Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
Third Regular Session

House Bill No. 11433

Introduced by REP. ELEANDRO JESUS F. MADRONA

EXPLANATORY NOTE

This bill seeks to introduce policy and organizational reforms in the Philippine Coast
Guard (PCG) by amending provisions of Republic Act No. 9993 or the Philippine Coast
Guard Law in order to make the PCG more responsive in the execution of important
mandates on maritime safety, maritime security and maritime environmental
protection.

The bill, which is a product of extensive consultation and deliberation during the
previous Congresses, will clarify the powers of key PCG officers, categorize
personnel, properly classify ranks, define the qualification and tenure of office, provide
necessary framework for disciplinary system, and will clarify the rules to be used in the
computation of retirement benefits, among others. These reforms are critical in
enhancing the PCG's capabilities and in ensuring effective maritime governance.

Given the significant contribution of the PCG to nation building, its vital role in
responding not only to natural disasters but even in humanitarian action, and given its
significant role in maintaining peace and security in the West Philippine Sea, we need
to strengthen the agency to enable it to effectively respond and carry out the
challenging mandates it was given.

In the current Congress, similar measure has been approved on 3" Reading but was
adopted with amendments by the Senate to initially focus on addressing the term of
the PCG leadership, thereby retaining only the provision fixing the term of the
Command by amending Section 5 of RA 9993.

Banking on the commitment of the Senate to pursue the measure that will introduce
policy and organizational reforms in the PCG, the refiling of this bill is necessary.

In view of the foregoing, the immediate approval of this measure is eamestly
requested.

REP. ELEANDRO JESUS F. MADRONA


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
Third Regular Session

nouse put xo, 11433

Introduced by Representative Eleandro Jesus F. Madrona

AN ACT
STRENGTHENING THE PHILIPPINE COAST GUARD BY
INTRODUCING POLICY AND ORGANIZATIONAL REFORMS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Revised
Philippine Coast Guard Law.”

SEC. 2. Philippine Coast Guard. - The Philippine Coast Guard
(PCG), established under Republic Act (RA) No. 9993, otherwise known as
the “Philippine Coast Guard Law of 2009, as an armed and uniformed
service attached to the Department of Transportation (DOT*) shall continue
as such upon the effectivity of this Act: Provided, That in times of war, as
declared by Congress, the PCG or parts thereof, shall be attached to the
Department of National Defense (DND).

ORGANIZATION

SEC. 3. Organization. — The PCG organizational structure shall be
headed by a Commandant with the rank of Admiral and shall be assisted
by the Deputy Commandant for Operations and Deputy Commandant for
Administration, both with the rank of Vice Admiral. It shall be organized
into three (3) core functional commands, namely: Maritime Safety Services
Command, Marine Environmental Protection Command, and Maritime
Security Law Enforcement Command. To enhance the core functions of the
PCG, it shall be reinforced by support commands and service units

categorized as follows:


a) Administrative support commands shall consist of the Education
and Training, Internal Affairs Service, Surface Support Force, Financial
Management, Human Resource Management Service and Logistics;

b) The operational support commands shall consist of the Weapons,
Communications, Electronics and Information System Service, Special
Operations Force, Aviation Force, Community Relations Command and
Canine Enforcement Force;

©) The technical services shall consist of the Coast Guard Legal
Service, Medical Service, Ecumenical Service, Dental Service, Veterinary
Service, Medical Administrative Corps, Nurse Corps, and other technical
services that may or hereinafter be created as needed;

4) Operating commands shall consist of the fifteen (15) districts
located nationwide covering specific areas of responsibilities composed of
stations that shall have field offices called sub-stations down to
detachments or posts. These coast guard districts are: National Capital
Region-Central Luzon (CGD NCR-CL), Central Visayas (CGD CV),
Southwestern Mindanao (CGD SWM), Southeastern Mindanao (CGD
SEM), Palawan (CGD PAL), Western Visayas (CGD WV), Southern Tagalog
(CGD STL), Northern Mindanao (CGD NM), Bicol (CGD BCL),
Northwestern Luzon (CGD NWL), Eastern Visayas (CGD EV),
Northeastern Luzon (CGD NEL), Southern Mindanao (CGD SM),
Northeastern Mindanao (CGD NEM) and Coast Guard districts in BARMM
(CGDs BARMM): Provided, That the PCG may create other new districts
subject to existing laws; and

e) The Special Services consist of the Legislative Liaison Affairs,
Community Relations Service, Internal Audit, and Center for Strategic
Studies.

In addition to the basic structure of the PCG mentioned above, the
Commandant may, in the interest of public service and expediency of
service, recommend to reorganize districts, commands, services or units
under the PCG which shall be forwarded to the Secretary of Transportation
for adoption and submission to the Secretary of Budget and Management
for approval: Provided, That the minimum manning level of the PCG shall

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be computed based on the total coastline of the Philippines with three (3)
uniformed personnel per (1) kilometer of coastline, which shall be filled in
accordance with the enlistment schedule approved by the Department of
Budget and Management: Provided, further, That the functional
commands, administrative support units, operational support units,
operating units, technical services and special services shall be authorized
and designated to perform all duties and functions of the PCG within their
individual areas of responsibility, including finance and procurement.

‘To enhance the capability and field expertise of uniformed personnel,
the PCG shall implement functional service specialization on its three (3)
core functional areas.

POWERS AND FUNCTIONS

SEC. 4. Powers and Functions of the PCG. - The PCG shall have
the following powers and functions:

a) Enforce regulations in accordance with all relevant maritime
international conventions, treaties or instruments and national laws for the
promotion of safety of life and property at sea within the maritime
jurisdiction of the Philippines and conduct port state control
implementation;

b) Conduct random inspections on all merchant ships and vessels,
including inspections prior to departure, to ensure and enforce compliance
with safety standards, rules and regulations;

©) Detain, stop, or prevent a ship or vessel which does not comply with
safety standards, rules and regulations from sailing or leaving port;

d) Conduct emergency readiness evaluation on merchant marine
vessels;

e) Issue and enforce rules and regulations for the promotion of safety
of life and property at sea on all maritime-related activities, subject to the
approval of the Secretary of the DOTs;

£) Determine, fix or prescribe charges, rates, and penalties, as may be
necessary, to implement its provisions, as well as the provisions of laws,
issuances, decrees, and orders related to the implementation of PCG

functions, subject to the approval of the Secretary of the DOTr;


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g) Coordinate, develop, establish, maintain, and operate aids to
navigation, vessel traffic system, maritime communications, and search and
rescue facilities within the maritime jurisdiction of the Philippines;

h) Remove, destroy, or tow to port sunken or floating hazards to
navigation, including illegal fish traps and vessels, at or close to sea lanes
which may cause hazards to the marine environment;

i) Issue permits for the salvage of vessels and to supervise all marine
salvage operations and wreck removal, and to auction the abandoned
vessels or wrecks to defray the expenses of such removal, as well as
prescribe and enforce rules and regulations governing the same;

j) Render aid to persons and vessels in distress and conduct search
and rescue during maritime accidents within the maritime jurisdiction of
the Philippines, including the high seas, in accordance with applicable
international conventions. In the performance of this function, the PCG
may enlist the services of other government agencies and the merchant
marine fleet;

k) Investigate and inquire into the causes of all maritime accidents
involving death, casualties and damage to properties;

1) In coordination with other relevant government agencies, enforce
and maintain maritime security, and prevent or suppress terrorism at sea,
in accordance with pertinent laws, rules and regulations;

m) Assist in the enforcement of laws on fisheries, immigration,
tariff and customs, forestry, firearms and explosives, human trafficking,
dangerous drugs and controlled chemicals, transnational crimes, and other
applicable laws within the maritime jurisdiction of the Philippines;

n) Board and inspect all types of merchant ships and watercrafts in the
performance of these functions;

0) Promulgate, administer, and enforce laws, rules and regulations for
the protection of marine environment and resources from offshore sources
of pollution within the maritime jurisdiction of the Philippines;

p) Develop oil spill response, containment, and recovery capabilities
against ship-based pollution;

q) Grant, within the capabilities and consistent with its mandate,

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requests for assistance of other government agencies in the performance of
their functions;

1) Organize, train and supervise the PCG Auxiliary (PCGA) for the
purpose of assisting the PCG in carrying out its mandated functions;

s) Recommend to the President of the Philippines the issuance of rules
and regulations pertaining to the assistance and support that the AFP
should extend to the PCG to enhance the latter's capability during
emergencies; and

t) Perform such other functions that may be necessary in the
attainment of the objectives of this Act.

THE PCG COMMANDANT

SEC. 5. The PCG Commandant. - The PCG shall be headed by a
Commandant who shall have the rank of Coast Guard Admiral: Provided,
That he or she shall be appointed by the President of the Philippines from
among the Flag Officers in the Coast Guard service. He or she shall hold a
command-at-sea badge and must have served as District Commander of the
PCG. The Commandant shall have a maximum term of three (3) years
which shall commence on the date the appointment is signed, unless sooner
terminated by the President. The PCG Commandant shall be compulsorily
retired upon completion of the maximum term or upon relief by the
President.

SEC. 6. Powers and Functions of the Commandant. - The
Commandant shall exercise the following powers and functions:

a) Elaborate and execute the national maritime laws relating to the
functions of the PCG, under the authority and direction of the President of
the Philippines;

b) Direct and control tactical as well as strategic movements,
deployment, placement, or utilization of the PCG or any of its units and
personnel, including its equipment, facilities and other resources: Provided,
That the Commandant may delegate this power to subordinate officials with
respect to the units under the latter's command, subject to the guidelines as
the Commandant may prescribe in accordance with existing laws, rules and

regulations;


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©) Prescribe, in accordance to existing laws the organization or re-
organization, powers, functions, and duties of the various staff, services,
installation, and other units of the PCG;

d) Issue policies and instructions regarding personnel, funds,
properties, records, correspondence, and such other matters as may be
necessary to effectively carry out the functions, powers and duties of the
PCG, in accordance with existing laws, rules and regulations;

¢) Approve the recommendation of the different promotion or
assignment boards and ensure observance of merit and fitness in the
process of promotion and assignment;

f) Exercise disciplinary authority over all uniformed personnel and
non-uniformed personnel of the PCG; and

g) Perform any task or directive issued by the President of the
Philippines: Provided, That such command and direction of the
Commandant may be delegated to subordinate officials with respect to the
units under the latter's respective commands, subject to the guidelines as
the Commandant may prescribe in accordance with the rules and regulation
prescribed under existing laws.

ADMINISTRATION AND PERSONNEL

SEC. 7. Personnel. - The PCG shall consist of the following categories
of personnel:

a) Officer refers to a uniformed member of the PCG who is
commissioned as officer by the President of the Philippines and belongs to
the officers’ corps;

b) Non-officer refers to a general term for uniformed members of the
PCG with ranks below commissioned officers and performing jobs specific
to their occupational specialty. There are three classification of non-officers,
namely, strikers for those in grades E-1 to E-3, junior non-commissioned
officers for those in grades E-4 to E6, and senior non-commissioned officers
for ranks with equivalent grades of E-7 to E-10;

c) Non-uniformed personnel refer to the non-uniformed members of
the PCG who are appointed and employed under the Civil Service laws,

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4) Probationary ensign refers to a person who is called to active duty
but awaiting commissionship into the PCG or awaiting training;

©) Draftee refers to a person who has completed basic training and is
awaiting enlistment into the PCG active service;

f) Cadet refers to a person who is enrolled in service academies under
the sponsorship of the PCG;

g) Candidate refers to a person who is undergoing training for
commissionship; and

h) Trainee refers to a person who is undergoing training to qualify as
member of the non-officers’ corps of the PCG:
Provided, That the ranks and grades of all uniformed personnel in the PCG,
whether officers or non-officers, shall be the same and equal as that used
and observed in the AFP and the PNP.

SEC. 8. Ranks and Grades of PCG Officers.—The ranks and grades
of PCG Officers shall be as follows:

RANK ACRONYM PAY GRADE
Admiral ADM 0-10
Vice Admiral VADM 09
Rear Admiral RADM 0-8
Commodore cOMMO 0-7
Captain CAPT 06
Commander CDR 05
Lieutenant Commander LCDR 0-4
Lieutenant Senior Grade LTSG 03
Lieutenant Junior Grade L1G 02
Ensign ENS 0-1

SEC. 9. Technical Officers. - Other professionals that may join the
PCG service as technical officers are:

a) Lawyers;

b) Doctors;

) Priests, Pastors, Imam, and other certified clerics;

d) Dentists;

e) Veterinarians; and


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f) Nurses
Provided, That any applicant holding the degree of any of the
abovementioned professions shall have qualified and passed the
appropriate licensure examination, when applicable, of the respective
professions to be qualified for entry into the Coast Guard service: Provided,
however, That other board professions not listed above may still be recruited
as part of the technical stream upon verification of the PCG of its need
thereof.

SEC. 10. Officer Rank Distribution. - The officer rank distribution
of the PCG shall be as follows: two per centum (2%) in the Flag Officer rank;
six per centum (6%) in the rank of Coast Guard Captain; twelve per centum
(12%) in the rank of Coast Guard Commander; eighteen per centum (18%)
in the rank of Coast Guard Lieutenant Commander; twenty per centum
(20%) in the rank of Coast Guard Lieutenant Senior Grade; and forty-two
per centum (42%) in the ranks of Coast Guard Lieutenant Junior Grade and
Coast Guard Ensign: Provided, That such distribution is based on the ratio
between officers and non-officers, which is one (1) officer for every seven (7)
non-officers: Provided, further, That if the actual number in a rank is less
than the number prescribed in a lower rank, the difference may be applied
as an increase to the number prescribed in the lower rank.

SEC. 11. Distribution of Flag Officers. - Other than the
Commandant who occupies the rank of Admiral, the total number of flag
ranks shall not exceed two (2) percent of the total population of officers

distributed observing the pyramidal structure as hereunder prescribed:

Vice Admiral 0.15%
Rear Admiral 0.35%
Commodore 1.50%

Total 2.00%

Provided, That if the actual number in a rank, except in the case of Coast
Guard Admiral and Coast Guard Vice Admiral, is less than the number
herein prescribed, the difference may be applied as an increase to the
number prescribed in the lower rank: Provided, further, That no officer shall
be promoted to the rank of Coast Guard Commodore or higher unless there


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is an existing vacancy, and the officer is occupying a position in the table of
organization that requires the rank which is being considered for promotion.

SEC. 12. Maximum Tenure in Rank. ~ The maximum tenure of
officers in the ranks of Captain and Flag Officer in the PCG are hereby

prescribed as follows:

Rank Maximum Tenure in Rank
Admiral three (3) years

Vice Admiral three (3) years

Rear Admiral three (3) years
Commodore five (5) years

Captain ten (10) years

Unless earlier separated, retired, or promoted to the next higher rank
or occupying a position calling for the higher rank in the PCG Table of
Organization, Captains and Flag Officers shall be retired upon the
attainment of the maximum tenure in rank herein prescribed, or upon
reaching the age of compulsory retirement whichever comes earlier:
Provided, That Captains or flag officers who have not reached the age of
retirement shall be retired due to attrition if they have at least twenty (20)
years in service, otherwise it shall be separation from service.

SEC. 13. Maximum Tenure in Position of the Commandant. ~
The Commandant is hereby limited to a maximum tenure of three (3) years,
unless otherwise earlier relieved by the President or competent authority.

SEC. 14. Ranks and Grades of Non-officers. - The ranks and pay
grades of PCG non-officers shalll be as follows:

RANK ACRONYM PAY GRADE
First Master Chief Petty Officer FMCPO E-10
Master Chief Petty Officer MCPO E-9
Senior Chief Petty Officer SCPO E-8
Chief Petty Officer CPO E-7
Petty Officer First Class PO1 E6
Petty Officer Second Class Po2 E-5
Petty Officer Third Class PO3 E-4
Seaman/Seawoman First Class SNI/SW1 E-3


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Seaman/Seawoman Second Class SN2ISW2 E2
Apprentice Seaman/Seawoman ASN/ASW El
SEC. 15. Maximum Tenure in Rank for Non-officers. - The

maximum tenure of senior non-officers in the ranks of Chief Petty Officer to

First Master Chief Petty Officer in the PCG are as follows:

Rank Maximum Tenure in Rank
First Master Chief Petty Officer ‘Three (8) years
Master Chief Petty Officer Three (3) years
Senior Chief Petty Officer Five (5) years
Chief Petty Officer Eight (8) years

Any non-officer holding lower ranks than the above who stays in a rank for
ten (10) years without being promoted to the next higher rank shall be
evaluated by the Re-enlistment Fitness Board who shall verify suitability
to continue in service and submit a recommendation for the approval of the
Commandant: Provided, That the original enlistment term in the PCG shall
be three (3) years and subsequent re-enlistment shall be for the term of six
(6) years, with the application for re-enlistment to be reviewed by the Re-
enlistment Fitness Board for recommendation to the Commandant for
approval: Provided, further, That the uniform allowance shall be payable
every three (3) years after complying with the physical fitness test.

SEC. 16. Non-uniformed Personnel. - There shall be non-
uniformed personnel positions in the PCG. The head of the non-uniformed
personnel shall occupy a rank of Director III and shall be appointed by the
President of the Philippines upon recommendation of the Commandant. The
non-uniformed personnel shall establish their own plantilla positions to
complement the strength of the PCG uniformed personnel.

SEC. 17. Appointments. - The appointment of the PCG Commandant
and Flag Officers shall be approved by the President of the Philippines upon
the recommendation of the Secretary of the DOTr. Appointments of all PCG
non-officers shall be made by the PCG Commandant. Appointments of PCG
officers, which shall be in the initial rank of Coast Guard Ensign shall be
through a commissionship into service by the DOTr Secretary upon the

recommendation of the Commandant.

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The initial entry ranks for technical officers like lawyers, medical
doctors, and ecumenical clerics shall be Lieutenant Senior Grade; dentists
and veterinarians shall be Lieutenant Junior Grade; while nurses shall be
commissioned to the rank of Ensign. Appointment of other technical
professions that may be required later shall be based on the academic
attainment or ranking in licensure examination results issued by competent
authority.

Appointments as well as the promotion of all non-uniformed personnel
shall be in accordance with Civil Service Commission (CSC) laws, rules and
regulations.

SEC. 18. Basic Qualification for Uniformed Personnel. - To
qualify as officer or non-officer of the PCG, the applicant shall possess the
following at the time of application:

a) Natural born citizen of the Philippines;

b) A person of good moral conduct;

) Must have passed the psychiatric, psychological, drug, and physical
tests to be administered by the PCG Medical Service or by any PCG
accredited government hospital for the purpose of determining physical and
mental health;

d) Must possess a formal baccalaureate degree, with appropriate
license when applicable or professional civil service eligibility for
appointment as officer, and must have finished at least seventy-two (72)
non-repetitive units of college education, or is a senior high school graduate
with six (6) months Technical Education and Skills Development Authority
skills course related to the functions of PCG for appointment as non-officers
upon effectivity of this Act; and

) Must not have been dishonorably discharged from military
employment or dismissed for cause from any non-uniformed personnel
position in the government.

SEC. 19. Promotions of Officers and Non-officers. — The
promotion of PCG officers and non-officers shall be based on merit and
fitness in accordance with the following procedures:

a) Officers shall only be promoted after undergoing deliberation before

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the promotion boards: Provided, That the promotion boards shall submit
the results of their deliberation to the Commandant for approval and
corresponding endorsement to the Secretary of the DOTr for transmittal to
the President of the Philippines for approval; and

b) There shall also be appropriate promotion boards for non-officers
whose recommendation shall be submitted to the Commandant for
approval:
Provided, further, That at the time of promotion, the officer or non-officers
concerned shall possess all the qualifications and none of the
disqualification provided under pertinent laws, rules and regulations,
specifically on the completion of required career course, training,
examination and minimum time-in-grade as applicable for specific ranks.

SEC. 20. Gender Sensitivity Program. — Gender concerns shall be
addressed in all planning activities, setting of priorities, allocating of
resources, and identifying actions and activities of the PCG. It shall also
incorporate a gender sensitive perspective in the implementation of such

plans and programs.

Gender sensitivity shall also be mainstreamed in all its internal
policies, strategies, budget, projects, structures and mechanisms, including
hiring, promotions, assignment, training opportunities, pay and benefits. A
gender perspective shall likewise be integrated in all its training programs,
especially for maritime search and rescue.

SEC. 21. PCG Insignia, Decorations and Awards. ~The PCG shall
have its own insignia and badges to denote rank, specialty, and assignment
including uniforms, decorations, and awards, all of which shall be submitted
to the National Historical Institute for registration in the flags and heraldic
list: Provided, That there shall be an established awards system which shall
be administered by the PCG under such rules and regulations as may be
promulgated with the approval of the Secretary of the DOTr.

SEC. 22. Legal Assistance. — The Secretary of the DOTr or the
Commandant of the PCG may authorize lawyers of their respective agencies
to provide legal assistance to any member of the PCG charged with an

offense or crime resulting from the performance or on occasion of official

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duty. The government lawyers so authorized shall have the power to
administer oaths.

SEC. 23. Power to Administer Oath. — Officers of the PCG in the
active service with the grade of O-5 or when designated with appropriate
orders as administrative officer of a unit, shall have the power to administer
oaths on matters which are connected with the performance of their official
duties. Senior non-commissioned officers, those with grades E-7 to E10,
who are designated through appropriate orders, as Chief-Master-At-Arms
(CMAA) or unit master chief are also empowered to administer oaths.

SEC. 24. Maritime and Coast Guard Attaché. — The PCG shall
have maritime and coast guard attaché in the International Maritime
Organization, other international institutions, or as member of diplomatic
missions or embassies.

The assignment or deployment of the maritime or coast guard attaché
shall be with the prior approval of the Secretary of Foreign Affairs.

PAYS, ALLOWANCES, AND BENEFITS

SEC. 25. Salaries and Other Benefits. — The uniformed personnel
of the PCG shall receive the same base pay, hazard pay, and other benefits
and allowances as are now or hereafter may be authorized for corresponding
salary grades and ranks in the AFP. The salaries and allowances of the non-
uniformed personnel of the PCG shall be in accordance with existing CSC
laws, rules and regulations.

SEC. 26. Longevity Pay and Allowances. - Uniformed personnel of
the PCG shall be entitled to a longevity pay of ten percent (10%) of their
basic monthly salaries for every five (5) years of continuous active service,
which shall be reckoned from the date of actual service in the PCG:
Provided, That the totality of such longevity pay shall not exceed fifty
percent (50%) of the basic pay. They shall also continue to enjoy the
subsistence allowance, quarters allowance, clothing allowance, cost of living
allowance, hazardous duty pay and other collateral allowances but not
limited to sea duty pay, flying pay, special counsel allowance, occupational
specialty pay, instructors duty pay, combat pay for officers and non-officers

of the PCG performing combat duties or activities or engaged in actual

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performance of duties as defined in regulations to be issued by the
Commandant and all other applicable allowances as provided by existing
laws: Provided, further, That the PCG shall, subject to approval of the
President of the Philippines, issue a specific policy pertaining to collateral
allowances for specific duties actually performed. All collateral allowances
shall be reflected in the pay slip of qualified personnel.

SEC. 27. Uniformed Personnel Missing in Action. — The survivors
of any officer or non-officer who, while in the performance of duty, is
officially confirmed missing in action, kidnapped or captured by lawless
elements shall be entitled to receive the same pay and allowances to which
such officer or non-officer is entitled from the time of the latter's
disappearance: Provided, That the compulsory retirement of an absentee,
in applicable cases, shall be processed to allow the survivors to enjoy the
retirement benefits: Provided, further, That should the Commandant, upon
the recommendation of the proper authority or immediate supervisor,
subsequently rule that the officer or non-officer concerned has been absent.
from duty without authority, such member or the latter's survivors shall
reimburse the PCG all such amount and allowances that have been received
in accordance with this section and other pertinent sections of this Act.

SEC. 28. Emergency and Medical Assistance. — The PCG shall
have an emergency medical assistance fund, sourced from the PCG’s Annual
Budget Plan as reflected in the General Appropriations Act for
hospitalization, operation, medication, and rehabilitation of personnel
arising from injuries suffered on occasion of or in the performance of official
functions until such time that the PCG Hospital is fully operational.

ACTIVE SERVICE AND SEPARATION

SEC. 29. Active Service. — For purposes of this Act, active service of
the uniformed personnel shall refer to services rendered as an officer and
non-officer, cadet, trainee, or draftee in the PCG and services rendered as a
non-uniformed personnel in the Philippine Government prior to the date of
separation or retirement from the PCG: Provided, That, for purposes of
retirement, the personnel shall have rendered at least ten (10) years of
active service as officer or non-officer in the PCG: Provided, further, That

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no period of such non-uniformed personnel's government service longer
than the active coast guard service shall be credited for purposes of
retirement. Service rendered as cadet in any service academy in the
Philippines or abroad under the sponsorship of the PCG such as the
Philippine Merchant Marine Academy, probationary officer, draftee, or
trainee shall be included in computing the years in active service for
retirement purposes if such personnel joins the service right after
graduation.

SEC. 30. Retirement. - Upon attaining fifty-seven (57) years of age
or accumulation of thirty (30) years of continuous satisfactory active service,
whichever comes later, a PCG uniformed personnel shall be compulsorily
retired: Provided, That technical officers may extend their tenure of service
up to sixty (60) years or until having accumulated twenty (20) years of
satisfactory active service, whichever comes later.

Any officer or non-officer may choose to retire on their own option upon
accumulating at least twenty (20) years in active service.

For purposes of this Act, an officer or non-officer who dies after having
accumulated at least twenty (20) years of satisfactory active service shall be
considered as retired.

‘The retirement of non-uniformed personnel of the PCG shall be
governed by the Government Service Insurance System (GSIS) law, rules
and regulations.

SEC. 31. Separation. - Separation from the Coast Guard service may
be done through compulsory retirement, optional retirement upon reaching
twenty (20) years in service, disability discharge, expiration of enlistment
term, voluntary resignation, attrition, dismissal for cause, or death.

‘The separation of non-uniformed personnel of the PCG shall be
governed by the Civil Service law, rules and regulations.

SEC. 32. Attrition. - There shall be established a system of attrition
within the uniformed members of the PCG within one (1) year from the
effectivity of this Act to be submitted by the PCG to the President of the
Philippines for approval.

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SEC. 33. Retirement Benefits. - An officer or uniformed personnel
who is retired under Section 30 of this Act, or the retiree’s qualified
survivors, are entitled to receive, and may choose from, any of the following
benefits:

a) Gratuity Pay. — A lump sum payment of gratuity pay equivalent to
one (1) month of base and longevity pay computed based on one (1)
grade higher than the permanent salary grade last held for every
year of service; or

b) Retirement Pay - A monthly retirement pay equivalent to fifty
percent (50%) of monthly base and longevity pay computed based on
one grade higher than the permanent salary grade last held by the
personnel in case of twenty (20) years of active service, increasing by
two and one-half percent (2%%) for every year of service rendered
beyond twenty (20) years up to a maximum of ninety percent (90%)
for thirty-six (36) years of active service and over.

Provided, That non-officers who attain the rank of Chief Petty Officer,
Senior Chief Petty Officer and of Master Chief Petty Officer shall, upon
retirement, be entitled to the retirement pay and benefits of an
Ensign: Provided, further, That a Master Chief Petty Officer shall receive a
gratuity equivalent to that of an Ensign plus one-half (1/2) of the difference
between the gratuity of an Ensign and a Chief Petty Officer; a Senior Chief
Petty Officer shall receive a gratuity equivalent to that of an Ensign plus
one-half (1/2) of the difference between the gratuity of a Master Chief Petty
Officer and a Chief Petty Officer; while a First Master Chief Petty Officer
shall be retired with the rank of Ensign but with the retirement pay and
benefits of a Lieutenant Junior Grade (0-2), as provided for in existing laws:
Provided, furthermore, That officers and non-officers who availed of optional
retirement are entitled to receive monthly retirement pay upon retirement:
Provided, finally, That upon retirement, an officer or non-officer is entitled
to receive a lump sum equal to thirty-six (36) months of the monthly
retirement pay.

‘The retirement pay of officers and non-officers who are killed in action

or wounded in action resulting in total permanent disability shall be

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computed at the rate of ninety percent (90%) of the monthly base and
longevity pay based on one grade higher than the permanent salary grade
last held by the personnel regardless of years in active service.

The retirement pay of all PCG uniformed personnel retirees shall be
subject to adjustment on the prevailing scale of base pay of uniformed
personnel in the active service.

The retirement benefits of non-uniformed personnel shall be governed
by applicable Civil Service laws and regulations and the GSIS Law.

SEC. 34. Separation Pay. - Officers and non-officers separated from
the PCG without having accumulated at least twenty (20) years of
satisfactory active service, or their qualified survivors, shall receive a
separation pay equivalent to one-month base plus longevity pay based on
the permanent salary grade the officer and non-officer holds at the time of
separation for every year of active service: Provided, That in the case of an
officer in the grade of Captain or higher who incurs physical disability in
the line of duty, the basis of the separation pay shall be one grade higher
than the salary grade held by such officer at the time of separation:
Provided, further, That cadets, candidates, trainees, or draftees who
voluntarily resign from service shall not be entitled to any separation pay.

‘The separation benefits of non-uniformed personnel shall be governed
by applicable Civil Service laws and regulations and the GSIS Law.

SEC. 35. Benefits for Death and Total Permanent Disability in
the Line of Duty or During Training. - Qualified survivors of officers
and non-officers, including cadets, candidates, trainees and draftees who
died in the line of duty without having accumulated at least twenty (20)
years of satisfactory active service are entitled to a monthly life annuity,
equivalent to fifty percent (50%) of the base and longevity pay computed
based on one grade higher than the permanent salary grade last held by the
deceased officer and non-officer at the time of death: Provided, That
survivors of cadets, candidates, trainees, and draftees who died during
training through their own fault or negligence shall not be entitled to this
benefit.

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Officers or non-officers, including cadets, candidates, trainees, and
draftees who suffer total permanent physical disability in the line of duty
or during training without having accumulated at least twenty (20) years of
satisfactory active service shall be entitled to a monthly life annuity,
equivalent to fifty percent (50%) of the base and longevity pay computed
based on one grade higher than the permanent salary grade last held by the
officer or non-officer when the disability occurred: Provided, That the extent
of the disability or sickness which renders such member unfit or unable to
further perform the duties of the position held shall be certified by the
appropriate government hospital like the Philippine General Hospital:
Provided, further, That cadets, candidates, trainees and draftees who suffer
total permanent physical disability during training through their own fault
or negligence shall not be entitled to this benefit.

The death and disability benefits of non-uniformed personnel shall be
governed by applicable Civil Service laws and regulations and the GSIS
Law.

SEC. 36. Survivors. - The family of deceased officers or non-officers
who are alive may claim benefits after such uniformed personnel dies in line
of duty or when the pensioner dies. The following criteria shall apply:

a) Surviving spouse if married to the deceased prior to the latter's
retirement or separation and not legally separated by judicial decree from
the deceased issued on grounds not attributable to said spouse: Provided,
That the spouse's entitlement of benefits shall terminate when the spouse
dies, remarries, cohabits, or engages in a common-law relationship;

b) Surviving children of officers or non-officers born of marriage
contracted prior to retirement or separation from the service, surviving
children adopted legally prior to retirement or separation, illegitimate
children born while the deceased parent was still on active service:
Provided, That entitlement to benefits shall terminate when such children
attain twenty-one (21) years of age or upon marriage: Provided, further,
That those who have reached the age of twenty-one (21) years but are
incapacitated and incapable of self-support due to a mental or physical

defect acquired prior to age of majority shall remain entitled to the benefits;

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and
©) In default of those mentioned in paragraph (a) and (b), the
surviving parent or parents.

As regards question of filiation involving survivor-claimants, the same
shall be submitted first by the claimants to a competent court for
determination before benefits can be given.

SEC. 37. Survivorship Benefits. - The qualified survivors are
entitled to a monthly annuity equivalent to seventy-five percent (75%) of
the officer or non-officer's retirement or separation benefits, to be divided
among them in equal shares and with the right of accretion.

Survivorship benefits for non-uniformed personnel shall be governed
by the GSIS Law.

SEC. 88. Disability Pension. In addition to the other benefits under
this Act, an officer or non-officer who is retired or separated by reason of
disability, which is the proximate result of wounds or injuries sustained or
sickness or disease acquired in the line of duty shall receive a monthly
disability pension as follows:

a) Ifand while the disability is rated twenty-five percent (25%) — Five
thousand pesos (P5,000.00);

b) If and while the disability is rated fifty percent (50%) — Ten
thousand pesos (P10,000.00);

©) If and while the disability is rated seventy-five percent (75%) —
Fifteen thousand pesos (P15,000.00); and

d) Ifand while the disability is rated one hundred percent (100%) —
‘Twenty thousand pesos (P20,000.00).

‘The officer or non-officer receiving the benefits under this Section may
be required to undergo periodic physical and medical examination to
determine the extent of disability for purposes of adjusting the disability
pension.

SEC. 39. Application of Related Laws on Retirement and
Separation of Uniformed Personnel. - The retirement system under
Presidential Decree (PD) No. 1638, as amended, and the provisions of RA
8220, RA 9365, and other similar applicable laws, insofar as not

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inconsistent with applicable provisions of this Act, shall be given suppletory
effect.

SEC. 40. Incentives and Awards. ~ There shall be established an
incentives and awards system which shall be the same and equal as that
used and observed in the AFP and the PNP, including the Medalya ng
Kagitingan (Medal of Valor) to be administered by a board under such rules,
regulations and standards as may be promulgated by the PCG: Provided,
That equivalent awards shall be given by the PCG for every award duly
given by respectable civic organizations in a nationwide selection for
outstanding achievement or performance of any member: Provided, further,
That in the case of non-uniformed personnel, the system of incentives and
awards shall be approved and in accordance with CSC laws, rules and
regulations.

DISCIPLINARY SYSTEM

SEC. 41. Disciplinary System. — The PCG shall adopt the PCG
Code of Conduct which shall be applicable to all its uniformed personnel
while non-uniformed personnel shall be covered under the disciplinary rules
of the Civil Service. The Commandant shall be assisted by the Coast Guard
Internal Affairs in enforcing discipline and order within its ranks though
for disciplinary issues depending on gravity, unit commanders shall
exercise disciplinary powers over personnel under their command. The
PCG shall, within six (6) months from the effectivity of this Act, issue
policies, rules and procedures applying the PCG Code of Conduct based on
the provisions of Commonwealth Act No. 408, as amended by RA 516, RA
242, PD 1968, and PD 1166: Provided, That for non-uniformed personnel,
the PCG shall issue rules and procedures implementing Book VII of
Executive Order No. 292 and applicable CSC laws, administrative rules,
and issuances: Provided, further, That in times of war, during which the
PCG or any of its offices is attached to the DND, the military justice system
of the AFP shall apply.

SEC. 42. Disciplinary Authority. ~The Commandant shall exercise
disciplinary authority at any time over all personnel of the PCG. The

authority to discipline shall also be exercised by unit commanders and

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Commanding Officers including Station Commanders, Sub-Station
Commanders, and head of Morning Report Carrying Units.

SEC. 43. Jurisdiction. — A complaint or a charge filed against a PCG
member shall be heard and decided exclusively by the disciplining authority

who has acquired original jurisdiction over the case, notwithstanding the
existence of concurrent jurisdiction as regards the offense.

SEC. 44. Dismissal of PCG Personnel. — The Commandant, after
due notice and summary hearing, may immediately remove or dismiss any
respondent PCG personnel, and major unit commanders may recommend
such in any of the following cases:

a) In cases of drug abuse where subsequent confirmation test confirms
the use of prohibited drugs;

b) When the charge is serious and the evidence of guilt is strong;

©) When the respondent is a recidivist or has been repeatedly charged
and there are reasonable grounds to believe that the respondent is guilty of
the charges; and

4) When the respondent is guilty of a serious offense involving conduct
unbecoming a PCG personnel.

An officer or non-officer who is continuously absent without approved
leave for at least thirty (30) calendar days shall be considered on absence
without official leave and shall be presumed voluntarily resigned: Provided,
That such officer or non-officer shall be informed, by registered mail, at the
address appearing on such officer's or non-officer’s 201 file not later than
five (5) calendar days from the effectivity thereof.

‘The dismissal of PCG non-uniformed personnel shall be governed by
Civil Service laws, rules and regulations.

SEC. 45. Coast Guard Internal Affairs Service (CGIAS). ~ To
maintain accountability in government service through discipline and
efficiency, there shall be an Internal Affairs Service in the PCG. The CGIAS
shall foster and promote accountability in government service within the
PCG and follow the basic principles of integrity, objectivity, independence,
confidentiality, professionalism, competence, courage, trust, honesty,

fairness, forthrightness, public accountability’, and respect for others and

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themselves. It shall have the power to investigate and inquire into any and
all activities of the PCG units and personnel, review processes, procedures
and operations to determine if such were conducted effectively and
efficiently.

‘The personnel of the CGIAS, whether officer or non-officer who are
perfor
specialty pay which shall not exceed fifty percent (50%) of their basic pay

ing actual investigative duties shall be granted occupational

and shall be reflected in their pay slip for the work performed: Provided,
That such personnel shall not be entitled to the occupational specialty pay
under Section 26 hereof.

MISCELLANEOUS PROVISIONS

SEC. 46. Organization of a PCGA. — The PCG shall continue to
maintain, supervise, develop, and train the PCGA as a non-uniformed
personnel volunteer organization under the direct control and supervision
of the PCG Commandant. The PCGA shall assist the PCG in the promotion
of safety of life and property at sea, the preservation of the marine
environment and its resources, the conduct of maritime search and rescue,
the maintenance of aids to navigation, and such other activities that
enhance maritime community relations which include civic action,
participation under the National Service Training Program, youth
development, recreational safety, and other related activities.

SEC. 47. Lateral Entry. — Active members of other uniformed
services under the AFP, PNP, Bureau of Fire Protection, Bureau of Jail
Management and Penology, and Bureau of Corrections may join the PCG
through lateral entry. The rank for officers eligible for such entry must not
be higher than Lieutenant Commander and Petty Officer Second Class for
non-officers. Notwithstanding the corps they wish to join, all entrants shall
only be accepted if, on or before time of entry, they are: a) not under
investigation, b) not on AWOL status, c) not serving sentence, whether
administrative or criminal, d) have not been issued reprimand in the last
two (2) years, or e) have not received an unfavorable rating in the latest

performance rating.

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However, if an entrant possesses specific skills that may not be readily
developed in new recruits, lateral entry may be allowed for ranks higher
than those mentioned above: Provided, That the new entrant can serve at
least ten (10) years in PCG active service prior to reaching the mandatory
retirement age.

SEC. 48. Exemption from Attachment, Taxes, Charges, and Fees.
~ Retirement benefits granted by this Act, including benefits received from
a duly instituted provident fund and mutual benefit association, shall not
be subject to attachment, levy, execution, or any tax of whatever nature.

In the establishment and operation of radar and radio stations and
other communication facilities, the PCG shall not be subject to payment of
charges and fees as imposed by the National Telecommunications
Commission (NTC): Provided, That the PCG shall only use frequencies as
may be allowed or assigned by the NTC consistent with international
regulations and guidelines.

Except as provided in the preceding paragraph, the PCG shall, in the
performance of its functions, enjoy such rights and privileges enjoyed by
other governmental and law enforcement agencies, instrumentalities, and
government-owned and controlled corporations such as exemption from
registration, application for license, and payment of fees as imposed by
other governmental agencies or regulatory bodies. Should the PCG be
required to register or to file application, the fees to be charged shall only
be in such minimal amount corresponding to the actual administrative cost
necessary for the issuance of the permit, license, or certificate.

SEC. 49. PCG Modernization Trust Fund. - There is hereby created
a PCG Modernization Trust Fund to be used exclusively for the PCG
Modernization Program which shall be sourced from the following:

a) Fees, dues, charges and fines collected relevant to the exercise of
its various functions;

b) Proceeds from the disposal of excess and uneconomically
repairable equipment and other movable assets of the PCG; and

c) All interest income that accrues to the Trust Fund.

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The PCG Modernization Fund shall be administered by the
Commandant of the PCG in accordance with the existing government
budgeting, accounting and auditing rules and regulations.

SEC. 50. Loans, Grants, Bequests and Donations. —- The PCG may
receive grants, bequests, and donations whether from local or foreign
sources for the PCG Modernization Program.

The Secretary of the DOTr may enter into a loan agreement with
foreign financial institutions, subject to the review of the Monetary Board
of the Bangko Sentral ng Pilipinas and the Department of Finance.

SEC. 51. PCG Properties and Lighthouse Reservations. — The
PCG shall continue to exercise exclusive ownership, possession,
management, control and supervision over all properties transferred to it
by virtue of Executive Order No. 475, dated 30 March 1998, and Executive
Order No. 477, dated 15 April 1998, such as, inter alia, vessels, watercrafts,
firearms, armaments, munitions, communications and electronic
equipment, vehicles, buildings, real state, lighthouse stations, and
reservations.

SEC. 52. Establishment and Expansion of Coast Guard Bases,
Equipment and Facilities. - In coordination with other appropriate
government agencies, the PCG shall develop and enhance its capabilities in
the performance of its mandated functions and establish its strategic
presence. To this end, the PCG shall, through the guidance of Congress,
draft its development plan that shall reflect its asset, equipment, and
facility requirement that includes floating assets, laboratories, land-based
support facilities, land mobility, arms and ammunition, rescue and hospital
ship, maritime monitoring surveillance and communications system, port
facilities, air assets, and air stations.

SEC. 53. Implementing Rules and Regulations. ~ For submission
to the Secretary of the DOTr for approval, the PCG, not later than one
hundred twenty (120) days from the effectivity of this Act, shall issue rules
and regulations, determine, fix or prescribe charges, rates, and penalties,

as may be necessary, to implement its provisions, as well as the provisions

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of laws, issuances, decrees and orders related to the implementation of PCG
functions.

SEC. 54. Appropriations. - The amount necessary for the initial
implementation of this Act shall be charged against the current year's
appropriations of the PCG. Thereafter, such amount shall be included in the
annual General Appropriations Act.

In addition, an amount of One billion pesos (P1,000,000,000.00) is
hereby appropriated annually for five (5) years for the PCG Modernization
Program upon enactment of this Act out of any funds actually available in
the National Treasury of the Philippines not otherwise appropriated, as
certified by the National Treasurer.

SEC. 55. Transitory Provisions. — The provisions of this Act, as far
as the computation of rate is concerned, shall have retroactive effect on the
retirement benefits of non-officers whose retirement were affected by the
implementation of RA 9993, and the discrepancy as a result of applying this
Act and RA 9993 shall be returned to the retiree. The same shall also be
retroactively applicable to indexation of pension to base pay scale
adjustments affected by RA 9993: Provided, That the retirement benefits of
the ranks of Admiral and Vice Admiral adversely affected by Joint
Resolution No. 4 s. 2009, entitled: “Joint Resolution Authorizing the
President of the Philippines to Modify the Compensation and Position
Classification System of Civilian Personnel and the Base Pay Schedule of
Military and Uniformed Personnel in the Government, and for Other
Purposes”, and Joint Resolution No. 1 s. 2018, entitled: “Joint Resolution
Authorizing the Increase in Base Pay of Military and Uniformed Personnel
in the Government, and for Other Purposes”, shall be adjusted in the same
level as its contemporary ranks of General and Lieutenant General in the
AFP and the PNP, respectively: Provided, further, That those affected by
the above-mentioned Joint Resolutions shall be paid the difference in pay
and allowances by reason thereof.

SEC. 56. Separability Clause. - If for any reason, any provision of
this Act is declared unconstitutional or invalid, such parts not affected

thereby shall remain in full force and effect.

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SEC. 57. Repealing Clause. — RA 9993 is hereby repealed and all
laws, decrees, executive orders, rules and regulations and other issuances
or parts thereof which are inconsistent with this Act are likewise hereby
repealed, amended, or modified accordingly.

SEC. 58. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,

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