GSIS v. De Leon (G.R. No. 186560; November 17, 2010)


CASE DIGEST: GOVERNMENT SERVICE INSURANCE SYSTEM, Petitioner, v. FERNANDO P. DE LEON, Respondent.

FACTS: 
Respondent Fernando P. de Leon retired as Chief State Prosecutor of the Department of Justice (DOJ) in 1992, after 44 years of service to the government. He applied for retirement under Republic Act (R.A.) No. 910, invoking R.A. No. 3783, as amended by R.A. No. 4140, which provides that chief state prosecutors hold the same rank as judges. Thereafter, and for more than nine years, respondent continuously received his retirement benefits, until 2001, when he failed to receive his monthly pension.

Respondent learned that GSIS cancelled the payment of his pension because the Department of Budget and Management (DBM) informed GSIS that respondent was not qualified to retire under R.A. No. 910; that the law was meant to apply only to justices and judges; and that having the same rank and qualification as a judge did not entitle respondent to the retirement benefits provided thereunder.

Respondent then filed a petition for mandamus before the CA, praying that petitioner be compelled to continue paying his monthly pension and to pay his unpaid monthly benefits from 2001. The CA granted the petition. Petitioner GSIS is now before this Court, assailing the Decision of the CA and the Resolution denying its motion for reconsideration. GSIS argues that the writ of mandamus issued by the CA is not proper because it compels petitioner to perform an act that is contrary to law.

ISSUE:

Did the CA err in granting the petition for mandamus?

HELD: This case involves a former government official who, after honorably serving office for 44 years, was comfortably enjoying his retirement in the relative security of a regular monthly pension, but found himself abruptly denied the benefit and left without means of sustenance. This is a situation that obviously cries out for the proper application of retirement laws, which are in the class of social legislation. Indeed, retirement laws are liberally construed and administered in favor of the persons intended to be benefited, and all doubts are resolved in favor of the retiree to achieve their humanitarian purpose.

In this case, respondent was able to establish that he has a clear legal right to the reinstatement of his retirement benefits. In stopping the payment of respondents monthly pension, GSIS relied on the memorandum of the DBM, which, in turn, was based on the Chief Presidential Legal Counsels opinion that respondent, not being a judge, was not entitled to retire under R.A. No. 910. And because respondent had been mistakenly allowed to receive retirement benefits under R.A. No. 910, GSIS erroneously concluded that respondent was not entitled to any retirement benefits at all, not even under any other extant retirement law. This is flawed logic.

Respondents disqualification from receiving retirement benefits under R.A. No. 910 does not mean that he is disqualified from receiving any retirement benefit under any other existing retirement law.

Prior to the effectivity of R.A. No. 8291, retiring government employees who were not entitled to the benefits under R.A. No. 910 had the option to retire under either of two laws: Commonwealth Act No. 186, as amended by R.A. No. 660, or P.D. No. 1146.

In his Comment, respondent implicitly indicated his preference to retire under P.D. No. 1146, since this law provides for higher benefits, and because the same was the latest law at the time of his retirement in 1992.

Under P.D. No. 1146, to be eligible for retirement benefits, one must satisfy the following requisites:

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.

Respondent had complied with these requirements at the time of his retirement. GSIS does not dispute this. Accordingly, respondent is entitled to receive the benefits provided under Section 12 of the same law. To grant respondent these benefits does not equate to double retirement, as GSIS mistakenly claims. Since respondent has been declared ineligible to retire under R.A. No. 910, GSIS should simply apply the proper retirement law to respondents claim, in substitution of R.A. No. 910.

It must also be underscored that GSIS itself allowed respondent to retire under R.A. No. 910, following jurisprudence laid down by this Court.

One could hardly fault respondent, though a seasoned lawyer, for relying on petitioners interpretation of the pertinent retirement laws, considering that the latter is tasked to administer the governments retirement system. He had the right to assume that GSIS personnel knew what they were doing. Since the change in circumstances was through no fault of respondent, he cannot be prejudiced by the same.

DENIED