SC voids GSIS employees retirement plan
10/28/2011The Supreme Court (SC) has voided the Retirement Financial Plan (RFP) of the state pension fund agency Government Service Insurance System (GSIS).
This was after the SC upheld the Commission on Audit’s (CoA) ruling that GSIS has no authority to provide chunks of benefits to its employees, especially having a P15-billion actuarial deficiency.
In a 32-page ruling dated Oct. 19, 2011 but was released only on Thursday, the SC, through Associate Justice Teresita Leonardo de Castro, said that CoA did not abuse its discretion when it ruled that the GSIS employees who received the benefits under the RFP are liable for the return of their disallowed benefits.
Under its resolutions issued in 2003 and 2004, CoA said that while GSIS has the authority to create a financial scheme for its retiring employees, it is limited only to employees who will avail of an early retirement caused by the reorganization in the agency..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/nation/20111028nat5.html
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"Under its resolutions issued in 2003 and 2004, CoA said that while GSIS has the authority to create a financial scheme for its retiring employees, it is limited only to employees who will avail of an early retirement caused by the reorganization in the agency."
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