QuestionsQuestions (MMDA Resolution NO. 13-10)
To adopt a uniform, streamlined, and expeditious procedure in processing, approval, and payment of retirement claims of national government officials and employees, addressing confusion in accreditation of services and computation/payment of retirement benefits.
All officials/employees of the National Government claiming retirement benefits under Sections 11(b) and (c) and Section 12(c) of Commonwealth Act No. 186, as amended.
The retiring official/employee must have rendered creditable services and must have met all other requirements provided in the retirement law under which he opted to retire, and under the rules in the EO.
The Government Service Insurance System (GSIS), subject to existing laws and the EO’s rules.
Examples include: (1) previous services pursuant to an appointment (permanent/provisional/temporary); (2) services pursuant to a duly approved civil service appointment with continuous last three (3) years (with certain waivers); (3) authorized sick leave without pay not exceeding one year in a single instance; (4) service out due to illegal termination finally decided by proper authorities; and others under Section 4.
The last three (3) years prior to retirement must be continuous; the continuity requirement may be waived if the employee, prior to completing three (3) years, was separated due to abolition of position, reorganization with phasing out, or reduction in force.
It may be credited but must not exceed one year in a single instance.
The period of Japanese occupation from January 1, 1942 to February 26, 1945 may be credited even if actually out of service, provided the employee was in service at the outbreak of WWII in the Pacific (Dec. 8, 1941). Proof is by a Certification of Indebtedness duly acknowledged by the Treasurer of the Philippines pursuant to RA 340, as amended.
Yes, the period of prior service previously availed of retirement benefits may be considered creditable, provided the retiree fully refunds the money value of the unexpired portion of retirement benefits he previously received.
Continuity rules address whether certain absences interrupt continuity for retirement purposes, but without giving money value in computation. Non-creditable periods are expressly excluded and cannot be given credit for any purpose under the EO.
Examples: (1) authorized vacation leave without pay not exceeding one year in a single instance; (2) out of service due to reorganization/abolition/reduction in force, not exceeding one year from separation to date prior to reemployment, with refund of the unexpired portion if benefits were received; (3) service in an international organization/foreign government in compliance with international commitment, with the condition that the period without pay from the Philippines and salary received from the foreign/international entity is not credited for money value.
Examples include: services rendered on contractual/emergency/casual status prior to and including voluntary resignation period up to reemployment; services rendered voluntarily without basic compensation; separation due to administrative case decision; and periods of unauthorized leave or leave in excess of allowable one-year without pay, among others.
The EO excludes: (1) services rendered by an employee considered resigned or separated pursuant to an administrative case decision; (2) the period from separation due to an administrative case up to date prior to reemployment after presidential executive clemency; and (3) the period dropped from the rolls up to prior reemployment.
The GSIS (Government Service Insurance System), based on creditable service per the rules and the highest basic salary rate received by the official/employee from an employer(s), subject to existing laws and the EO.
It is limited to the highest basic salary rate actually received as fixed by law/indicated in approved appointment, including certain authorized salary adjustments and merit increases, but excluding other compensation/fringe benefits such as allowances, bonuses, overtime pay, hazard pay, honoraria, per diems, and similar items.
The Ministry of the Budget.
They are referred to the Civil Service Commission for determination of creditable services, especially where the Ministry of the Budget has made deductions from or suspended payment of retirement benefits.
Payment shall be made by agencies of the national government taken out of their appropriations in the General Appropriations Act and/or from savings realized out of their budgetary allotments; Memorandum Circular No. 133 (Oct. 16, 1967, Office of the President) remains in force.
Heads of ministries/bureaus/offices/agencies must streamline their retirement systems so that retirement claims are processed expeditiously and the gratuity is paid to the retiree on the day he leaves service or soon thereafter.