Title
Allarde vs. Commission on Audit
Case
G.R. No. 103578
Decision Date
Jan 29, 1993
Retired judge sought inclusion of a reimbursable municipal allowance in retirement benefits; SC upheld COA's denial, ruling it non-remunerative and excluded by law.

Case Summary (G.R. No. 103578)

Applicable Law

The case revolves around Republic Act No. 910, as amended by Presidential Decree No. 1438, which governs the retirement benefits of justices and judges. Specifically, Section 3 of this law stipulates that judges are entitled to a lump sum of gratuity calculated based on their highest monthly salary and transportation, living, and representation allowances at the time of retirement.

Events Leading to the Petition

Upon retiring, Allarde applied for retirement benefits that included a P4,000.00 monthly allowance he had received from the Municipality of Muntinlupa. His application was initially acted upon by the Government Service Insurance System (GSIS), which included the allowance in his lump sum computation. However, payment was subsequently denied by the Metro Manila Authority, referencing COA's previous determinations that such allowances cannot equate to compensation for retirement benefit calculations.

COA’s Interpretation of the Law

In its decisions dated June 5, 1991, November 5, 1991, and January 27, 1992, the COA reiterated that the allowances in question were expenses, not in the nature of salary or compensation. COA highlighted that under Section 3 of Republic Act 910, only specific allowances (transportation, living, and representation) are appropriately includable in the computation of retirement benefits. The principle of inclusio unius est exclusio alterius applied here, indicating that if certain allowances are mentioned, others are presumably excluded.

Nature of the Allowance

The COA's analysis found that the P4,000.00 monthly allowance was characterized as a reimbursement for expenses incurred by Allarde while performing his judicial duties rather than a payment constitutive of salary. The COA referenced a disbursement voucher used by Allarde to support the claim, which required him to certify that the expenses were incurred during his duties. This characterization reaffirmed that the allowance was non-commutable in nature, falling outside the purview of what is classified as acceptable for the computation of retirement benefits.

Implications of Including the Allowance

The legal opinion from the Solicitor General cautioned against including such allowances in retirement computations. It emphasized that such a policy could lead to significant inequities among judges, depending on the financial capabilities of their respective municipalities. If allowances were included,

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