Title
IN RE: Chanliongco
Case
A.M. No. 190-RET
Decision Date
Oct 18, 1977
Heirs of deceased government attorney claim retirement benefits; SC rules distribution follows intestate succession, with terminal leave treated as conjugal property, ensuring legitimes for widow, legitimate, and illegitimate children.

Case Summary (G.R. No. 186279)

Applicable Law

The claims for retirement benefits are governed by Republic Act No. 1516, as amended by Republic Act No. 4986, effective since July 12, 1976. The distribution of benefits is further informed by civil law principles surrounding intestate succession.

Claims for Retirement Benefits

Atty. Chanliongco had completed more than 38 years of service and was over 63 years of age at the time of his passing. He had no pending criminal or administrative cases and was not financially accountable for any money or properties. The claims for benefits comprise retirement benefits, terminal leave payment, life insurance, and refund of retirement premiums. The Government Service Insurance System (GSIS) had disbursed the life insurance proceeds and the refund of retirement premiums.

Distribution of Retirement Benefits

Due to Atty. Chanliongco’s oversight in failing to designate beneficiaries in his GSIS membership application, his retirement benefits were to be allocated according to intestate succession. The court upheld the GSIS determination regarding the retirement gratuity, which amounted to P7,140.10. Legal heirs and their respective shares were identified: 8/16 share to Mario II, 4/16 share to Dra. Fidela, and 2/16 shares to each of the two illegitimate children.

Terminal Leave Payment Breakdown

In addition to the retirement gratuity, the court addressed the money value of Atty. Chanliongco’s terminal leave, alongside unpaid salaries and a 10% adjustment. The Finance Officer provided a detailed breakdown, resulting in a net amount of P13,505.45 after deductions for withholding tax and outstanding loans. This net amount was to be distributed among the claimants based on their legal standing.

Distribution of Terminal Leave and Salary Benefits

The distribution of terminal leave benefits was treated as conjugal property, thus allocating half to Dra. Fidela and distributing the other half among the legal heirs as per the same proportions established for the retirement benefits. The final amounts allocated were provided explicitly for each claimant, totaling P78,140.10 for

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