MANILA, Philippines — The Supreme Court struck down a Government Service Insurance System (GSIS) regulation that barred secondary beneficiaries from receiving survivorship benefits of members who had rendered at least three but less than 15 years of government service, ruling that the agency exceeded its authority.
In a decision written by Associate Justice Henri Jean Paul B. Inting, the SC’s Third Division declared Section 24.2.2 of the Revised Implementing Rules and Regulations (IRR) of Republic Act 8291, or the GSIS Act of 1997, ultra vires for going beyond the law.
The Court said the provision could not be enforced insofar as it conflicted with Section 21(c) of the statute.
The ruling stemmed from the claim of Petronilo Laroco, who sought survivorship benefits following the death of his daughter, Cristie C. Laroco, a public school teacher who had served the government for 13 years and paid GSIS premiums for 12 years. She died single and without children.
The GSIS denied the claim, citing its IRR which limited survivorship benefits for secondary beneficiaries to cases where the deceased member had at least 15 years of service. Since Cristie had only 13 years in government service, the agency ruled that only primary beneficiaries—such as a spouse or dependent children—could qualify.
The Court of Appeals affirmed the GSIS ruling, prompting Laroco to elevate the case to the High Court, arguing that the IRR effectively amended the GSIS Act by removing statutory rights granted to secondary beneficiaries under certain conditions.
The high tribunal ruled in Laroco's favor, clarifying that under the GSIS Act, secondary beneficiaries may receive survivorship benefits if there are no primary beneficiaries, the dependency requirements are met, the member was in service at the time of death, and the member had rendered at least three years of government service.
The Court said Section 24.2.2 of the IRR imposed an additional requirement—raising the threshold to 15 years of service—which is not found in the law and therefore cannot be enforced.
While acknowledging GSIS’ intent to address perceived inequities in the system, the SC said administrative agencies cannot amend legislation through implementing rules. It added that Congress had already established a distinction in benefits: members with at least 15 years of service are entitled to a survivorship pension, while those with three to less than 15 years receive a cash benefit equivalent to 100 percent of their average monthly salary for each year of service with paid contributions.
The Court stressed that social security laws must be liberally interpreted in favor of employees and their beneficiaries, as these statutes are intended to advance social justice and protect families from the financial impact of death or disability.
It said that if GSIS believed reforms were necessary, it should bring the matter to Congress rather than alter statutory provisions through administrative issuances.
The case was remanded to the GSIS Committee on Claims for recomputation of the benefits due to Laroco.