Re: Resolution Granting Automatic Permanent Total Disability Benefits to Heirs

of Justices and Judges Who Die in Actual Service

A.M. No. 02-12-01-SC
November 24, 2004

I. Ticker – Additional death benefits of Judges/Death while in actual service

II. Doctrine
 Article 4, NCC
Laws shall have no retroactive effect, unless the contrary is
provided

 Article 8, NCC
Judicial decisions applying or interpreting the laws or the
Constitution shall form a part of the legal system of the Philippines

III. Facts
Jude Calvan
 Jude Calvan, presiding judge of Municipal Circuit Trial Court in
Bangui Ilocos Norte, died due to cardio-respiratory arrest. After his
death, his widow addressed a letter to the Court Administrator
requesting entitlement to the benefits of Rep. Act No. 910, in
conjunction with this Court’s Resolution of September 2003, in A.M.
No. 02-12-01-SC.
 FMBO sent DBM request for the issuance of SARO to cover the
payment of the terminal leave and retirement gratuity benefits of SC
and lower court officials, including those pertaining to the late Judge
Calvan
 DBM replied through a letter stating that the amount pertaining to 5yrs
lump-sum of the late Judge Calvan per A.M. No. 0212-02-SC is
disallowed pursuant to Sec 2 of RA 910 which treats “death while in
actual service” and ‘retirement due to permanent physical disability” as
a distinct and separate circumstances”
Jude Real
 Jude Real, presiding judge of RTC Albay branch, died due to
cardiac arrest and multiple organ failure. His widow and 4 children
filed a claim for permanent total disability retirement benefits.
 The Court treated and approved the application as a claim for
Retirement/Gratuity Benefits under Sec 2 of RA 910. FMBO then
sent DBM request for release of funds.
 Unfortunately, DBM, also virtually denied the request. DBM
argued that A.M. No. 01-12-01-SC may have expanded the clear
intent of RA 910 in granting additional 5 yrs lump sump to the
heirs of Justices and Judges who after having attained of service for
retirement, dies while in actual service.
IV. Issues

Whether or not DBM has basis to disallow FMBO’s request for the release of
funds in order to cover the additional 5-year lump sum benefits of the late two
judges who both unquestionably died while in actual service – NO.

V. Decision / Ruling
 The Court considered death “while in actual services” to be
encompassed by the phrase “permanent physical disability”
 Under RA 910, a situation whereby a Justics or Judge dies while in
actual service but without having attained the 20 year length of service
requirement is not expressly provided for. Hence, there is a gap in that
law, which gap prompted the Court to issue the Resolution dated
September 30, 2003 in AM No. 02-12-01-SC.
 It bears stressing that once the Court has interpreted a law, such
interpretation becomes a part of the law itself. This the reason why
under Art. 8 of NCC, judicial decisions applying or interpreting the
laws or the Constitution shall form part of the legal system.
 And as an interpretation of RA 910, the said resolution promulgated
by the Court pursuant to its mandates of fiscal autonomy under Sec 3
and of administrative supervision over all courts and personnel undr
Sec 7 Art VII of Constitution became part of said statute.
 As such, DBM is duty-bound to honor and execute the said Resolution
as part of the legal system.