 16, 1967, optional

    retirement before reaching the compulsory age of 65 is authorized only when the

    employee "is physically incapacitated to render sound and efficient service."4. Optional retirement indicates disability

    Petitioner Herrera was forced to optionally retire at the age of 61 on the advice of his

    physician.

    In a litany of decisions this Court has held that with the approval of the employee'soptional retirement before his scheduled compulsory retirement at the age of 65, the fact

    of said employee's disability is placed beyond question of doubt considering that under

    Commonwealth Act 180 as amended by R.A. 1616 & No. 4968 in conjunction with

    Memorandum Circular No. 133 of the Office of the President, October 16, 1967, optionalretirement before reaching the compulsory age of 66 is authorized only when the

    employee "is physically incapacitated to render sound and efficient service." 9Having discussed the merits of petitioners claim for disability compensation, We find it

    no longer necessary to look into the argument of petitioner that the referee's decision had

    become final even before the respondent Commission promulgated its decision reversingthe award.

    153)

    Petitioner Cena filed a motion for reconsideration. On October 17, 1990, the Civil

    Service Commission set aside its CSC Resolution No. 90-681 and allowed Gaudencio

    Cena a one-year extension of his service from January 22, 1991 to January 22, 1992,citing CSC Memorandum Circular No. 27, series of 1990, the pertinent of which reads:

    "1. Any request for the extension of service of compulsory retirees to complete the

    fifteen (15) years service requirement for retirement shall be allowed only to permanentappointees in the career service who are regular members of the Government Service

    Insurance System (GSIS), and shall be granted for a period not exceeding one (12) year."

    On January 22, 1991, petitioner's second motion for reconsideration was denied in its

    CSC Resolution No. 91-101.Hence, the instant petition for review on certiorari alleging that the Civil Service

    Commission committed a grave abuse of discretion when it granted the extension of

    petitioner's service as Registrar of Deeds of Malabon, Metro Manila, for a period of onlyone (1) year pursuant to CSC Memorandum Circular No. 27, Series of 1990, instead of

    three (3) years and three (3) months to complete the 15-year service requirement for his

    retirement with full benefits as provided under Section 11, par. (b) of Presidential DecreeNo. 1146, otherwise known as the Revised Government Service Insurance Act of 1977.

    Petitioner contends that reliance of the Commission on par. (1) of Memorandum Circular

    No. 27 allowing an extension of service of a compulsory retiree for a period not

    exceeding one (1) year is both erroneous and contrary to the "benevolent and munificent

  • 7/28/2019 Res Retirement

    5/10

    intentions of Section 11 of P.D. 1146. Petitioner points out that par. (b), Section 11 of

    P.D. No. 1146 does not limit nor specify the maximum number of years the retiree may

    avail of to complete the 15 years of service. cdphilThe Solicitor-General agrees with petitioner Cena. He argues that the questioned

    provision being generally worded, Section 11 par. (b), P.D. 1146 has general application,

    thus respondent CSC has no authority to limit through CSC Memorandum Circular No.27 the privilege under said section to government employees who lack just one year to

    complete the year service requirement.

    The Civil Service Commission, however, contends that since public respondent CSC isthe central personnel agency of the government, it is vested with the power and authority,

    among others, to grant or allow extension of service beyond retirement age pursuant to

    Section 14 par. (14), Chapter 3, Subtitle A, Title I, Book V of Executive Order No. 292

    (Administrative Code of 1987). In interpreting Section 11 par. (b) of P.D. 1146, publicrespondent CSC contends thct the`p|rasu rProwited, That if he has less than fifteen years

    of service, he shall be allowed to continue in the service to complete the fifteen years", is

    qualified by the clause: "Unless the service is extended by appropriate authorities," which

    means that the extension of service must be first authorized by the Commission, as theappropriate authority referred to in Section 11, par. (b), P.D. 1146, before the service of a

    compulsory retiree (one who has already reached age of 65 years with at least 15 years ofservice) can be extended.

    We grant the petition.

    Section 12, par. (14), Chapter 3, Subtitle A, Title I, Book V of the Administrative Codeof 1987 November 24, 1987) cannot be interpreted to authorize the Civil Service

    Commission to limit to only one (1) year the extension of service of an employee who

    has reached the compulsory retirement age of 65 without having completed 15 years of

    service, when said limitation has no relation to or connection with the provision of thelaw supposed to be carried into effect.

    Section 12, par.(14), Chapter 3, Subtitle A, Title I, Book V of the Administrative Code of

    1987 provides thus:"SEC. 12. Powers and Functions. The Commission shall have the following

    powers and functions:

    xxx xxx xxx"(14) Take appropriate action on all appointments and other personnel matters in the

    Civil Service including extension of service beyond retirement age;"

    As a law of general application, the Administrative Code of 1987 cannot authorize the

    modification of an express provision of a special law (Revised Government ServiceInsurance of 1977). Otherwise, the intent and purpose of the provisions on retirement and

    pension of the Revised Government Service Insurance Act of 1977 (P.D. 1146) would be

    rendered nugatory and meaningless.Section 11 paragraph(b) of the Revised Government Service Insurance Act of 1977

    expressly provides, thus:

    "SEC. 11. Conditions for Old-Age Pension. (a) Old-age pension shall be paid to amember who:

    xxx xxx xxx

    "(b) Unless the service is extended by appropriate authorities, retirement shall be

    compulsory for an employee of sixty-five years of age with at least fifteen years of

  • 7/28/2019 Res Retirement

    6/10

    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." (Emphasis supplied) prcd

    Being remedial in character, a statute creating a pension or establishing retirement planshould be liberally construed and administered in favor of the persons intended to be

    benefited thereby. The liberal approach aims to achieve the humanitarian purposes of the

    law in order that the efficiency, security and well-being of government employees may beenhanced (Bautista vs. Auditor General, 104 Phil 428, Ortiz vs. Commission on

    Elections, G.R. No. L-78957, June 28, 1988, 162 SCRA 812).

    The Court stated in Abad Santos vs. Auditor General, 79 Phil. 176, that a pensionpartakes of the nature of "retained wages" of the retiree for a double purpose: (1) to entice

    competent men and women to enter the government service, and (2) permit them to retire

    from the service with relative security, not only for those who have retained their vigor,

    but more so for those who have been incapacitated by illness or accident.We have applied the liberal approach in interpreting statutes creating pension or

    establishing retirement plans in cases involving officials of the Judiciary who lacked the

    age and service requirement for retirement. We see no cogent reason to rule otherwise in

    the case of ordinary employees of the Executive Branch, as in the case of petitioner Cena,who has reached 65 but opted to avail of the statutory privilege under Section 11 par. (b)

    of P.D. 1146 to continue in the service to complete the 15-year service requirement inorder to avail of old-age pension.

    In Re: Application for Gratuity Benefits of Associate Justice Efren I. Plana, Adm. Matter

    No. 5460, En Banc Resolution, March 24, 1988, the Court, applying the liberal approach,ruled that Justice Plana, who at the time of his courtesy resignation on March 25, 1986

    lacked a few months to meet the age requirement for retirement under the law, is entitled

    to full retirement benefits under R.A. 910 because his accrued leave credits would have

    entitled him to go on leave until beyond the age requirement for retirement.The above ruling of the Court was reiterated in Re: Application for Retirement under

    Rep. Act No. 910 of Associate Justice Ramon B. Britanico of the Intermediate Appellate

    Court, Adm. Matter No. 6484Ret., May 15, 1989. By liberally interpreting Section 3 ofR.A. 910, as amended in favor of the persons intended to be benefited by them, the Court

    also allowed the conversion of the application for disability retirement of Justice Ruperto

    Martin under said Section 3 of R.A. 910, as amended (10-year lump sum without thelifetime annuity) into an application for voluntary retirement under Section 1 (5-year

    lump sum with lifetime annuity) eleven years after his disability retirement was approved

    on January 10, 1978 (In Re: Application for Life Pension under Rep. Act 910. Ruperto G.

    Martin, applicant, 187 SCRA 477). The ten-year lump sum which he had received wasconsidered by the Court as payment under Section 1 of the five-year lump sum, to which

    he was entitled, and of his monthly pensions for the next five years.

    However, the Court pointed out in Re: Gregorio G. Pineda, Adm. Matter No. 2076-RET.,July 13, 1990, and its six (6) companion cases, 187 SCRA 469, that when the Court

    allows seeming exceptions to fixed rules for certain retired Judges or Justices, there are

    ample reasons behind each grant of an exception. The crediting of accumulated leaves tomake up for lack of required age or length of service is not done indiscriminately. It is

    always on a case to case basis.

    There is thus no justifiable reason in not allowing ordinary employees in the Executive

    Branch, on a case to case basis, to continue in the service to complete the 15-year service

  • 7/28/2019 Res Retirement

    7/10

    requirement to avail of the old-age pension under Section 11 of P.D. 1146. By limiting

    the extension of service to only one (1) year would defeat the beneficial intendment of

    the retirement provisions of P.D. 1146.In resolving the question whether or not to allow a compulsory retiree to continue in the

    service to complete the 15-year service, there must be present an essential factor before

    an application under Section 11 par. (b) of P.D. 1146 may be granted by the employer orgovernment office concerned. In the case of officials of the Judiciary, the Court allows a

    making up or compensating for lack of required age or service only if satisfied that the

    career of the retiree was marked by competence, integrity, and dedication to the publicservice (Re: Gregorio Pineda, supra). It must be so in the instant case.

    It is interesting to note that the phrase "he shall be allowed to continue in the service to

    complete the fifteen years" found in Section 11 (b) of P.D. 1146 is a reproduction of the

    phrase in the original text found in Section 12 (e) of Commonwealth Act 186, asamended, otherwise known as the "Government Service Insurance Act" approved on

    November 14, 1936. There is nothing in the original text as well as in the revised version

    which would serve as the basis for providing the allowable extension period to only one

    (1) year. There is likewise no indication that Section 11 par.(b) of P.D. 1146contemplates a borderline situation where a compulsory retiree on his 65th birthday has

    completed more than 14, but less than 15 years of government service, i.e. only a fewmonths short of the 15-year requirement which would enable him to collect an old-age

    pension.

    While it is true that the Administrative Code of 1987 has given the Civil ServiceCommission the authority "to take appropriate action on all appointments and other

    personnel matters in the Civil Service including extension of service beyond retirement

    age", the said provision cannot be extended to embrace matters not covered by the

    Revised Government Service Insurance Act of 1977 (Sto. Tomas vs. Board of TaxAppeals, 93 Phil. 376, 382, citing 12 C.J. 845-46). The authority referred to therein is

    limited only to carrying into effect what the special law, Revised Government Insurance

    Act of 1977, or any other retirement law being invoked provides. It cannot go beyond theterms and provisions of the basic law. cdrep

    The Civil Service Commission Memorandum Circular No. 27 being in the nature of an

    administrative regulation, must be governed by the principle that administrativeregulations adopted under legislative authority by a particular department must be in

    harmony with the provisions of the law, and should be for the sole purpose of carrying

    into effect its general provisions (People vs. Maceren, G.R. No. L-32166, October 18,

    1977, 79 SCRA 450; Teoxon v. Members of the Board of Administrators, L-25619, June30, 1970, 33 SCRA 585; Manuel v. General Auditing Office, L-28952, December 29,

    1971, 42 SCRA 660; Deluao v. Casteel, L-21906, August 29, 1969, 29 SCRA 350).

    The pronouncement of the Court in the case of Augusto Toledo vs. Civil ServiceCommission, et al., G.R. No. 92646-47, October 4, 1991, squarely applies in the instant

    case. We declared in the case of Toledo that the rule prohibiting 57-year old persons from

    employment, reinstatement, or re-employment in the government service provided underSection 22, Rule III of the Civil Service Rules on Personnel Actions and Policies

    (CSRPAP) cannot be accorded validity, because it is entirely a creation of the Civil

    Service Commission, having no basis in the law itself which it was meant to implement

    and it cannot be related to or connected with any specific provision of the law which it is

  • 7/28/2019 Res Retirement

    8/10

    meant to carry into effect. The Court, speaking thru Justice Edgardo L. Paras, stated,

    thus:

    "The power vested in the Civil Service Commission was to implement the law or put itinto effect, not to add to it; to carry the law into effect or execution, not to supply

    perceived omissions in it. `By its administrative regulations, of course, the law itself can

    not be extended; said regulations cannot amend an act of Congress.' (Teoxon v. Membersof the Board of Administrators, Philippine Veterans Administration, 33 SCRA 585, 589

    [1970], citing Santos v. Estenzo, 109 Phil. 419 [1960]; see also, Animos v. Philippine

    Veterans Affairs Office, 174 SCRA 214, 223-224 [1989] in turn citing Teoxon)."The considerations just expounded also conduce to the conclusion of the invalidity of

    Section 22, Rule III of the CSRPAP. The enactment of said section, relative to 57-year

    old persons, was also an act of supererogation on the part of the Civil Service

    Commission since the rule has no relation to or connection with any provision of the lawsupposed to be carried into effect. The section was an addition to or extension of the law,

    not merely a mode of carrying it into effect." (Emphasis supplied)

    The governing retirement law in the instant case is P.D. 1146 otherwise known as the

    "Revised Government Service Insurance Act of 1977". The rule on limiting to only one(1) year the extension of service of an employee who has reached the compulsory

    retirement age of 65 years, but has less than 15 years of service under Civil ServiceMemorandum Circular No. 27 s. 1990, cannot likewise be accorded validity because it

    has no relation to or connection with any provision of P.D. 1146 supposed to be carried

    into effect. The rule was an addition to or extension of the law, not merely a mode ofcarrying it into effect. The Civil Service Commission has no power to supply perceived

    omissions in P.D. 1146.

    As a matter of fact, We have liberally applied Section 11 par. (b) of P.D. 1146 in two (2)

    recent cases where We allowed two employees in the Judiciary who have reached the ageof 65 to continue in the government service to complete the 15-year service requirement

    to be entitled to the benefits under P.D. 1146.

    In a resolution dated January 23, 1990 in A.M. No. 87-7-1329-MTC, We allowed Mrs.Florentina J. Bocade, Clerk of Court, Municipal Trial Court, Dagami, Leyte, who at the

    time she reached the age of 65 years on October 16, 1987 had only 10 years of

    government service, to contribute her services until October 10, 1992. Thus, she wasgiven a period of 5 years, to complete the 15-year service requirement to be entitled to

    the retirement benefits under Section 11 par. (b) of P.D. 1146. The Court observed that

    Mrs. Bocade is still performing her duties without any adverse complaints from her

    superior and that she is physically fit for work per report of the Medical Clinic.The Court, in a resolution dated April 18, 1991, in A.M. No. 91-3-003-SC.-Re: Request

    for the extension of service of Mrs. Crisanta T. Tiangco, allowed Mrs. Crisanta T.

    Tiangco, Budget Officer V, Budget Division, Fiscal Management and Budget Office ofthe Supreme Court to continue her services until February 10, 1995. She was granted a

    period of 3 years, 10 months and 13 days because she has to her credit only 11 years, 1

    month and 17 days of government service at the time she reached the age of 65 years onMarch 29, 1991 in order that she be entitled to the retirement benefits under P.D. No.

    1146.

    It is erroneous to apply to petitioner Cena who has rendered 11 years, 9 months and 6

    days of government service, Section 12, par. (b) of P.D. 1146 which provides that "a

  • 7/28/2019 Res Retirement

    9/10

    member who has rendered at least three (3) years but less than 15 years of service at the

    time of separation shall, . . . upon separation after age sixty, receive a cash equivalent to

    100% of his average monthly compensation for every year of service."The applicable law should be Section 11 par. (b) of P.D. 1146 which allows him to

    extend his 11 years, 9 months and 6 days to complete the 15-year of service consistent

    with the beneficial intendment of P.D. 1146 and which right is subject to the discretion ofthe government office concerned.

    Section 12 par. (b) of P.D. 1146 does not apply to the case of herein petitioner Cena,

    because he opted to continue in the service to complete the 15-year service requirementpursuant to Section 11 par.(b) of P.D. 1146. The completion of the 15-year service

    requirement under Section 11 par. (b) partakes the nature of a privilege given to an

    employee who has reached the compulsory retirement age of 65 years, but has less than

    15 years of service. If said employee opted to avail of said privilege, he is entitled to thebenefits of the old-age pension. On the other hand, if the said employee opted to retire

    upon reaching the compulsory retirement age of 65 years although he has less than 15

    years of service, he is entitled to the benefits provided for under Section 12 of P.D. 1146,

    i.e. a cash equivalent to 100% of his average monthly compensation for every year ofservice. LexLib

    The right under Section 11, par. (b) is open to all employees similarly situated, so it doesnot offend the constitutional guarantee of equal protection of the law. There is nothing

    absurd or inequitable in rewarding an employee for completion of the 15-year service

    beyond the retirement age. If he would be better off than the one who has served for 14years but who is separated from the service at the age of 64, it would be only just and

    proper as he would have worked for the whole period of 15 years as required by law for

    entitlement of the old-age pension. Indeed, a longer service should merit a greater reward.

    Besides, his entitlement to the old-age pension is conditioned upon such completion.Thus, if the service is not completed due to death or incapacity, he would be entitled to

    the benefit under Section 12, par. (b) i.e. a cash equivalent to 100% of his average

    monthly compensation for every year of service.Finally, in view of the aforesaid right accorded under Section 11, par. (b) of P.D. 1146,

    petitioner Cena should not be covered by Memorandum Circular No. 65 issued by then

    Executive Secretary Catalino Macaraig on June 14, 1988. Memorandum Circular No. 65allowing retention of service for only six (6) months for "extremely meritorious reasons"

    should apply only to employees or officials who have reached the compulsory retirement

    age of 65 years but who, at the same time, have completed the 15-year service

    requirement for retirement purposes. It should not apply to employees or officials whohave reached the compulsory retirement age of 65 years who but, opted to avail of the

    old-age pension under par. (b), Section 11 of P.D. 1146, in which case, they are allowed,

    at the discretion of the agency concerned, to complete the 15-year service requirement.ACCORDINGLY, the petition is granted. The Land Registration Authority (LRA) of the

    Department of Justice has the discretion to allow petitioner Gaudencio Cena to extend his

    11 years, 9 months and 6 days of government service to complete the 15-year service sothat he may retire with full benefits under Section 11 par. (b) of P.D. 1146.

    SO ORDERED.

  • 7/28/2019 Res Retirement

    10/10

    December 2, 1988

    REPUBLIC ACT NO. 6683AN ACT PROVIDING BENEFITS FOR EARLY RETIREMENT AND VOLUNTARY

    SEPARATION FROM THE GOVERNMENT SERVICE, AS WELL AS

    INVOLUNTARY SEPARATION OF CIVIL SERVICE OFFICERS ANDEMPLOYEES PURSUANT TO VARIOUS EXECUTIVE ORDERS AUTHORIZING

    GOVERNMENT REORGANIZATION AFTER THE RATIFICATION OF THE 1987

    CONSTITUTION APPROPRIATING FUNDS THEREFOR, AND FOR OTHERPURPOSES