Question & AnswerQ&A (EXECUTIVE ORDER NO. 77)
The main purpose of Executive Order No. 77, series of 2012 is to amend Executive Order No. 637 (s. 2007) by revising the basis for computing retirement/separation/unemployment incentives for personnel affected by the implementation of the Rationalization Program under EO No. 366 (s. 2004), using the actual monthly salary as of December 31, 2011.
Personnel affected by EO No. 366 have three options: (a) remain in their mother agency if their skills are still needed; (b) be redeployed to other agencies needing additional personnel without salary reduction; or (c) retire or separate with applicable incentives.
Incentives are computed using the actual monthly salary of the affected personnel as of December 31, 2011. The incentive factors under EO No. 366 continue to be adopted, and only government service up to age 59 and a fraction thereof is counted.
Their incentives will be based on their actual monthly salary as of their date of retirement, subject to recomputation by their agency and validation by the Department of Budget and Management, following existing budgeting, accounting, and auditing rules.
Yes. For at least five years, agencies with approved Rationalization Plans are not allowed to create additional regular positions except for those created under the scrap and build policy with no additional government cost, population-related positions like policemen and teachers, and positions for mandated new functions not absorbable by existing units as determined by DBM.
The National Government shall provide funding for incentives of affected employees in regular government agencies, chargeable to appropriate funds as determined by DBM. For GOCCs/GFIs, funding shall come from their corporate funds, with Government assistance possible in case of funding deficiency.
They are responsible for strictly implementing the provisions of the Order. They will be held accountable and liable for any expenses incurred by the government resulting from non-compliance or violations of the guidelines in the Order.
EO No. 77 took effect upon its publication in the Official Gazette or a newspaper of general circulation.
The retirement/separation benefits and incentives are based on Republic Act No. 660 (the GSIS Law) and Republic Act No. 8291 (the Government Service Retirement Law).
Using the actual monthly salary as of December 31, 2011, reflects the increases given to government workers starting from 2007 pursuant to various Executive Orders and resolutions, thereby providing a more just and updated basis for calculating incentives for personnel affected by the Rationalization Program.