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CHAPTER VIII TERMINATION OF OFFICIAL RELATION

B. Reaching the age limit
CONTE vs. COA

FACTS : Petitioners ere !ormer em"lo#ees o! $$$ ho retire% !rom go&ernment ser&ice. The#
a&aile% o! com"'lsor# retirement (ene!its 'n%er Re"'(lic Act No. ))*. In a%%ition+ "etitioners
also claime% $$$ !inancial assistance (ene!its grante% 'n%er $$$ Resol'tion No. ,)+ series o! 
-/-. The sai% Resol'tion ,) "ro&i%es that all the $$$ em"lo#ees ho are sim'ltaneo'sl#
0'ali!ie% !or com"'lsor# retirement at age ), or !or o"tional retirement at a loer age (e
enco'rage% to a&ail !or themsel&es the li!e ann'it# 'n%er R.A. ))*. Long a!ter the "rom'lgation
o! $$$ Resol'tion No. ,)+ res"on%ent COA iss'e% a r'ling+ %isalloing in a'%it all s'ch claims
!or !inancial assistance 'n%er $$$ Resol'tion No. ,) (eca'se it res'lts in the increase o! (ene!its
 (e#on% hat is alloe% 'n%er e1isting retirement las. 2es"ite the a!ore0'ote% r'ling o! 
res"on%ent COA+ the $$$ A%ministrator ne&ertheless rote to the E1ec'ti&e $ecretar#.+ see3ing
 "resi%ential a'thorit# !or $$$ to contin'e im"lementing its Resol'tion No. ,) hich as %enie%
 (# the o!!ice o! the Presi%ent in a letter4re"l#. On 5an'ar# -6+ -7+ herein "etitioners !ile% ith
res"on%ent COA their letter4a""eal see3ing reconsi%eration o! COAs r'ling %isalloing claims
!or !inancial assistance 'n%er Res. ,). COA ren%ere% its COA 2ecision No. 84-6) %en#ing
 "etitioners re0'est !or reconsi%eration. Th's this "etition !or certiorari 'n%er R'le ), o! the R'les
o! Co'rt.

ISSUE: Are the (ene!its "ro&i%e% (# Resol'tion No. ,) to (e consi%ere% sim"l# as !inancial
assistance !or retiring em"lo#ees+ or %oes s'ch scheme constit'te a s'""lementar# retirement
 "lan "rohi(ite% (# Re"'(lic Act No. 8)9

HELD: The (ene!its o! Resol'tion ,) is "rohi(ite% (# Act 8)9 (eca'se $ai% $ec. 69 ;(< o! Act
8)9 (ars the creation o! an# ins'rance or retirement "lan+ other than the =$I$+ !or go&ernment
o!!icers an% em"lo#ees+ in or%er to "re&ent the 'n%'e an% ine0'ito's "roli!eration o! s'ch "lans.

An e1amination o! the "ro&isions o! Res. ,) "ro&i%es a n'm(er o! clear in%ications that its
!inancial assistance "lan constit'tes the "rohi(ite% s'""lemental retirement>"ension (ene!its
 "lan. The or%ing o! the resol'tion itsel! hich states Resol&e%+ !'rther+ that $$$ em"lo#ees
ho a&aile% themsel&es o! the sai% li!e ann'it# ;'n%er RA ))*<+ in a""reciation an% recognition
o! their long an% !aith!'l ser&ice+ (e grante% !inancial assistance 1 1 1 can onl# (e inter"rete% to
mean that the (ene!it (eing grante% is none other than a 3in% o! amelioration to ena(le the
retiring em"lo#ee to en?o# ;or s'r&i&e< his retirement #ears an% a rear% !or his lo#alt# an%
ser&ice. The "etitioners are innocent (# stan%ers in this ('rea'cratic r'le ma3ing %rama an%
sho'l% not (e "enali@e%.

here!ore+ Resol'tion No. ,) is here(# %eclare% ILLE=AL+ VOI2 AN2 OF NO EFFECT. The
$$$ is here(# 'rge% to assist "etitioners an% !acilitate their a""lications 'n%er RA -)-)+ an% to
a%&ance to them+ 'nless (arre% (# e1isting reg'lations+ the corres"on%ing amo'nts re"resenting
the %i!!erence (eteen the to (ene!its "rograms.

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