1.0       In the event a retiree/employee dies while his claim for payment of Terminal Leave and Retirement Gratuity is still being processed (after the SARO/NCA has been issued), the national government agency (NGA) shall pay these benefits to the heirs of the deceased retiree/employee. The payment of the same, thru MDS check/Advice to Debit Account form, shall be honored by the MDS-GSBs, provided the following documents are submitted by the agency:

1.1    Copy of the deceased retiree/employee ™s death certificate; and

1.2    Copy of the decision of the agency ™s legal office/adjudication board identifying the legal heirs of the deceased. The legal heirs identified in this document shall be the only payees to be honored by the MDS-GSBs.

2.0       In cases where the retiree has outstanding accountabilities with government/private financial institutions, which shall be paid out of his retirement and terminal leave benefits, a breakdown of these deductions shall be prepared and attached as a supporting schedule to the List of Actual Retirees form prescribed under Circular Letter No. 99-4A.

2.1    The MDS checks/Advice to Debit Account forms shall be issued by the agency to the specific government/private financial institutions to which the retiree has outstanding accountabilities.

2.2    Only private financial institutions with an existing Memorandum of Agreement with the retiree ™s national government agency can be considered as part of a retiree ™s deductions.

3.0       Please be guided accordingly.

Adopted: 14 Oct. 1999

(SGD.) BENJAMIN E. DIOKNO
Secretary