Social Security Commission vs Hon. Bayona [G.R. No. L-13555] Case Digest

 

Social Security Commission vs Hon. Bayona

G.R. No. L-13555

G-one T. Paisones

Facts:

The Faculty Club of the University of Santo Tomas, Inc. and San Beda College Lay Faculty Club, Inc. filed a petition for declaratory relief with preliminary injunction before CFI of Manila alleging that they have existing agreements with their respective employers for the establishment of gratuity and retirement funds; that the Social Security Commission tried to compel them to integrate their private system into the Social Security System.  Faculty club alleged that their private systems grant more benefits to the members than the Social Security System; and the integration of their private systems would deprive their members of property without due process of law, as well as would impair the obligation of their contract to the detriment of the members.

Herein respondent Judge Bayona granted the petition by Faculty Club and issued preliminary injunction against SSC. SSC moved to dissolve the preliminary injunction on the following grounds a statute is presumed constitutional; and among others. The motion to dissolve was denied.

 

Issue:

Whether or not the SSS integration to Faculty Club’s existing private system for the establishment of gratuity and retirement funds to their members could destruct their current system.

 

Held:

No.

 

Ratio:

Neither can respondent corporations contend that their integration would mean the destruction of their existing private systems. The most that can happen would be a diminution of benefits in proportion to the reduction of the contributions to their private systems. But while they may suffer such reduction in benefits they also stand to benefit under the government system. Bear in mind that the integration does not mean the discontinuance of the private system for under the law three alternatives are open to respondents in effecting the integration. In other words, respondents may continue with whatever private social system they may have at present as a complement to the benefits afforded to them under the government system without prejudice to their integration into the government security system.