Utilization and Classification of Appropriations
- Appropriations utilized during the first two months of the first quarter of 1999 are considered automatically released to the agency and classified as "Not Needing Clearance" in the Agency Budget Matrix (ABM).
- Remaining appropriations are classified as "Needing Clearance" requiring further approval.
Scheduling and Timing for SARO and NCA Release
- The Department of Budget and Management (DBM) schedules SARO and Notice of Cash Allocation (NCA) releases on a monthly basis.
- Requests for SARO/NCA should be made at least one month before the retiree’s effective retirement date.
Use of Savings and Augmentation
- Agencies may use savings from their appropriations for TL/RG payments subject to DBM approval, especially in cases involving augmentation from other allotment classes.
Handling of Exhausted Appropriations
- If agency appropriations for TL/RG are fully utilized, additional payments shall be charged to the Miscellaneous Personnel Benefits Fund.
- Additional supporting documents must include Statements of Allotment, Obligations, and Balances, and Monthly Trial Balances.
Equivalence of NCA to SARO
- Generally, the NCA issued for TL/RG equals the amount of SARO.
- When charging savings, the NCA issued matches the actual amount required for payment.
Purpose and Restriction on Use of NCA for TL/RG
- NCA issued for TL/RG are assigned specifically to pay the retirees listed and cannot be used for other agency expenses.
- Released NCAs are credited by the Government Servicing Bank (GSB) to a special MDS account dedicated for Accounts Payable.
Payment Schemes for TL/RG Benefits
- Two methods for disbursing TL/RG:
- Direct Remittance Scheme: Applied initially to specified pilot departments.
- DBM issues NCA/ANCAI and list of retirees to GSB/agency.
- Agency authorizes GSB to debit MDS account within 24 hours after receipt.
- Retirees’ savings or current accounts are credited within 24 hours.
- GSB ensures consistency between payment lists and DBM-issued NCAs.
- Payment via MDS Checks:
- Similar issuance of NCA/ANCAI and retiree list by DBM.
- Agency issues MDS checks to retirees.
- GSB verifies consistency of retirees’ names and amounts with DBM lists.
- Direct Remittance Scheme: Applied initially to specified pilot departments.
Submission Process Through DBM Regional Offices
- Agencies covered by DBM Regional Offices (ROs) must submit SARO/NCA requests for TL/RG through the respective DBM-RO.
Continuity of Consistent Existing Issuances
- Existing regulations consistent with this circular shall remain effective.
Resolution of Uncovered Cases
- Cases not addressed by this circular shall be referred to the DBM Secretary for resolution.
Immediate Effectivity
- The guidelines take effect immediately as of February 9, 1999.