EXECUTIVE ORDER NO. 966
EXECUTIVE ORDER NO. 966 - ADOPTING
A UNIFORM PROCEDURE IN THE IMPLEMENTATION OF LAWS FOR OPTIONAL
RETIREMENT OF OFFICERS AND EMPLOYEES OF THE NATIONAL GOVERNMENT AND
DIRECTING EXPEDITIOUS PAYMENT OF RETIREMENT BENEFITS
WHEREAS, the new Civil Service Decree of
the Philippines implementing the constitutional mandate of establishing
a government career service based on merit and fitness, explicitly
provides that measures be adopted to promote morale and the highest
degree of responsibility, integrity, loyalty and efficiency among
government officials and employees;
WHEREAS, in recognition of, and as a fitting reward for, the faithful
and dedicated service rendered by government officials and employees
during the best years of their lives, the Philippine legislature had
enacted a series of retirement laws;
WHEREAS, the proliferation of these retirement laws had bred confusion
in their implementation particularly in the aspect of accreditation of
services and the computation and payment of retirement benefits;
WHEREAS, there is a need to rationalize and streamline the present
system in the processing, approval and payment of retirement claims and
adopt a more expeditious, uniform and standardized procedure to the end
that retiring officials and employees shall receive their retirement
benefits without delay.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by law, do hereby prescribe the
following rules in the implementation of the retirement laws of
officials and employees of the national government under Section 11(b)
and (c) and Section 12(c) of Commonwealth Act Numbered One Hundred
Eighty-Six, as amended;
Section 1. Applicability of these rules. — These
rules shall apply to all officials/employees of the National Government
who are claiming retirement benefits under Section s 11(b) and (c) and
12(c) of Commonwealth Act No. 186, as amended.
Sec. 2. Basic requirements. — To be entitled to
retirement benefits, the retiring official/employee must have rendered
creditable services and must have met all other requirements provided
in the retirement law under which he has opted to retire, and under the
rules herein prescribed.
Sec. 3. Crediting Agency. — The Government Service
Insurance System shall be responsible for accrediting, subject to
existing laws and these rules the services of officials/employees in
the government who are retiring from the service under existing
retirement law: Provided, That the GSIS as it may deem necessary, may
promulgate additional rules for accrediting services not inconsistent
with existing retirement law and these rules.
Sec. 4. Creditable Service. — Subject to existing
laws and these rules, the following shall be considered creditable
services:
(a)
All previous services rendered by an official/employee pursuant to an
appointment whether permanent, provisional or temporary.
(b) All
previous rendered by an official/employee pursuant to a duly approved
appointment to a position in the Civil Service with compensation or
salary or pay, provided that the last three (3) years prior to
retirement shall be continuous. Provided that said three (3) years
continuous service may be waived if the official/employee concerned
prior to the completion of the said three (3) years, was separated from
the service due to either abolition of his position, reorganization of
the office wherein he was phased out, or reduction in force.
(c) The period
during which an official/employee was on an authorized sick leave of
absence without pay provided that it shall not exceed one year in a
single instance.
(d) The period
during which an official/employee was out of the service as a result of
an illegal termination of his services as finally decided by the proper
authorities.
(e) The period
of Japanese occupation of the Philippines beginning January 1, 1942 to
February 26, 1945 even if the official/employee was actually out of the
service at the outbreak of World War II in the Pacific on December 8,
1941. This may be proved by the presentation of Certification of
Indebtedness duly acknowledged by the Treasurer of the Philippines
pursuant to the provision of RA 340, as amended.
(f) The period
of active service in the military of reserve officers and enlisted men
who were not integrated in the regular force of the Armed Forces of the
Philippines, who were honorably discharged or separated from the
military service without receiving any benefits under RA 340, as
amended, or other retirement laws covering military personnel, as duly
certified to by the Armed Formed of the Philippines.
(g) The period
of service of an official/employee previously availed of retirement
benefits, provided the official/employee has fully refunded the money
value of the unexpired portion of retirement benefits he previously
received.
* Sec. 6. Continuity of Service. — Subject to
existing laws and these rules, the following shall not interrupt the
continuity of the service of an official/employee in the Civil Service,
provided that no money value shall be given thereto in the computation
of the retirement benefits:
(a)
The period during which the official/employee was on an authorized
vacation leave of absence without pay, provided that it shall not
exceed one year in a single instance.
(b) The period
during which the official/employee was out of the service as a result
of the reorganization of the office, or abolition of position or
reduction in force, provided that said period shall not exceed one year
from date of separation to the date prior to reemployment, and provided
further that, the official/employee has refunded the money value of the
unexpired portion of the benefits he has received, if any.
(c) The period
during which an official/employee was in the service of an
international organization and/or foreign government in compliance with
an international commitment of the Philippine government: Provided that
the period of service without pay from the Philippine government and
the salary received from the beneficiary foreign government or
international organization with which the Philippine government has a
commitment or agreement shall not be credited in computing the money
value of his retirement benefit.
Sec. 7. Non-creditable periods. — The following
periods shall not be given credit for any purpose under these rules:
(a)
The previous services of an official/employee rendered on contractual,
emergency or casual status prior to, and including the period from the
date of his voluntary resignation up to the date prior to his
reemployment in the service.
(b) The
services of an official/employee which were rendered voluntarily
without basic compensation.
(c) The
services of an official/employee who was considered resigned or
separated from the service pursuant to a decision in an administrative
case.
(d) The period
from the date the official/employee was separated from the service as a
result of a decision in an administrative case up to the date prior to
his reemployment in the service pursuant to an executive clemency
granted by the President of the Philippines.
(e) The period
from the date the official/employee was dropped from the rolls pursuant
to the Civil Service Rules and regulations up to the date prior to
reemployment in the service.
(f) The period
during which an official/employee was on an unauthorized leave of
absence, or the period in excess of the allowable one year leave of
absence without pay, though authorized, which was taken in a single
instance.
Sec. 8. Computation of Retirement Benefits. —
Subject to the existing laws and these rules, the Government Service
System shall be solely responsible in the computation of the retirement
benefits due to the retiring official/employee on the basis of the
creditable service as determined in accordance with these rules and the
highest basic salary rate received by the official/employee from an
employer(s).
Sec. 9. Highest basic Salary Rate. — The
compensation of salary or pay which may be used in computing the
retirement benefits shall be limited to the highest basic salary rate
actually received by an official/employee as fixed by law and/or
indicated in his duly approved appointment. This shall include salary
adjustments duly authorized and implemented by presidential issuance(s)
circular(s), additional basic compensation or salary indicated in an
appointment duly approved as an exception to the prohibition on
additional or double compensation, merit increases, and compensation
for substitutionary services or in an acting capacity. For this
purpose, all other compensations and/or fringe benefits such as per
diems, allowances, bonuses, overtime pay, honoraria, hazard pay, flying
time fees, consultancy or contractual fees, or fees in correcting
and/or releasing examination papers shall not be considered in the
computation of the retirement benefits of an official-employee.
Sec. 10. Funds disposition and allocation. —
Subject to existing laws, and these rules, the Ministry of the Budget
shall be responsible for the disposition and allocation of the
corresponding funding requirements for the retirement benefits of
retiring official/employee. Applications for retirement benefits with
previous computation/authorizations made by the System not in
conformity with these rules and for which the Ministry of the Budget
has made deductions from and/or suspended payment of retirement
benefits, shall be referred to the Civil Service Commission for
determination of creditable services.
Sec. 11. Sources of funds. — Payment of the
retirement benefits processed and computed pursuant to existing laws
and these rules shall be made by agencies of the National government
concerned to be taken out from their appropriation provided for this
purpose in the General Appropriations Act and/or from the savings
realized out their budgetary allotments. The provisions of Memorandum
Circular No. 133 dated October 16, 1967 of the Office of the President
shall remain in full force and effect.
Sec. 12. Expeditious Payment of Retirement
Benefits. — Heads of Ministries, bureaus, offices and agencies of
national government and all others concerned shall streamline their
present retirement systems to the end that processing of retirement
claims shall be done expeditiously and the gratuity paid to the retiree
on the day he leaves the services or soon thereafter.
Sec. 13. Effectivity. — These rules shall take
effect upon its approval.
Done at the City of Manila,
this 22nd day of June in the year of our Lord, nineteen hundred and
eighty-four.
* Copied verbatim from documents obtained directly
from the Bureau of Printing publication. (missing Sec. 5)