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Republic of the Philippines GOVERNMENT SERVICE INSURANCE SYSTEM

Financial Center, Roxas Blvd., Pasay City

BOARD OF TRUSTEES

IN THE MATTER OF:

PETITION FOR COMPUTATION AND PAYMENT OF WITHHELD LIFE INSURANCE BENEFITS AND LUMP SUM RETIREMENT BENEFITS

JUDGE CHITO S. MEREGILLANO, Petitioner.

GSIS Case No. 0414-05

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DECISION

This case involves a request by the petitioner for the change of

the date of his retirement under R.A. No . 8291 from 25 November

2002 to 01 February 2003. Petitioner likewise prays that he be

reimbursed the amount of P28,499.27 , which was d educted from the

proceeds of his life insurance policy as payment for arrearages in

premium contributions and policy loan.

ANTECEDENT FACTS

Petitioner Chilo S. Meregillano was appointed as Municipal Trial

Court Judge of Narra Palawan in janu ary 1983. /\s such, he was

ex tended by the GSIS a compulsory life insurance coverage under

Policy No . 0000 t 193411.

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In january 1987, petitioner was appointed 2"d Assistant

Provincial Prosecutor of the Province of Palawan.

On 21 November 2002, petitioner took his Oath of Office ' as

Presiding judge of the Regional Trial Court, Branch 51 for Palawan and

Puerto Princesa City. On 25 November 2002, petitioner assumed said

office.

On 25 March 2005, petitioner applied for retirement under R.A.

No. 8291.

On 30 May 2005, petitioner sent a letter2 to the GSIS requesting

the modification of the date of his separation from the Provincial

Prosecutors Office of Palawan to 01 February 2003 instead of 25

November 2002 which was the date of his assumption as Regional

Trial Court judge for Palawan and Puerto Princessa City. The purpose

of the petitioner's request is for him to be credited twenty (20) years

of government service3•

On 08 April 2005, petitioner received the proceeds of his life

insurance policy in the amount of One Hundred Seventy Five Thousand

Six Hundred Seventy-Seven Pesos and 73/100 (Php 1 7 5,6 77 .73) under

Check No. 52644 dated 08 April 2005'.

The amount represented the net proceeds of his life insurance

after deducting the arrears in his premium contributions (P15,086.90)

1 Annex "6" of the 17 September 2007 GSIS Position Paper. Annex "D" of the Petition.

J Paragraph 5, ibid Annex "9" of the 17 September 2007 GSIS Position Paper.

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and policy loan (P13,412.37) from the gross amount of P204,177.00 as

evidenced by the Life Insurance Claim Voucher. 5

On 30 May 2005, the GSIS Manila District Office sent a letter

dated 15 June 2005 6 to petitioner denying his request to change his

date of separation from the Palawan Provincial Prosecutors Office

because when he assumed the position of RTC judge on 25 November

2002, he ceased to be covered by R.A. No. 8291.

Not content with the decision of the Manila District Office,

petitioner filed the present petition.

Petitioner argues that his retirement under R.A. No. 8291 should

be dated 18 January 2003 because it was only then that he completed

the orientation seminar and immersion program for newly appointed

judges. He likewise argues that the choice on the matter of

application of his government service remains with him, thus, in order

to complete twenty (20) years of government service, he demands that

the date of retirement be made effective only on 01 february 2003.

Petitioner also claims that the deduction of P28,499.27,

representing arrears in premium contributions and policy loan from

his life insurance policy was erroneous 7 as he already fully paid the

premium contributions and he never secured any policy loan.

Petitioner posits that any policy loan secured in his name was not his

and that his signature appearing in the loan application was a forgery.

' Annex ··T of the 17 September 2007 GSIS Position Paper. 6 Anne:-. ··3·· ibid.

Paragraph 7 of Petition

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Furthermore, petitioner reasons that it is a matter of public

policy that the retiree be afforded the highest available benefits due

him because retirement is a reward to the retiree for his good and

exemplary conduct in government service and not a penalty8.

In support of his claim, the petitioner attached to the petition

the following documents:

Annex "A"

Annex "B"

Annex "C"

Annex "0"

Annex"£"

Service Record;

Service Record;

Application for Retirement Benefits;

30 May 2005 letter of petitioner to Mrs. josefina M. Gudani, Division Chief of Claims and Retirement Division of the GSIS;

Life Insurance Claim Voucher dated April 8 2005.

According to his application for retirement, the petitioner

himself unequivocally indicated that the effectivity of his retirement

was 25 November 2002. Likewise, the petitioner did not present any

evidence to support his demand for the GSIS to effect a change in his

date of retirement from 25 November 2002 to 01 February 2003 .'>

As for the demand for reimbursement of the amount deducted

from his life insurance benefits, it was argued that the act of

deducting the total amount of P28,499.27 was lawful and valid. It was

likewise reasoned that the allegations of the petitioner that he never

8 Parag raph 9 of Petition 9 I 51 paragraph, page 7 the 17 Septe mber 2007 GSIS Pos ition Paper.

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incurred any arrears in premium payments and never secured any

policy loan were self-serving and unsupported by any evidence

because the GLO established its position that petitioner had incurred

arrears in his premium contributions and policy loan.

The GLO further argues that the records show that petitioner

was granted a policy loan in the amount of P4,940.18 on 18 March

1988. PNB Check No. 638919 was issued for said loan, which check

was received by the petitioner as shown by his s ignature in the

reverse of the check. '0 Since petitioner failed to make payments on

the loan, it incurred interests and penalties, prompting the GSIS to

deduct the amount of Pl3,412.37 from his life insurance benefits . If,

as he claims, his signature was a mere forgery, he has to present

evidence of such claim. This, he failed to do.

The GLO filed its Position Paper dated 17 September 2007, and

in support thereof, attached the following documents :

Annex "1"

Annex "2"

Annex "3"

Annex "4"

Annex "5 "

Annex "6"

10 Annex 9 of GSIS Position Paper.

GSIS Union Bank Check No. 0000052644 in the amount of P 175 ,677.73

Life Insurance Claim Voucher

15 June 2005 letter of Joscfina M. Gudani, Division Chief-Claims of the GSIS

Service Record of Chito S. Meregillano

Certification that petitioner assumed as Presiding judge of the Regional Trial Court Branch 51, Palawan and Puerto Princesa

Panunumpa ng Katungkulan (Oath of Office) of petitioner dated 21 November 2002

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Annex "7"

Annex "8"

Annex "9"

Annex "10"

Appointment letter of the petitiOner from Malacaiiang Palace dated 18 November 2002

30 March 2005 Indorsement to the GSIS from the Department of Justice of petitioner's retirement effective 25 November 2002

GSIS Philippine National Bank Check No. ]B 638919, dated 18 March 1988 in the amount of P4,940.18, representing petitioner's policy loan

GSIS Board Resolution No. 64 dated 11 April 2007

Petitioner did not file his Position Paper and was considered to

have waived the filing of the same.

After a careful consideration of the arguments raised by the

parties, we find against the petitioner.

When the petitioner took his oath of office on 21 November

2002 as Presiding Judge of Palawan and Puerto Princesa Regional Trial

Court, Branch 51, as shown in his Panunumpa ng Kalungkulan (Oath

of Office) he was no longer covered by R.A. No. 8291, otherwise

known as the GSIS J\ct of 1997. Instead, petitioner became

automatically covered by Republic J\ct No. 910, as amended.

Section 3 of R.A. No. 8291 categorically excludes members of

the judiciary from the compulsory coverage of the System. Thus:

SEC. 3. Compulsory Membership. - Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age, irrespective of emp loyment status, except members of the Armed Forces of the Philippines and the Philippine National Police, subject

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to the condition that they must settle first their financial obligation with the GSIS, and contractuals who have no employer and employee relationship with the agencies they serve.

Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all members of the GSIS shall have life insurance, retirement, and all other social security protections such as disability, survivorship, separation, and unemployment benefits. (Emphasis provided.)

The removal of members of the judiciary from the coverage of

R.A. No. 8291 is highlighted by Sections 2.2 and 2.4 of Rule II of the

Rules and Regulations Implementing R.A. No. 8291 which state:

Section 2.2 Benefit Coverage

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2.2.3 The coverage of the judiciary and Constitutional Commissions shall be limited to compulsory life insurance and they shall be considered compulsory life policyholders.

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Section 2.4 Exclusion from Coverage - The following are not considered Members of the GSIS for purposes of this Act:

(a) Employees who have separate retirement schemes under special laws and are therefore covered by their respective retirement laws, such as the members of the Tudiciary, Constitutional Commissions, and other similarly situated government officials; (Emphasis provided.)

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Therefore, upon petitioner's taking of his Oath of Office on 21

November 2002 as Presiding judge of the Regional Trial Court Branch

51, Palawan and Puerto Princesa, he was automatically removed from

the coverage of R.A. No . 8291.

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Petitioner argues that his removal from the coverage of the GSIS

Act of 1997 (R.A. No. 8291) should have been effective only upon the

required attendance of orientation seminar-workshop or the immersion

program11 which the petitioner had to undergo before performing the

duties as the Presiding judge of Palawan and Puerto Princesa RTC,

Branch 51.

Petitioner's argument cannot be sustained.

It is undisputed that he assumed his judicial post as Presiding

judge of Pal a wan and Puerto Prince sa Regional Trial Court, Branch 51,

when he took his oath of office on 21 November 2002. The taking of

said oath was the final operative act of the petitioner in becoming a

member of the judiciary. On said date, petitioner, being a member of

the judiciary, was already compulsorily covered by Republic Act No.

910. As such, he cannot demand that he also come within the

coverage of R.A. No. 8291.

As for petitioner's claim that he never secured any policy loan,

this claim is disproved by GSIS PNB Check No. 638919 '2 dated 18

March 1988 which was issued to, and received by, the petitioner as

policy loan as shown by PNB Check No. ]B 638919 which he personally

received iJ , and for which no payments were made.

11 Last paragraph page I of the 30 May 2005 letter of Petitioner. Annex ··o" of Petition. 12 Allached as Annex ··9"' to the 17 September 2007 GSIS Position Paper. 11 Annex 9 ofGS IS Position Paper.

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Moreover, the records of the GSIS showing the schedule of

premium arrearages confirm that from August 1997 to June of 2003

there were unposted premiums amounting to P15,086.90 , broken

down as follows: personal share - P7,036 .80 and P422.22 as interest;

government share - P7,196.10 and P431.78 as interest. However,

subsequent posting of premiums made after the processing of

petitioner's Life Insurance Claim (Maturity) on 08 April 2005 shows

that petitioner is entitled to a refund of Pl2,386.33 , broken down as

follows: personal share - P5 ,635.97; government share - P5,896.36;

interest - P854.00.11

WHEREFORE, premises considered, the request for the change

of the date of his retirement under R.A. No. 8291 from 25 November

2002 to 01 February 2003 is DENIED. However, the petitioner is

entitled to a refund of the clipped premium arrearages in the amount

of Pl2,386.33.

SO ORDERED.

2 2 SEP 2011 Pasay City, Philippines, ---------------------- ·

IEL L. LACSON, JR.

RO ERTG.V~A ice Chairman

Chairman

1 ~ Printout of breakdown atlachcd herein as Annex · 1 ".

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Trustee G~~.r:~ hlst~e a ~ LFAVE)

DANILO A. GOZO Trustee

GERALDINE MARIE BERBERABE-MARTINEZ Trustee

Copy Furnished:

JUDGE CHITO S. MEREGILLANO c/o Regional Trial Court of Palawan and Puerto Princesa Branch 51 San Manuel, Puerto Princesa

(~ LFAVE) FRANCISCO T. DUQUE III

Trustee

CATHERINE THERESE M. TAGLE-SALVADOR GSIS LAW OFFICE 6th Floor, GSIS Financial Center Macapagal Ave., Pasay City

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CERTIFICATION

II ENRIQUE L. TANDAN lit a Legal Officer III in the GSIS Law Office/ having been assigned to review the records and to prepare a draft resolution in Board of Trustees Case No. 008-05 entitled Maria Soledad K Peiiaflor versus Provincial Government of Cavite and Government Service Insurance System/ hereby certify that the statement of facts herein stated and being presented before this Board are accurate and true/ and are entirely based on the records of the easel the pleadings and other documents submitted by the parties.

This certification is issued in compliance with Board Resolution No. 198-A adopted on 15 September 2004.

26 October 20111 Pasay City.

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REFUND OF CLIPed PIA- PS & GS

PRINCIPAL

INTEREST

COMPUTATION

Refund of unposled prnmlum - PS Refund or unpooled prnmlum • GS

Interest -Dedllded from Lifo Cilllms lnteteol Refunil eel up-by SRT

5.635.97 5,896.36

11,532.33

854.00

BOARD MEETING NO. 18 SEPTEMBER 22, 2011

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RESOLUTION NO. 210

RESOLVED, to APPROVE and CONFIRM the Decision in GSIS Case No. 0414-05, Judge Chi to S. Meregillano, Petitioner, entitled "In the Matter of" Petition for Computation and Payment of Withheld Life Insurance Benefits and Lump Sum Retirement Benefits", the dispositive portion of which states:

"WHEREFORE, premises considered, the request for the change of the date of his retirement under R.A. No. 8291 from 25 November 2002 to 01 February 2003 is DENIED. However, the petitioner is entitled to a refund of the clipped premium arrearages in the amount of P12,386.33."

A copy of the Decision in GSIS Case No. 0414-05 is attached and made ail integral part of this Resolution.

OFFICIAL COPY