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This web page features the full text of
ADMINISTRATIVE CIRCULAR NO. 7.
ADMINISTRATIVE CIRCULAR NO. 7

TO: THE COURT OF APPEALS, SANDIGANBAYAN, COURT OF TAX APPEALS, REGIONAL TRIAL COURTS, METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL COURTS IN CITIES, MUNICIPAL TRIAL COURTS, MUNICIPAL CIRCUIT TRIAL COURTS AND SHARI'A COURTS

SUBJECT: IMPLEMENTING GUIDELINES OF R. A NO. 6683 DATED DECEMBER 2, 1989.

Quoted hereunder, for the information and guidance of all concerned, are the implementing guidelines of R. A. No. 6683 dated December 2, 1988:chanrobles virtual law library

"1.0. PURPOSE
This Circular is issued to provide the rules and regulations for the implementation of R. A. No. 6683 dated December 2, 1988, an Act providing benefits for early retirement and voluntary separation from the government service of civilian personnel as well as involuntary separation of civil service officers and employees pursuant to various Executive Orders authorizing government reorganization after the ratification of the 1987 Constitution, appropriating funds therefor, and for other purposes. 2.0. COVERAGE AND EXEMPTION
The provision of R. A. No. 6683 shall apply to civilian officials and employees of the National Government, including government-owned and/or controlled corporations with original charters and local government units who voluntarily elect in writing to be retired or separation from government service and is accepted by the head of the agency/corporation/local government unit concerned.

2.1. Benefits herein prescribed shall apply to all regular and temporary personnel to the National Government with appointment papers approved by the Civil Service Commission [CSC] and position duly classified and salary rate certified by the Department of Budget and Management [DBM], who have rendered at least a total of two [2] years of satisfactory service as of the date of separation/retirement.  In the case of casual and emergency personnel, it shall be based on agency records provided their positions are classified by the DBM.cralaw

2.2. Officials and employees who were previously separated from the government service not for cause but as a result of the reorganization pursuant to various Executive Orders authorizing government reorganization issued after the ratification of the 1987 Constitution are likewise covered and entitled to avail of the incentive benefits under R.A. No. 6683.cralaw

2.3. Excluded from the benefits under R. A. No. 6683 are the following:chanroblesvirtuallawlibrary

(a) Experts and consultants hired by agencies for a limited period to perform specific activities or services with a definite expected output; i.e., membership in Task Force, Part-Time Consultant/Employees.   (b) Uniformed personnel of the Armed Forces of the Philippine Constabulary and Integrated National Police [PC-INP].

(c) Appointive officials and employees who retire or elect to be separated from the service for optional retirement with gratuity under R.A. No. 1616, 4968 or with pension under C.A. No. 186, as amended by R.A. No. 660 or P.D. No. 1146, as amended, or vice-versa.cralaw

(d) Officials and employees who retired voluntarily prior to the enactment of this law and have received the corresponding benefits of that retirement/separation.cralaw

(e) Officials and employees with pending cases punishable by mandatory separation from the service under existing civil service laws, rules and regulations: Provided, That if such officials and employees apply in writing within the prescribed period for the availment of the benefits herein authorized, shall be allowed only if acquitted or cleared of all charges and their application accepted and approved by the head of office concerned.cralaw

3.0.  BENEFITS AUTHORIZED UNDER R.A. NO. 6683
Benefits that can be availed of by officials and employees who will elect to retire or be separated from government service under this Plan shall be as followes:chanroblesvirtuallawlibrary

3.1. Early retirement and Voluntary Separation Benefits

Equivalent to one and one-fourth [1 1/4] months basic salary for every year or respective government services or the equivalent nearest fraction thereof favorable to availing officials and employees on the basis of the highest salary received in the course of their employment in the government in effect at the date of filing, but in no case shall the benefit to be paid to any official or employees be less that Ten thousand pesos [P10,000.00]. Any appointive official and employee, however, who has previously been found guilty in any administrative proceeding and whose position or salary has been reduced in rank or in amount shall be paid on the basis of his last salary. Likewise, any appointive official and employee who is promoted after the effectivity of this Act shall be paid based on highest salary received prior to such promotion.
3.2. Additional Benefits
  In addition to the benefits above authorized, covered officials and employees who retire or voluntarily elect to be separated from the service under this Plan shall also be entitled to the following:chanroblesvirtuallawlibrary
(a) Return of GSIS personal contributions pertaining to retirement only and the payment of the corresponding share of the government with interest earned pursuant to existing rules and regularions of the Government Service Insurance System.

(b) Commutation of unused vacation and sick leaves in accordance with existing rules and regulations on the matter.cralaw

(c) An additional ten percent (10%) of the amount corresponding to what they will receive from the thirty-first (31st) year onward for those with thirty-one (31) years or more of government service.cralaw

4.0. PERIOD OF APPLICABILITY 4.1. The incentive benefits for early retirement and voluntary separation shall be entertained only if filed within a period of two [2] months from the issuance of this Circular.

4.2. Applications may be filed either in the regional or central offices.

5.0. RULES AND REGULATIONS 5.1. Acceptance of applications for early retirement and voluntary separation from the service herein authorized shall be subject to the discretion of the heads of government offices or agencies concerned. For this purpose, "head of government office or agency" shall refer to the following:chanroblesvirtuallawlibrary
(a) Secretary, in case of bureaus, divisions and other offices under a department;

(b) Governor or Mayor, as the case may be, in the case of the local government units;

(c) The Chief Justice in the case of the employees of the Judiciary

(d) Senate President or the Speaker of the House of Representatives, as the case may be, in the case of employees of the legislature;

(e) The Chairman, in the case of the Constitutional Commissions; and cralaw

(f) The overall superior, in the case of other offices not within the authority of those previously mentioned.cralaw

5.2. The application for early retirement or voluntary separation shall be accepted unless the services of the applicant shall be deemed necessary.

5.3. Application of those with pending administrative cases punishable by dismisssal or removal and those with criminal cases of grave nature committed in relation to their relation to their office shall be both held in abeyance until the final disposition of such cases without prejudice to their receiving benefits under this law in case of acquittal.cralaw

5.4. Officials and employees qualified and are authorized to retire or be separated from government service by the head offices concerned shall be paid gratuity or separation benefits and additional benefits prescribed in Paragraph 4.0. above. The oldest employees who are the most senior in the service will be given priority in the payment of benefits. Any provision of law to the contrary notwithstanding, the only documents or supporting papers to be submitted by appointive officials and employees who wish to avail themselves of the benefits herein authorized are the following:chanroblesvirtuallawlibrary

(a) A duly approved application under oath for early retirement or voluntary separation in accordance with R.A. No. 6683, including a duly certified statement of the number of years of service in the government and the rate of highest salary received;   (b) Money and property clearance from the agency concerned;

(c) A simplified statement of assets and liabilities, networth, and financial and business interests in the case of regular employees; and cralaw

(d) Certification by the head of office or his duly authorized representative that there is no pending administrative case and clearance from the Fiscal's Office that there is no pending criminal case against the employee.cralaw

5.5. The processing and actual payment of benefits shall be undertaken by the respective offices of officials and employees concerned and shall be completed within fifteen [15] days from the date of submission of all the required supporting documents

5.6. No official or employee shall be separated/retired or be paid benefits under R. A. No. 6683 unless his application for early retirement or voluntary separation shall have been accepted by the head of agency concerned.cralaw

5.7. Officials and employees who are retired or separated from government service under R. A. No. 6683 shall not be eligible for re-employment in the government whether on a permanent, temporary, casual, or emergency status within a period of five [5] years after separation; unless they refund the benefits they have received. Those who will be re-employed in the government shall be treated as new entrants insofar as GSIS coverage is concerned.cralaw

5.8. Positions vacated through the early retirement or separation of their incumbents shall be abolished and in the case of casual and emergency employees, the lump sum corresponding to the amounts for salaries or abolished positions shall be proportionately reduced. Positions vacated, however, wherein the exigencies of the service require their retention, shall be certified within sixty [60] days from the time of approval or acceptance of the application for retirement or separation of their incumbents by the head of office or agency.cralaw

5.9. Positions vacated but retained shall be filled by personnel chosen from among the most deserving employees in the agency concerned or from any other agency.cralaw

5.10. Those who were involuntarily separated/phased out as a result or reorganization after the ratification of the 1987 Constitution, but have been re-employed in the government service at the enactment of this law and who choose to avail of benefits provided herein, shall only be entitled to the differential benefits and shall be subject to the same restriction on re-employment under Section 5.7. hereof.

6.0. FUNDING SOURCE
6.1. For officials and employees of National Government regular agecies/offices
Benefits herein granted shall be paid from the three billion pesos or so much thereof as may be necessary, appropriated for the purpose under R. A. No. 6683 out of any funds in the National Tresury not otherwise appropriated.
6.2. For officials and employees of government-owned and/or controlled corporations with original charters
Benefits herein granted shall be paid from the internal funds of the respective corporations. However, government-owned and/or controlled corporations with original charters which may not be able to adequately fund the incentive benefits herein authorized may be allowed to avail of the three billion peso fund appropriated for the purpose but only up to the extent to twenty-five percent [25%] of their total requirements which should be later deducted by the Department of Budget and Management from whatever budgetary allocation and assistance that a particular corporation may get from the National Government in the future.
6.3. For officials and employees of Local Government Units
Benefits herein granted shall be paid from available funds of each Local Government Unit against which the salaries or wages of officials and employees involved are charged. However, Local Government Units which may not be able to adequately fund the incentive benefits may be allowed to avail of the three billion peso-fund appropriated for the purpose but only up to extent to twenty-five percent (25%) of their total requirements.
6.4. Notwithstanding the above provisions, however, all savings accruing from the abolition of positions pursuant hereto shall be earmarked and used exclusively for the payment of the benefits under R. A. No. 6683. Availment from the three billion peso-fund appropriated for the purpose will be allowed only after the savings generated as a result thereof have been fully considered. To insure prompt payment of benefits, the Department of Budget and Management shall allocate to all national government agencies tentatively the three [3] billion peso fund based on the ratio on an agency's 1988 Personal Services budget, and immediately released the Advice of Allotment for fifty percent (50%) of such share and Funding Warrant equivalent to one-half (1/2) of the Advice Allotment so issued. Further releases of Advice Allotments and Funding Warrants shall then be based on submission by the agencies of approved claims filed and claims paid using the form attached herewith as Annex A; to be submitted as soon as additional Advice Allotment and/or Funding Warrant as needed.

6.5. Agencies should remit to DBM within fifteen [15] days from payment of the claims filed under this Act, any unused amount for funding any deficiencies in other agencies.

7.0. REPORT OF COMPLIANCE
Heads of government agencies, including government-owned and/or controlled corporations with original charters and local government units, shall submit to the Department of Budget and Management [DBM], the Civil Service Commission [CSC] and the Commission on Audit [COA] within three [3] months from the effectivity of R. A. No. 6683 report on the implementation made in their respective offices/agencies/corporations which will include among others the total number of employees affected, type of nature of positions involved and number of those retained and abolished, total amount spent and an evaluation thereof of the program. Said report must be duly certified by the Head of Office which will be the basis of the report that will be submitted to Congress by the DBM and CSC within six [6] months from the date of the effectivity of the Act as stipulated under Section 13 of R. A. 6683.
8.0. SPECIAL PENAL CLAUSE
Any government official who compels an employee under any guise whatsoever to retire or be separated from government service by virtue of this Act or otherwise violate provisions hereof shall, upon conviction, be punished by a fine not exceeding one thousand pesos [P1,000.00] or by imprisonment not exceeding six [6] months or both such fine and imprisonment in the discretion of the court.
9.0. RESPONSIBILITY OF THE HEAD OF AGENCY
The head of department/bureau/office/regional office, agency or entity of the National Government concerned shall be held personally liable for any payment of early retirement benefits not in accordance with the provisions of this Circular, without prejudice, however, to the filing of a criminal case against the recipient employee.
10.0. REPEALING CLAUSE
All laws, rules and regulations or part thereof, that authorize the payment of incentive benefits for early retirement and voluntary separation inconsistent with the provisions of R. A. No. 6683 are deemed repealed or modified accordingly.
11.0. EFFECTIVITY DATE
This Circular shall take effect upon publication in two [2] newspapers of general circulation.


[Sgd.] SAMILO N. BARLONGAY
Commissioner
Civil Service Commisson
[Sgd.] GUILLERMO N. CARAGUE
Secretary
[Acting as Chairman] 
Department of Budget and Management
 

January 13, 1989.
          

[Sgd.] MARCELO B. FERNAN
Chief Justice
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