MALACAÑANG
ManilaBY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 421 April 13, 2005
IMPLEMENTING THE REFOCUSING OF FUNCTIONS AND ORGANIZATIONAL STRUCTURE OF THE LOCAL WATER UTILITIES ADMINISTRATION UNDER EO 279 AND PROVIDING OPTIONS AND BENEFITS FOR EMPLOYEES WHO MAY BE AFFECTED THEREON
WHEREAS, it is the policy of the government to adopt institutional reforms and effect functional, operational and organizational adjustments in the bureaucracy to continuously improve the quality and efficiency of public service delivery and transform it into an efficient and results-oriented structure;
WHEREAS, Executive Order (EO) 279 provides for the rationalization of LWU’s organizational structure and refocusing its objectives to fully implement the reforms in the financing policies in the water supply and sewerage sector and water service providers;
WHEREAS, Section 79 of the General Provisions of RA 9336 (General Appropriations Act of 2005) mandates, among others, the adoption of institutional strengthening measures to improve service delivery and enhance productivity; identification of areas where improvement are necessary; and implementation of corresponding structure, functional and operational adjustments that will result...
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Executive Orders
Implementing the Refocusing of Functions and Organizational Structure of the Local Water Utilities Administration Under EO 279 and providing options and benefits for employees who may be affected thereon
Executive Order No. 421
REFOCUSING OF FUNCTIONS AND ORGANIZATIONAL STRUCTURE OF THE LOCAL WATER UTILITIES ADMINISTRATION (LWUA)
• Core Functions (Section 1):
- Provide institutional development services.
- Strengthen lending practices and policies for granting financial assistance to water districts (WDs) and water service providers (WSPs).
- Extend technical assistance to WDs/WSPs.
• Policy Directions and Strategies (Section 2):
- Improve investor's confidence in the water supply and sewerage sector. (2a)
- Rationalize allocation of financial resources through classification and graduation initiatives. (2b)
- Expand freedom of choice for WSPs in sourcing funding requirements. (2c)
- Increase participation of LGUs, GFIs, and PFIs in financing the water supply and sewerage sector. (2d)
- Stimulate improved service and financial self-sustainability for WSPs. (2e)
- Encourage initiatives for self-sufficiency of WSPs, including amalgamation, private sector participation, cost recovery tariffs, and resource pooling. (2f)
- Grant initiatives for improvement and graduation of WSPs. (2g)
- Educate consumers to treat water as a scarce economic good. (2h)
• Organizational Structure (Section 3):
- Board of Trustees: Formulate policy direction, composed of a Chairman and four members, with at least three from the National Government, including a representative from the Department of Finance (DOF). (3.1)
- LWUA Administrator: Appointed by the President, serves as the chief executive officer. (3.2)
- Deputy Administrators for four major groups: Water Development Group (WDG) for Luzon, WDG for Visayas/Mindanao, Water Financier Group, and Administrative Service Group. (3.3)
- Abolition of the Office of the Senior Deputy Administrator. (3.4)
• Staffing Pattern (Section 4):
- To be submitted to the Department of Budget and Management (DBM) for review and approval within 30 days.
- LWUA has flexibility to make changes, subject to DBM approval.
• Options for Affected Personnel (Section 5):
- Remain in government service, with tenure guaranteed up to the expiration of their appointment. (5.1)
- Avail of retirement/separation benefits. (5.2)
• Personnel Remaining in Government Service (Section 6):
- Placed by the Civil Service Commission (CSC) in other agencies where additional personnel are required, or transferred to CSC until a match is found. (6a, 6b)
- If they object to the new job assignment without justifiable reasons, they will be deemed separated/retired and paid appropriate benefits. (6)
• Benefits for Personnel Opting to Retire or Separate (Section 7):
- Retirement gratuity under RA 1616, plus refund of retirement premiums from GSIS, without incentives. (7.1)
- Retirement benefit under RA 660 or RA 8291, if qualified, plus incentives based on years of service:
- 1/2 month of basic salary for every year of service, for 20 years or less. (7.2.1)
- 3/4 month of basic salary for every year of service, for 21-30 years. (7.2.2)
- 1 month of basic salary for every year of service, for more than 30 years. (7.2.3)
- Minimum aggregate amount of P50,000 as retirement/separation gratuity benefit. (7.3)
• Return of Government's Share in Retirement Premiums (Section 8):
- GSIS shall return the government's share in retirement premiums, with interest, for employees who cannot avail of RA 660 or RA 8291.
• Other Benefits for Retired/Separated Personnel (Section 9):
- Refund of Pag-IBIG contributions. (9.1)
- Commutation of unused vacation and sick leave credits, and monetization of accumulated compensatory time-off credits. (9.2)
• Resulting Staffing Pattern and Personnel (Section 10):
- LWUA Management shall draw up the deployment of personnel to the new organization with utmost care, subject to Civil Service rules and regulations.
- Ensure implementation of appropriate personnel action on affected employees.
• Transition Plan (Section 11):
- LWUA Management shall prepare and implement a step-by-step action plan for the transition from the old structure to the new organization.
- Closely supervise and properly document turnover of responsibilities and accountabilities.
• Funding (Section 12):
- Funds needed for implementation and payment of separation/retirement benefits not covered by GSIS shall be taken from available LWUA corporate funds.
- In case of funding deficiency, the National Government may provide assistance in paying incentives, subject to accounting and auditing rules.
• Effectivity of Retirement/Separation Package (Section 13):
- Available up to two months after DBM approval of LWUA staffing pattern, with possible extension in exceptional circumstances.
- Affected employees who opted for the package shall not be included in the selection and placement process, but shall not be considered retired/separated until actual receipt of benefits.
• Prohibition on Rehiring (Section 14):
- Personnel who retired/separated shall not be appointed or hired in any agency of the Executive Branch, except in educational institutions and hospitals, within five years.
- Reemployment in any other Branch of Government shall be considered as new entry to the civil service.
• Repealing Clause (Section 15):
- All issuances, orders, rules and regulations inconsistent with this Executive Order are revoked, amended, or modified accordingly.
• Effectivity (Section 16):
- This Executive Order shall take effect immediately.
• Core Functions (Section 1):
- Provide institutional development services.
- Strengthen lending practices and policies for granting financial assistance to water districts (WDs) and water service providers (WSPs).
- Extend technical assistance to WDs/WSPs.
• Policy Directions and Strategies (Section 2):
- Improve investor's confidence in the water supply and sewerage sector. (2a)
- Rationalize allocation of financial resources through classification and graduation initiatives. (2b)
- Expand freedom of choice for WSPs in sourcing funding requirements. (2c)
- Increase participation of LGUs, GFIs, and PFIs in financing the water supply and sewerage sector. (2d)
- Stimulate improved service and financial self-sustainability for WSPs. (2e)
- Encourage initiatives for self-sufficiency of WSPs, including amalgamation, private sector participation, cost recovery tariffs, and resource pooling. (2f)
- Grant initiatives for improvement and graduation of WSPs. (2g)
- Educate consumers to treat water as a scarce economic good. (2h)
• Organizational Structure (Section 3):
- Board of Trustees: Formulate policy direction, composed of a Chairman and four members, with at least three from the National Government, including a representative from the Department of Finance (DOF). (3.1)
- LWUA Administrator: Appointed by the President, serves as the chief executive officer. (3.2)
- Deputy Administrators for four major groups: Water Development Group (WDG) for Luzon, WDG for Visayas/Mindanao, Water Financier Group, and Administrative Service Group. (3.3)
- Abolition of the Office of the Senior Deputy Administrator. (3.4)
• Staffing Pattern (Section 4):
- To be submitted to the Department of Budget and Management (DBM) for review and approval within 30 days.
- LWUA has flexibility to make changes, subject to DBM approval.
• Options for Affected Personnel (Section 5):
- Remain in government service, with tenure guaranteed up to the expiration of their appointment. (5.1)
- Avail of retirement/separation benefits. (5.2)
• Personnel Remaining in Government Service (Section 6):
- Placed by the Civil Service Commission (CSC) in other agencies where additional personnel are required, or transferred to CSC until a match is found. (6a, 6b)
- If they object to the new job assignment without justifiable reasons, they will be deemed separated/retired and paid appropriate benefits. (6)
• Benefits for Personnel Opting to Retire or Separate (Section 7):
- Retirement gratuity under RA 1616, plus refund of retirement premiums from GSIS, without incentives. (7.1)
- Retirement benefit under RA 660 or RA 8291, if qualified, plus incentives based on years of service:
- 1/2 month of basic salary for every year of service, for 20 years or less. (7.2.1)
- 3/4 month of basic salary for every year of service, for 21-30 years. (7.2.2)
- 1 month of basic salary for every year of service, for more than 30 years. (7.2.3)
- Minimum aggregate amount of P50,000 as retirement/separation gratuity benefit. (7.3)
• Return of Government's Share in Retirement Premiums (Section 8):
- GSIS shall return the government's share in retirement premiums, with interest, for employees who cannot avail of RA 660 or RA 8291.
• Other Benefits for Retired/Separated Personnel (Section 9):
- Refund of Pag-IBIG contributions. (9.1)
- Commutation of unused vacation and sick leave credits, and monetization of accumulated compensatory time-off credits. (9.2)
• Resulting Staffing Pattern and Personnel (Section 10):
- LWUA Management shall draw up the deployment of personnel to the new organization with utmost care, subject to Civil Service rules and regulations.
- Ensure implementation of appropriate personnel action on affected employees.
• Transition Plan (Section 11):
- LWUA Management shall prepare and implement a step-by-step action plan for the transition from the old structure to the new organization.
- Closely supervise and properly document turnover of responsibilities and accountabilities.
• Funding (Section 12):
- Funds needed for implementation and payment of separation/retirement benefits not covered by GSIS shall be taken from available LWUA corporate funds.
- In case of funding deficiency, the National Government may provide assistance in paying incentives, subject to accounting and auditing rules.
• Effectivity of Retirement/Separation Package (Section 13):
- Available up to two months after DBM approval of LWUA staffing pattern, with possible extension in exceptional circumstances.
- Affected employees who opted for the package shall not be included in the selection and placement process, but shall not be considered retired/separated until actual receipt of benefits.
• Prohibition on Rehiring (Section 14):
- Personnel who retired/separated shall not be appointed or hired in any agency of the Executive Branch, except in educational institutions and hospitals, within five years.
- Reemployment in any other Branch of Government shall be considered as new entry to the civil service.
• Repealing Clause (Section 15):
- All issuances, orders, rules and regulations inconsistent with this Executive Order are revoked, amended, or modified accordingly.
• Effectivity (Section 16):
- This Executive Order shall take effect immediately.