EXECUTIVE ORDER NO. 966 June 22, 1984
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;
Sec. 1. Applicability of these rules. These rules shall apply to all officials/employees of the National Government who are claiming retirement benefits under Sections 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. lawphi1.net
(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.
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