REPUBLIC OF THE PHILIPPINES GOVERNMENT SERVICE INSURANCE SYSTEM FINANCIAL CENTER, ROXAS BOULEVARD, PASAY CITY . BOARD OF TRUSTEES In the Matter of the Petition for the award of retirement and survivorship benefits of Romulus S. GSIS Case No. 009-09 Romulus S. Protasio, Jr. and Greg Ross S. Protasio, Petitionel RESOLUTION This resolves petitioners’ 07 July 2011 Motion for Reconsideration of the 24 February 2011 Decision of the Board, the dispositive portion of which reads: WHEREFORE, premises considered, the Petition is hereby GRANTED with regard to the claim for retirement benefit but DENIED with regard to the alternative claim for cash payment survivorship benefit. ‘The concerned operating unit is directed to process the claim for retirement benefit of the deceased member in accordance with the retirement option he indicated therein, and pay the proceeds thereof to the petitioners divided equally between them, The petitioners are the two (2) sons and only legal heirs of the deceased member, Romulus S. Protasio, Sr., who filed a claim for retirement benefit on June 7, 2005 before he retired on June 16, 2005. He filed his claim, through his employer, the National Labor RelationsPage 20f 5 ¥s. GSIS 009.09 Commission. He died on August 17, 2005 while his claim for retirement benefit was under consideration by the GSIS. Subsequently, the petitioners filed a claim for survivorship benefit. The claim for survivorship benefit was denied but no action was taken on the claim for retirement benefit. Hence, the Petition for the award of retirement benefit or cash payment survivorship benefit. In their motion, petitioners argued that they are also entitled to the following: 1. Legal interest on the proceeds of the retirement benefit pursuant to Article 2209 of the Civil Code of the Philippines, which provides: If the obligation consists in the payment of sum of money, and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of interest agreed upon, and in the absence of stipulation, the legal interest, which is six percent per annum. 2. Monthly pension on the first month following the date of retirement of the deceased member on June 16, 2005 up to his death on August 17, 2005 pursuant to the Revised Implementing Rules and Regulations of R.A. No. 8291, which provides: Section ‘20.2.2. A cash payment benefit equivalent to eighteen (18) times the BMP, subject to qualification requirements, less outstanding obligations of the member in accordance with the CLIP, plus monthly pension for life payable on the first month following the date of retirement.Page 3065 Romulus . Protasio, Jr et al. vs. GSIS Gs1s tioard Case No. 009-09 The argument of petitioners that they are entitled to legal interest on the proceeds of the retirement benefit is not legally tenable. The aforequoted Article 2209 of the Civil Code applies only to a monetary obligation where the debtor is in default. The use of the word DEBTOR in the law clearly implies that the relationship involved is between a creditor and a debtor. The GSIS cannot be considered as a debtor and the petitioners as creditors for the retirement benefit being claimed by the latter The relationship obtaining in this case is between the GSIS as administrator of the retirement benefit funds and the petitioners as beneficiaries of the retirement benefit of a deceased GSIS member. This being the case, the petitioners are not entitled to legal interest on the proceeds of the retirement benefit of their deceased father. The argument of petitioners that they are entitled to monthly pension is correct. However, payment of monthly pension should be immediately from the date of retirement of the deceased member on June 16, 2005 up to his death on August 17, 2005. This is very clear under Section 13 (a) (2) of Section 1 of R.A. No. 8291 which provides that “(a) Retirement benefit shall be: xxx (2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immediately xxx.” WHEREFORE, premises considered, the Motion for Reconsideration is hereby - 1, DENIED with regard to the claim for legal interest on the proceeds of the retirement benefit; butRomulus S. Pe GSIS Board Cs Page 4 of 5 Ir ot al. v8. GSTS: 130 No. 009-09 2. GRANTED with regard to the claim for monthly pension up to the date of death of the deceased member on August 17, 2005. The concerned operating unit is hereby directed to process the there be any. claim for retirement benefit of the deceased member and pay the 18 month Lump Sum to the petitioners, to be divided equally between them, in the amount of Php194,343.66, less payables to the GSIS if Considering that the Basic Monthly Pension (BMP) of the late follows: June 16 to June 30, 2005 PhP 5,398.44 July 1 to July 31, 2005 10,796.87 ‘August 1 to August 17, 2005 2.0.86 Total PhP 22,116.17 ‘The concerned operating unit is likewise directed to proc SO ORDERED. Pasay City, Philippines, 14 MAR 2013 le DAMIEL L. LACS! Chairman Romulus S. Protasio, Sr. is PhP10,796.87, the accrued pensions are as s and pay to the petitioners the monthly pension of the late Romulus S. Protasio, Sr. from 16 June 2005 up to his death on August 17, 2005 in the total amount of P22,116.17 also to be divided equally betweenROBERT G. VERGARA 0 1. RAMIREZ. ice Chairman 904-94 Trubtee Nn CASAS, ses KARINA CONSTANTINO-DAVID Trustee RQMAN FELIVE S. REYE! Truste GERALDINE MARIE BERBERABE-MARTINEZ Trustee FRANCISCO T. DUQUE II* Trustee Copy furnished: ROMUL| PROTASIO, JR. GREG ROSS S. PROTASIO 402 Garcia Street, Caridad Cavite City GSIS Legal Services Group GSIS Financial Center Pasay City | * Did not take part in the deliberation TrusteeCERTIFICATION 1, ENRIQUE L. TANDAN IIL, an Attorney V in the Legal Services Group, having been assigned as Hearing Officer to draft the decision in GSIS Case No. 009-09 entitled “IN THE MATTER OF THE PETITION FOR THE AWARD OF RETIREMENT AND SURVIVORSHIP BENEFITS OF ROMULUS S. PROTASIO, SR.” ROMULUS S. PROTASIO, JR. AND GREG ROSS S. PROTASIO, Petitioners, hereby certify that the statement of facts herein stated and being presented before this Board are accurate and true, based on the records of the case, the pleadings and other documents submitted by the parties. This Certification is issued this _! 4 MAR with Board Resolution No. 198-A adopted on September 15, 2004. 2013, in compliance Pasay City, Philippines, | 4 MAR 20132913,¢ S l Government Service Insurance System Financial Center, Pasay City, Metro Manila 1308 OFFICE OF THE CORPORATE SECRETARY EXACT COPY OF RES. NO. 24 ADOPTED BY THE GSIS BOARD OF TRUSTEES IN ITS MEETING NO. 5 HELD ON 14 MARCH 2013 Resolution in GSIS Case No. 009-09, In the Matter of the Petition for the Award of Retirement and Survivorship Benefits of Romulus S. Protasio Sr., Romulus S. Protasio Jr. and Greg Ross S. Protasio, Petitioners RESOLUTION NO. 24 WHEREAS, the Board of Trustees, in its Decision on 24 February 2011, granted the claim for retirement benefit, but denied the alternative claim for survivorship benefit in the petition of Romulus S. Protasio, Jr. and Greg Ross S. Protasio, arising from the retirement claim of their deceased father, Romulus S. Protasio, Sr.; WHEREAS, petitioners moved —_ for reconsideration of the subject Decision, giving the following arguments: 1. That they are entitled to legal interest on the proceeds of the retirement benefit; and 2. That they are entitled to payment of monthly pension from the date of retirement of Romulus §. Protasio, Sr. on 16 June 2005 up to his death on 17 August 2005; WHEREAS, after due consideration of the Motion for Reconsideration filed by the petitioners, the Board resolved to deny the claim for legal interest, but granted the claim for ol, monthly pension;BOARD MEETING NO. 5 14 MARCH 2013 Page 2 (Res. No. 24-2013) RESOLVED, to APPROVE and CONFIRM the Resolution in the Motion for Reconsideration filed by petitioners Romulus S. Protasio, Jr. and Greg Ross S. Protasio in GSIS Case No. 009-09, entitled In the Matter of the Petition for the award of retirement and survivorship benefits of Romulus S. Protasio Sr., the dispositive portion of which states: “WHEREFORE, premises considered, the Motion for Reconsideration in hereby — 1. DENIED with regard to the claim for legal interest on the proceeds of the retirement benefit; but 2. GRANTED with regard to the claim for monthly pension up to the date of death of the deceased member on August 17, 2005. “The concerned operating unit is hereby directed to process the claim for retirement benefit of the deceased member and pay the 18 month Lump Sum to the petitioners, to be divided equally between them, in the amount of Php194,343.66. less payables to the GSIS if there be any. “Considering that the Basic Monthly Pension (BMP) of the late Romulus S. Protasio, Sr. is Php10,796.87, the accrued pensions are as follows: June 16 to June 30, 2005 Php 5,398.44 July 1 to July 31, 2005 10,796.87 August 1 to August 17,2005 _5,920.86 Total Php 22,116.17BOARD MEETING NO. 5 14 MARCH 2013 Page 3 (Res. No. 24-2013) “The concerned operating unit is likewise directed to process and pay to the petitioners the monthly pension of the late Romulus S. Protasio, Sr. from 16 June 2005 up to his death on August 17, 2005 in the total amount of P22,116.17 also to be divided equally between them.” A copy of the Resolution in GSIS Case No. 009-09 is attached and made an integral part of this Resolution. CERTIFIED CORRECT: ATTY. MARIA THERESA ABESAMIS-RAAGAS Corporate Secretary CONEIRMED: / ROBERT. VERGARA Vjce-Chairman ‘SIS Board of Trustees Na °