Government Rationalization Program EO 366 dated 04 October 2004.

Government Rationalization

ProgramEO 366 dated 04 October 2004

Why is There Need to RationalizeWhy is There Need to Rationalize

Technological ChangeTechnological Change

Shifts in core functionsShifts in core functions

Overlapping/duplicating functionsOverlapping/duplicating functions

Changes in systems of workChanges in systems of work

Structures that have outlived their usefulness

Technological ChangeTechnological Change

Shifts in core functionsShifts in core functions

Overlapping/duplicating functionsOverlapping/duplicating functions

Changes in systems of workChanges in systems of work

Structures that have outlived their usefulness

What the Program is about…

Making GovernmentMaking Government Focus efforts on vital/core functions/improve Focus efforts on vital/core functions/improve

service deliveryservice delivery

It is function-basedIt is function-based It means doing right things (effectiveness) in It means doing right things (effectiveness) in

efficient, accountable and transparent wayefficient, accountable and transparent way It involves eliminating redundancies/ It involves eliminating redundancies/

overlaps/duplicationoverlaps/duplication It aims to improve delivery/support systemsIt aims to improve delivery/support systems It will redound to refocusing resources to It will redound to refocusing resources to

priority areas priority areas

What the Program is about…

CoverageCoverage All Departments of the Executive Branch,

including all agencies and GOCCs under/attached to them

ExclusionExclusion Police Military Teachers Health Workers

Myths and Truths about Program

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

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


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

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


Myth 3: Myth 3: It is coerciveIt is coercive

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

1. Dept Secretary to notify DBM when to start effort

Steps in the Rationalization Process

Effort could start anytime from June 4 to Effort could start anytime from June 4 to October 3October 3

Effort could start anytime from June 4 to Effort could start anytime from June 4 to October 3October 3

2. Dept Secretary to create CMT and sub-CMTs


Dept Secretary to appoint members of Dept Secretary to appoint members of CMT and notify DBM when effort startsCMT and notify DBM when effort starts

CMT/sub-CMT to include union or rank CMT/sub-CMT to include union or rank

and file representativeand file representative

Dept Secretary to appoint members of Dept Secretary to appoint members of CMT and notify DBM when effort startsCMT and notify DBM when effort starts

CMT/sub-CMT to include union or rank CMT/sub-CMT to include union or rank

and file representativeand file representative


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

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



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

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



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

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

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

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


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

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


5. Conduct activities to assist affected personnel

Counseling

Referral to CSC Placement

Arrange trainings on livelihood/investment opportunities

Counseling

Referral to CSC Placement

Arrange trainings on livelihood/investment opportunities


6. Departments/Agencies to submit Rationalization Plan to DBM

In case of non-submission, DBM submits

recommendation to President

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

DBM to review Plan in 1 month

Submit recommendations to President

Period to Notify DBM

on Start Date

DBM Review of Plan

OP Approval

Implementationof

Plan

4 months 1 month 2 months1 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 strengthening5. 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

1.1. Filling of vacant positions (original Filling of vacant positions (original appointment, promotion, transfer or appointment, promotion, transfer or reemployment)reemployment)

2.2. Renewal of contracts/appointments of Renewal of contracts/appointments of personnel on temporary/contractual/ personnel on temporary/contractual/ casual/job order basiscasual/job order basis

3.3. Hiring of contractual/casual/job order Hiring of contractual/casual/job order employeesemployees

Options for Affected Personnel

A.A. Remain in government service and Remain in government service and be placed to other agencies needing be placed to other agencies needing additional personneladditional personnel

B.B. Avail of voluntary retirement/ Avail of voluntary retirement/ separation package with the separation package with the appropriate incentiveappropriate 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

7.7. Personnel who, later, objects to new Personnel who, later, objects to new assignment, deemed retired/separated assignment, deemed retired/separated without incentive without incentive

Option B: Voluntary Retirement/ Separation Retirement gratuity under RA 1616 and etirement gratuity under RA 1616 and

refund of GSIS retirement premiums, refund of GSIS retirement premiums, without incentivewithout incentive

Benefit under RA 660 or RA 8291, plus Benefit under RA 660 or RA 8291, plus ff incentives:ff incentives: ½ month of present basic salary per yr of govt½ month of present basic salary per yr of govt service for those with 20 yrs of service and below service for those with 20 yrs of service and below ¾ month of present basic salary per yr of govt ¾ month of present basic salary per yr of govt service, computed starting from 1st yr, for those service, computed starting from 1st yr, for those with 21-30 yrs of service 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

Retirement gratuity under RA 1616 and etirement gratuity under RA 1616 and refund of GSIS retirement premiums, refund of GSIS retirement premiums, without incentivewithout incentive

Benefit under RA 660 or RA 8291, plus Benefit under RA 660 or RA 8291, plus ff incentives:ff incentives: ½ month of present basic salary per yr of govt½ month of present basic salary per yr of govt service for those with 20 yrs of service and below service for those with 20 yrs of service and below ¾ month of present basic salary per yr of govt ¾ month of present basic salary per yr of govt service, computed starting from 1st yr, for those service, computed starting from 1st yr, for those with 21-30 yrs of service 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 Abolition of a funded position per employee who opts for voluntary employee who opts for voluntary retirement/separationretirement/separation

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

Appeals Mechanism

1.1. Employee may file complaint with CMT Employee may file complaint with CMT within five (5) working days from receipt within five (5) working days from receipt of notification that position is affectedof notification that position is affected

2.2. CMT to resolve issue within five (5) CMT to resolve issue within five (5) working daysworking days

3.3. Appeal may be filed with Appeal may be filed with Department/Agency Head within 10 Department/Agency Head within 10 working days from submission of Plan working days from submission of Plan to DBM to DBM

Appeals Mechanism

4.4. Department/Agency Head to render Department/Agency Head to render decision within 15 working days from decision within 15 working days from filingfiling

5.5. Affected personnel may further appeal Affected personnel may further appeal Agency Head decision to CSC within 10 Agency Head decision to CSC within 10 working days from approval of Plan by working days from approval of Plan by PresidentPresident

6.6. CSC to render decision within 30 CSC to render decision within 30 working days from filing of appealworking days from filing of appeal

Potential Causes of Appeals

1.1. No union or rank and file representative No union or rank and file representative in CMT/sub-CMTin CMT/sub-CMT

2.2. Non-notification of affected personnel Non-notification of affected personnel

3.3. Deviation from Sections 3 and 4 of RA Deviation from Sections 3 and 4 of RA 6656 (Government Reorganization Law) 6656 (Government Reorganization Law) on order of placement of personnelon order of placement of personnel

4.4. Actions implemented not in approved Actions implemented not in approved PlanPlan

5.5. Violations of provisions of IRRViolations of provisions of IRR

Use of Savings

PS savings generated to be retained PS savings generated to be retained in Department to fund: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 Key Elements of Assistance to Affected PersonnelAffected Personnel

Retirement Processing and ProvisionRetirement Processing and Provision of Incentives of Incentives

CSC Placement SchemeCSC Placement Scheme

Skills/Livelihood and InvestmentSkills/Livelihood and InvestmentProgramProgram

Employee CounselingEmployee Counseling

Retirement Processing and ProvisionRetirement Processing and Provision of Incentives of Incentives

CSC Placement SchemeCSC Placement Scheme

Skills/Livelihood and InvestmentSkills/Livelihood and InvestmentProgramProgram

Employee CounselingEmployee Counseling

Retirement ProcessingRetirement Processing

DBM/CSC with MOA with GSIS/HDMF for DBM/CSC with MOA with GSIS/HDMF for timely release of benefits timely release of benefits

GSIS to provide benefit on day of ret/sep GSIS to provide benefit on day of ret/sep upon submission of complete upon submission of complete documents at least 1 month before documents at least 1 month before ret/sepret/sep

Affected personnel to continue to receive Affected personnel to continue to receive salaries until GSIS gives benefits, salaries until GSIS gives benefits, provided complete documents submitted provided complete documents submitted at least 1 month before ret/sepat least 1 month before ret/sep

DBM/CSC with MOA with GSIS/HDMF for DBM/CSC with MOA with GSIS/HDMF for timely release of benefits timely release of benefits

GSIS to provide benefit on day of ret/sep GSIS to provide benefit on day of ret/sep upon submission of complete upon submission of complete documents at least 1 month before documents at least 1 month before ret/sepret/sep

Affected personnel to continue to receive Affected personnel to continue to receive salaries until GSIS gives benefits, salaries until GSIS gives benefits, provided complete documents submitted provided complete documents submitted at least 1 month before ret/sepat least 1 month before ret/sep

Provision of Incentives DBM to provide ‘seed fund’ to depts/ DBM to provide ‘seed fund’ to depts/

agencies upon submission of list of agencies upon submission of list of employees opting to retire/be separated employees opting to retire/be separated

Placed personnel to enjoy CNA Placed personnel to enjoy CNA incentives, if qualified; in case of incentives, if qualified; in case of difference between CNA benefits in difference between CNA benefits in mother and recipient agency, to enjoy mother and recipient agency, to enjoy larger benefits for 1 year larger benefits for 1 year

Retired/separated personnel entitled to Retired/separated personnel entitled to commutation of accumulated commutation of accumulated compensatory overtime creditscompensatory overtime credits

DBM to provide ‘seed fund’ to depts/ DBM to provide ‘seed fund’ to depts/ agencies upon submission of list of agencies upon submission of list of employees opting to retire/be separated employees opting to retire/be separated

Placed personnel to enjoy CNA Placed personnel to enjoy CNA incentives, if qualified; in case of incentives, if qualified; in case of difference between CNA benefits in difference between CNA benefits in mother and recipient agency, to enjoy mother and recipient agency, to enjoy larger benefits for 1 year larger benefits for 1 year

Retired/separated personnel entitled to Retired/separated personnel entitled to commutation of accumulated commutation of accumulated compensatory overtime creditscompensatory overtime credits

Placement Scheme CSC to manage placement of personnel CSC to manage placement of personnel

who opt to remain in govt service who opt to remain in govt service CSC to match skills/qualifications of CSC to match skills/qualifications of

affected personnel with needs of priority affected personnel with needs of priority agencies for reassignmentagencies for reassignment

CSC to reassign in same province/region CSC to reassign in same province/region to extent possibleto extent possible

CSC to explore reassigning to LGU-CSC to explore reassigning to LGU-managed schools/hospitals after managed schools/hospitals after satisfying requirements of NGAssatisfying requirements of NGAs

CSC to manage placement of personnel CSC to manage placement of personnel who opt to remain in govt service who opt to remain in govt service

CSC to match skills/qualifications of CSC to match skills/qualifications of affected personnel with needs of priority affected personnel with needs of priority agencies for reassignmentagencies for reassignment

CSC to reassign in same province/region CSC to reassign in same province/region to extent possibleto extent possible

CSC to explore reassigning to LGU-CSC to explore reassigning to LGU-managed schools/hospitals after managed schools/hospitals after satisfying requirements of NGAssatisfying requirements of NGAs

Skills/Livelihood and Investment Program

Alternative Livelihood/EmploymentAlternative Livelihood/Employment Provide alternative skills/livelihoodProvide alternative skills/livelihood trainings trainings

Job Facilitation Job Facilitation Facilitate employment in private Facilitate employment in private sector, local or overseas sector, local or overseas

Investment ServicesInvestment Services Provide guidance on investment Provide guidance on investment opportunities opportunities

Alternative Livelihood/EmploymentAlternative Livelihood/Employment Provide alternative skills/livelihoodProvide alternative skills/livelihood trainings trainings

Job Facilitation Job Facilitation Facilitate employment in private Facilitate employment in private sector, local or overseas sector, local or overseas

Investment ServicesInvestment Services Provide guidance on investment Provide guidance on investment opportunities opportunities

Counseling

Affected GovernmentEmployee

CoopOrgn

SKILLS/LIVELIHOOD AND INVESTMENT PROGRAM FRAMEWORK

Place to O therG overnm ent Agency

CM T ReferralNeeds Assessm ent/

CM T Referral

Retire/Separate

OrientationJob

Matching

CSC

Transfer toOther

Agencies

FinancingAssistance

BusinessOrientation/Assistance/Facilitation

Tech/VocTrngs

Jobs GenerationGroup

Job FacilitationGroup

InvestmentServices Group

Overseas Local

Jobs GenerationGroup

Technical-VocationalEducation & Training(TVET)/Technology

Demonstration

CooperativeOrganization

FinancingAssistance

TESDATLRC

CDADTI

SBGFCQuedancorPCFCNLSFLBP-PMD

BusinessOrientation/Assistance/Facilitation

Job FacilitationGroup

Ov erseasE mployment

LocalE mployment

Bureau of LocalE m ploym ent(BLE ), DOLE

P hilippine OverseasE m ploym entAdm inistration (P OE A),DOLE

Land B ank of the Philipp inesD evelopm ent B ank of the Philipp inesB ureau of the Treasury

Inv e s tm e n t S e rv ic e sG roup

O rien ta tion 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

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!Thank You!

Government Rationalization Program EO 366 dated 04 October 2004.

Documents

Transcript of Government Rationalization Program EO 366 dated 04 October 2004.