TITLE: AVELINA B. CONTE and LETICIA BOISER-PALMA, petitioners, vs. COMMISSION ON AUDIT (COA), respondent.

(264 SCRA 19, L - 116422 04 NOVEMBER 1996) FACTS: Avelina Conte and Leticia Boiser were both former employees of SSS who availed of compulsory retirement benefits provided for under RA No. 660. Both also claimed with the SSS financial assistance benefits as provided for under SSS Resolution No. 56, Series of 1971. The subject SSS resolution was disallowed by COA in its ruling issued on July 10, 1989 stating that the scheme of financial assistance authorized by SSS is similar to separate retirement plan or incentives/separation pay plans adopted by other government agencies which in turn results in the increase of benefits beyond what is allowed under existing retirement laws. The SSS thereafter sought presidential authority to continue implementing Res. 56 to which the Office of the Executive Secretary replied that the Office of the President is not inclined to favorably act on the request or let alone overrule COAs earlier ruling. Petitioners Conte and Boiser sought reconsideration of COAs ruling disallowing their claim and also sought payment from SSS of benefits as prescribed under Res. 56, both of which were denied by COA and SSS. ISSUE: Whether or not the benefits provided for under SSS Resolution No. 56 be considered simply as financial assistance for retiring employees, or does such a scheme constitute a supplementary retirement plan prescribed by RA 4968. HELD: The Supreme Court ruled that SSS Resolution No. 56 constitute a supplementary retirement plan, thus, within the ambit of Sec. 28 (b) of CA 186 as amended by RA 4968 which bars the creation of any insurance or retirement plan other than the GSIS for government officers and employees, in order to prevent the undue and iniquitous proliferation of such plans. Resolution No. 56 is therefore invalid, void and of no effect. Petition was dismissed for lack of merit, the assailed COA decision is upheld, and SSS Resolution No. 56 is declared illegal, void and of no effect.