Policy, Purpose, and Need for Uniformity
- The retirement framework requires measures to promote morale and the highest degree of responsibility, integrity, loyalty and efficiency among government officials and employees.
- Retirement laws had been enacted to recognize faithful and dedicated government service.
- Proliferation of retirement laws created confusion in implementation, particularly in accreditation of services and the computation and payment of retirement benefits.
- A uniform and standardized procedure is required to streamline the processing, approval, and payment of retirement claims.
- The system must ensure retiring officials and employees receive retirement benefits without delay.
- Heads of government offices must streamline existing retirement systems so that processing is expeditious and the gratuity is paid on the day the retiree leaves service or soon thereafter.
Coverage: Who the Rules Cover
- Section 1 applies to all officials/employees of the National Government who are claiming retirement benefits under Sections 11(b) and (c) and 12(c) of Commonwealth Act No. 186, as amended.
- The Government Service Insurance System’s roles in accreditation and computation cover retiring officials/employees under retirement laws within this applicability.
Basic Entitlement and Creditable Service
- Section 2 requires that a retiring official/employee must have rendered creditable services and must have met all other requirements under the retirement law under which the person opted to retire.
- Section 3 designates the Government Service Insurance System (GSIS) as the entity responsible for accrediting retiring officials’ and employees’ services, subject to existing laws and these rules.
- Section 3 authorizes the GSIS to promulgate additional accrediting rules that are not inconsistent with existing retirement law and these rules.
Rules on Crediting Prior Service
- Section 4 provides that the following shall be considered creditable services, subject to existing laws and these rules:
- (a) All previous services rendered pursuant to an appointment whether permanent, provisional or temporary.
- (b) Previous services rendered pursuant to a duly approved appointment to a Civil Service position with compensation or salary or pay, provided that the last three (3) years prior to retirement shall be continuous.
- (b) The three (3) years continuous service requirement may be waived if, prior to completion of the three (3) years, the official/employee was separated due to abolition of position, reorganization of the office where the person was phased out, or reduction in force.
- (c) Period on an authorized sick leave of absence without pay, not exceeding one year in a single instance.
- (d) Period out of service due to illegal termination, as finally decided by the proper authorities.
- (e) Japanese occupation period from January 1, 1942 to February 26, 1945, even if the official/employee was actually out of service during that period, provided the person was in service at the outbreak of World War II in the Pacific on December 8, 1941; proof is by a Certification of Indebtedness duly acknowledged by the Treasurer of the Philippines pursuant to RA 340, as amended.
- (f) Period of active military service of reserve officers and enlisted men not integrated into the regular force of the Armed Forces of the Philippines, who were honorably discharged or separated without receiving benefits under RA 340, as amended, or other retirement laws for military personnel, as duly certified by the AFP.
- (g) Period of service for which retirement benefits were previously availed, provided the official/employee has fully refunded the money value of the unexpired portion of previously received retirement benefits.
Service Continuity and Non-Creditable Periods
- Section 6 provides that certain events do not interrupt continuity of Civil Service employment, subject to existing laws and these rules.
- Section 6 requires that no money value shall be given for purposes of retirement benefit computation to periods protected by continuity rules.
- Section 6 non-interruption rules apply to:
- (a) Authorized vacation leave of absence without pay, not exceeding one year in a single instance.
- (b) Period out of service due to reorganization, abolition of position, or reduction in force, not exceeding one year from separation date to the day prior to reemployment, and provided the official/employee refunded the money value of the unexpired portion of benefits received, if any.
- (c) Service in an international organization and/or foreign government in compliance with an international commitment of the Philippine government; however, the period without pay from the Philippine government and the salary received from the foreign beneficiary are not credited in computing the money value of retirement benefit.
- Section 7 provides that certain periods shall not be given credit for any purpose under these rules:
- (a) Previous contractual, emergency, or casual services prior to and including the period from voluntary resignation to the day prior to reemployment.
- (b) Services rendered voluntarily without basic compensation.
- (c) Services rendered by an official/employee considered resigned or separated pursuant to an administrative case decision.
- (d) The period from separation due to an administrative case decision to the day prior to reemployment granted by executive clemency by the President.
- (e) The period from being dropped from the rolls under Civil Service Rules and regulations to the day prior to reemployment.
- (f) Unauthorized leave of absence, or the part in excess of the allowable one year leave of absence without pay taken in a single instance, though authorized.
Retirement Computation and Salary Limits
- Section 8 designates the GSIS as solely responsible for the computation of retirement benefits due, using:
- creditable service as determined under these rules; and
- the highest basic salary rate received by the official/employee from an employer/s.
- Section 9 limits the compensation used in computing retirement benefits to the highest basic salary rate actually received as fixed by law and/or indicated in the duly approved appointment.
- Section 9 includes only specified salary components in determining highest basic salary rate:
- authorized and implemented salary adjustments via presidential issuances and budget circulars;
- additional basic compensation or salary indicated in an appointment as an exception to the prohibition on additional or double compensation;
- merit increases; and
- compensation for substitutionary services or service in an acting capacity.
- Section 9 excludes from computation other compensation and fringe benefits, including:
- per diems, allowances, bonuses, overtime pay, honoraria, hazard pay, flying time fees, consultancy or contractual fees, and fees for correcting and/or releasing examination papers.
Funding, Disposition, and Payment Mechanics
- Section 10 assigns the Ministry of the Budget responsibility for disposition and allocation of the funding requirements for retirement benefits.
- Section 10 requires referral to the Civil Service Commission for determination of creditable services when:
- an application for retirement benefits with previous computation/authorization is not in conformity with these rules; and
- the Ministry of the Budget has made deductions from and/or suspended payment of retirement benefits.
- Section 11 provides that retirement benefits are paid by agencies of the National government from appropriations in the General Appropriations Act and/or from budgetary savings realized out of budgetary allotments provided for the purpose.
- Section 11 keeps Memorandum Circular No. 133 dated October 16, 1967 of the Office of the President in full force and effect.
Expeditious Processing and Payment Duty
- Section 12 requires all heads of ministries, bureaus, offices, and agencies of the national government and all others concerned to streamline retirement systems.
- Section 12 mandates expeditious processing of retirement claims.
- Section 12 directs that the gratuity be paid:
- on the day the retiree leaves the services, or
- soon thereafter.
Effectivity and Formal Date
- Section 13 provides that the rules take effect upon approval.
- The issuance is signed on June 22, 1984 by FERDINAND E. MARCOS, with JUAN C. TUVERA signing “By the President” as Presidential Executive Assistant.