G.R. No. 104139 December 22, 1992
LYDIA M. PROFETA, petitioner, vs. HON. FRANKLIN M. DRILON, in his capacity as Executive Secretary, Office of the President of the Philippines, respondent.

FACTS

Petitioner Dr. Lydia M. Profeta served in various capacities at Rizal Technological Colleges from October 24, 1974, eventually becoming its President on May 1, 1979. After the 1986 EDSA Revolution, she filed a courtesy resignation as President, which was accepted on March 21, 1986. She was later appointed Acting President of the Eulogio “Amang” Rodriguez Institute of Science and Technology (EARIST) on November 4, 1988, and became its President on March 29, 1989. Upon reaching the compulsory retirement age of 65 on June 16, 1989, the Government Service Insurance System (GSIS) advised her she was not yet eligible for old-age pension under P.D. 1146, having only 12 years and 2 months of creditable service, short of the required 15 years. To qualify, President Aquino, upon recommendation, extended her term as EARIST President until she completed the 15-year requirement. In March 1990, an administrative complaint was filed against her. The Office of the President, in a decision dated October 23, 1991, dismissed the administrative charges for lack of evidence but declared her compulsorily retired as of October 15, 1991, having purportedly completed 15 years of service by including 62 days of sick leave and approximately two weeks of service as a Professorial Lecturer not previously reflected in her service record. Petitioner moved for reconsideration, arguing the Office of the President had no jurisdiction over her retirement issue, but this was denied on January 31, 1992. The GSIS later computed her exact retirement date as August 14, 1992.

ISSUE

Whether the Office of the President acted with jurisdiction and correctly declared petitioner compulsorily retired as of October 15, 1991, after recomputing her service to include unrecorded periods, thereby shortening her previously granted extension to complete the 15-year service requirement for old-age pension under P.D. 1146.

RULING

The Supreme Court SET ASIDE the portion of the Office of the President’s decision declaring petitioner compulsorily retired as of October 15, 1991. The Court held that the purpose of allowing petitioner to remain in service was to enable her to complete the 15-year requirement for old-age pension. The Court accepted the recomputation including the unrecorded sick leave and lecturer service (totaling about 3.5 months) but found that, deducting this period from the GSIS-computed retirement date of August 14, 1992, petitioner should be considered retired on April 30, 1992. Consequently, petitioner was declared to have been in service as EARIST President from October 16, 1991, until April 30, 1992, and entitled to all corresponding salaries, benefits, and emoluments for that period. She was also declared entitled to old-age pension benefits, having reached age 65 with 15 years of service, subject to GSIS regulations. The Court emphasized that retirement laws are liberally interpreted in favor of the retiree to achieve their humanitarian purposes.