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Issued on October 4,2004 by her Excellency President Gloria M.
Arroyo, the Rationalization Law otherwise known as Executive
Order (E.O.) Numbered 366, calls for the streamlining, merging,
consolidating or even abolition of some departments in the
Executive Branch including attached agencies, government owned
or controlled corporation (GOCC’s), boards, task forces,
councils commissions and other agencies with overlapping,
outdated or redundant functions.
The
order also provides for the necessary benefits and incentives
for government employees who maybe separated from the government
service because of the implementation of the rationalization
law, either or a combination of the following: 1) Retirement
gratuity under Republic Act (RA) 1616 plus refund of premiums
but without incentives, OR 2) Retirement benefits under RA 660
or under RA 8291, whichever is beneficial to the affected
employee, PLUS THE FOLLOWING INCENTIVES: a) ½ of present basic
salary for every year of service for those with 20 years and
below of service, OR ¾ of present basic salary
for every year of service for those who have rendered
21-30 years of service OR 1 month of present basic salary for
every year of service for those who have rendered 31 years of
service and above.
Aside
from those enumerated above, E.O. 366 also provides that: 1)
Separation gratuity under RA 6656 available for those with 3
years of government service plus benefits under RA 660 or RA
8291, 2) Incentives not exceeding P1.5M for affected employees
belonging to agencies and GOCC’s exempted from Salary
Standardization Law, 3) Employees who opted to retire will
receive not less than P50,000.00
in gratuity benefits from both the national government
and the GSIS and 4) Refund of Pag-Ibig contributions and
commutation of unused vacation and sick leave credits. Positions
of these employees who availed of these benefits are offered for
abolition by the Department/agency concerned and these employees
are not qualified for re-employment within the period of 5 years
in any offices mentioned in this order except in educational
institutions and hospitals.
The order envisions a lean and mean
government bureaucracy whose efforts and resources are focused
on vital core services and capable of delivering quality and
efficient services to the public. |
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Its
legal basis is RA 9206 or the General Appropriation Act of 2003,
the Administrative Code of 1987 and cases decided with finality
by the Supreme Court. RA 9206 authorized the President to effect
changes in any departments or agencies within the Executive
Branch and the Administrative Code of 1987 authorized the
President to reorganize the Executive Branch.
For
those affected employees who opt to remain in the government
service are placed in other agencies by the CSC but his or her
position is co-terminus with the incumbent of the recipient
agency and when later he or she object to his or her new job
assignment he or she is deemed to have been separated or retired
and entitled to the customary separation, retirement and
unemployment benefits under the law without the incentives.
The
Department Secretary, through the Change Management Team or CMT,
is tasked to prepare the rationalization plan in accordance with
the department strategic plan. The plan is then submitted to the
DBM for review and final approval of the President. The DBM and
the CSC coordinate the implementation of the plan within the
specified timetable (of some 10 months) including the phasing
out of activities and availment of incentives. During the
preparation of the plan, except for newly created agencies, the
hiring of additional permanent, temporary, contractual or casual
employees and renewal of contracts of the last 3 mentioned
classes of employees are prohibited.
DBM-V Public Information Officer Ma.
Angelita C. Cells (left photo) explains June 16 Executive Order
366 or the Rationalization Law to officers and staff of MGB-V
while DBM-V Regional Director Rebecca B. Olayon (middle photo)
stresses a point during the open forum. The Rationalization Law
aims to streamline the government bureaucracy to make it more
efficient in the delivery of services to the public.
Further,
constitutional offices, the legislature, judiciary and state
universities and colleges may, on a voluntary basis, apply the
parameters contained in the order if they opt to review their
respective operations and organization.(LValdez)
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