JOSE G. GENEROSO, AS EXECUTOR OF ESTATE OF THE DECEASED FAUSTINO AGUILAR, AND EMILIA WARREN AGUILAR, PLAINTIFFS AND APPELLANTS, VS. GOVERNMENT SERVICE INSURANCE SYSTEM, DEFENDAN…

This is an appeal from a judgment rendered by the Court of First
Instance of Rizal dismissing the plaintiffs’ complaint in civil case
No. 3852. In their notice of appeal to this Court, the appellants state
“that they intend to raise on appeal only questions of law.”

The findings of the trial court are:

* * * Faustino Aguilar entered Government service on
July 7, 1913 as a clerk in the Philippine Assembly. Thereafter, he
served continuously in various government positions. On July 1, 1947,
Aguilar was appointed Manager of the Rural Progress Administration and
he remained in that position until October 10, 1949 when he was
appointed Technical Adviser in the Office of his Excellency, The
President. On October 7, 1950, while still serving as a technical
adviser in the Office of the President, Aguilar was retired upon his
application under Act No. 2589 (Osmeña Act), and he was paid a gratuity
of P12,000 thereunder. On the date of his retirement, Aguilar was 69
years, 7 months and 23 days old, and he had 36 years, 11 months and 29
days of government service to his credit (Exh. B). On July 15, 1951
(should be June 16), Republic Act No. 660 was enacted; and he filed a
claim for retirement under Section 26 thereof with, the Government
Service Insurance System which entity made a final rejection of his
claim after the claimant had already died. * * *.

Paragraphs 1 and 2, section 30, Commonwealth Act No. 186, as amended
by Republic Act No. 660, which amendment took effect on 16 June 1951,
provide:

Notwithstanding the provisions of this Act to the
contrary, any officer or employee who died in the service within three
years before said Act went into effect and who had rendered at least
thirty-five years of service and who was entitled to or who could have
established his right to the retirement gratuity provided for in Act
Numbered Twenty-five hundred and eighty-nine, as amended, or to any
other retirement benefits from any pension fund created by law shall be
considered retired under the provisions of this Act if his wife, or in
her default, his other legal heirs shall so elect and notify the System
to that effect. Upon making such election, the wife or legal heirs of
the deceased officer or employee shall be paid the monthly annuity for
five consecutive years or such other benefits as provided in said Act,
in lieu of the retirement gratuity or retirement benefits to which the
deceased was entitled at the time of his death; and any portion of such
gratuity or retirement benefits already paid to his wife or other legal
heirs shall be refunded to the System: Provided, That contributions corresponding to his last five years of service shall be deducted monthly from his life annuity.

Notwithstanding
any provisions of this Act to the contrary, any officer or employee
whose position was abolished or who was separated from the service as a
consequence of the reorganization provided for in Republic Act Numbered
Four hundred and twenty-two may be retired under the provisions of this
Act if qualified: Provided, That any gratuity or retirement benefit already received by him shall be refunded to the System: Provided, further,
That contributions corresponding to his last five years of service
shall be paid as provided in section twelve of this Act. This provision
shall also apply to any member of the judiciary who, prior to the
approval of this Act, was separated from the service after reaching
seventy years of age and rendering at least thirty years of service and
who’ is not entitled to retirement benefit under any law.^[1]

The decedent Faustino Aguilar, his widow, or his legal heirs are not
entitled to the benefits granted or provided for in the first paragraph
of section 30, Commonwealth Act No. 186, as amended by Republic Acts
Nos. 660, 728 and 1123, because Faustino Aguilar died on 24 July 1955
long after the basic law, Commonwealth Act No. 186, and the first
amendatory law, Republic Act No. 660, took effect. The benefits are
granted to those who died in the service within three years before the
Act went into effect.

Neither is the decedent Faustino Aguilar entitled under the second
paragraph of the above quoted provisions of law, because his office or
position was not abolished nor was he separated from the service as a
consequence of a reorganization referred to therein, he having
voluntarily retired upon his petition on 7 October 1950 under Act No.
2589, while holding the position of technical adviser in the office of
the President.

When on 6 January 1950, Republic Act No. 422, authorizing the
President to reorganize within one year the different executive
departments, etc., including corporations owned or controlled by the
Government, was enacted, and when on 28 November 1950, Executive Order
No. 376 was promulgated by the President, abolishing the Rural Progress
Administration and transferring its functions to the Bureau of Lands,
the late Faustino Aguilar already had left voluntarily the service of
the Rural Progress Administration to accept the office or position of
Technical Adviser to the President. Hence, his position was neither
abolished nor was he separated from the service as a consequence of the
reorganization of the Government as authorized and provided for in
Republic Act No. 422.

The judgment appealed from is affirmed, with costs against the appellants.

Paras, C. J., Bengzon, Montemayor, Bautista Angelo, Labrador, Concepcion, Reyes, J. B. L., Endencia, Barrera, and Gutierrez David, JJ., concur.

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^[1] Further amended by
Republic Acts Nos. 728, which took effect on 18 June 1952, and 1123,
which took effect on 16 June 1954. However the amendments are not
decisive of the issues raised in this appeal.