DBM Guidelines on Terminal Leave and Retirement

Amounts specifically appropriated for TL and RG under each agency/department in the annual General Appropriations Act are withheld.
The release of the Special Allotment Release Order (SARO) pertinent to TL/RG is subject to submission of a Special Budget Request (SBR) (item 1.0).
The SBR must be supported by the requirements enumerated under items 1.1 to 1.3.

The SBR must include a list of actual retirees stating the following for each retiree: position title, date of birth, date of the original appointment, amount to be paid for each, and effective date of retirement (item 1.1).
The SBR must state each retiree’s respective current or savings account number opened/maintained with the same GSB as that of the agency (item 1.1).
The SBR must show GSIS approval for those retiring under R.A. No. 660 (item 1.2).
The SBR must show approval by the Department/Agency Head for those availing of retirement benefits under R.A. No. 1616 (item 1.2).
For uniformed personnel under the Department of Interior and Local Government, approval by the Agency Head is required, while for military personnel, approval should be by the Office of the President (item 1.2).
The SBR must include a statement of leave credits earned by the retiree for TL claims, certified by the agency Personnel Officer (item 1.3).

When TL/RG appropriations have been utilized during the first two (2) months of the 1st quarter of 1999, the amount corresponding to the utilized appropriation for the purpose must be classified under the “Not Needing Clearance” column of the Agency Budget Matrix (ABM) and is deemed released to the agency (item 2.0).
The remaining balance of those appropriations must be classified under the “Needing Clearance” column of the ABM (item 2.0).

DBM must schedule the release of SAROs and NCAs for TL/RG on a monthly basis (item 3.0).
Agencies must request the release of SARO/NCA for payment of TL/RG one (1) month before the retirement date of the concerned employees (item 3.0).

Agencies may utilize any savings in its allotment for payment of TL/RG subject to DBM approval if augmentation from another allotment class is involved (item 4.0).
If the agency’s built-in appropriation for TL/RG has been fully released/utilized, additional requirements must be charged against the Miscellaneous Personnel Benefits Fund (item 5.0).

For charges to the Miscellaneous Personnel Benefits Fund, agencies must attach supporting documents in addition to those required under items 1.1 to 1.3 (item 5.0).
The attached documents must include a Statement Allotment Obligations and Balances as of the month preceding the request (item 5.1).
The attached documents must include a Monthly Trial Balance dated the same as the above month (item 5.2).

In general, the NCA for TL/RG must always be equivalent to the SARO issued (item 6.0).
If the requirements for TL/RG are charged against available savings, the corresponding NCA must be equivalent to the actual amount required for payment of TL/RG (item 6.0).

The NCA issued for TL/RG must be specific to the intended retirees and cannot be used to pay the agency’s other requirements (item 7.0).
Upon release, the NCA must be credited by the Government Servicing Bank (GSB) to the special MDS account maintained for payment of Accounts Payable (item 7.0).

There are two payment schemes for TL/RG: Direct Remittance Scheme and Payment of retirees through MDS checks (item 8.0).

The Direct Remittance Scheme applies to the same pilot departments identified under the A/P direct payment scheme, namely: Department of Agriculture, Department of Education, Culture and Sports, Department of Health, Department of National Defense, and Department of Public Works and Highways (item 8.1).
Under this scheme, DBM issues the NCA/Advice of NCA issued (ANCAI) together with the list of retirees to be paid and the amount due each, to the GSB/concerned agency (item 8.1.1).
The agency must authorize the GSB to debit the agency’s MDS account using the Advice to Debit Account (ADA) form within twenty-four (24) hours from receipt of the ANCAI when the ANCAI is received by the agency after the effective retirement date of certain claimants (item 8.1.2).
Otherwise, the ADA must be issued on the actual retirement date of the retiree (item 8.1.2).
The GSB must credit the retiree’s savings or current account within twenty-four (24) hours after receipt of the ADA (item 8.1.3).
The GSB must ensure the agency’s list of retirees to be paid and the amounts reflected for each are consistent with the list attached to the NCA issued by DBM (item 8.1.4).

Under this system, DBM issues the NCA/ANCAI, together with the list of retirees to be paid and the amount due each retiree, to the GSB/concerned agency (item 8.2.1).
The agency must issue MDS checks to the retirees included in the DBM-attached list under the NCA issued (item 8.2.2).
The GSB must ensure that the name of the retirees and the amount to be paid shown in the Advice of Checks Issued and Cancelled (ACIC) are consistent with the retiree list attached to the NCA issued by DBM (item 8.2.3).

Agencies under the coverage of DBM-Regional Offices (ROs) must submit requests for issuance of SARO/NCA for TL/RG to the DBM-RO concerned (item 9.0).
Cases not covered by the Circular Letter must be referred to the DBM Secretary for resolution (item 11.0).

All provisions of existing issuances that are consistent with the Circular Letter remain in force (item 10.0).