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1.0 In the event a retiree/employee dies while his claim for payment of Terminal Leave and Retirement Gratuity is still being processed (after the SARO/NCA has been issued), the national government agency (NGA) shall pay these benefits to the heirs of the deceased retiree/employee. The payment of the same, thru MDS check/Advice to Debit Account form, shall be honored by the MDS-GSBs, provided the following documents are submitted by the agency:

1.1 Copy of the deceased retiree/employee’s death certificate; and

1.2 Copy of the decision of the agency’s legal office/adjudication board identifying the legal heirs of the deceased. The legal heirs identified in this document shall be the only payees to be honored by the MDS-GSBs.

2.0 In cases where the retiree has outstanding accountabilities with government/private financial institutions, which shall be paid out of his retirement and terminal leave benefits, a breakdown of these deductions shall be prepared and attached as a supporting schedule to the List of Actual Retirees form prescribed under Circular Letter No. 99-4A.

2.1 The MDS checks/Advice to Debit Account forms shall be issued by the agency to the specific government/private financial institutions to which the retiree has outstanding accountabilities.

2.2 Only private financial institutions with an existing Memorandum of Agreement with the retiree’s national government agency can be considered as part of a retiree’s deductions.

3.0 Please be guided accordingly.

Adopted: 14 Oct. 1999

(SGD.) BENJAMIN E. DIOKNO
Secretary