Question & AnswerQ&A (DBM CIRCULAR LETTER NO. 99-4)
The amounts specifically appropriated for Terminal Leave and Retirement Gratuity benefits under each agency/department in the annual General Appropriations Act shall be withheld until certain documentary requirements are complied with, including the submission of a Special Budget Request supported by specific supporting documents as prescribed by the DBM Circular Letter No. 99-4.
The supporting documents include: (1) List of actual retirees with position titles, date of birth, original appointment, amount to be paid, effective retirement date, and current/savings account number; (2) GSIS approval for retirements under R.A. No. 660 or agency head approval for R.A. No. 1616; (3) Certified statement of leave credits for Terminal Leave by the agency Personnel Officer.
For uniformed personnel under the Department of Interior and Local Government, approval by the Agency Head is required; for military personnel, approval must come from the Office of the President.
Appropriations utilized during the first two months of the first quarter shall be classified under the "Not Needing Clearance" column of the Agency Budget Matrix (ABM) and are considered released, while the balance shall be classified under the "Needing Clearance" column.
The request for release must be made one (1) month before the retirement date of the concerned employee.
Yes, agencies may utilize any savings in their allotment for payment of these benefits, but such use is subject to approval by the Department of Budget and Management if it involves augmentation from another allotment class.
Additional requirements for TL/RG benefits shall be charged against the Miscellaneous Personnel Benefits Fund, and accompanied by a Statement of Allotment Obligations and Balances and a Monthly Trial Balance, in addition to the standard supporting documents.
Under the Direct Remittance Scheme, the NCA/ANCAI with the list of retirees and amounts is issued to the Government Servicing Bank/agency. The agency authorizes the debit of its MDS account, and the retiree’s savings or current account is credited within 24 hours after receipt of the debit advice. This scheme applies to pilot departments identified by the DBM.
The pilot departments are the Department of Agriculture, Department of Education, Culture and Sports, Department of Health, Department of National Defense, and Department of Public Works and Highways.
DBM issues the NCA/ANCAI with the list of retirees and amount to the agency. The agency then issues MDS checks to retirees listed. The GSB ensures names and amounts on the Advice of Checks Issued and Cancelled match those attached to the NCA issued by DBM.
All agencies under DBM-Regional Offices must submit their requests for issuance of SARO/NCA for TL/RG to the concerned DBM-Regional Office.
All provisions of existing issuances that are consistent with the provisions of this Circular Letter shall remain in force.
Cases not covered shall be referred to the DBM Secretary for resolution.
The guidelines took effect immediately upon their adoption on February 9, 1999.