GSIS Vs PAUIG

GSIS vs PAUIG
Facts:
Respondent Apolinario C. Pauig (Pauig) was the Municipal Agriculturist of the

Municipality of San Pablo, lsabela. He started in the government service on February
12, 1964 as Emergency Laborer on casual status. Later, he became a temporary
employee from July 5, 1972 to July 18, 1977. On July 19, 1977, he became a
permanent employee, and on August 1, 1977, he became a GSIS member, as
indicated in his Information for Membership.
Thereafter, on November 3, 2004, he retired from the service upon reaching the
mandatory retirement age of sixty-five (65) years old. But when he filed his retirement
papers with the GSIS-Cauayan, the latter processed his claim based on a Record of
Creditable Service (RCS) and a Total Length of Service of only twenty-seven (27)
years. Disagreeing with the computation, Pauig wrote a letter-complaint to the GSIS,
arguing that his first fourteen (14) years in the government service had been.
erroneously omitted.
The GSIS ratiocinated that Pauig's first fourteen (14) years in the government were
excluded in the computation of his retirement benefits because during those years,
no premium payments were remitted to it. Under the Premium-Based Policy of the
GSIS which took effect on August 1, 2003, only periods of service where premium
payments were made and duly remitted to the System shall be included in the
computation of retirement benefits. Aggrieved, Pauig filed a case before the RTC of
Cabagan, Isabela. The RTC ruled in favor of the respondent which prompted the
GSIS to file a Petition for Review in the SC
Issue: W/N the GSIS should include Pauig's first fourteen (14) years in government
service for the calculation of the latter's retirement benefits claim.
Held: Yes
Retirement benefits are given to government employees to reward them for giving
the best years of their lives to the service of their country. This is especially true with
those in government service occupying positions of leadership or positions requiring
management skills because the years they devote to government service could be
spent more profitably elsewhere, such as in lucrative appointments in the private
sector. Hence, in exchange for their selfless dedication to government service, they
should enjoy security of tenure and be ensured of a reasonable amount of support
after they leave the government.
Compulsory coverage under the GSIS had previously and consistently included
regular and permanent employees, and expressly excluded casual, substitute or
temporary employees from its retirement insurance plan. A permanent appointment
is one issued to a person who has met the requirements of the position to which
appointment is made, in accordance with the provisions of the Civil Service Act and
the Rules and Standards, while temporary appointment is made in the absence of
appropriate eligibles and it becomes necessary in the public interest to fill a vacancy.
Casual employment, on the other hand, is not permanent but occasional,
unpredictable, sporadic and brief in nature. 11 Based on the records, Pauig began his
career in the government on February 12, 1964 as Emergency Laborer on a casual
status. Then, he became a temporary employee from July 5, 1972 to July 18, 1977.
However, the Court notes that it was not until 1997 that the compulsory membership
in the GSIS was extended to employees other than those on permanent status,
The primordial reason why there were no deductions during those fourteen (14)
years was because Pauig was not yet a GSIS member at that time. There was thus
no legal obligation to pay the premium as no basis for the remittance of the same
existed. And since 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, said disputed period of fourteen (14) years must corollarily be
removed from Pauig's creditable service.
RE: MEDICAL CONDITION OF ASSOCIATE JUSTICE MARIA CRISTINA J.

CORNEJO, SANDIGANBAYAN
Facts:
On October 20, 2016, this Court received a letter[2] from Sandiganbayan

Presiding Justice Amparo M. Cabotaje-Tang stating that Sandiganbayan Associate
Justice Maria Cristina J. Cornejo (Justice Cornejo) has been on sick leave since June
13, 2016. According to the attached clinical abstract[3] from Dr. Santos/Tubig,
Attending Physician/Resident-in-Charge of the Department of Internal Medicine,
Cardinal Santos Medical Center, Justice Cornejo was diagnosed with acute
cerebrovascular disease in bilateral cerebral and cerebellar hemispheres; controlled
hypertension; systemic lupus erythematous; pancytopenia; colon cancer stage III s/p
left hemicolectomy; and acute kidney injury secondary to poor oral intake.
On November 8, 2016, this Court noted the letter from Presiding Justice Cabotaje-
Tang and directed the Head of the Supreme Court Medical Services to certify Justice
Cornejo's capability to function as a Sandiganbayan Justice.[4]
On December 13, 2016, based on the reports[5] submitted by the Supreme Court
Justice Cornejo was "physically and medically incapacitated to perform her duties,
and responsibilities as Sandiganbayan Justice."[6]
On January 13, 2017, Justice Cornejo wrote Chief Justice Maria Lourdes P. A.
Sereno to request the approval of her optional retirement, effective March 1, 2017,
due to serious health concerns. She stated that she had been in government service
since August 1977 and has been in the judiciary from January 1987 to the present.
Justice Cornejo's letter request bore her thumbprint instead of a signature.[8]
On February 6, 2017, Presiding Justice Amparo M. Cabotaje-Tang recommended the

approval of Justice Cornejo's request.
Issue: W/N Justice Cornejo is entitled to the optional retirement
Held: Yes
Justice Cornejo will be 66 years, two (2) months, and 16 days old on March 1, 2017.
She has been in government service for more than 39 years, the last 30 years of
which she had continuously rendered in the judiciary.[10]
Section 1 of Republic Act No. 910, as amended by Republic Act No. 9946, grants full
retirement benefits to the following:
Justices and judges who have rendered at least fifteen (15) years service in the
a) Judiciary or in any other branch of the Government, or in both, and retires for
having attained the age of seventy (70);
Justices and judges who have rendered at least fifteen (15) years service in the
b) Judiciary or in any other branch of the Government, or in both, and resigns by
reason of his/her incapacity as certified by the Supreme Court; and
Justices and judges who have attained the age of sixty (60) years and rendered
c) at least fifteen (15) years service in the Government, the last three (3) of which
have been continuously rendered in the Judiciary.
We acknowledge Justice Cornejo's request for optional retirement. However, in light

of Justice Cornejo's actual medical condition, this Court will treat her letter request as
one for retirement due to disability.
Section 3 of Republic Act No. 910, as amended, grants a 10-year lump sum of 10
years' gratuity—computed on the basis of the highest monthly salary plus the highest
monthly aggregate of transportation, representation, and other allowances such as
personal economic relief allowance (PERA) and additional compensation allowance
to a retired Sandiganbayan Justice—if the reason for the retirement is any permanent
disability contracted during his or her incumbency in office and before the date of
retirement:
SEC. 3. Upon retirement, a Justice of the Supreme Court or of the

Court of Appeals, the Sandiganbayan or of the Court of Tax Appeals,
or a Judge of the regional trial court, metropolitan trial court, municipal
trial court in cities, municipal trial court, municipal circuit trial court,
shari'a district court, shari'a circuit court, or any other court hereafter
established shall be automatically entitled to a lump sum of five (5)
years' gratuity computed on the basis of the highest monthly salary
plus the highest monthly aggregate of transportation, representation
and other allowances such as personal economic relief allowance
(PERA) and additional compensation allowance he/she was receiving
on the date of his/her retirement and thereafter upon survival after the
expiration of five (5) years, to further annuity payable monthly during
the residue of his/her natural life pursuant to Section 1 hereof:
Provided, however, That if the reason for the retirement be any
permanent disability contracted during his/her incumbency in
office and prior to the date of retirement, he/she shall receive a
gratuity equivalent to ten (10) years' salary and the allowances
aforementioned: Provided, further, That should the retirement under
Section 1(a) hereof be with the attendance of any partial permanent
disability contracted during his/her incumbency and prior to the date of
retirement, he/she shall receive an additional gratuity equivalent to two
(2) years lump sum that he/she is entitled to under this Act; Provided,
furthermore, That if he/she survives after ten (10) years or seven (7)
years, as the case may be, he/she shall continue to receive a monthly
annuity as computed under this Act during the residue of his/her
natural life pursuant to Section 1 hereof: Provided, finally, That those
who have retired with the attendance of any partial permanent
disability five (5) years prior to the effectivity of this Act shall be
entitled to the same benefits provided herein[.] (Emphasis supplied)
Justice Cornejo's long and dedicated service warrants no less than all the benefits
that the law allows for her condition. Like many others, the hazards and difficulties of
sitting in the bench take their toll on the best among us.
We resolve that the benefits due to her be processed with the dispatch it deserve

GSIS Vs PAUIG - Re Justice Maria Cristina Cornejo

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Respondent Apolinario C. Pauig (Pauig) was the Municipal Agriculturist of the

RE: MEDICAL CONDITION OF ASSOCIATE JUSTICE MARIA CRISTINA J.

On October 20, 2016, this Court received a letter[2] from Sandiganbayan

On February 6, 2017, Presiding Justice Amparo M. Cabotaje-Tang recommended the

Issue: W/N Justice Cornejo is entitled to the optional retirement

We acknowledge Justice Cornejo's request for optional retirement. However, in light

SEC. 3. Upon retirement, a Justice of the Supreme Court or of the

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