G.R. No. 224936 - PNOC Alternative Fuels Corp. vs. National Grid Corporation of the Philippines

Parties and Marriage
Edna Mabugay-Otamias (wife) and Col. Francisco B. Otamias (retired AFP officer) were married on June 16, 1978 and had five children.
They separated in September 2000; the children remained with Edna.

Agreement on Support
August 2002 – Edna filed a Complaint-Affidavit before the AFP Provost Marshal demanding 75% of Colonel Otamias’s retirement benefits as support.
Colonel Otamias executed an affidavit offering 50% of his retirement benefits, and on February 26, 2003 executed a Deed of Assignment waiving 50% of his pension in favor of Edna and their five children.

Retirement and Initial Compliance
Colonel Otamias retired on April 1, 2003.
The AFP Pension and Gratuity Management Center (PGMC) honored the Deed of Assignment until January 6, 2006, when it refused further payments without a court order.

Litigation History
April 2006 – Edna, et al. filed a support case (RTC Cagayan de Oro F.C. Civ. No. 2006-039). Colonel Otamias was declared in default.
February 27, 2007 – RTC Decision ordered automatic deduction of 50% of Colonel Otamias’s monthly pension for support and arrears.
April 10, 2008 – RTC issued a writ of execution; the AFP Finance Center’s Motion to Quash was denied.
Court of Appeals (CA) granted a petition for certiorari and prohibition, nullifying the RTC’s automatic deduction order.
November 11, 2009 – Edna, et al. filed a Petition for Review on Certiorari before the Supreme Court.

Enforcement Mechanism
Whether the AFP Finance Center can be directed to automatically deduct the support amounts from Colonel Otamias’s pension.

Execution of Pension Benefits
Whether Colonel Otamias’s pension benefits, generally exempt under PD 1638, Sec. 31, can be subjected to execution for spousal and child support.