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...
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Executive Orders
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
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
• Applicability (Section 1):
- These rules apply to all officials/employees of the National Government claiming retirement benefits under Sections 11(b) and (c) and 12(c) of Commonwealth Act No. 186, as amended.
• Basic Requirements (Section 2):
- To be entitled to retirement benefits, the retiring official/employee must have:
- Rendered creditable services
- Met all other requirements provided in the retirement law under which they opted to retire
- Met the rules prescribed in this Executive Order
• Crediting Agency (Section 3):
- The Government Service Insurance System (GSIS) is responsible for accrediting the services of retiring officials/employees, subject to existing laws and these rules.
- GSIS may promulgate additional rules for accrediting services, not inconsistent with existing retirement law and these rules.
• Creditable Service (Section 4):
- The following shall be considered creditable services:
- All previous services rendered pursuant to an appointment, whether permanent, provisional, or temporary (Section 4a)
- All previous services rendered pursuant to a duly approved appointment with compensation, provided the last three (3) years prior to retirement are continuous (Section 4b)
- The period of authorized sick leave without pay, not exceeding one year in a single instance (Section 4c)
- The period of illegal termination of services, as finally decided by the proper authorities (Section 4d)
- The period of Japanese occupation from January 1, 1942, to February 26, 1945, even if out of service at the outbreak of World War II, as proved by Certification of Indebtedness (Section 4e)
- The period of active service in the military for reserve officers and enlisted men who were honorably discharged without receiving benefits under RA 340, as amended (Section 4f)
- The period of service for which retirement benefits were previously availed, provided the official/employee has fully refunded the money value of the unexpired portion (Section 4g)
• Continuity of Service (Section 6):
- The following shall not interrupt the continuity of service, provided no money value is given in computing retirement benefits:
- The period of authorized vacation leave without pay, not exceeding one year in a single instance (Section 6a)
- The period out of service due to reorganization, abolition of position, or reduction in force, not exceeding one year, provided the official/employee has refunded the money value of unexpired benefits received, if any (Section 6b)
- The period in the service of an international organization or foreign government in compliance with a Philippine government commitment, provided the period without pay from the Philippine government and the salary received from the foreign entity are not credited in computing retirement benefits (Section 6c)
• Non-creditable Periods (Section 7):
- The following periods shall not be credited for any purpose:
- Previous services rendered on contractual, emergency, or casual status prior to and including the period from voluntary resignation up to reemployment (Section 7a)
- Services rendered voluntarily without basic compensation (Section 7b)
- Services considered resigned or separated pursuant to a decision in an administrative case (Section 7c)
- The period from separation due to an administrative case decision up to reemployment pursuant to executive clemency (Section 7d)
- The period from being dropped from the rolls up to reemployment (Section 7e)
- The period of unauthorized leave or in excess of the allowable one-year leave without pay (Section 7f)
• Computation of Retirement Benefits (Section 8):
- GSIS is solely responsible for computing retirement benefits based on creditable service determined per these rules and the highest basic salary rate received by the official/employee.
• Highest Basic Salary Rate (Section 9):
- The compensation used in computing retirement benefits is limited to the highest basic salary rate actually received, including salary adjustments, additional basic compensation, merit increases, and compensation for substitutionary or acting services.
- Other compensations and fringe benefits like per diems, allowances, bonuses, overtime pay, honoraria, hazard pay, flying time fees, consultancy fees, or fees for correcting/releasing examination papers shall not be considered.
• Funds Disposition and Allocation (Section 10):
- The Ministry of the Budget is responsible for the disposition and allocation of funding requirements for retirement benefits.
- Applications with previous computations/authorizations not conforming to these rules, for which the Ministry of the Budget has made deductions or suspended payments, shall be referred to the Civil Service Commission for determination of creditable services.
• Sources of Funds (Section 11):
- Payment of retirement benefits shall be made by the concerned National Government agencies from their appropriations provided for this purpose in the General Appropriations Act and/or from their budgetary allotment savings.
- Memorandum Circular No. 133 dated October 16, 1967, of the Office of the President shall remain in full force and effect.
• Expeditious Payment of Retirement Benefits (Section 12):
- Heads of Ministries, bureaus, offices, and agencies of the National Government shall streamline their retirement systems to ensure expeditious processing of retirement claims and payment of gratuity to the retiree on the day they leave the service or soon thereafter.
• Effectivity (Section 13):
- These rules shall take effect upon approval.
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
• Applicability (Section 1):
- These rules apply to all officials/employees of the National Government claiming retirement benefits under Sections 11(b) and (c) and 12(c) of Commonwealth Act No. 186, as amended.
• Basic Requirements (Section 2):
- To be entitled to retirement benefits, the retiring official/employee must have:
- Rendered creditable services
- Met all other requirements provided in the retirement law under which they opted to retire
- Met the rules prescribed in this Executive Order
• Crediting Agency (Section 3):
- The Government Service Insurance System (GSIS) is responsible for accrediting the services of retiring officials/employees, subject to existing laws and these rules.
- GSIS may promulgate additional rules for accrediting services, not inconsistent with existing retirement law and these rules.
• Creditable Service (Section 4):
- The following shall be considered creditable services:
- All previous services rendered pursuant to an appointment, whether permanent, provisional, or temporary (Section 4a)
- All previous services rendered pursuant to a duly approved appointment with compensation, provided the last three (3) years prior to retirement are continuous (Section 4b)
- The period of authorized sick leave without pay, not exceeding one year in a single instance (Section 4c)
- The period of illegal termination of services, as finally decided by the proper authorities (Section 4d)
- The period of Japanese occupation from January 1, 1942, to February 26, 1945, even if out of service at the outbreak of World War II, as proved by Certification of Indebtedness (Section 4e)
- The period of active service in the military for reserve officers and enlisted men who were honorably discharged without receiving benefits under RA 340, as amended (Section 4f)
- The period of service for which retirement benefits were previously availed, provided the official/employee has fully refunded the money value of the unexpired portion (Section 4g)
• Continuity of Service (Section 6):
- The following shall not interrupt the continuity of service, provided no money value is given in computing retirement benefits:
- The period of authorized vacation leave without pay, not exceeding one year in a single instance (Section 6a)
- The period out of service due to reorganization, abolition of position, or reduction in force, not exceeding one year, provided the official/employee has refunded the money value of unexpired benefits received, if any (Section 6b)
- The period in the service of an international organization or foreign government in compliance with a Philippine government commitment, provided the period without pay from the Philippine government and the salary received from the foreign entity are not credited in computing retirement benefits (Section 6c)
• Non-creditable Periods (Section 7):
- The following periods shall not be credited for any purpose:
- Previous services rendered on contractual, emergency, or casual status prior to and including the period from voluntary resignation up to reemployment (Section 7a)
- Services rendered voluntarily without basic compensation (Section 7b)
- Services considered resigned or separated pursuant to a decision in an administrative case (Section 7c)
- The period from separation due to an administrative case decision up to reemployment pursuant to executive clemency (Section 7d)
- The period from being dropped from the rolls up to reemployment (Section 7e)
- The period of unauthorized leave or in excess of the allowable one-year leave without pay (Section 7f)
• Computation of Retirement Benefits (Section 8):
- GSIS is solely responsible for computing retirement benefits based on creditable service determined per these rules and the highest basic salary rate received by the official/employee.
• Highest Basic Salary Rate (Section 9):
- The compensation used in computing retirement benefits is limited to the highest basic salary rate actually received, including salary adjustments, additional basic compensation, merit increases, and compensation for substitutionary or acting services.
- Other compensations and fringe benefits like per diems, allowances, bonuses, overtime pay, honoraria, hazard pay, flying time fees, consultancy fees, or fees for correcting/releasing examination papers shall not be considered.
• Funds Disposition and Allocation (Section 10):
- The Ministry of the Budget is responsible for the disposition and allocation of funding requirements for retirement benefits.
- Applications with previous computations/authorizations not conforming to these rules, for which the Ministry of the Budget has made deductions or suspended payments, shall be referred to the Civil Service Commission for determination of creditable services.
• Sources of Funds (Section 11):
- Payment of retirement benefits shall be made by the concerned National Government agencies from their appropriations provided for this purpose in the General Appropriations Act and/or from their budgetary allotment savings.
- Memorandum Circular No. 133 dated October 16, 1967, of the Office of the President shall remain in full force and effect.
• Expeditious Payment of Retirement Benefits (Section 12):
- Heads of Ministries, bureaus, offices, and agencies of the National Government shall streamline their retirement systems to ensure expeditious processing of retirement claims and payment of gratuity to the retiree on the day they leave the service or soon thereafter.
• Effectivity (Section 13):
- These rules shall take effect upon approval.