Case Digest (G.R. No. L-20503)
Facts:
The Philippine Association of Government Retirees, Inc. v. The Government Service Insurance System, et al., G.R. Nos. L-20503 and L-20632, June 30, 1965, the Supreme Court En Banc, Concepcion, J., writing for the Court.In G.R. No. L-20503 petitioner Philippine Association of Government Retirees, Inc. (PAGR) challenged the practice of the Government Service Insurance System (GSIS) of deducting a 5% discount when paying the present value of the five-year lump-sum annuity to government employees compulsorily retired at age 65 under Commonwealth Act No. 186, as amended. After this Court’s decision in Flaviano Bautista v. Auditor General (reported in the parties’ papers), many retirees filed refund claims with the GSIS. The GSIS, concerned about impairing the retirement fund, negotiated with retirees and, by Resolution No. 2944 (Dec. 2, 1958), proposed to pay retirement annuity differentials under a formula adopted earlier (Res. Nos. 200/2279) instead of refunding the 5% discount; quitclaim forms embodying that arrangement were circulated and many retirees accepted and received differential payments computed under the formula.
PAGR objected to Resolution No. 2944 and filed a petition in the Court of First Instance (CFI) of Manila seeking refunds of the 5% discounts for its members (over 5,700 retirees), plus damages and fees. The CFI rendered judgment in favor of the petitioners, ordering respondents to refund the 5% discounts to those compulsorily retired at age 65 and similarly situated as in Bautista. The GSIS, its General Manager and Board appealed to this Court in G.R. No. L-20503.
In G.R. No. L-20632 plaintiff Simeon Morales (a retired BIR employee) sued GSIS for P1,066.25, the difference he claimed was improperly withheld as the 5% discount when his five-year lump-sum annuity was converted to present value. The Municipal Court awarded Morales the amount; on appeal the CFI of Manila affirmed, awarding P1,066.25 with interest and P200 attorney’s fees. The GSIS appealed to the Court of Appeals, which thereafter certified the case to the Supreme Court, rai...(Subscriber-Only)
Issues:
- Under Commonwealth Act No. 186, Section 11(a)(3), as amended by subsequent statutes, are government employees compulsorily retired at age 65 entitled to refund of the 5% discount deducted by the GSIS from the present value of their five-year l...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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