Strategic Review Directive
- Department Secretaries lead strategic reviews of all components under their supervision.
- Goals: Focus government on core services and improve service delivery by eliminating overlaps and inefficiencies.
Rationalization and Service Delivery Framework
- Aim to emphasize fundamental government functions.
- Transform bureaucracy into an efficient service institution.
- Ensure sustainability of services through resource mobilization and expenditure management.
Rationalization Plan Requirements
- Must align with the Department's strategic plan.
- Include identification of core and non-core functions.
- Detail policy shifts, scaling down, or abolition of redundant or non-performing functions.
- Identify areas for increased resource allocation.
- Present organizational and staffing changes.
- Specify budget implications and communication strategies.
Submission and Review of Rationalization Plan
- Plans submitted to the Department of Budget and Management (DBM) for review and then to the President.
- Non-compliance by Departments results in DBM submitting rationalization recommendations to the President.
Implementation Coordination and Timetable
- DBM and Civil Service Commission (CSC) coordinate implementation.
- They prepare a timetable including phased activities and incentives.
Restrictions on Hiring During Preparation
- No new hiring or contract renewal allowed during plan preparation, except for new agencies.
Options for Affected Personnel
- Option to remain in government service if permanently appointed.
- Temporary appointees may remain only up to contract expiration.
- Option to avail retirement/separation benefits.
Placement of Personnel Who Remain
- CSC will transfer affected personnel to agencies needing staff.
- Transferred positions co-terminus with incumbents.
- No pay diminution except loss of allowances tied to prior functions.
- Objections to reassignment treated as separation, with applicable benefits.
Retirement/Separation Benefits
- Eligible personnel may choose between options under various laws (RA 1616, RA 660, RA 8291).
- Additional incentives based on years of service (12 months salary/year for ≤20 years, 34 months/year for 21-30 years, 1 month/year for >30 years).
- Minimum total benefits not less than Php 50,000; maximum cap for exempt agencies set at Php 1,500,000.
GSIS Role and Premium Returns
- GSIS shall return government’s share of retirement premiums for personnel not qualified under RA 660 or RA 8291, with interest.
- GSIS directed to expedite reconciliation of records for timely benefit release.
Additional Benefits for Retired/Separated
- Refund of Pag-IBIG contributions.
- Commutation of unused leave credits per existing policies.
Abolition of Positions
- Each voluntary retirement/separation entails abolition of a funded position.
- Number of abolished positions not to be less than those taking retirement/separation.
Prohibition on Rehiring Retired/Separated Personnel
- Five-year ban on rehiring retirees in Executive Branch agencies, GOCCs, and GFIs except for educational institutions and hospitals.
- Constitutional Offices, Judicial and Legislative Branches may adopt the same policy.
Funding of Incentives
- National Government funds incentives for regular government agencies.
- GOCCs/GFIs use corporate funds; National Government may assist if needed.
Availability Period for Benefits
- Benefits availment based on implementation timetable by DBM and CSC.
Impact Mitigation and Support Measures
- Departments may seek assistance from agencies offering training and development programs for affected employees.
- Support for forming cooperatives/business enterprises for functions to be privatized.
Appeals Mechanism
- Appeals resolved according to RA 6656 provisions.
Implementation Rules
- DBM to issue guidelines including savings utilization restrictions.
- Savings not used for new positions or additional hiring.
Repealing Clause
- All conflicting executive orders, rules, or issuances are revoked or modified accordingly.
Effectivity
- Executive Order effective upon publication in a newspaper of general circulation.