MEMORANDUM CIRCULAR NO. 33 - SUPREME COURT DECISION ON OP MEMORANDUM CIRCULAR NO. 133 DATED OCTOBER 16, 1967

For the information of all heads of offices, both national and local, including government-owned or controlled corporations, attention is invited to the decision of the Supreme Court in the case of Marasigan vs. Cruz, G. R. No. L-40648 promulgated on May 20, 1987, affirming a decision of the Court of First Instance of Manila declaring "void and of no effect" OP Memorandum Circular No. 133 prescribing certain conditions for optional retirement under Commonwealth Act No. 186, as amended by Republic Acts No. 1616 and No. 4968, the dispositive portion of which reads as follows:

"In its decision the trial court set out the perspective that is appropriate in respect of a retirement law like Commonwealth Act No. 186 as amended:

"A retirement law such as C. A. 186 and amendatory laws is in the nature of a contract between the government and its employees. When an employee joins the government service he has a right to expect that after rendering the required length of service and fulfilled the conditions stated in the laws on retirement, he would be able to enjoy the benefits provided in said laws. He regularly pays the dues prescribed therefor. It would be cruel to deny him the benefits he had been expecting at the ends of his service by imposing conditions for his retirement which are not found in the law. It is believed to be a legal duty as well as a moral obligation on the part of the government to honor its commitments to its employees when as in this case, they have met all the conditions prescribed by law and are therefore entitled to receive their retirement benefits."

We agree with the trial court in this respect."

Since 19.07.98.