GSIS Cannot Restore Napocor Pension
MANILA, Philippines - State-run Government Service Insurance System (GSIS) said that it cannot restore the monthly pensions of National Power Corporation (NPC) retirees as it would violate Supreme Court (SC) in 2009.
In a statement, the pension fund cited the SC's affirmation on Electric Power Industry Act's (EPIRA) provision that stated, it does not authorize the grant of both separation pay and retirement benefits to NPC retirees.
GSIS said that options for nearly 9,000 NPC retirees were alternative and not cumulative, explaining that if a retiree chose the separation plan, he would no longer be entitled to additional retirement benefits.
Moreover, the pension fund cited the Revised GSIS Act of 1997, which clearly stated the exclusiveness of benefits.
"Whenever other laws provide similar benefits for the same contingencies covered by this Act, the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. However, if the benefits provided by the law chosen are less than the benefits provided under this Act, the GSIS shall pay only the difference."
The GSIS management after discussions with NPC management, decided to suspend the pension of its …
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Publication information: Article title: GSIS Cannot Restore Napocor Pension. Contributors: Not available. Newspaper title: Manila Bulletin. Publication date: August 25, 2011. Page number: Not available. © 2009 Manila Bulletin Publishing Corp. COPYRIGHT 2011 Gale Group.
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