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GOVERNMENT SERVICE INSURANCE SYSTEM v. APOLINARIO C. PAUIG

FACTS:

This case involves a Petition for Review filed by the Government Service Insurance System (GSIS) against the Decision and Order of the RTC of Cabagan, Isabela. The respondent, Apolinario C. Pauig, was a former municipal agriculturist of the Municipality of San Pablo, Isabela. Pauig retired on November 3, 2004 and filed his retirement papers with the GSIS-Cauayan. However, the GSIS processed his claim based on a Record of Creditable Service (RCS) and Total Length of Service of only twenty-seven (27) years. Pauig argued that his first fourteen (14) years of service were erroneously omitted from the computation of his retirement benefits. The GSIS excluded these years because no premium payments were remitted to the system during that period. In response, Pauig filed a case before the RTC of Cabagan, Isabela. The RTC ruled in favor of Pauig, declaring the Premium-Based Policy of the GSIS as lawful and directing the GSIS to credit Pauig's earlier years of service for retirement purposes. The GSIS filed a motion for reconsideration, which was denied. Hence, the instant petition. The main issue to be resolved is whether or not the GSIS should include Pauig's first fourteen (14) years in government service for the calculation of his retirement benefits claim.

ISSUES:

  1. Whether or not the petitioner, who is a casual and temporary employee, is eligible for coverage under the Government Service Insurance System (GSIS).

  2. Whether or not the amendments to the GSIS law exclude casual and temporary employees from the retirement insurance plan.

  3. Whether or not the casual and temporary service of the employee should be included as creditable service for purposes of computing retirement benefits.

  4. Whether or not liberal construction should be applied in the interpretation of the retirement law.

RULING:

  1. No, the petitioner, as a casual and temporary employee, is not eligible for coverage under the GSIS. Compulsory coverage under the GSIS has consistently included regular and permanent employees, while expressly excluding casual, substitute, or temporary employees from its retirement insurance plan.

  2. The amendments to the GSIS law do not include casual and temporary employees in the coverage of the retirement insurance plan. The term "appointive officer and employee" in the law includes those with permanent appointments and provisional appointments in the civil service law, but excludes those without any kind of civil service eligibility when required.

  3. No, the casual and temporary service of the employee should not be included as creditable service for purposes of computing retirement benefits. The Court held that since the employee was not yet a member of the Government Service Insurance System (GSIS) during that period, there was no legal basis for the remittance of premiums. Therefore, only periods of service where premium payments were actually made and duly remitted to the GSIS shall be included in the computation of retirement benefits.

  4. No, liberal construction should not be applied in the interpretation of the retirement law. The Court ruled that the language of the retirement law is clear and unambiguous, leaving no room for construction or interpretation. The primary modality of addressing the case is to apply the letter of the law.

PRINCIPLES:

  • Compulsory coverage under the GSIS applies to regular and permanent employees, and excludes casual, substitute, or temporary employees from the retirement insurance plan.

  • Permanent appointment is issued to a person who has met the requirements of the position, while temporary appointment is made in the absence of appropriate eligibles.

  • Casual employment is occasional, unpredictable, sporadic, and brief in nature.

  • The basis for the provision of retirement benefits is service to the government.

  • Deductions from salaries for GSIS insurance benefits are made from all government employees on an essentially involuntary basis.

  • Only periods of service where premium payments were actually made and duly remitted to the GSIS shall be included in the computation of retirement benefits.

  • Liberal construction should not be applied when the language of the law is clear and unambiguous.