Question & AnswerQ&A (EXECUTIVE ORDER NO. 966)
They apply to all officials and employees of the National Government who are claiming retirement benefits under Sections 11(b) and (c) and 12(c) of Commonwealth Act No. 186, as amended.
The Government Service Insurance System (GSIS) is responsible for accrediting the services subject to existing laws and the rules prescribed.
Creditable services include all previous services under permanent, provisional or temporary appointment; continuous last 3 years prior to retirement; authorized sick leave without pay (not exceeding one year); periods of illegal termination if later reversed; Japanese occupation period (1942-1945) if in service in 1941; active military service of reservists; and previously retired service if the employee refunded the money value of unexpired benefits.
Authorized vacation leave without pay (not exceeding one year); service interruptions due to office reorganization, abolition of position, or reduction in force (not exceeding one year), provided money value of unexpired benefits is refunded; and service without pay in international organizations or foreign governments under Philippine government agreement.
Non-creditable periods include contractual, emergency or casual status prior to voluntary resignation and prior to reemployment; voluntary service without compensation; separations by administrative decisions; periods after administrative separation until reemployment by executive clemency; dropped from rolls until reemployment; unauthorized leaves or extended authorized leaves beyond one year in one instance.
The GSIS shall compute retirement benefits based on the creditable service determined under the rules and the highest basic salary rate actually received by the employee from an employer.
It includes the highest basic salary rate fixed by law or indicated in the appointment, including salary adjustments by presidential issuances, budget circulars, additional basic compensation, merit increases, and compensation for substitutionary or acting services. It excludes per diems, allowances, bonuses, overtime pay, honoraria, hazard pay, consultancy or contractual fees, among others.
The Ministry of the Budget is responsible for disposition and allocation of funding requirements for retirement benefits, subject to existing laws and these rules.
Payment shall be made by the concerned National Government agencies out of appropriations provided in the General Appropriations Act and/or savings realized from their budgetary allotments.
Heads of ministries, bureaus, offices, and agencies must streamline their retirement systems so that processing of claims is done expeditiously, and gratuity is paid to retirees on the day they leave service or soon thereafter.
They took effect upon their approval on June 22, 1984.