Early Retirement and Separation Benefits Act

Applies to all appointive officials and employees of the National Government, including government-owned or controlled corporations with original charters.
Includes personnel of all local government units.
Covers regular, temporary, casual, and emergency employees regardless of age.
Must have rendered at least two (2) consecutive years of government service by separation date.
Excludes uniformed personnel of the Armed Forces of the Philippines and PC-INP.

Eligible employees who voluntarily elect retirement/separation receive benefits.
Benefits equal 1 1/4 month basic salary per year of government service, based on highest salary received.
Minimum benefit is Ten thousand pesos (P 10,000).
Those with reduced rank/salary due to administrative sanctions are paid based on last salary.

Return of Government Service Insurance System (GSIS) personal contributions with government share and interest.
Commutation of unused vacation and sick leaves.
Additional 10% benefit for retirees with 31 years or more of service on amounts from the 31st year onward.
Government agencies lacking funds may draw from the Act's appropriation for these benefits.

Retirees/separates under this Act cannot avail of other retirement or pension benefits under RA Nos. 1616, 4968, Commonwealth Act No. 186, or PD No. 1146.

Vacated positions due to retirement/separation shall be abolished unless service necessity is certified within 60 days.
Certification requires approval from appropriate heads (President, Chief Justice, Senate President, Speaker, or Commission Chairman).

Application acceptance is discretionary based on service necessity.
Heads include Secretaries, Governors, Mayors, Chief Justice, Senate President, Speaker, Constitutional Commission Chairman, or overall superiors.
Applications with pending administrative or grave criminal cases are held in abeyance pending final disposition.

Retired/separated officials cannot be re-employed in government for five (5) years unless benefits are refunded.
Reemployed personnel are treated as new entrants for GSIS coverage.
Vacated positions retained are filled by deserving employees from the same or other agencies.

Applications for benefits must be filed within two (2) months from promulgation of implementing rules.
Priority given to the most senior employees for payment of benefits.

Three billion pesos appropriated for national government employee benefits.
Government-owned/controlled corporations pay benefits from internal funds.
Local governments pay from their funds; they may access up to 25% of the national fund subject to conditions.
Savings from position abolishments are to be exclusively used for benefit payments.

Employees separated after 1987 Constitution ratification due to government reorganization are covered and entitled to incentives.

Officials compelling retirement/separation or violating the law face fines up to P1,000, imprisonment up to six months, or both.

To be issued within fifteen (15) days from the Act’s effectivity by DBM in consultation with CSC.
Required documents: approved application under oath, agency clearance, and simplified statement of assets by regular employees.
Benefits processing to be completed within fifteen (15) days of complete submission.

DBM and CSC to report to Congress within six (6) months on affected employees, positions, amount spent, and evaluation.

If any provision is declared invalid, the remainder of the Act remains effective.