EN BANC

ELENA P. DYCAICO, G.R. No. 161357

Petitioner,
Present:

DAVIDE, JR., C.J.,
PUNO,
PANGANIBAN,
QUISUMBING,
YNARES-SANTIAGO,
SANDOVAL-GUTIERRE,
- versus - !ARPIO,
AUSTRIA-MARTINE,
!ORONA,
!ARPIO MORALES,
!ALLEJO, SR.,
A!UNA,
TINGA,
SOCIAL SECURITY SYSTEM !"I!O-NAARIO #n$
and SOCIAL SECURITY GAR!IA, JJ.
COMMISSION,
Res%on$ents. Pro&'()#te$:

No*e&+er ,-, .--/
0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0

D E C I S I O N


CALLEJO, SR., J.:

Be1ore t2e !o'rt is t2e %etition 1or re*ie3 'n$er R'(e 4/ o1 t2e R'(es o1
!o'rt 1i(e$ +5 E(en# P. D56#i6o 32i62 see7s to re*erse #n$ set #si$e t2e
De6ision89: $#te$ A%ri( 9/, .--, o1 t2e !o'rt o1 A%%e#(s ;!A< in !A-G.R. SP


No. =>=,.. T2e #ss#i(e$ $e6ision #11ir&e$ t2e Reso('tion $#te$ ?e+r'#r5 =, .--.
o1 t2e So6i#( Se6'rit5 !o&&ission ;SS!<, $en5in) t2e %etitioner@s 6(#i& 1or
s'r*i*or@s %ension #66r'in) 1ro& t2e $e#t2 o1 2er 2's+#n$ Boni1#6io S. D56#i6o, #
So6i#( Se6'rit5 S5ste& ;SSS< &e&+er-%ensioner. Li7e3ise so')2t to +e re*erse$
#n$ set #si$e is t2e #%%e((#te 6o'rt@s Reso('tion $#te$ De6e&+er 9/, .--,, $en5in)
t2e %etitioner@s &otion 1or re6onsi$er#tion.

T2e 6#se #rose 1ro& t2e 1o((o3in) 'n$is%'te$ 1#6ts:

Boni1#6io S. D56#i6o +e6#&e # &e&+er o1 t2e SSS on J#n'#r5 .4, 9>A-. In
2is se(1-e&%(o5e$ $#t# re6or$ ;SSS ?or& RS-9<, 2e n#&e$ t2e %etitioner, E(en# P.
D56#i6o, #n$ t2eir ei)2t 62i($ren #s 2is +ene1i6i#ries. At t2#t ti&e, Boni1#6io #n$
E(en# (i*e$ to)et2er #s 2's+#n$ #n$ 3i1e 3it2o't t2e +ene1it o1 &#rri#)e.

In J'ne 9>A>, Boni1#6io 3#s 6onsi$ere$ retire$ #n$ +e)#n re6ei*in) 2is
&ont2(5 %ension 1ro& t2e SSS. "e 6ontin'e$ to re6ei*e t2e &ont2(5 %ension 'nti(
2e %#sse$ #3#5 on J'ne 9>, 9>>B. A 1e3 &ont2s %rior to 2is $e#t2, 2o3e*er,
Boni1#6io &#rrie$ t2e %etitioner on J#n'#r5 =, 9>>B.

S2ort(5 #1ter Boni1#6io@s $e#t2, t2e %etitioner 1i(e$ 3it2 t2e SSS #n
#%%(i6#tion 1or s'r*i*or@s %ension. "er #%%(i6#tion, 2o3e*er, 3#s $enie$ on t2e
)ro'n$ t2#t 'n$er Se6tion 9.-B;$< o1 Re%'+(i6 A6t ;Re%. A6t< No. A.A. or t2e
So6i#( Se6'rit5 L#38.: s2e 6o'($ not +e 6onsi$ere$ # %ri&#r5 +ene1i6i#r5 o1
Boni1#6io #s o1 t2e $#te o1 2is retire&ent. T2e s#i$ %ro*iso re#$s:
Se6. 9.-B. Retirement Benefits. C

D

;$< U%on t2e $e#t2 o1 t2e retire$ &e&+er, 2is %ri&#r5 +ene1i6i#ries #s o1
t2e $#te o1 2is retire&ent s2#(( +e entit(e$ to re6ei*e t2e &ont2(5 %ension. D


A%%(5in) t2is %ro*iso, t2e %etitioner 3#s in1or&e$ t2#t t2e C

Re6or$s s2o3 t2#t t2e &e&+er 8re1errin) to Boni1#6io: 3#s 6onsi$ere$
retire$ on J'ne /, 9>A> #n$ &ont2(5 %ension 3#s 6#n6e((e$ '%on o'r re6ei%t o1 #
re%ort on 2is $e#t2 on J'ne 9>, 9>>B. In 5o'r $e#t2 6(#i& #%%(i6#tion, s'+&itte$
&#rri#)e 6ontr#6t 3it2 t2e $e6e#se$ &e&+er s2o3s t2#t 5o' 3ere &#rrie$ in 9>>B
or #1ter 2is retire&ent $#teE 2en6e, 5o' 6o'($ not +e 6onsi$ere$ 2is %ri&#r5
+ene1i6i#r5.

In *ie3 o1 t2is, 3e re)ret t2#t t2ere is no ot2er +ene1it $'e 5o'. "o3e*er,
i1 5o' $o not 6on1or& 3it2 's, 5o' &#5 1i(e # 1or&#( %etition 3it2 o'r So6i#(
Se6'rit5 !o&&ission to $eter&ine 5o'r +ene1it e(i)i+i(it5.8,:

On J'(5 >, .--9, t2e %etitioner 1i(e$ 3it2 t2e SS! # %etition #((e)in) t2#t t2e
$eni#( o1 2er s'r*i*or@s %ension 3#s 'nF'sti1ie$. S2e 6onten$e$ t2#t Boni1#6io
$esi)n#te$ 2er #n$ t2eir 62i($ren #s %ri&#r5 +ene1i6i#ries in 2is SSS ?or& RS-9
#n$ t2#t it 3#s not in$i6#te$ t2erein t2#t on(5 (e)iti&#te 1#&i(5 &e&+ers 6o'($ +e
&#$e +ene1i6i#ries. Se6tion 9.-B;$< o1 Re%. A6t No. A.A. $oes not, (i7e3ise,
reG'ire t2#t t2e %ri&#r5 +ene1i6i#ries +e (e)iti&#te re(#ti*es o1 t2e &e&+er to +e
entit(e$ to t2e s'r*i*or@s %ension. T2e SSS is (e)#((5 +o'n$ to res%e6t Boni1#6io@s
$esi)n#tion o1 t2e& #s 2is
+ene1i6i#ries. ?'rt2er, Re%. A6t No. A.A. s2o'($ +e inter%rete$ to %ro&ote so6i#(
F'sti6e.

On ?e+r'#r5 =, .--., t2e SS! %ro&'()#te$ its Reso('tion #11ir&in) t2e
$eni#( o1 t2e %etitioner@s 6(#i&. T2e SS! re1'te$ t2e %etitioner@s 6ontention t2#t
%ri&#r5 +ene1i6i#ries nee$ not +e (e)iti&#te 1#&i(5 &e&+ers +5 6itin) t2e
$e1initions o1 H%ri&#r5 +ene1i6i#riesI #n$ H$e%en$entsI in Se6tion A o1 Re%. A6t
No. A.A.. Un$er %#r#)r#%2 ;7< o1 t2e s#i$ %ro*ision, H%ri&#r5 +ene1i6i#riesI #re
H8t:2e $e%en$ent s%o'se 'nti( 2e or s2e re&#rries, t2e $e%en$ent (e)iti&#te,
(e)iti&#te$ or (e)#((5 #$o%te$, #n$ i((e)iti&#te 62i($ren DI P#r#)r#%2 ;e< o1 t2e
s#&e %ro*ision, on t2e ot2er 2#n$, $e1ines H$e%en$entsI #s t2e 1o((o3in): H;9<
8t:2e (e)#( s%o'se entit(e$ +5 (#3 to re6ei*e s'%%ort 1ro& t2e &e&+erE ;.< 8t:2e
(e)iti&#te, (e)iti&#te$ or (e)#((5 #$o%te$, #n$ i((e)iti&#te 62i($ 32o is 'n&#rrie$,
not )#in1'((5 e&%(o5e$ #n$ 2#s not re#62e$ t3ent5-one ;.9< 5e#rs o1 #)e, or i1
o*er t3ent5-one ;.9< 5e#rs o1 #)e, 2e is 6on)enit#((5 or 32i(e sti(( # &inor 2#s
+een %er&#nent(5 in6#%#6it#te$ #n$ in6#%#+(e o1 se(1-s'%%ort, %25si6#((5 or
&ent#((5E #n$ ;,< 8t:2e %#rent 32o is re6ei*in) re)'(#r s'%%ort 1ro& t2e &e&+er.I
B#se$ on t2e 1ore)oin), #66or$in) to t2e SS!, it 2#s 6onsistent(5 r'(e$ t2#t
entit(e&ent to t2e s'r*i*or@s %ension in one@s 6#%#6it5 #s %ri&#r5 +ene1i6i#r5 is
%re&ise$ on t2e (e)iti&#65 o1 re(#tions2i% 3it2 #n$ $e%en$en65 1or s'%%ort '%on
t2e $e6e#se$ SSS &e&+er $'rin) 2is (i1eti&e.

Un$er Se6tion 9.-B;$< o1 Re%. A6t No. A.A., t2e %ri&#r5 +ene1i6i#ries 32o
#re entit(e$ to s'r*i*or@s %ension #re t2ose 32o G'#(i15 #s
s'62 #s o1 t2e $#te o1 retire&ent o1 t2e $e6e#se$ &e&+er. "en6e, t2e
%etitioner, 32o 3#s not t2en t2e (e)iti&#te s%o'se o1 Boni1#6io #s o1 t2e $#te o1 2is
retire&ent, 6o'($ not +e 6onsi$ere$ 2is %ri&#r5 +ene1i6i#r5. T2e SS! 1'rt2er
o%ine$ t2#t Boni1#6io@s $esi)n#tion o1 t2e %etitioner #s one o1 2is %ri&#r5
+ene1i6i#ries in 2is SSS ?or& RS-9 is *oi$, not on(5 on &or#( 6onsi$er#tions +'t
#(so 1or &isre%resent#tion. A66or$in)(5, t2e %etitioner is not entit(e$ to 6(#i& t2e
s'r*i*or@s %ension 'n$er Se6tion 9.-B;$< o1 Re%. A6t No. A.A..

A))rie*e$, t2e %etitioner 1i(e$ 3it2 t2e !A # %etition 1or re*ie3 o1 t2e
SS!@s ?e+r'#r5 =, .--. Reso('tion. In t2e #ss#i(e$ De6ision, $#te$ A%ri( 9/, .--,,
t2e #%%e((#te 6o'rt $is&isse$ t2e %etition. !itin) t2e s#&e %ro*isions in Re%. A6t
No. A.A. #s t2ose 6ite$ +5 t2e SS!, t2e !A $e6(#re$ t2#t sin6e t2e %etitioner 3#s
&ere(5 t2e 6o&&on-(#3 3i1e o1 Boni1#6io #t t2e ti&e o1 2is retire&ent in 9>A>, 2is
$esi)n#tion o1 t2e %etitioner #s one o1 2is +ene1i6i#ries in t2e SSS ?or& RS-9 in
9>A- is *oi$. T2e !A 1'rt2er o+ser*e$ t2#t Boni1#6io@s 62i($ren 3it2 t2e %etitioner
6o'($ no (on)er G'#(i15 #s %ri&#r5 +ene1i6i#ries +e6#'se t2e5 2#*e #(( re#62e$
t3ent5-one ;.9< 5e#rs o1 #)e. T2e $e6ret#( %ortion o1 t2e #ss#i(e$ $e6ision re#$s:

J"ERE?ORE, %re&ises 6onsi$ere$, t2e Petition is DISMISSED #n$ t2e
#ss#i(e$ -= ?e+r'#r5 .--. Resolution o1 res%on$ent !o&&ission is 2ere+5
A??IRMED in toto. No 6osts.

SO ORDERED.84:
T2e %etitioner so')2t re6onsi$er#tion o1 t2e s#i$ $e6ision +'t in t2e #ss#i(e$
Reso('tion $#te$ De6e&+er 9/, .--,, t2e #%%e((#te 6o'rt $enie$ 2er &otion.
"en6e, t2e %etitioner@s re6o'rse to t2is !o'rt.

T2e %etitioner %oints o't t2#t t2e ter& H%ri&#r5 +ene1i6i#riesI #s 'se$ in
Se6tion 9.-B;$< o1 Re%. A6t No. A.A. $oes not 2#*e #n5 G'#(i1i6#tion. S2e t2's
t2eoriKes t2#t re)#r$(ess o1 32et2er t2e %ri&#r5 +ene1i6i#r5 $esi)n#te$ +5 t2e
&e&+er #s s'62 is (e)iti&#te or not, 2e or s2e is entit(e$ to t2e s'r*i*or@s %ension.
Re(i#n6e +5 t2e #%%e((#te 6o'rt #n$ t2e SS! on t2e $e1initions o1 H%ri&#r5
+ene1i6i#riesI #n$ H$e%en$entsI in Se6tion A o1 Re%. A6t No. A.A. is #((e)e$(5
'n3#rr#nte$ +e6#'se t2ese $e1initions 6#nnot &o$i15 Se6tion 9.-B;$< t2ereo1.

T2e %etitioner &#int#ins t2#t 32en s2e #n$ Boni1#6io )ot &#rrie$ in J#n'#r5
9>>B, # 1e3 &ont2s +e1ore 2e %#sse$ #3#5, t2e5 &ere(5 inten$e$ to (e)#(iKe t2eir
re(#tions2i% #n$ 2#$ no intention to 6o&&it #n5 1r#'$. ?'rt2er, sin6e Re%. A6t No.
A.A. is # so6i#( (e)is(#tion, it s2o'($ +e 6onstr'e$ (i+er#((5 in 1#*or o1 6(#i&#nts
(i7e t2e %etitioner. S2e 6ites t2e !o'rt@s %rono'n6e&ent t2#t Ht2e s5&%#t25 o1 t2e
(#3 on so6i#( se6'rit5 is to3#r$ its +ene1i6i#ries, #n$ t2e (#3, +5 its o3n ter&s,
reG'ires # 6onstr'6tion o1 't&ost (i+er#(it5 in t2eir 1#*or.I8/:

T2e SSS, on t2e ot2er 2#n$, 6onten$s t2#t Se6tion 9.-B;$< o1 Re%. A6t No.
A.A. s2o'($ +e re#$ in 6onF'n6tion 3it2 t2e $e1inition o1 t2e ter&s H$e%en$entsI
#n$ H%ri&#r5 +ene1i6i#riesI in Se6tion A t2ereo1. Sin6e t2e %etitioner 3#s not #s
5et t2e (e)#( s%o'se o1 Boni1#6io #t t2e ti&e o1 2is retire&ent in 9>A>, s2e is not
entit(e$ to 6(#i& t2e s'r*i*or@s %ension #66r'in) #t t2e ti&e o1 2is $e#t2. T2e SSS
insists t2#t t2e $esi)n#tion +5 Boni1#6io o1 t2e %etitioner #n$ t2eir i((e)iti&#te
62i($ren in 2is SSS ?or& RS-9 is *oi$.

A66or$in) to t2e SSS, t2ere is not2in) in Re%. A6t No. A.A. 32i62 %ro*i$es
t2#t Hs2o'($ t2ere +e no %ri&#r5 or se6on$#r5 +ene1i6i#ries, t2e +ene1it #66r'in)
1ro& t2e $e#t2 o1 # &e&+er s2o'($ )o to 2is $esi)n#te$ 6o&&on-(#3 s%o'seI #n$
t2#t Hto r'(e ot2er3ise 3o'($ +e to 6on$one t2e $esi)n#tion o1 6o&&on-(#3
s%o'ses #s +ene1i6i#ries, # 6(e#r 6#se o1 6ir6'&*entin) t2e SS L#3 #n$ # *io(#tion
o1 %'+(i6 %o(i65 #n$ &or#(s.I8=: ?in#((5, t2e SSS is o1 t2e o%inion t2#t Se6tion 9.-
B;$< o1 Re%. A6t No. A.A. is 6(e#r #n$ e0%(i6itE 2en6e, t2ere is no roo& 1or its
inter%ret#tion, on(5 1or #%%(i6#tion.

In t2e Reso('tion $#te$ J'(5 9>, .--/, t2e !o'rt reG'ire$ t2e %#rties, #s 3e((
#s t2e O11i6e o1 t2e So(i6itor Gener#(, to 1i(e t2eir res%e6ti*e 6o&&ents on t2e iss'e
o1 32et2er or not t2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI in Se6tion 9.-B;$<
o1 Re%. A6t No. A.A. *io(#tes t2e eG'#( %rote6tion #n$ $'e %ro6ess 6(#'ses o1 t2e
!onstit'tion. T2e !o'rt +e(ie*es t2#t t2is iss'e is intert3ine$ 3it2 #n$
in$is%ens#+(e to t2e reso('tion o1 t2e &erits o1 t2e %etition.

In 6o&%(i#n6e t2ere3it2, in its 6o&&ent, t2e SS! #r)'es t2#t t2e %ro*iso H#s
o1 t2e $#te o1 2is retire&entI in Se6tion 9.-B;$< o1 Re%. A6t No. A.A. $oes not
r'n #1o'( o1 t2e eG'#( %rote6tion 6(#'se o1 t2e !onstit'tion #s it &ere(5 $eter&ines
t2e re67onin) $#te o1 G'#(i1i6#tion #n$ entit(e&ent o1 +ene1i6i#ries to t2e
s'r*i*ors2i% %ension. It #sserts t2#t t2is 6(#ssi1i6#tion o1 +ene1i6i#ries is +#se$ on
*#(i$ #n$ s'+st#nti#( $istin6tions t2#t #re )er&#ne to t2e (e)is(#ti*e %'r%ose o1
Re%. A6t No. A.A..

T2e SS! #(so i&%')ns t2e &#rri#)e o1 t2e %etitioner to Boni1#6io #1ter 2is retire&ent st#tin) t2#t
it 3#s 6ontr#6te$ #s #n #1tert2o')2t to en#+(e 2er to G'#(i15 1or t2e s'r*i*ors2i% %ension '%on t2e
(#tter@s $e#t2. It 1'rt2er #((e)es t2#t t2ere is no *io(#tion o1 t2e $'e %ro6ess 6(#'se #s t2e
%etitioner 3#s )i*en 2er $#5 in 6o'rt #n$ 3#s #+(e to %resent 2er si$e.

T2e SSS 1i(e$ its se%#r#te 6o&&ent #n$ t2erein insists t2#t t2e %etitioner 3#s
not t2e (e)iti&#te s%o'se o1 t2e $e6e#se$ &e&+er #t t2e ti&e 32en t2e 6ontin)en65
o66'rre$ ;2is retire&ent< #n$, t2ere1ore, s2e 6o'($ not +e 6onsi$ere$ # %ri&#r5
+ene1i6i#r5 3it2in t2e 6onte&%(#tion o1 Re%. A6t No. A.A.. T2e SSS %osits t2#t
t2e st#t'te@s intent is to )i*e s'r*i*ors2i% %ension on(5 to %ri&#r5 +ene1i6i#ries #t
t2e ti&e o1 t2e retire&ent o1 t2e $e6e#se$ &e&+er. Re%. A6t No. A.A. itse(1
or$#ins t2e %ersons entit(e$ t2ereto #n$ 6#nnot +e s'+Fe6t o1 62#n)e +5 t2e SSS.

T2e So(i6itor Gener#( #)rees 3it2 t2e st#n6e t#7en +5 t2e SSS t2#t t2e
%ro*iso H#s o1 t2e $#te o1 2is retire&entI &ere(5 &#r7s t2e %erio$ 32en t2e
%ri&#r5 +ene1i6i#r5 &'st +e so to +e entit(e$ to t2e +ene1its. It $oes not *io(#te t2e
eG'#( %rote6tion 6(#'se +e6#'se t2e 6(#ssi1i6#tion res'(tin) t2ere1ro& rests on
s'+st#nti#( $istin6tions. Moreo*er, t2e 6on$ition #s to t2e %erio$ 1or entit(e&ent,
i.e., #s o1 t2e $#te o1 t2e &e&+er@s retire&ent, is re(e*#nt #s it set t2e %#r#&eters
1or t2ose #*#i(in) o1 t2e +ene1its #n$ it #%%(ies to #(( t2ose si&i(#r(5 sit'#te$. T2e
So(i6itor Gener#( is #(so o1 t2e *ie3 t2#t t2e s#i$ %ro*iso $oes not o11en$ t2e $'e
%ro6ess 6(#'se +e6#'se 6(#i&#nts #re )i*en t2e o%%ort'nit5 to 1i(e t2eir 6(#i&s #n$
to %ro*e t2eir 6#se +e1ore t2e !o&&ission.

?or 6(#rit5, Se6tion 9.-B;$< o1 Re%. A6t No. A.A. is G'ote$ #ne3 +e(o3:

Se6. 9.-B. Retirement Benefits. C

D

;$< U%on t2e $e#t2 o1 t2e retire$ &e&+er, 2is %ri&#r5 +ene1i6i#ries #s o1
t2e $#te o1 2is retire&ent s2#(( +e entit(e$ to re6ei*e t2e &ont2(5 %ension. D

Un$er Se6tion A;7< o1 t2e s#&e (#3, t2e H%ri&#r5 +ene1i6i#riesI #re:

9. T2e $e%en$ent s%o'se 'nti( 2e or s2e re&#rriesE #n$

.. T2e $e%en$ent (e)iti&#te, (e)iti&#te$ or (e)#((5 #$o%te$, #n$ i((e)iti&#te
62i($ren.

?'rt2er, t2e H$e%en$ent s%o'seI #n$ H$e%en$ent 62i($renI #re G'#(i1ie$
'n$er %#r#)r#%2 ;e< o1 t2e s#&e se6tion #s 1o((o3s:

9. T2e (e)#( s%o'se entit(e$ +5 (#3 to re6ei*e s'%%ort 'nti( 2e or s2e re&#rriesE
#n$

.. T2e $e%en$ent (e)iti&#te, (e)iti&#te$ or (e)#((5 #$o%te$, #n$ i((e)iti&#te
62i($ 32o is 'n&#rrie$, not )#in1'((5 e&%(o5e$ #n$ 2#s not re#62e$ t3ent5-
one ;.9< 5e#rs o1 #)e, or i1 o*er t3ent5-one 5e#rs o1 #)e, 2e is 6on)enit#((5 or
32i(e sti(( # &inor 2#s +een %er&#nent(5 in6#%#6it#te$ #n$ in6#%#+(e o1 se(1-
s'%%ort, %25si6#((5 or &ent#((5.

T2e SSS $enie$ t2e %etitioner@s #%%(i6#tion 1or s'r*i*or@s %ension on t2e so(e )ro'n$ t2#t s2e
3#s not t2e (e)#( s%o'se o1 Boni1#6io H#s o1 t2e $#te o1 2is retire&entEI 2en6e, s2e 6o'($ not +e
6onsi$ere$ #s 2is %ri&#r5 +ene1i6i#r5 'n$er Se6tion 9.-B;$< o1 Re%. A6t No. A.A..

T2e !o'rt 2o($s t2#t t2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI in Se6tion
9.-B;$< o1 Re%. A6t No. A.A., 32i62 G'#(i1ies t2e ter& H%ri&#r5 +ene1i6i#ries,I is
'n6onstit'tion#( 1or it *io(#tes t2e $'e %ro6ess #n$ eG'#( %rote6tion 6(#'ses o1 t2e
!onstit'tion.8B:

In #n #n#(o)o's 6#se, Government Service Insurance System v.
Montesclaros,8A: t2e !o'rt in*#(i$#te$ t2e %ro*iso in Presi$enti#( De6ree ;P.D.<
No. 994=8>: 32i62 st#te$ t2#t Ht2e $e%en$ent s%o'se s2#(( not +e entit(e$ to s#i$
%ension i1 2is &#rri#)e 3it2 t2e %ensioner is 6ontr#6te$ 3it2in t2ree 5e#rs +e1ore
t2e %ensioner G'#(i1ie$ 1or t2e %ension.I In t2e s#i$ 6#se, t2e !o'rt 62#r#6teriKe$
retire&ent +ene1its #s %ro%ert5 interest o1 t2e %ensioner #s 3e(( #s 2is or 2er
s'r*i*in) s%o'se. T2e %ro*iso, 32i62 $enie$ # $e%en$ent s%o'se@s 6(#i& 1or
s'r*i*ors2i% %ension i1 t2e $e%en$ent s%o'se 6ontr#6te$ &#rri#)e to t2e %ensioner
3it2in t2e t2ree-5e#r %ro2i+ite$ %erio$, 3#s $e6(#re$ o11ensi*e to t2e $'e %ro6ess
6(#'se. T2ere 3#s o'tri)2t 6on1is6#tion o1 +ene1its $'e t2e s'r*i*in) s%o'se
3it2o't )i*in) 2i& or 2er #n o%%ort'nit5 to +e 2e#r$. T2e %ro*iso 3#s #(so 2e($ to
in1rin)e t2e eG'#( %rote6tion 6(#'se #s it $is6ri&in#te$ #)#inst $e%en$ent s%o'ses
32o 6ontr#6te$ t2eir res%e6ti*e &#rri#)es to %ensioners 3it2in t2ree 5e#rs +e1ore
t2e5 G'#(i1ie$ 1or t2eir %ension.

?or re#sons 32i62 s2#(( +e $is6'sse$ s2ort(5, t2e %ro*iso H#s o1 t2e $#te o1
2is retire&entI in Se6tion 9.-B;$< o1 Re%. A6t No. A.A. si&i(#r(5 *io(#tes t2e $'e
%ro6ess #n$ eG'#( %rote6tion 6(#'ses o1 t2e !onstit'tion.
The proviso infringes the equal protection clause


As i(('str#te$ +5 t2e %etitioner@s 6#se, t2e %ro*iso H#s o1 t2e
$#te o1 2is retire&entI in Se6tion 9.-B;$< o1 Re%. A6t No. A.A.
32i62 G'#(i1ies t2e ter& H%ri&#r5 +ene1i6i#riesI res'(ts in t2e
6(#ssi1i6#tion o1 $e%en$ent s%o'ses #s %ri&#r5 +ene1i6i#ries into
t3o )ro'%s:

;9< T2ose $e%en$ent s%o'ses 32ose res%e6ti*e
&#rri#)es to SSS &e&+ers 3ere 6ontr#6te$ %rior to
t2e (#tter@s retire&entE #n$
;.< T2ose $e%en$ent s%o'ses 32ose res%e6ti*e
&#rri#)es to SSS &e&+ers 3ere 6ontr#6te$ #1ter
t2e (#tter@s retire&ent.

Un$er(5in) t2ese t3o 6(#ssi1i6#tions o1 $e%en$ent s%o'ses is t2#t t2eir
res%e6ti*e &#rri#)es #re *#(i$. In ot2er 3or$s, +ot2 )ro'%s #re (e)iti&#te or (e)#(
s%o'ses. T2e $istin6tion +et3een t2e& (ies so(e(5 on t2e $#te t2e &#rri#)e 3#s
6ontr#6te$. T2e %etitioner +e(on)s to t2e se6on$ )ro'% o1 $e%en$ent s%o'ses, i.e.,
2er &#rri#)e to Boni1#6io 3#s 6ontr#6te$ #1ter 2is retire&ent. As s'62, s2e #n$
t2ose si&i(#r(5 sit'#te$ $o not G'#(i15 #s H%ri&#r5 +ene1i6i#riesI 'n$er Se6tion 9.-
B;$< o1 Re%. A6t No. A.A. #n$, t2ere1ore, #re not entit(e$ to s'r*i*or@s %ension
'n$er t2e s#&e %ro*ision +5 re#son o1 t2e s'+Fe6t %ro*iso.

It is note$ t2#t t2e e(i)i+i(it5 o1 H$e%en$ent 62i($renI 32o #re +io(o)i6#(
o11s%rin)s o1 # retire$ SSS &e&+er to +e 6onsi$ere$ #s 2is %ri&#r5 +ene1i6i#ries
'n$er Se6tion 9.-B;$< o1 Re%. A6t No. A.A. is not s'+st#nti#((5 #11e6te$ +5 t2e
%ro*iso H#s o1 t2e $#te o1 2is retire&ent.I A +io(o)i6#( 62i($, 32et2er (e)iti&#te,
(e)iti&#te$ or i((e)iti&#te, is entit(e$ to s'r*i*or@s %ension '%on t2e $e#t2 o1 #
retire$ SSS &e&+er so (on) #s t2e s#i$ 62i($ is 'n&#rrie$, not )#in1'((5 e&%(o5e$
#n$ 2#s not re#62e$ t3ent5-one ;.9< 5e#rs o1 #)e, or i1 o*er t3ent5-one ;.9< 5e#rs
o1 #)e, 2e or s2e is 6on)enit#((5 or 32i(e sti(( # &inor 2#s +een %er&#nent(5
in6#%#6it#te$ #n$ in6#%#+(e o1 se(1-s'%%ort, %25si6#((5 or &ent#((5.

On t2e ot2er 2#n$, t2e e(i)i+i(it5 o1 (e)#((5 #$o%te$ 62i($ren to +e
6onsi$ere$ H%ri&#r5 +ene1i6i#riesI 'n$er Se6tion 9.-B;$< o1 Re%. A6t No. A.A. is
#11e6te$ +5 t2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI in t2e s#&e &#nner #s t2e
$e%en$ent s%o'ses. A (e)#((5 #$o%te$ 62i($ 32o s#tis1ies t2e reG'ire&ents in
Se6tion A;e<;.<89-: t2ereo1 is 6onsi$ere$ # %ri&#r5 +ene1i6i#r5 o1 # retire$ SSS
&e&+er '%on t2e (#tter@s $e#t2 on(5 i1 t2e s#i$ 62i($ 2#$ +een (e)#((5 #$o%te$ %rior
to t2e &e&+er@s retire&ent. One 32o 3#s (e)#((5 #$o%te$ +5 t2e SSS &e&+er
#1ter 2is or 2er retire&ent $oes not G'#(i15 #s # %ri&#r5 +ene1i6i#r5 1or t2e %'r%ose
o1 entit(e&ent to s'r*i*or@s %ension 'n$er Se6tion 9.-B;$< o1 Re%. A6t No. A.A..

In #n5 6#se, t2e iss'e t2#t no3 6on1ronts t2e !o'rt in*o(*es # $e%en$ent
s%o'se 32o 6(#i&s to 2#*e +een 'nF'st(5 $e%ri*e$ o1 2er s'r*i*or@s %ension 'n$er
Se6tion 9.-B;$< o1 Re%. A6t No. A.A.. "en6e, t2e s'+seG'ent $is6'ssion 3i((
1o6's on t2e res'(t#nt 6(#ssi1i6#tion o1 t2e $e%en$ent s%o'ses #s %ri&#r5
+ene1i6i#ries 'n$er t2e s#i$ %ro*ision.

As e#r(ier st#te$, t2e %etitioner +e(on)s to t2e se6on$ )ro'% o1 $e%en$ent
s%o'ses, i.e., 2er &#rri#)e to Boni1#6io 3#s 6ontr#6te$ #1ter 2is retire&ent. S2e
#n$ t2ose si&i(#r(5 sit'#te$ #re 'n$o'+te$(5 $is6ri&in#te$ #)#inst #s t2e %ro*iso
H#s o1 t2e $#te o1 2is retire&entI $isG'#(i1ies t2e& 1ro& +ein) 6onsi$ere$ H%ri&#r5
+ene1i6i#riesI 1or t2e %'r%ose o1 entit(e&ent to s'r*i*or@s %ension.

Gener#((5, # st#t'te +#se$ on re#son#+(e 6(#ssi1i6#tion $oes not *io(#te t2e
6onstit'tion#( )'#r#nt5 o1 t2e eG'#( %rote6tion 6(#'se o1 t2e (#3.899: Jit2 res%e6t
to Re%. A6t No. A.A., in %#rti6'(#r, #s # so6i#( se6'rit5 (#3, it is re6o)niKe$ t2#t it
His %er&e#te$ 3it2 %ro*isions t2#t $r#3 (ines in 6(#ssi15in) t2ose 32o #re to
re6ei*e +ene1its. !on)ression#( $e6isions in t2is re)#r$ #re entit(e$ to $e1eren6e #s
t2ose o1 t2e instit'tion 62#r)e$ 'n$er o'r s62e&e o1 )o*ern&ent 3it2 t2e %ri&#r5
res%onsi+i(it5 1or &#7in) s'62 F'$)&ents in (i)2t o1 6o&%etin) %o(i6ies #n$
interests.I89.:

"o3e*er, #s in ot2er st#t'tes, t2e 6(#ssi1i6#tion in Re%. A6t No. A.A. 3it2
res%e6t to entit(e&ent to +ene1its, to +e *#(i$ #n$ re#son#+(e, &'st s#tis15 t2e
1o((o3in) reG'ire&ents: ;9< it &'st rest on s'+st#nti#( $istin6tionsE ;.< it &'st +e
)er&#ne to t2e %'r%ose o1 t2e (#3E ;,< it &'st not +e (i&ite$ to e0istin) 6on$itions
on(5E #n$ ;4< it &'st #%%(5 eG'#((5 to #(( &e&+ers o1 t2e s#&e 6(#ss.89,:

T2e (e)is(#ti*e 2istor5 o1 Re%. A6t No. A.A. $oes not +e#r o't t2e %'r%ose o1
!on)ress in insertin) t2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI to G'#(i15 t2e
ter& H%ri&#r5 +ene1i6i#riesI in Se6tion 9.-B;$< t2ereo1. To t2e !o'rt@s &in$,
2o3e*er, it re1(e6ts 6on)ression#( 6on6ern 3it2 t2e %ossi+i(it5 o1 re(#tions2i%s
entere$ #1ter retire&ent 1or t2e %'r%ose o1 o+t#inin) +ene1its. In %#rti6'(#r, t2e
%ro*iso 3#s #%%#rent(5 inten$e$ to %re*ent s2#& &#rri#)es or t2ose 6ontr#6te$ +5
%ersons so(e(5 to en#+(e one s%o'se to 6(#i& +ene1its '%on t2e #nti6i%#te$ $e#t2 o1
t2e ot2er s%o'se.

T2is 6on6ern is 6on6e$e$(5 *#(i$. "o3e*er, 6(#ssi15in) $e%en$ent s%o'ses
#n$ $eter&inin) t2eir entit(e&ent to s'r*i*or@s %ension +#se$ on 32et2er t2e
&#rri#)e 3#s 6ontr#6te$ +e1ore or #1ter t2e retire&ent o1 t2e ot2er s%o'se,
re)#r$(ess o1 t2e $'r#tion o1 t2e s#i$ &#rri#)e, +e#rs no re(#tion to t2e #62ie*e&ent
o1 t2e %o(i65 o+Fe6ti*e o1 t2e (#3, i.e., H%ro*i$e &e#nin)1'( %rote6tion to &e&+ers
#n$ t2eir +ene1i6i#ries #)#inst t2e 2#K#r$ o1 $is#+i(it5, si67ness, &#ternit5, o($ #)e,
$e#t2 #n$ ot2er 6ontin)en6ies
res'(tin) in (oss o1 in6o&e or 1in#n6i#( +'r$en.L894: T2e ne0's o1 t2e
6(#ssi1i6#tion to t2e %o(i65 o+Fe6ti*e is *#)'e #n$ 1(i&s5. P't $i11erent(5, s'62
6(#ssi1i6#tion o1 $e%en$ent s%o'ses is not )er&#ne to t2e #1ores#i$ %o(i65
o+Fe6ti*e.

?or i1 it 3ere t2e intention o1 !on)ress to %re*ent s2#& &#rri#)es or t2ose
entere$ in 6onte&%(#tion o1 i&&inent $e#t2, t2en it s2o'($ 2#*e %res6ri+e$ #
$e1inite H$'r#tion-o1-re(#tions2i%I or $'r#tion#( %erio$ o1 re(#tions2i% #s one o1 t2e
reG'ire&ents 1or entit(e&ent to s'r*i*or@s %ension. ?or e0#&%(e, in t2e Unite$
St#tes, # %ro*ision in t2eir so6i#( se6'rit5 (#3 32i62 e06('$es 1ro& so6i#( se6'rit5
+ene1its t2e s'r*i*in) 3i1e #n$ ste%62i($ o1 # $e6e#se$ 3#)e e#rner 32o 2#$ t2eir
res%e6ti*e re(#tions2i%s to t2e 3#)e e#rner 1or (ess t2#n nine &ont2s %rior to 2is
$e#t2, 3#s $e6(#re$ *#(i$.89/: T2's, nine &ont2s is re6o)niKe$ in t2e Unite$ St#tes
#s t2e &ini&'& $'r#tion o1 # &#rri#)e to 6onsi$er it #s 2#*in) +een 6ontr#6te$ in
)oo$ 1#it2 1or t2e %'r%ose o1 entit(e&ent to s'r*i*ors2i% %ension.

In 6ontr#st, t2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI in Se6tion 9.-B;$<
in Re%. A6t No. A.A. e11e6ti*e(5 $isG'#(i1ies 1ro& entit(e&ent to s'r*i*or@s
%ension #(( t2ose $e%en$ent s%o'ses 32ose res%e6ti*e &#rri#)es to retire$ SSS
&e&+ers 3ere 6ontr#6te$ #1ter t2e (#tter@s retire&ent. T2e $'r#tion o1 t2e &#rri#)e
is not e*en 6onsi$ere$. It is o+ser*e$ t2#t, in 6ert#in inst#n6es, t2e retire&ent #)e
'n$er Re%. A6t No. A.A. is si0t5 ;=-<
5e#rs o($.89=: A &#rri#)e 6ontr#6te$ +5 # retire$ SSS &e&+er #1ter t2e s#i$
#)e &#5 sti(( (#st 1or &ore t2#n ten 5e#rs, #ss'&in) t2e &e&+er (i*es '% to o*er
se*ent5 ;B-< 5e#rs o($. In s'62 # 6#se, it 6#nnot +e s#i$ t2#t t2e &#rri#)e 3#s #
s2#& or 3#s entere$ into so(e(5 1or t2e %'r%ose o1 en#+(in) one s%o'se to o+t#in
t2e 1in#n6i#( +ene1its $'e '%on t2e $e#t2 o1 t2e ot2er s%o'se. Nonet2e(ess, t2e s#i$
s'r*i*in) s%o'se is not entit(e$ to s'r*i*or@s %ension +e6#'se 2e or s2e is not #
%ri&#r5 +ene1i6i#r5 #s o1 t2e $#te o1 retire&ent o1 t2e SSS &e&+er 1o((o3in)
Se6tion 9.-B;$< o1 Re%. A6t No. A.A..

?'rt2er, t2e 6(#ssi1i6#tion o1 $e%en$ent s%o'ses on t2e +#sis o1 32et2er t2eir
res%e6ti*e &#rri#)es to t2e SSS &e&+er 3ere 6ontr#6te$ %rior to or #1ter t2e
(#tter@s retire&ent 1or t2e %'r%ose o1 entit(e&ent to s'r*i*or@s %ension $oes not rest
on re#( #n$ s'+st#nti#( $istin6tions. It is #r+itr#r5 #n$ $is6ri&in#tor5. It is too
s3ee%in) +e6#'se t2e %ro*iso H#s o1 t2e $#te o1 2is retire&ent,I 32i62 e11e6ti*e(5
$isG'#(i1ies t2e $e%en$ent s%o'ses 32ose res%e6ti*e &#rri#)es to t2e retire$ SSS
&e&+er 3ere 6ontr#6te$ #1ter t2e (#tter@s retire&ent #s %ri&#r5 +ene1i6i#ries,
'n1#ir(5 ('&%s #(( t2ese &#rri#)es #s s2#& re(#tions2i%s or 3ere 6ontr#6te$ so(e(5
1or t2e %'r%ose o1 #6G'irin) +ene1its #66r'in) '%on t2e $e#t2 o1 t2e ot2er s%o'se.
T2e %ro*iso t2's 'n$'(5 %reF'$i6es t2e ri)2ts o1 t2e (e)#( s'r*i*in) s%o'se, (i7e t2e
%etitioner, #n$ $e1e#ts t2e #*o3e$ %o(i65 o1 t2e (#3 Hto %ro*i$e &e#nin)1'(
%rote6tion to memers an! their eneficiaries #)#inst t2e 2#K#r$s o1 $is#+i(it5,
si67ness, &#ternit5, o($ #)e, $e#t2, #n$ ot2er 6ontin)en6ies res'(tin) in (oss o1
in6o&e or 1in#n6i#( +'r$en.I89B:

The proviso infringes the !ue process clause

As e#r(ier o%ine$, in Government Service Insurance System v. Montesclaros,
89A: t2e !o'rt 62#r#6teriKe$ retire&ent +ene1its #s # %ro%ert5 interest o1 # retiree.
Je 2e($ t2erein t2#t H8i:n # %ension %(#n 32ere e&%(o5ee %#rti6i%#tion is
&#n$#tor5, t2e %re*#i(in) *ie3 is t2#t e&%(o5ees 2#*e 6ontr#6t'#( or *este$ ri)2ts
in t2e %ension 32ere t2e %ension is %#rt o1 t2e ter&s o1 e&%(o5&ent.I89>: T2's, it
3#s r'(e$ t2#t, H32ere t2e e&%(o5ee retires #n$ &eets t2e e(i)i+i(it5 reG'ire&ents,
2e #6G'ires # *este$ ri)2t to +ene1its t2#t is %rote6te$ +5 t2e $'e %ro6ess 6(#'seI
#n$ H8r:etirees enFo5 # %rote6te$ %ro%ert5 interest 32ene*er t2e5 #6G'ire # ri)2t to
i&&e$i#te %#5&ent 'n$er %re-e0istin) (#3.I8.-: ?'rt2er, sin6e %'rs'#nt to t2e
%ertinent (#3 t2erein, t2e $e%en$ent s%o'se is entit(e$ to s'r*i*ors2i% %ension, H#
3i$o3@s ri)2t to re6ei*e %ension 1o((o3in) t2e $e&ise o1 2er 2's+#n$ is #(so %#rt
o1 t2e 2's+#n$@s 6ontr#6t'#( 6o&%ens#tion.I8.9:

A(t2o')2 t2e s'+Fe6t &#tter in t2e #+o*e-6ite$ 6#se in*o(*e$ t2e retire&ent
+ene1its 'n$er P.D. No. 994= or t2e Re*ise$ Go*ern&ent Ser*i6e Ins'r#n6e A6t o1
9>BB8..: 6o*erin) )o*ern&ent e&%(o5ees, t2e %rono'n6e&ent t2erein t2#t retirees
enFo5 # %rote6te$ %ro%ert5 interest in t2eir retire&ent +ene1its #%%(ies sG'#re(5 to
t2ose in t2e %ri*#te se6tor 'n$er Re%. A6t No. A.A.. T2is is so +e6#'se t2e
&#n$#tor5 6ontri+'tions o1 +ot2 t2e e&%(o5ers8.,: #n$ t2e e&%(o5ees8.4: to t2e
SSS $o not, (i7e3ise, &#7e t2e retire&ent +ene1its 'n$er Re%. A6t No. A.A. &ere
)r#t'it5 +'t 1or& %#rt o1 t2e (#tter@s 6o&%ens#tion. E*en t2e retire&ent +ene1its o1
se(1-e&%(o5e$ in$i*i$'#(s, (i7e Boni1#6io, 32o 2#*e +een in6('$e$ in t2e
6o&%'(sor5 6o*er#)e o1 Re%. A6t No. A.A.8./: #re not &ere )r#t'it5 +e6#'se t2e5
#re reG'ire$ to %#5 +ot2 t2e e&%(o5er #n$ e&%(o5ee 6ontri+'tions.8.=: ?'rt2er,
'n$er Re%. A6t No. A.A., t2e s'r*i*in) s%o'se is entit(e$ to s'r*i*or@s %ension
#66r'in) on t2e $e#t2 o1 t2e &e&+erE 2en6e, t2e s'r*i*in) s%o'se@s ri)2t to re6ei*e
s'62 +ene1it 1o((o3in) t2e $e&ise o1 t2e 3i1e or 2's+#n$, #s t2e 6#se &#5 +e, is
#(so %#rt o1 t2e (#tter@s 6ontr#6t'#( 6o&%ens#tion.

T2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI in Se6tion 9.-B;$< o1 Re%. A6t
No. A.A. r'ns #1o'( o1 t2e $'e %ro6ess 6(#'se #s it o'tri)2t(5 $e%ri*es t2e
s'r*i*in) s%o'ses 32ose res%e6ti*e &#rri#)es to t2e retire$ SSS &e&+ers 3ere
6ontr#6te$ #1ter t2e (#tter@s retire&ent o1 t2eir s'r*i*or@s +ene1its. T2ere is o'tri)2t
6on1is6#tion o1 +ene1its $'e s'62 s'r*i*in) s%o'ses 3it2o't )i*in) t2e& #n
o%%ort'nit5 to +e 2e#r$.

B5 t2is o'tri)2t $isG'#(i1i6#tion o1 t2e s'r*i*in) s%o'ses 32ose res%e6ti*e
&#rri#)es to SSS &e&+ers 3ere 6ontr#6te$ #1ter t2e (#tter@s retire&ent, t2e %ro*iso
H#s o1 t2e $#te o1 2is retire&entI G'#(i15in) t2e ter& H%ri&#r5 +ene1i6i#riesI 1or
t2e %'r%ose o1 entit(e&ent to s'r*i*or@s %ension 2#s 6re#te$ t2e %res'&%tion t2#t
&#rri#)es 6ontr#6te$ #1ter t2e retire&ent $#te o1 SSS &e&+ers 3ere entere$ into
1or t2e %'r%ose o1 se6'rin) t2e +ene1its 'n$er Re%. A6t No. A.A.. T2is
%res'&%tion, &oreo*er, is 6on6('si*e +e6#'se t2e s#i$ s'r*i*in) s%o'ses #re not
#11or$e$ #n5 o%%ort'nit5 to $is%ro*e t2e %resen6e o1 t2e i((i6it %'r%ose. T2e
%ro*iso, #s it 6re#tes t2is 6on6('si*e %res'&%tion, is 'n6onstit'tion#( +e6#'se it
%res'&es # 1#6t 32i62 is not ne6ess#ri(5 or 'ni*ers#((5 tr'e. In t2e Unite$ St#tes,
t2is 7in$ o1 %res'&%tion is 62#r#6teriKe$ #s #n Hirre+'tt#+(e %res'&%tionI #n$
st#t'tes 6re#tin) %er&#nent #n$ irre+'t#+(e %res'&%tions 2#*e (on) +een
$is1#*ore$ 'n$er t2e $'e %ro6ess 6(#'se. 8.B:


In t2e %etitioner@s 6#se, 1or e0#&%(e, s2e #sserte$ t2#t 32en s2e #n$
Boni1#6io )ot &#rrie$ in 9>>B, it 3#s &ere(5 to (e)#(iKe t2eir re(#tions2i% #n$ not
to 6o&&it 1r#'$. T2is 6(#i& is G'ite +e(ie*#+(e. A1ter #((, t2e5 2#$ +een (i*in)
to)et2er sin6e 9>A- #n$, in 1#6t, $'rin) t2#t ti&e t2eir e($est 62i($ 3#s #(re#$5
t3ent5-1o'r ;.4< 5e#rs o($. "o3e*er, t2e %etitioner 3#s not )i*en #n5 o%%ort'nit5
to %ro*e 2er 6(#i& t2#t s2e 3#s Boni1#6io@s ona fi!e (e)#( s%o'se #s s2e 3#s
#'to&#ti6#((5 $isG'#(i1ie$ 1ro& +ein) 6onsi$ere$ #s 2is %ri&#r5 +ene1i6i#r5. In
e11e6t, t2e %etitioner 3#s $e%ri*e$ o1 t2e s'r*i*or@s +ene1its, # %ro%ert5 interest,
#66r'in) 1ro& t2e $e#t2 o1 Boni1#6io 3it2o't #n5 o%%ort'nit5 to +e 2e#r$.
St#n$#r$s o1 $'e %ro6ess reG'ire t2#t t2e %etitioner +e #((o3e$ to %resent e*i$en6e
to %ro*e t2#t 2er &#rri#)e to Boni1#6io 3#s 6ontr#6te$ in )oo$ 1#it2 #n$ #s 2is
ona fi!e s%o'se s2e is entit(e$ to t2e s'r*i*or@s %ension #66r'in) '%on 2is $e#t2.
8.A: "en6e, t2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI in Se6tion 9.-B;$< 32i62
$e%ri*es t2e %etitioner #n$ t2ose si&i(#r(5 sit'#te$ $e%en$ent s%o'ses o1 retire$
SSS &e&+ers t2is o%%ort'nit5 to +e 2e#r$ &'st +e str'67 $o3n.

Con!"#$on

E%&n a# '(& )*o%$#o +a# o, '(& da'& o, ($# *&'$*&-&n'. $n S&'$on 1/0B1d2 $# n"!!$,$&d,
'(& &n"-&*a'$on o, )*$-a*3 4&n&,$$a*$&# ,o* '(& )"*)o#& o, &n'$'!&-&n' 'o #"*%$%o*5#
)&n#$on $# no' #"4#'an'$a!!3 a,,&'&d #$n& '(& ,o!!o6$n7 )&*#on# a*& on#$d&*&d a# #"(
"nd&* S&'$on 8192 o, R&). A' No. 8/8/:

;9< T2e $e%en$ent s%o'se 'nti( 2e or s2e re&#rriesE #n$

;.< T2e $e%en$ent (e)iti&#te, (e)iti&#te$ or (e)#((5 #$o%te$, #n$ i((e)iti&#te
62i($ren.


In re(#tion t2ereto, Se6tion A;e< t2ereo1 G'#(i1ies t2e $e%en$ent s%o'se #n$
$e%en$ent 62i($ren #s 1o((o3s:
;9< T2e (e)#( s%o'se entit(e$ +5 (#3 to re6ei*e s'%%ort 1ro& t2e &e&+erE
;.< T2e (e)iti&#te, (e)iti&#te$ or (e)#((5 #$o%te$, #n$ i((e)iti&#te 62i($ 32o is
'n&#rrie$, not )#in1'((5 e&%(o5e$ #n$ 2#s not re#62e$ t3ent5-one 5e#rs ;.9<
o1 #)e, or i1 o*er t3ent5-one ;.9< 5e#rs o1 #)e, 2e is 6on)enit#((5 or 32i(e sti((
# &inor 2#s +een %er&#nent(5 in6#%#6it#te$ #n$ in6#%#+(e o1 se(1-s'%%ort,
%25si6#((5 or &ent#((5.

?in#((5, t2e !o'rt 6on6e$es t2#t t2e %etitioner $i$ not r#ise t2e iss'e o1 t2e *#(i$it5 o1 t2e
%ro*iso H#s o1 t2e $#te o1 2is retire&entI in Se6tion 9.-B;$< o1 Re%. A6t No. A.A.. T2e r'(e is
t2#t t2e !o'rt $oes not $e6i$e G'estions o1 # 6onstit'tion#( n#t're 'n(ess #+so('te(5 ne6ess#r5 to
# $e6ision o1 t2e 6#se.8.>: "o3e*er, t2e G'estion o1 t2e 6onstit'tion#(it5 o1 t2e %ro*iso is
#+so('te(5 ne6ess#r5 1or t2e %ro%er reso('tion o1 t2e %resent 6#se. A66or$in)(5, t2e !o'rt
reG'ire$ t2e %#rties to %resent t2eir #r)'&ents on t2is iss'e #n$ %ro6ee$e$ to %#ss '%on t2e s#&e
in t2e e0er6ise o1 its eG'it5 F'ris$i6tion #n$ in or$er to ren$er s'+st#nti#( F'sti6e to t2e %etitioner
32o, %res'&#+(5 in 2er #$*#n6e$ #)e +5 no3, $eser*es to re6ei*e 1ort23it2 t2e s'r*i*or@s
%ension #66r'in) '%on t2e $e#t2 o1 2er 2's+#n$.

:;ERE<ORE, t2e %etition is GRANTED. T2e De6ision $#te$ A%ri( 9/, .--, #n$
Reso('tion $#te$ De6e&+er 9/, .--, o1 t2e !o'rt o1 A%%e#(s in !A-G.R. SP No. =>=,. #re
RE=ERSED #n$ SET ASIDE. T2e %ro*iso H#s o1 t2e $#te o1 2is retire&entI in Se6tion 9.-
B;$< o1 Re%. A6t No. A.A. is $e6(#re$ =OID 1or +ein) 6ontr#r5 to t2e $'e %ro6ess #n$ eG'#(
%rote6tion 6(#'ses o1 t2e !onstit'tion. T2e So6i#( Se6'rit5 S5ste& 6#nnot $en5 t2e 6(#i& o1
%etitioner E(en# P. D56#i6o 1or s'r*i*or@s %ension on t2e +#sis o1 t2is in*#(i$ %ro*iso.

SO ORDERED.


ROMEO J. CALLEJO, SR.
Asso6i#te J'sti6e



;ILARIO G. DA=IDE, JR.
!2ie1 J'sti6e



REYNATO S. PUNO ARTEMIO =. PANGANIBAN
Asso6i#te J'sti6e Asso6i#te J'sti6e



LEONARDO A. >UISUMBING CONSUELO YNARES0SANTIAGO
Asso6i#te J'sti6e Asso6i#te J'sti6e



ANGELINA SANDO=AL0GUTIERRE? ANTONIO T. CARPIO
Asso6i#te J'sti6e Asso6i#te J'sti6e



MA. ALICIA AUSTRIA0MARTINE? RENATO C. CORONA
Asso6i#te J'sti6e Asso6i#te J'sti6e



CONC;ITA CARPIO MORALES ADOL<O S. A?CUNA
Asso6i#te J'sti6e Asso6i#te J'sti6e


On (e#*e
DANTE O. TINGA MINITA C;ICO0NA?ARIO
Asso6i#te J'sti6e Asso6i#te J'sti6e


CANCIO C. GARCIA
Asso6i#te J'sti6e



C E R T I < I C A T I O N


P'rs'#nt to Se6tion 9,, Arti6(e VIII o1 t2e !onstit'tion, it is 2ere+5 6erti1ie$
t2#t t2e 6on6('sions in t2e #+o*e $e6ision 3ere re#62e$ in 6ons'(t#tion +e1ore t2e
6#se 3#s #ssi)ne$ to t2e 3riter o1 t2e o%inion o1 t2e !o'rt.



;ILARIO G. DA=IDE, JR.
!2ie1 J'sti6e
On (e#*e.
89: Penne$ +5 Asso6i#te J'sti6e Re+e66# De G'i#-S#(*#$or, 3it2 Asso6i#te J'sti6es M#rin# L.
B'Kon #n$ Ros&#ri D. !#r#n$#n), 6on6'rrin)E Rollo, %%. ..-.A.
8.: An A6t ?'rt2er Stren)t2enin) t2e So6i#( Se6'rit5 S5ste& T2ere+5 A&en$in) 1or t2is
P'r%ose Re%'+(i6 A6t No. 99=9, #s A&en$e$, Ot2er3ise Mno3n #s t2e So6i#( Se6'rit5 L#3.
T2e (#3 too7 e11e6t on M#5 .,, 9>>B.
8,: !A Rollo" %. .=.
84: Rollo" %. .A.
8/: #mployees Compensation Commission v. Court of $ppeals" G.R. No. 99/A/A, .A J'(5 9>>=,
./B S!RA B9B.
8=: !o&&ent, %. /E Rollo" %. ,B.
8B: SE!TION 9, ARTI!LE III, !ONSTITUTION re#$s:
Se6. 9. No %erson s2#(( +e $e%ri*e$ o1 (i1e, (i+ert5 or %ro%ert5 3it2o't $'e
%ro6ess o1 (#3, nor s2#(( #n5 %erson +e $enie$ t2e eG'#( %rote6tion o1 t2e (#3s.
8A: G.R. No. 94=4>4, 94 J'(5 .--4, 4,4 S!RA 449.
8>: Entit(e$ T2e Re*ise$ Go*ern&ent Ser*i6e Ins'r#n6e A6t o1 9>BB. T2is (#3 2#s +een
s'%erse$e$ +5 Re%'+(i6 A6t No. A.>9 o1 t2e Go*ern&ent Ser*i6e Ins'r#n6e A6t o1 9>>B.
89-: S'%r#.
899: %ari&as v. The #'ecutive Secretary" G.R. No. 94B,AB, 9- De6e&+er .--,, 49B S!RA /-,.
89.: Califano" Jr. v. Gol!far" 4,- US 9>>, /9 L.E$..$ .B- ;9>BB<.
89,: Government Service Insurance System v. Montesclaros" s'%r#.
894: Se6tion . o1 Re%. A6t No. 99=9, #s #&en$e$ +5 Re%. A6t No. A.A..
89/: (einerger v. Salfi" 4.. US B4>, 4/ L.E$..$ /...
89=: Se6tion 9.-B re#$s in %#rt:
Se6. 9.-B. Retirement Benefits. C ;#< A &e&+er 32o 2#s %#i$ #t (e#st one 2'n$re$
t3ent5 ;9.-< &ont2(5 6ontri+'tions %rior to t2e se&ester o1 retire&ent #n$ 32o ;9< 2#s
re#62e$ t2e #)e o1 si0t5 ;=-< 5e#rs #n$ is #(re#$5 se%#r#te$ 1ro& e&%(o5&ent or 2#s
6e#se$ to +e se(1-e&%(o5e$ or ;.< 2#s re#62e$ t2e #)e o1 si0t5-1i*e ;=/< 5e#rs, s2#(( +e
entit(e$ 1or #s (on) #s 2e (i*es to t2e &ont2(5 %ension: Provi!e!, T2#t 2e s2#(( 2#*e t2e
o%tion to re6ei*e 2is 1irst ei)2teen ;9A< &ont2(5 %ensions in ('&% s'& $is6o'nte$ #t #
%re1erenti#( r#te o1 interest to +e $eter&ine$ +5 t2e SSS.
89B: Supra.
89A: Supra.
89>: I!. #t 44A.
8.-: I!. #t 44>.
8.9: I!.
8..: T2is 2#s +een s'%erse$e$ +5 Re%. A6t No. A.>9 ot2er3ise 7no3n #s T2e Go*ern&ent
Ser*i6e Ins'r#n6e A6t o1 9>>B.
8.,: Se6tion 9> re#$s in %#rt:
Se6. 9>. #mployer)s Contriutions. C ;#< Be)innin) #s o1 t2e (#st $#5 o1 t2e &ont2 32en
#n e&%(o5ee@s 6o&%'(sor5 6o*er#)e t#7es e11e6t #n$ e*er5 &ont2 t2ere#1ter $'rin) 2is
e&%(o5&ent, 2is e&%(o5er s2#(( %#5, 3it2 res%e6t to s'62 6o*ere$ e&%(o5ee, t2e
e&%(o5er@s 6ontri+'tion in #66or$#n6e 3it2 t2e s62e$'(e in$i6#te$ in Se6tion Ei)2teen o1
t2is A6t. Not3it2st#n$in) #n5 6ontr#6t to t2e 6ontr#r5, #n e&%(o5er s2#(( not $e$'6t,
$ire6t(5 or in$ire6t(5, 1ro& t2e 6o&%ens#tion o1 2is e&%(o5ees 6o*ere$ +5 t2e SSS or
ot2er3ise re6o*er 1ro& t2e& t2e e&%(o5er@s 6ontri+'tions 3it2 res%e6t to s'62 e&%(o5ees.
8.4: Se6tion 9A re#$s in %#rt:
Se6. 9A. #mployee)s Contriution. C ;#< Be)innin) #s o1 t2e (#st $#5 o1 t2e 6#(en$#r
&ont2 32en #n e&%(o5ee@s 6o&%'(sor5 6o*er#)e t#7es e11e6t #n$ e*er5 &ont2 t2ere#1ter
$'rin) 2is e&%(o5&ent, t2e e&%(o5er s2#(( $e$'6t #n$ 3it22o($ 1ro& s'62 e&%(o5ee@s
&ont2(5 s#(#r5, 3#)e, 6o&%ens#tion or e#rnin)s, t2e e&%(o5ee@s 6ontri+'tion in #n #&o'nt
6orres%on$in) to 2is s#(#r5, 3#)e, 6o&%ens#tion or e#rnin)s $'rin) t2e &ont2 in
#66or$#n6e 3it2 t2e 1o((o3in) s62e$'(e.
8./: Se6tion >-A re#$s:
Se6. >-A. Compulsory Coverage of the Self*employe!. C !o*er#)e in t2e SSS s2#(( +e
6o&%'(sor5 '%on s'62 se(1-e&%(o5e$ %ersons #s &#5 +e $eter&ine$ +5 t2e !o&&ission
'n$er s'62 r'(es #n$ re)'(#tions #s it &#5 %res6ri+e, in6('$in) +'t not (i&ite$ to t2e
1o((o3in):
9. A(( se(1-e&%(o5e$ %ro1ession#(sE
.. P#rtners #n$ sin)(e %ro%rietors o1 +'sinessesE
,. A6tors #n$ #6tresses, $ire6tors, s6ri%t3riters #n$ ne3s 6orres%on$ents 32o $o not
1#(( 3it2in t2e $e1inition o1 t2e ter& He&%(o5eeI in Se6. A;$< o1 t2is A6tE
4. Pro1ession#( #t2(etes, 6o#62es, tr#iners #n$ Fo67e5sE #n$
/. In$i*i$'#( 1#r&ers #n$ 1is2er&en.
Un(ess ot2er3ise s%e6i1ie$ 2erein, #(( %ro*isions o1 t2is A6t #%%(i6#+(e to 6o*ere$
e&%(o5ees s2#(( #(so +e #%%(i6#+(e to t2e 6o*ere$ se(1-e&%(o5e$ %ersons.
8.=: Se6tion 9>-A re#$s:
Se6. 9>-A. Contriution of the Self*employe! Memer. C T2e 6ontri+'tions to t2e SSS
o1 t2e se(1-e&%(o5e$ &e&+er s2#(( +e $eter&ine$ in #66or$#n6e 3it2 Se6tion Ei)2teen o1
t2is A6tE Provi!e!, T2#t t2e &ont2(5 e#rnin)s $e6(#re$ +5 t2e se(1-e&%(o5e$ &e&+er #t t2e
ti&e o1 2is re)istr#tion 3it2 t2e SSS s2#(( +e 6onsi$ere$ #s 2is &ont2(5 6o&%ens#tion #n$
2e s2#(( %#5 +ot2 t2e e&%(o5er #n$ e&%(o5ee 6ontri+'tions: Provi!e!" further, T2#t t2e
6ontri+'tions o1 se(1-e&%(o5e$ %ersons e#rnin) One T2o's#n$ Pesos ;P9,---.--< &ont2(5
or +e(o3 &#5 +e re$'6e$ +5 t2e !o&&ission.
T2e &ont2(5 e#rnin)s $e6(#re$ +5 t2e se(1-e&%(o5e$ &e&+er #t t2e ti&e o1 2is
re)istr#tion s2#(( re&#in t2e +#sis o1 2is &ont2(5 s#(#r5 6re$it, 'n(ess 2e &#7es #not2er
$e6(#r#tion o1 2is &ont2(5 e#rnin)s, in 32i62 6#se s'62 (#test $e6(#r#tion +e6o&es t2e ne3
+#sis o1 2is &ont2(5 s#(#r5 6re$it.
8.B: See, 1or e0#&%(e, Jimene+ v. (einerger" 49B US =.A, 49 L.E$..$ ,=,E ,.S. -epartment of
$griculture v. Murry" 49, US /-A, ,B L.E$..$ B=BE .lan!is v. /line" 49. US 449, ,B L.E$..$ =,.
8.A: In t2is 6onne6tion, it is 3e(( to note t2#t, #s $is6'sse$ in Government Service Insurance
System v. Montesclaros, supra, 'n$er Se6tion 9-.4.9 o1 t2e I&%(e&entin) R'(es #n$ Re)'(#tions
o1 Re%. A6t No. A.>9 ;t2e %resent GSIS L#3<, t2e s'r*i*in) s%o'se 32o &#rrie$ t2e &e&+er
i&&e$i#te(5 +e1ore t2e &e&+er@s $e#t2 is sti(( G'#(i1ie$ to re6ei*e s'r*i*ors2i% %ension 'n(ess
t2e GSIS %ro*es t2#t t2e s'r*i*in) s%o'se 6ontr#6te$ t2e &#rri#)e so(e(5 to re6ei*e t2e +ene1it.
T2e s#i$ R'(es #67no3(e$)e t2#t 32et2er t2e s'r*i*in) s%o'se 6ontr#6te$ t2e &#rri#)e &#in(5 to
re6ei*e s'r*i*ors2i% +ene1its is # &#tter o1 e*i$en6e. T2e s#i$ Se6tion re#$s:
Se6. 9-.4. $llocation of the Survivorship Pension $mong Beneficiaries. 0 T2e
s'r*i*ors2i% %ension s2#(( +e %#i$ #s 1o((o3s:
9-.4.9. C J2en t2e $e%en$ent s%o'se is t2e on(5 s'r*i*or, 2eNs2e s2#((
re6ei*e t2e +#si6 s'r*i*ors2i% %ension 1or (i1e or 'nti( 2eNs2e re&#rries. %or
purposes of this section" the marriage of the surviving spouse imme!iately
prior to the !eath of the memer or pensioner shall e acceptale" unless it is
proven that the marriage 1as solemni+e! solely for purposes of receiving the
enefit.
8.>: $lger #lectric" Inc. v. Court of $ppeals, G.R. No. L-,4.>A, .A ?e+r'#r5 9>A/, 9,/ S!RA
,B.