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EO 366 dated 04 October 2004

Why is There Need to Rationalize
 Technological Change

 Shifts in core functions

 Overlapping/duplicating functions

 Changes in systems of work

 Structures that have outlived their
usefulness

What the Program is about…
Making Government
 Focus efforts on vital/core
functions/improve service delivery

 It is function-based
 It means doing right things (effectiveness)
in efficient, accountable and transparent
way
 It involves eliminating redundancies/
overlaps/duplication
 It aims to improve delivery/support systems
 It will redound to refocusing resources to
priority areas
What the Program is about…
Coverage

 All Departments of the Executive Branch,
including all agencies and GOCCs
under/attached to them

Exclusion

 Police
 Military
 Teachers
 Health Workers

Myths and Truths about Program


 Myth 1: Program is about eliminating
jobs to cut budget deficit

Truth: It aims to improve govt
effectiveness by doing right things,
improve efficiency and accountability
for performance; PS savings of
Program to be retained in Depts/
agencies
Myths and Truths about Program


 Myth 2: It is an early retirement
program for all

Truth: Only personnel whose functions
would be declared redundant could
avail of benefit package, with
incentives


Myths and Truths about Program


 Myth 3: It is coercive

Truth: Personnel in redundant
functions have option to stay in
government



1. Dept Secretary to notify DBM when to
start effort
Steps in the Rationalization
Process
 Effort could start anytime from June 4 to
October 3




2. Dept Secretary to create CMT and sub-
CMTs
Steps in the Rationalization
Process
 Dept Secretary to appoint members of
CMT and notify DBM when effort starts

 CMT/sub-CMT to include union or rank
and file representative

Steps in the Rationalization
Process
3. CMT to do the following:

 Prepare and implement internal and external
COMPLAN to communicate effort to
stakeholders (i.e., personnel who may be
affected, clients)

Department/Agency COMPLAN to
be consistent with overall COMPLAN

 Conduct strategic review to identify areas for
rationalization/improvement

Steps in the Rationalization
Process
3. CMT to do the following:

 Prepare Rationalization Plan for whole Dept,
including attached agencies/GOCCs

 May consult clientele, technical experts,
academe and other stakeholders

 Depts/Agencies which have substantially
completed plans may submit earlier



Steps in the Rationalization
Process
3. CMT to do the following:

 Set up internal mechanism to address/
resolve issues/complaints of affected
personnel

 Assist Secretary in mitigating impact of
Program and actual implementation of effort


Steps in the Rationalization
Process

4. Dept Secretary to notify affected
personnel on action regarding their
employment
 Notification to be done not later than ten
(10) working days prior to submission of
Plan to DBM

 Affected personnel given two (2) months
from notice to decide on option; no forced
retirement/separation
Steps in the Rationalization
Process

5. Conduct activities to assist affected
personnel

 Counseling
 Referral to CSC Placement
 Arrange trainings on livelihood/investment
opportunities

Steps in the Rationalization
Process

6. Departments/Agencies to submit
Rationalization Plan to DBM


 In case of non-submission, DBM submits
recommendation to President



7. Review and approval of Rationalization
Plan for implementation
 DBM to review Plan in 1 month
 Submit recommendations to President










Period to Notify
DBM
on Start Date
DBM
Review
of Plan
OP
Approval
Implementation
of
Plan

4 months 1 month 2 months 1 month
Preparation of
Rationalization
Plan
2 months
Timeline for Rationalization
Program
1. Core functions, programs, activities,
services
2. Shifts in policy directions, functions,
programs, activities
3. Areas for downsizing/phasing out
4. Areas for strengthening
5. Shifts in organizational structure,
staffing and resource allocation
Contents of the Rationalization Plan
6. Financial restructuring plan, in case
of GOCCs/GFIs, to ensure viability
7. Internal and external communication
plan indicating specific methods/
strategies
8. Draft EO to formalize changes
Contents of the Rationalization Plan
Prohibited Acts During Plan
Preparation Up to Approval
1. Filling of vacant positions (original
appointment, promotion, transfer or
reemployment)
2. Renewal of contracts/appointments of
personnel on temporary/contractual/
casual/job order basis
3. Hiring of contractual/casual/job order
employees
Options for Affected
Personnel
A. Remain in government service and
be placed to other agencies needing
additional personnel

B. Avail of voluntary retirement/
separation package with the
appropriate incentive
Option A: Placement
1. Affected personnel to submit to Agency
Personnel Officer 3 priority agencies for
reassignment (CSC to issue list of
agencies needing more personnel)
2. Reassignment by CSC to other agencies
needing additional personnel within 2
months
 CSC to explore possibility of reassigning to
LGU-managed schools/hospitals, after NGAs
Option A: Placement
3. Compensation of placed personnel to be
transferred to recipient agency, except
those reassigned to LGUs
4. No diminution in salary and benefits,
except allowances for functions no
longer undertaken
5. Position of transferred personnel in
recipient agency co-terminus with
incumbent
6. Placed personnel has full rights to all
benefits common to all government
employees, including CNA incentives; in
case of difference between CNA benefits
in mother and in recipient agency, to enjoy
larger benefits for 1 year
Option A: Placement
7. Personnel who, later, objects to new
assignment, deemed retired/separated
without incentive
Option B: Voluntary Retirement/ Separation


 Retirement gratuity under RA 1616 and
refund of GSIS retirement premiums,
without incentive
 Benefit under RA 660 or RA 8291, plus
ff incentives:
 ½ month of present basic salary per yr of govt
service for those with 20 yrs of service and below
 ¾ month of present basic salary per yr of govt
service, computed starting from 1st yr, for those
with 21-30 yrs of service
 1 month of present basic salary per yr of govt
service, computed starting from 1st yr, for those
with 31 yrs of service and more
Option B: Voluntary Retirement/ Separation

 Those with less than 3 yrs. of govt
service, avail separation gratuity under
RA 6656, plus incentive
Affected employees’ years of service beyond age
59 not subject to incentive
No employee to receive less than P50,000 as
ret/sep gratuity benefit from both NG
and GSIS
Separate guidelines on incentives and related
benefits of agencies and GOCCs/GFIs exempted
from SSL to be issued
Additional Requirements
 Abolition of a funded position per
employee who opts for voluntary
retirement/separation

 Retired/separated personnel not to be
appointed/hired in Executive Branch
within 5 years, except in educational
institutions or hospitals

Appeals Mechanism
1. Employee may file complaint with CMT
within five (5) working days from receipt
of notification that position is affected
2. CMT to resolve issue within five (5)
working days
3. Appeal may be filed with
Department/Agency Head within 10
working days from submission of Plan
to DBM
Appeals Mechanism
4. Department/Agency Head to render
decision within 15 working days from
filing
5. Affected personnel may further appeal
Agency Head decision to CSC within 10
working days from approval of Plan by
President
6. CSC to render decision within 30
working days from filing of appeal
Potential Causes of Appeals
1. No union or rank and file representative
in CMT/sub-CMT
2. Non-notification of affected personnel
3. Deviation from Sections 3 and 4 of RA
6656 (Government Reorganization Law)
on order of placement of personnel
4. Actions implemented not in approved
Plan
5. Violations of provisions of IRR
Use of Savings
 PS savings generated to be retained
in Department to fund:

 Priority programs and projects under
Ten-Point Agenda of Administration

 Salary increases/incentives of
government personnel, subject to
guidelines to be issued
Key Elements of Assistance to
Affected Personnel
 Retirement Processing and Provision
of Incentives

 CSC Placement Scheme

 Skills/Livelihood and Investment
Program

 Employee Counseling

Retirement Processing
 DBM/CSC with MOA with GSIS/HDMF for
timely release of benefits
 GSIS to provide benefit on day of ret/sep
upon submission of complete
documents at least 1 month before
ret/sep
 Affected personnel to continue to receive
salaries until GSIS gives benefits,
provided complete documents submitted
at least 1 month before ret/sep

Provision of Incentives
 DBM to provide ‘seed fund’ to depts/
agencies upon submission of list of
employees opting to retire/be separated
 Placed personnel to enjoy CNA
incentives, if qualified; in case of
difference between CNA benefits in
mother and recipient agency, to enjoy
larger benefits for 1 year
 Retired/separated personnel entitled to
commutation of accumulated
compensatory overtime credits

Placement Scheme
 CSC to manage placement of personnel
who opt to remain in govt service
 CSC to match skills/qualifications of
affected personnel with needs of priority
agencies for reassignment
 CSC to reassign in same province/region
to extent possible
 CSC to explore reassigning to LGU-
managed schools/hospitals after
satisfying requirements of NGAs


Skills/Livelihood and Investment
Program

 Alternative Livelihood/Employment
 Provide alternative skills/livelihood
trainings
 Job Facilitation
 Facilitate employment in private
sector, local or overseas
 Investment Services
 Provide guidance on investment
opportunities
Counseling
Affected Government
Employee
Coop
Orgn
SKILLS/LIVELIHOOD AND INVESTMENT PROGRAM FRAMEWORK
Place to Other
Government Agency
CMT Referral
Needs Assessment/
CMT Referral
Retire/Separate
Orientation
Job
Matching
CSC
Transfer to
Other
Agencies
Financing
Assistance
Business
Orientation/
Assistance/
Facilitation
Tech/Voc
Trngs
Jobs Generation
Group
Job Facilitation
Group
Investment
Services Group
Overseas Local
Jobs Generation
Group
Technical-Vocational
Education & Training
(TVET)/Technology
Demonstration
Cooperative
Organization
Financing
Assistance
TESDA
TLRC
CDA
DTI
SBGFC
Quedancor
PCFC
NLSF
LBP-PMD
Business
Orientation/
Assistance/
Facilitation
Job Facilitation
Group
Overseas
Employment
Local
Employment
Bureau of Local
Employment
(BLE), DOLE
Philippine Overseas
Employment
Administration (POEA),
DOLE
Land Bank of the Philippines
Development Bank of the Philippines
Bureau of the Treasury
Investment Services
Group
Orientation Program
Employee Counseling
 Depts/Agencies may send Personnel
Officers to trainings on employee
counseling

 Depts/Agencies may tap Ateneo’s Center
for Organization Research and
Development in conduct of trainings on
employee counseling

Thank You!