100 OG. No. 43, 7063 (Oct. 25, 2004)
WHEREAS, it is the policy of government to
continually improve the quality of public service delivery, amidst the
people's rising expectations and its limited resources;
WHEREAS,
to improve service quality, departments/agencies have to review their
existing programs/projects/activities, systems and procedures to enable
them to focus on core functions which could contribute to the attainment
of their outcome objectives and which available resources could
support;
WHEREAS, the
Sugar Regulatory Administration (SRA),
created pursuant to RA 632 dated 6 June 1951, as amended, is one of the
agencies of government which needs to pursue institutional reforms to
address inconsistencies and redundancies in its present setup
considering the current situation of the sugar industry and the
sustainability of its operations;
WHEREAS, the Supreme Court has
ruled in "Republic of the Philippines vs. Court of Appeals" dated 5
August 1991, that the SRA is neither a government-owned or controlled
corporation nor a subsidiary, but an administrative agency;
WHEREAS,
Sections 77 and 78 of the General Provisions of RA 9206 (General
Appropriations Act of 2003), as reenacted, authorize the President of
the Philippines to direct changes in the organizational units or key
positions of any department or agency, and to require all
departments/agencies of the Executive Branch to conduct a comprehensive
review of their respective mandates, missions, objectives, functions,
programs, projects, activities and systems and procedures, identify
areas for improvement and implement structural, functional and
operational adjustments to improve government's service delivery and
productivity, respectively;
NOW, THEREFORE, I, GLORIA
MACAPAGAL-ARROYO, President of the Republic of the Philippines, by
virtue of the powers vested in me by law, do hereby order:
Section 1. Rationalization of the Organization and Operations of the SRA.
The SRA is hereby directed to review its existing functions,
programs/projects/activities, and systems and procedures in order to
strengthen its vital/core services and to refocus resources to priority
programs and activities.
Section 2. Guidelines. In the implementation of the SRA rationalization, the following guidelines shall be observed:
1. The SRA shall operate and adopt the organizational structure of a
regular agency of the National Government, consistent with the ruling of
the Supreme Court that it is neither a government-owned or controlled
corporation nor a subsidiary but an administrative body; and
2. The rationalization shall result in the reduction of its existing
positions and the corresponding funding for the agency's personal
services.
Section 3. Rationalization Timeframe.
The SRA shall submit its revised organization structure and staffing
pattern to the Department of Budget and Management (DBM) within sixty
(60) days from the signing of this Executive Order.
Section 4. Options for Personnel Who May be Affected by the Rationalization of the Functions and Organization of the SRA.
Personnel who may be affected by the rationalization of the functions
and organization of the SRA shall have the option to remain in
government service, if with permanent/temporary appointment attested by
the Civil Service Commission (CSC), or to retire/be separated and paid
benefits as herein provided.
Section 5. Personnel Who Opt to Remain in the Service.
Affected personnel with permanent or temporary appointment who do not
want to retire or be separated from the government service shall be
placed/assigned to other agencies by the CSC where additional personnel
are required. Such affected personnel shall not suffer any diminution
in pay, except for certain allowances that used to be given
corresponding to the performance of specific functions which would no
longer form part of their new functions.
Personnel who would
choose to remain in government service but would later object to his/her
new job assignment shall be deemed separated/retired and shall be paid
retirement, separation or unemployment benefit under the regular
existing retirement/separation laws, as applicable, without the
incentive provided herein.
Section 6. Personnel Who Opt to Retire or Be Separated from the Service.
Affected personnel, with appointments attested by the CSC, whether
hired on a permanent or temporary basis, who opt to retire or be
separated from the service, and those hired on a casual or contractual
basis, if qualified, shall be given the option to avail themselves of
any of the following, whichever is beneficial to them.
6.1
Retirement gratuity provided under RA 1616 (An Act Further Amending
Section 12 of Commonwealth Act No. 186 as Amended, By Prescribing Two
Modes of Retirement and for Other Purposes), as amended, payable by the
SRA, plus the refund of retirement premiums payable by the Government
Service Insurance System (GSIS), without the incentive herein provided.
6.2
Retirement benefit under RA 660 (An Act to Amend Commonwealth Act No.
186 Entitled "An Act to Create and Establish a Government Service
Insurance System, to Provide for its Administration, and to Appropriate
the Necessary Funds Therefor," and to Provide Retirement Insurance and
for Other Purposes) or applicable retirement, separation or unemployment
benefit provided under RA 8291 (An Act Amending PD 1146, as Amended,
Expanding and Increasing the Coverage and Benefits of the Government
Service Insurance System, Instituting Reforms Therein and for Other
Purposes), if qualified, plus the following applicable incentives:
6.2.1 | ½ month salary for every year of service for the first 20 years of service and a fraction thereof; |
6.2.2 | ¾ month salary for every additional year of service from the 21st to the 30th year of service and a fraction thereof; and, |
6.2.3 | 1 month salary for every additional year of service from the 31st year of service and onwards. |
PROVIDED:
That the GSIS shall pay, on the day of separation, the
retirement/separation/unemployment benefits to which an affected
employee may be entitled to under RA 660 or RA 8291 and whenever there
is an option, the one which the affected employee has chosen as the most
beneficial to him/her.
PROVIDED FURTHER: That for the purpose of
complying with the required number of years of service under RA No.
8291, the portability scheme under RA 7699 (An Act Instituting Limited
Portability Scheme in the Social Security Insurance Systems by
Totalizing the Worker's Creditable Services or Contributions in Each of
the Systems) may be applied, subject to existing policies and
guidelines.
6.3 Those with less than three (3) years of
government service may opt to avail of the separation gratuity under RA
No. 6656 (An Act to Protect the Security of Tenure of Civil Service
Officers and Employees in the Implementation of Government
Reorganization), plus the appropriate incentive provided under 6.2
above.
Section 7. The affected
personnel who opt to retire or be separated from the service shall, in
addition to the applicable benefits above, be entitled to the following:
7.1 Refund of Pag-IBIG Contributions.
Affected personnel who are members of the Pag-IBIG shall be entitled to
the refund of their contributions (both personal and government),
pursuant to existing rules and regulations of the Home Development
Mutual Fund.
7.2 Commutation of Unused Vacation and Sick Leave
Credits. The affected personnel shall be entitled to the commutation of
unused vacation and sick leave credits in accordance with existing rules
and regulations.
Section 8. Prohibition on Hiring/Rehiring of Personnel.
The SRA is hereby prohibited to hire additional personnel (permanent,
temporary, contractual, casual or job order) and renew the
contracts/appointments of all employees hired on contractual, casual or
temporary basis during the conduct of the rationalization activities.
Moreover,
personnel who retire or are separated as a result of the agency's
rationalization effort shall not be rehired in any agency of the
National Government, including in government-owned and / or - controlled
corporation/government financial institutions (GOCCs/GFIs), except in
educational institutions and hospitals, within a period of five (5)
years.
Section 9. Period of Availability of the Benefit Package.
The retirement/separation package provided herein shall be made
available not later than one hundred twenty (120) days from the signing
of this Executive Order.
Section 10. Funding. Funds
necessary for the implementation of the Rationalization Plan of the SRA
shall be taken from the agency's current corporate operating funds. In
case of funding deficiency, the National Government may provide
assistance in the payment of incentives to affected personnel.
Section 11. Subsequent Government Appropriations.
The DBM shall take into consideration the gradual decrease in the
operating subsidy of the SRA as the organizational structure and
staffing pattern are streamlined and its operations become efficient.
Section 12. Implementing Guidelines.
The Sugar Board is hereby authorized to promulgate the rules and
regulations, as necessary, to ensure the orderly implementation of this
Executive Order.
Section 13. Repealing Clause. All
issuances, orders, rules and regulations or parts thereof that are
inconsistent with this Executive Order are hereby, amended or modified
accordingly.
Section 14. Effectivity. This
Executive Order shall take effect upon its publication in the Official
Gazette or in a newspaper of general circulation, whichever comes
earlier.
Adopted: 29 July 2004
(SGD.) GLORIA MACAPAGAL-ARROYO
President of the Philippines
By the President:
(SGD.) ALBERTO ROMULO
Executive Secretary