Amending Executive Order (EO) No. 637 (S. 2007), On The Basis Of The Computation Of The Incentives Of Personnel Affected By The Implementation Of The Rationalization Program Under Eo No. 366 (S. 2004)

Case Overview and Summary

Summary of Executive Order No. 77

Amending the Computation of Incentives for Personnel Affected by the Rationalization Program

- Rationalization Program (RP) aims to transform the Executive Branch into a more effective and efficient government by removing redundancies, overlaps, and duplication. (Section 1)
- Personnel affected by the RP have the option to: (a) remain in their mother agency, (b) be redeployed to other agencies without salary reduction, or (c) retire/separate with applicable incentives. (Section 1)
- Incentives for personnel who avail of retirement/separation/unemployment benefits starting July 1, 2007, shall be computed using their actual monthly salary as of December 31, 2011. (Section 1)
- The incentive factors under EO No. 366 shall be continuously adopted, and only government service up to age 59 shall be counted. (Section 1)
- Terminal leave benefits and retirement/separation/unemployment benefits shall be based on existing rules and regulations. (Section 1)
- Personnel affected by the approved RP who opted to remain in their agency or transfer to another agency can avail of the retirement/separation/unemployment benefits within one month from the effectivity of this Order, with incentives computed based on their salary as of December 31, 2011. (Section 2)
- Incentives for personnel who retired/separated starting July 1, 2007, but before this Order, shall be based on their actual monthly salary at the date of retirement, subject to recomputation and validation by the DBM. (Section 3)
- Agencies with approved RP shall not be allowed additional regular positions for at least five years, except for: (a) "scrap and build policy" with no additional cost, (b) population-related items, and (c) mandated new functions as determined by the DBM. (Section 4)
- Funds for incentives of affected employees in regular government agencies shall be provided by the National Government, while incentives for GOCCs/GFIs shall be sourced from their respective corporate funds. (Section 5)
- Department Secretaries and Agency Heads are responsible for strictly implementing this Order, and any violation shall hold the authorizing official responsible for expenses incurred. (Section 6)
- All other issuances inconsistent with this Order are repealed or modified accordingly. (Section 7)
- This Order shall take effect upon publication in the Official Gazette or a newspaper of general circulation. (Section 8)