Title
Government Service Insurance System vs. Montesclaros
Case
G.R. No. 146494
Decision Date
Jul 14, 2004
A widower’s retirement benefits, designated to his second wife, were denied survivorship pension due to a PD 1146 provision. The Supreme Court ruled the provision unconstitutional, affirming retirement benefits as conjugal property and ordering the pension’s release.

Case Digest (G.R. No. 200465)

Facts:

  • Parties and Marriage
  • Government Service Insurance System (GSIS), Cebu City Branch, petitioner vs. Milagros O. Montesclaros, respondent.
  • Nicolas Montesclaros (72 years old) married Milagros Orbiso (43 years old) on 10 July 1983.
  • Retirement Application and Approval
  • On 4 January 1985, Nicolas filed for retirement benefits under PD 1146, effective 18 February 1985, designating Milagros as sole beneficiary.
  • GSIS approved the application on 31 January 1986; Nicolas’s last day of service was 17 February 1985.
  • Death and Claim for Survivorship Pension
  • Nicolas died on 22 April 1992; Milagros filed for survivorship pension under PD 1146.
  • GSIS denied the claim on 8 June 1992 based on Section 18’s proviso disqualifying a spouse married within three years before qualification for pension.
  • Judicial Proceedings
  • Trial Court (RTC, Branch 21, Cebu City) declared Milagros entitled to survivorship pension, ruling that retirement benefits are onerous/conjugal and that Section 18 was repealed by later Family Code provisions.
  • Court of Appeals affirmed on 13 December 2000. Milagros later manifested acceptance of the GSIS denial, but the Supreme Court proceeded to address the public‐interest issues.

Issues:

  • Whether Section 16 of PD 1146 entitles Milagros to survivorship pension.
  • Whether retirement benefits form part of conjugal property under the Family Code.
  • Whether Articles 254 and 256 of the Family Code effectively repealed Section 18 of PD 1146.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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