GR L 11580; (May, 1958) (Digest)
G.R. No. L-11580; May 9, 1958
MARCELINO GABRIEL, petitioner-appellant, vs. GOVERNMENT SERVICE INSURANCE SYSTEM, respondent-appellee.
FACTS
The petitioner-appellant, Marcelino Gabriel, a former District Supervisor in the Bureau of Public Schools with 33 years of service, was laid off on February 1, 1951, due to the abolition of his position under Executive Order No. 392, issued pursuant to the Reorganization Act ( Republic Act No. 422 ). He received a gratuity of P2,760.00, equivalent to one year’s salary. On July 9, 1952, he applied for and was approved to receive a retirement insurance benefit under Republic Act No. 660 , as amended, electing a monthly joint life annuity. The Government Service Insurance System (GSIS) computed his monthly annuity at P62.15 instead of P79.63, deducting an amount equivalent to a refund of the gratuity he had previously received, pursuant to GSIS Board Resolution No. 131, series of 1953. The petitioner, who was never reinstated, questioned this deduction as unlawful.
ISSUE
Whether the gratuity received by the petitioner under Executive Order No. 392, pursuant to Republic Act No. 422 , is deductible from his annuity under Republic Act No. 660 .
RULING
Yes. The Supreme Court affirmed the decision of the lower court, ruling that the deduction was lawful. The Court based its decision on the clear provision of the second paragraph of Section 26 of Republic Act No. 660 , which states that any officer or employee separated due to the reorganization under Republic Act No. 422 may retire under Republic Act No. 660 if qualified, provided that “any gratuity or retirement benefit already received by him shall be refunded to the System.” The Court held that this provision shows Congress did not intend for separated employees to receive both the gratuity under Republic Act No. 422 and the full retirement benefits under Republic Act No. 660 . By voluntarily applying for benefits under Republic Act No. 660 , the petitioner accepted the condition of refunding any prior gratuity received. Therefore, the GSIS was correct in deducting the equivalent of the gratuity from his annuity.