CONTE VS COA

FACTS

Petitioners Avelina B. Conte and Leticia Boiser-Palma were former employees of the Social Security System (SSS) who retired from government service. They availed of compulsory retirement benefits under Republic Act No. 660. In addition, petitioners also claimed benefits granted under SSS Resolution No. 56, series of 1971 that provides financial incentive and inducement to SSS employees qualified to retire to avail of retirement benefits under RA 660 as amended, rather than the retirement benefits under RA 1616 as amended, by giving them “financial assistance” equivalent in amount to the difference between what a retiree would have received under RA 1616, less what he was entitled to under RA 660. Thereafter, COA issued a ruling disallowing in audit “all such claims for financial assistance under SSS Resolution No. 56” for the reason that it results in the increase of benefits beyond what is allowed under existing retirement laws.

ISSUES

1.      Whether or not public respondent abused its discretion when it disallowed in audit petitioners’ claims for benefits under SSS Res. 56.

2.      Whether or not SSS Resolution No. 56 is valid.

HELD

1.    No. The Commission bears stress that the financial assistance contemplated under SSS Resolution No. 56 is granted to SSS employees who opt to retire under R.A. No. 660. It is clear that petitioners applied for benefits under RA 660 only because of the incentives offered by Res. 56, and that absent such incentives, they would have without fail availed of RA 1616 instead. The petition is dismissed for lack of merit, there having been no grave abuse of discretion on the part of respondent Commission.  

2.    No. The said financial assistance partakes of the nature of a retirement benefit that has the effect of modifying existing retirement laws particularly R.A. No. 660. It is simply beyond dispute that the SSS had no authority to maintain and implement such retirement plan and in the guise of rule-making, legislate or amend laws or worse, render them nugatory. Hence, SSS Resolution No. 56 is hereby illegal, void and no effect.