Pursuant to Section 26 of Republic Act No. 4670, otherwise known as “The Magna Carta for Public School Teachers”, these guidelines are hereby issued for the implementation of a one (1) salary grade increase for public school teachers upon their retirement.


These guidelines shall cover all incumbents of public school teacher positions under the Department of Education, Culture and Sports (DECS) and similar positions in government educational institutions outside of DECS, who are retiring beginning January 1, 1996. The term public school teacher includes those as defined in Section 2 of RA 4670, Section 1 of Rule I of the Rules and Regulations for the Implementation of RA 4670 and as amended or modified by RA No. 6758.


The following positions are not covered by this Circular:

3.1       Faculty positions/professorial staff of State Universities and Colleges (SUCs), pursuant to Section 2 of RA No. 4670; and

3.2       Non-teaching/administrative positions and similarly situated positions.


The one (1) salary grade increase contemplated under this Circular shall take effect on the last day of service of the retiring public school teacher.

The salary increase shall be effected through the issuance of a Notice of Salary Adjustment by the duly authorized official. The salary of the teacher-retiree shall be adjusted upward by one salary grade at the same salary step of his previous assigned salary grade.

Example:

Teacher I, SG-10, Step 2 with a salary rate of P72,528.00 per annum (P6,044.00 per month) shall be adjusted upward by one salary grade, i.e. to SG-11, Step 2, P75,312.00 per annum (P6,276.00 per month).


The requirement for FY 1996 for the implementation of the benefits authorized herein such as salary adjustment and the corresponding increase in terminal leave and retirement gratuity benefits, pursuant to RA 1616 as amended shall be sourced out of the lump-sum amount authorized for the purpose in the DECS approved budget for 1997. This lump sum fund shall cover claims of retiring public school teachers under the CHED/TESDA supervised schools. In case of deficiency, savings generated out of their individual budgets for FY 1997 is hereby authorized to be used to cover the additional requirement under this Circular. Thereafter, the requirement for the purpose shall be provided for in the respective budgets of agencies concerned.

For the educational institutions outside the DECS including those in the Autonomous Region in Muslim Mindanao (ARMM), the necessary requirement to cover the same benefit shall be sourced out of their respective budgets during the current year. For this purpose, savings generated out of their individual budgets for FY 1997 is hereby authorized to be used to cover the requirement under this Circular. Thereafter, the requirement shall be provided for in the budgets of the agencies concerned.

For public school teachers opting to retire under the applicable GSIS pension laws, the amount/requirement involved shall be charged against the GSIS funds in accordance with laws.


Cases not covered by the provisions of this Circular shall be submitted to the Secretary of Budget and Management for resolution upon recommendation of the DECS Secretary.


Adopted: 05 June 1997

(SGD.) RICARDO T. GLORIA Secretary Department of Education, Culture and Sports	(SGD.) ANGEL C. ALCALA Chairman Commission on Higher Education
(SGD.) CESAR N. SARINO General Manager Government Service Insurance System	(SGD.) SALVADOR M. ENRIQUEZ Secretary Department of Budget and Management