SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session
Senate
'  (Otfitf of ll)f
’17 FEB 20 P3 :34
SENATE
S. B. No. 1337
received BY; d
1
Introduced by Senator JUAN MIGUEL F. ZUBIRI
AN ACT
RIGHTS4ZING THE NATIONAL GOVERNMENT TO 
IMPROVE PUBLIC SERVICE DELIVERY
EXPLANATORY NOTE
It is the policy of the State to promote simplicity, efficiency, effectiveness 
and economy in government operations to enable it to, among others, pursue 
its programs consistent with the national goal to improve public service delivery 
and enhance institutional capacity for accelerated social and economic 
development.
In line with this policy, past administrations had pursued various 
reorganization/ rationalization efforts, the latest of which was the Government 
Rationalization Program which was adopted in 2004.
Since it had been more than a decade ago since the Government 
Rationalization Program was initiated, and given the changes in the economic 
and socio-political environment in the country, it is high time to revisit and 
restudy the organization and operations of the different Departments/Agencies 
of the government to respond to the increasing public demand for faster and 
more effective and efficient delivery of services.
Hence, this Bill seeks to, among others, ensure that government 
operations, systems and processes are simplified and rationalized through the 
implementation of a National Government Rightsizing Program.
The pursuit of this reform initiative is in line with the directive made by 
the 
President 
during 
his 
inaugural 
address 
to 
all 
Department 
Secretaries/Agency Heads to streamline the operations of their respective 
Departments/Agencies.
Specifically, the National Government Rightsizing Program primarily 
aims to enhance the ggvernment’s institutional capacity to improve public 
service delivery by undertaking organizational actions to eliminate functions.


programs and projects which are already redundant or no longer necessary, 
and those duplicating or overlapping between and among the units within the 
department or with other departments/agencies of the National Government.
This could be done through, among others, the abolition, deactivation, 
grouping, integration, merging, consolidation or splitting of departments, 
bureaus or offices, as well as creation/regularization of new offices, as 
necessary. Likewise, the transfer of offices, functions, programs and projects 
from one Department/Agency to another could be undertaken.
This 
reform 
initiative 
is 
vital in 
order 
for 
the 
different
Departments/Agencies of the National Government to focus on the 
performance of their core functions and ensure the effective, efficient and 
economical implementation of their programs and projects that will lead to the 
attainment of the desired sectoral and national goals and outcomes, as well as 
facilitate the delivery and upgrade the quality of frontline services.
In light of the foregoing, the passage of the bill is most earnestly sought.
IGUEL F. ZUBIRI


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session
ij>euatc
’iStfitr at tljr tt'cfrftary
*17 
rE6 20 P3 34
SENATE
S. B. No. 1337
RECEIVtOfiV.
Introduced by Senator JUAN MIGUEL F. ZUBIRI
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AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO 
IMPROVE PUBLIC SERVICE DELIVERY
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Short Title. - This Act shall be known as "Rightsizing the National 
Government Act of 2017."
Section 2. Declaration of Policy. - It is hereby declared the policy of the State to 
promote and maintain effectiveness, efficiency and economy in the government, and 
enhance institutional capacity to improve public service delivery, and to ensure the 
attainment of the country s societal and economic development goals and objectives. 
Consistent with this, the government shall focus its functions and resources on the 
essential role, scope, and level of governance, and minimize, if not eliminate, 
redundancies, overlaps and duplications in its operations and simplify its systems and 
processes.
Section 3. Coverage. - This Act shall cover all national government agencies, including 
departments, bureaus, offices, commissions, boards, councils, and all other entities 
attached to or under their administrative supervision.
The Legislature, the Judiciary, Constitutional Offices, State Universities and 
Colleges, and Local Government Units (LGUs) may, within their respective authorized 
appropriations, likewise rightsize their respective offices, consistent with the principles 
and guidelines contained in this Act.
The 
Governance 
Commission 
for 
Government-Owned 
or 
-Controlled 
Corporations shall continue to exercise its authority under Republic Act (RA) No. 10149 
to reorganize, merge, streamline, abolish or privatize any government-owned or - 
controlled corporation (GOCC), in consultation with the department or agency to which 
the GOCC is attached.
Section 4. Principles and Guidelines. - The National Government shall implement a 
Rightsizing Program in accordance with the following principles and guidelines:
a)
The role of government and the scope, level, and prioritization of 
government activities shall be determined in accordance with the 
Constitutional mandate, political and socio-economic objectives of the 
government, and available resources;
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b)
C)
d)
e)
f)
The delineation of responsibilities between the National Government and 
the LGUs in the provision, production, and delivery of goods and services 
shall be clearly defined;
Government 
operations 
shall 
be 
simplified 
so 
that 
the 
departments/agencies could focus on the performance of their core 
functions and implementation of programs and projects that will lead to the 
attainment of the desired sectoral and national goals and outcomes;
Government systems and processes shall be simplified to facilitate the 
delivery and upgrade the quality of frontline services, as well as to improve 
policy formulation, planning and performance evaluation;
Government rules shall be rationalized to reduce the regulatory burden on 
citizens, businesses and other stakeholders; and
The organizational structure of agencies shall be rightsized and the 
appropriate staffing mix shall be determined based on the skills and 
competencies required to effectively and efficiently carry out the agency 
mandate and functions.
Section 5. Authority of the President of the Philippines to Rightsize the 
Operations of the National Government. - Pursuant to the policies, principles and 
guidelines stipulated in this Act, the President is hereby granted the following authority
in the rightsizing of the operations of the different departments/agencies of the National 
Government:
a)
To undertake the following organizational actions in order to eliminate 
functions, programs and projects which are already redundant, no longer 
necessary, or those duplicating or overlapping between and among the 
units within the department or with other departments/agencies of the 
National Government:
a.1
a.2
Abolish, deactivate, group, integrate, merge, consolidate or split 
national government agencies, including departments, bureaus, 
offices, commissions, boards, councils, and all other entities attached 
to or under their administrative supervision;
Create, establish or regularize offices; and
b)
a.3 Transfer offices, functions, programs and projects, and/or the 
corresponding 
appropriations, 
equipment, 
properties, 
records, 
personnel, 
and transactions, from one department/agency to 
another.
To formulate and provide safety nets, including their implementation 
strategies, for employees of departments/agencies who may be affected 
by the government’s rightsizing efforts.
Section 
6. 
Creation 
of 
a 
Committee 
on 
Rightsizing 
the 
National 
Government - A Committee on Rightsizing the National Government is hereby created 
to oversee the implementation of the National Government’s Rightsizing Program in 
accordance with the provisions of this Act. 
y


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The Committee shall be composed of the Executive Secretary as Chairman, and 
the Secretary of Budget and Management as Co-Chairman, with the Director-General of 
the National Economic and Development Authority, Chairperson of the Civil Service 
Commission (CSC), and the Head of the Presidential Management Staff, as members.
The Committee shall be organized within fifteen (15) days from the effectivitv of 
this Act.
The Committee shall also organize a Technical Working Group composed of 
experts on government operations, organizational development, and human resource 
management to assist in the performance of its functions.
In the spirit of transparency and participatory governance, the Committee shall 
consult the departments/agencies concerned and accredited public sector unions 
relative to the implementation of the National Government's Rightsizing Program.
Section 7. Powers and Functions of the Committee on Rightsizing the National 
Government. - The Committee shall have the following powers and functions:
3) 
To develop the policies, framework, strategies and mechanisms to be 
adopted in the implementation of the National Government's Rightsizing 
Program;
To conduct studies on the functions, programs, projects, operations, 
structure 
and 
manpower 
complement 
of 
the 
different 
departments/agencies;
To develop and prepare the rightsized organizational structure of 
departments/agencies concerned 
and the corresponding executive 
issuances for approval by the President;
To monitor the implementation by the different departments/agencies of 
their respective approved Rightsizing Plans, and report to the President 
any issue that must be addressed;
To commission the conduct of an independent impact assessment on the 
National Government’s Rightsizing Program after its completion, to 
determine the effects of, and gains from, the implementation of the 
Program, mitigate any adverse effects, and address areas which still 
require improvements; and
f) 
To formulate the implementing rules and regulations (IRR) of this Act.
Section 8. Submission of the Rightsized Organizational Structure and Proposed 
Executive Issuances to the President. - The Committee on Rightsizing the National 
Government shall submit to the President the rightsized organizational structure of 
departments/agencies concerned and the corresponding executive issuances within 
one (1) year from the effectivity of the IRR of this Act.
nDCfl!|IOn 
Submission ofthe Detailed Organizational Structure and Staffing to the 
DBM. -  Department Secretaries/Agency Heads shall prepare and submit to the DBM 
the 
detailed 
organizational 
structure 
and 
staffing 
of 
their 
respective 
departments/agencies within ninety (90) days after the approval of the proposed 
executive issuances by the President. 
K P
b)
c)
d)
e)


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Section 10. Retirement Benefits and Separation Incentives for Personnel Who 
May be Affected by the National Government’s Rightsizing Program. - The affected 
personnel, whether hired on a permanent, temporary, casual or contractual basis and 
with appointments attested by the CSC, shall be entitled to retirement benefits and 
separation incentives.
10.1 
The affected personnel shall be given the option to avail themselves of 
any of the following retirement benefits under existing laws, if qualified:
a) 
Retirement gratuity provided under RA No. 1616 (An Act Further 
Amending Section Twelve of Commonwealth Act Numbered One 
Hundred Eighty-Six, as Amended, By Prescribing Two Other Modes 
of Retirement and for Other Purposes), as amended; or
b) 
Retirement benefit under RA No. 
660 
(An Act to Amend 
Commonwealth Act Numbered One Hundred and Eighty-Six 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
c) 
Retirement, separation or unemployment benefit provided under RA 
No. 8291 (An Act Amending Presidential Decree No. 1146, as 
Amended, Expanding and Increasing the Coverage and Benefits of 
the Government Service Insurance System, Instituting Reforms 
Therein and for Other Purposes).
The retirement gratuity benefit of affected personnel who are qualified and 
have opted to avail themselves of RA No. 1616 shall be paid by the 
Government Service Insurance System (GSIS). The GSIS shall no longer 
pay the refund of retirement premiums (both personnel and government 
shares) of the affected personnel who will opt to avail of RA No. 1616 
benefits.
10.2 
In addition to said retirement benefits, the affected personnel who would 
opt to retire or be separated shall be entitled to the following applicable 
separation incentives;
a) 
V2 of the actual monthly basic salary for every year of government 
service, for those who have rendered less than 11 years of service;
b) 
3/4 of the actual monthly basic salary for every year of government 
service, computed starting from the 1st year, for those who have 
rendered 11 to less than 21 years of service;
c) 
the actual monthly basic salary for every year of government 
service, computed starting from the 1st year, for those who have 
rendered 21 to less than 31 years of service; and
d) 
1 V4 of the actual monthly basic salary for every year of 
government service, computed starting from the 1st year, for those 
who have rendered 31 years of service and above.
The actual monthly basic salary shall refer to the salary of the affected 
personnel within the authorized period of implementation of the Program 
in their respective departments/agencies.


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A minimum of five (5) years of government service is required in order for 
an affected personnel to be entitled to avail of the Program's separation 
incentives under Section 10.2 of this Act.
Provided: That for the purpose of computing the total amount of 
separation incentives that an affected personnel would receive, only 
his/her government service up to age 59 and a fraction thereof would be 
counted. Government service starting at the age 60 would no longer be 
subject to the separation incentives provided herein, without affecting the 
original incentive factor determined as applicable based on the actual 
years of service of the affected personnel.
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 No. 7699 (An Act Instituting Limited Portability Scheme in the 
Social Security Insurance Systems by Totalizing the Workers’ Creditable 
Services or Contributions in Each of the Systems) may be applied, subject 
to existing policies and guidelines.
The affected personnel, if with permanent appointment attested by the CSC, who 
will not opt to retire from the service shall be placed in a manpower pool to be organized 
and administered by the CSC. The CSC shall retool the subject affected personnel and 
deploy them to agencies which require their qualifications, skills and competencies.
The number of personnel who will avail of the separation incentives under 
Section 10.2 of this Act shall in no case exceed the number of positions declared for 
abolition.
The specific guidelines to carry out the provisions of this Section shall be 
prescribed in the IRR of this Act.
Section 11. Other Benefits of Retired/Separated Personnel. - The affected 
personnel who retired/separated shall, in addition to the applicable benefits above, be 
entitled to the following:
a) 
Refund of Pag-IBIG Contributions - all 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; and
b) 
Commutation of Unused Vacation and Sick Leave Credits - all affected 
personnel shall be entitled to the commutation of unused vacation and 
sick leave credits in accordance with existing rules and regulations.
Section 12. Period of Availability of the Retirement Benefits and Separation 
Incentives. - The retirement benefits and separation incentives provided in this Act 
shall be available within sixty (60) days upon approval by the DBM of the detailed 
rightsized organizational structure and staffing of departments/agencies concerned
Section 13. Prohibition on Rehiring of Personnel Retired/Separated from the 
Service. - Affected personnel who retired/separated from the service as a result of the 
implementation of the National Government’s Rightsizing Program shall not be 
appointed nor hired as casuals or contractual in any agency of the National 
Government, including in GOCCs, for a period of five (5) years, except as teaching staff 
in a state university or college.


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The provision of consultancy services by government personnel who retired or 
were separated as a result of the rightsizing efforts shall be governed by Section 7 of
RA No. 6713 (Code of Conduct and Ethical Standards for Public Officials and 
Employees).
Section 14. Report to Congress. - The President shall submit a report to Congress on 
the results of the Program after the completion of its implementation.
Section 15. Funding Requirements. - The amount necessary for the initial 
'mplementation of this Act shall be sourced against any applicable appropriation items 
under the current General Appropriations Act. Subsequent amount needed to continue 
the implementation of the National Government's Rightsizing Program in the National 
Government shall be included in the succeeding appropriations.
Section 16 Implementing Rules and Regulations. - The Committee on Rightsizing 
e National Government shall formulate the necessary IRR within thirty (30) days from
M ^\^9aniZtttl0n 0f the Committee Such rules and regulations shall take effect fifteen 
(To) days after its publication in a newspaper of general circulation.
M„Tti0'i', ! 7' f eParabimy ciause- ■ If any provision of Ihis Act is declared 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full 
force and effect.
Section 18. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, and other issuances or parts thereof which are ihconsisleni with this Act are 
hereby repealed, amended or modified accordingly.
Section 19. Effectivity. - This Act shall take effect lake effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
Approved.