SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
S E N A T E
s. No. 1339
f©) 
Senate
o f llir
*17 
FEB 21 
A!1 OO
RECEIVED 5V;
Introduced by S enator GREGORIO B. HONASAN II
AN ACT RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE
PUBLIC SERVICE DELIVERY
EXPLANATORY NOTE
It is the policy of the State to promote and m aintain effectiveness, efficiency 
and economy in the government, enhance institutional capacity to improve 
public service deliveiy, and to ensure the attainm ent of the country’s societal 
and economic development goals and objectives.
In order to achieve this avowed policy, this bill primarily seeks to stream line 
the organizational 
structures of the government, covering all national 
government agencies, including departm ents, bureaus, offices, commissions, 
boards, councils and all other entities attached to or under their adm inistrative 
supervision. 
This bill also proposes to give the President the authority to 
undertake m easures in order to eliminate duplicating functions which are 
redundant. Also, personnel who may be affected by the national governm ent’s 
rightsizing program , hired on a perm anent, tem porary, casual or contractual 
basis shall be entitled to retirem ent and separation benefits.
In light of the foregoing and consistent with the objective of the President to 
institutionalize a governm ent bureaucracy th at is lean and m ean, immediate 
passage of this m easure is earnestly requested.
GREGORIO B. HON
/ 
Senator


SEVENTEENTH CONGRESS 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
iSffiff of ll)f
S E N A T E  
S. No. 
1 3  
^
■17 
FEB 21 
All f l i
received BY;
In tro d u ced  by SENATOR GREGORIO HONASAN II
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AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assem bled:
Section 1. S h o rt T itle. - This Act shall be known as “Rightsizing the National 
Government Act of 2016.”
S ection 2. D eclaration of Policy. - It is hereby declared the policy of the State 
to promote and m aintain effectiveness, efficiency and economy in the 
government, and enhance institutional capacity to improve public service 
delivery, and to ensure the attainm ent 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 system s and processes.
Section 3. C overage. - This Act shall cover all national governm ent agencies, 
including departm ents, bureaus, offices, comm issions, boards, councils, and 
all other entities attached to or under their adm inistrative 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, 
stream line, 
abolish or privatize any 
government-owned or -controlled corporation (GOCC), in consultation with the 
departm ent or agency to which the GOCC is attached.
Section 4. P rinciples an d  G uidelines. - The National Government shall 
implement a Rightsizing Program in accordance with the following principles 
and guidelines:
a) 
The role of governm ent and the scope, level, and prioritization of 
government activities shall be determ ined in accordance with the 
Constitutional m andate, political and socio-economic objectives of the 
government, and available resources;
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b) 
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;
c) 
Governm ent 
operations 
shall 
be 
simplified 
so 
th at 
the 
departm ents/agencies could focus on the perform ance of their core 
functions and im plem entation of program s and projects th at will lead to 
the attainm ent of the desired sectoral and national goals and outcomes;
d) 
Government system s and processes shall be simplified to facilitate 
the delivery and upgrade the quality of frontline services, as well as to 
improve policy form ulation, planning and perform ance evaluation;
e) 
Governm ent rules shall be rationalized to reduce the regulatory 
burden on citizens, businesses and other stakeholders; and
f) 
The organizational structure of agencies shall be rightsized and the 
appropriate staffing mix shall be determ ined based on the skills and 
competencies required to effectively and efficiently carry out the agency 
m andate and functions.
Section 5. A u th o rity  of th e  P resid en t of th e Philippines to R ightsize th e 
O perations of th e  N ational G overnm ent. - P ursuant 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 
departm ents/agencies of the National Government:
a) 
To undertake the following organizational actions in order to
eliminate functions, program s and projects which are already redundant, 
no longer necessary, or those duplicating or overlapping between and 
among 
the 
un its 
within 
the 
departm ent 
or 
with 
other
departm ents/agencies of the National Government:
a. 1 Abolish, deactivate, group, integrate, merge, consolidate or split 
national governm ent agencies, including departm ents, bureaus, 
offices, com m issions, boards, councils, and all other entities 
attached to or under their adm inistrative supervision;
a. 2 Create, establish or regularize offices; and
a. 3 Transfer offices, functions, program s and projects, an d /o r the 
corresponding appropriations, 
equipm ent, 
properties, records, 
personnel, and transactions, from one departm ent/agency to 
another.
b) 
To form ulate and provide safety nets, including their im plem entation 
strategies, for employees of departm ents/agencies who may be affected 
by the governm ent’s rightsizing efforts.
Section 6. 
C reation of a C om m ittee 
on R ightsizing th e 
N ational 
G overnm ent. - A Committee on Rightsizing the National Government is hereby


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created to oversee the im plem entation of the National Governm ent’s Rightsizing 
Program, in accordance with the provisions of this Act.
The Committee shall be composed of the Executive Secretary as Chairm an, and 
the Secretary of Budget and M anagem ent as Co-Chairm an, with the Director- 
General of the National Economic and Development Authority, Chairperson of 
the Civil Service Commission (CSC), and the Head of the Presidential 
M anagement Staff, as m em bers.
The Committee shall be organized within fifteen (15) days from the effectivity of 
this Act.
The Committee shall also organize a Technical W orking Group composed of 
experts on governm ent operations, organizational development, and hum an 
resource m anagem ent to assist in the perform ance of its functions.
In the spirit of transparency and participatory governance, the Committee shall 
consult the departm ents/agencies concerned and accredited public sector 
unions relative to the im plem entation of the National Governm ent's Rightsizing 
Program.
Section 7. Pow ers and F u n ctio n s of th e C om m ittee on R ightsizing th e 
N ational G overnm ent, - The Committee shall have the following powers and 
functions:
a) 
To develop policies, framework, strategies and m echanism s to be 
adopted in the im plem entation of the National Governm ent’s Rightsizing 
Program;
b) 
To 
conduct 
studies 
on 
the 
functions, 
program s, 
projects, 
operations, structure and manpower com plem ent of the different 
departm ents/agencies;
c) 
To develop and prepare the rightsized organizational structure of 
departm ents/agencies 
concerned 
and 
the 
corresponding executive 
issuances for approval by the President;
d) 
To 
m onitor 
the 
im plem entation 
by 
the 
different
departm ents/agencies of their respective approved Rightsizing Plans, and 
report to the President any issue that m ust be addressed;
e) 
To com m ission the conduct of an independent im pact assessm ent 
on the National Governm ent’s Rightsizing Program after its completion, 
to determ ine the effects of, and gains from, the im plem entation of the 
Program, mitigate any adverse effects, and address areas which still 
require im provem ents; and
f) To form ulate the im plementing rules and regulations (IRR) of this Act.
Section 8. S ubm ission o f th e R ightsized O rganizational S tru ctu re and 
Proposed E xecutive Issu an ces to  th e P resident. - The Committee on 
Rightsizing the National Government shall subm it to the President the 
rightsized organizational structure of departm ents/agencies concerned and the


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corresponding executive issuances within one (1) year from the effectivity of the 
IRR of this Act.
S ection 9. S ubm ission o f th e  D etailed O rganizational S tru ctu re and 
Staffing to th e  DBM. - D epartm ent Secretaries/A gency Heads shall prepare 
and subm it to the DBM the detailed organizational structure and staffing of 
their respective departm ents/agencies within ninety (90) days after the 
approval of the proposed executive issuances by the President.
S ection 10. R etirem en t B enefits and S eparation In cen tiv es for Personnel 
Who May be A ffected by th e  N ational G overnm ent’s R ightsizing Program . -
The affected personnel, w hether hired on a perm anent, tem porary, casual or 
contractual basis and with appointm ents attested by the CSC, shall be entitled 
to retirem ent benefits and separation incentives.
10.1 The affected personnel shall be given the option to avail themselves of 
any of the following retirem ent benefits under existing laws, if qualified;
a) 
Retirem ent 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 O ther Modes of Retirement 
and for O ther Purposes), as amended; or
b) 
Retirem ent benefit under RA No. 
660 
(An Act to Amend 
Commonwealth Act Numbered One H undred and Eighty-Six Entitled “An 
Act to Create and Establish a Government Service Insurance System, to 
Provide for its Adm inistration, and to Appropriate the Necessary Funds 
Therefor,” and to Provide Retirem ent Insurance and for Other FAirposes); 
or
c) 
Retirem ent, separation or unem ploym ent 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 retirem ent gratuity benefit of affected personnel who are qualified and 
have opted to avail them selves of RA No. 1616 shall be paid by the 
Government Service Insurance System (GSIS). The GSIS shall no longer 
pay the refund of retirem ent prem ium s (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 retirem ent benefits, the affected personnel who 
would opt to retire or be separated shall be entitled to the following 
applicable separation incentives:
a) Va o f th e a ctu al m o n thly basic salary for every year of government 
service, for those who have rendered less than 11 years of service;
b) 3A of th e a ctu al m o n th ly  basic salary for every year of government 
service, com puted starting from the 1st year, for those who have rendered 
11 to less than 21 years of service;


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c) The a ctu al m o n th ly  basic salary for every year of governm ent service, 
com puted starting from the 1st year, for those who have rendered 21 to 
less than 31 years of service; and
d) 1 V4 of th e a ctu al m o n thly basic salary for every year of government 
service, com puted starting from the 1st year, for those who have rendered 
31 years of service and above.
The actual m onthly basic salary shall refer to the salary of the affected 
personnel within the authorized period of im plem entation of the Program 
in their respective departm ents/agencies.
A m inim um  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 com puting the total am ount of separation incentives that an affected 
personnel would receive, only h is/h er 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, w ithout affecting the original incentive factor determ ined as 
applicable based on the actual years of service of the affected personnel. 
Provided, further. That for the purpose of complying with the required 
num ber 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 System s by Totalizing the W orkers’ Creditable 
Services or C ontributions in Each of the Systems) may be applied, subject 
to existing policies and guidelines.
The affected personnel, if with perm anent appointm ent attested by the CSC, 
who will not opt to retire from the service shall be placed in a manpower pool to 
be organized and adm inistered by the CSC. The CSC shall retool the subject 
affected 
personnel 
and 
deploy 
them  
to 
agencies which 
require 
their 
qualifications, skills and competencies.
The num ber of personnel who will avail of the separation incentives under 
Section 10.2 of this Act shall in no case exceed the num ber 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. O th er B enefits of R e tired /S ep a rated  P ersonnel. - 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 
m em bers of the Pag-IBIG shall be entitled to the refund of their 
contributions (both personal and government), p u rsu an t to existing rules 
and regulations of the Home Development M utual Fund; and
b) Com m utation of U nused Vacation and Sick Leave Credits - all affected 
personnel shall be entitled to the com m utation of unused vacation and 
sick leave credits in accordance with existing rules and regulations.


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S ection 
12. Period o f A vailability of th e R etirem en t B enefits and 
S eparation In cen tiv es. - The retirem ent 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 
departm ents/agencies concerned.
S ection 13. P ro h ib itio n  on R ehiring of P ersonnel R e tired /S ep a rated  from  
th e Service. - Affected personnel who retired/separated from the service as a 
result of the im plem entation of the National Governm ent’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.
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. R eport to  C ongress. - The President shall subm it a report to 
Congress on the results of the Program after the completion of its 
im plem entation.
Section 15. F unding R equirem ents. - The am ount necessary for the initial 
im plementation 
of this 
Act 
shall 
be 
sourced 
against 
any 
applicable 
appropriation item s under the current General Appropriations Act. Subsequent 
am ount needed to continue the im plem entation of the National Government's 
Rightsizing Program in the National Government shall be included in the 
succeeding appropriations.
Section 16. Im p lem en tin g  R ules and R egulations. - The Committee on 
Rightsizing the National Government shall formulate the necessary IRR within 
thirty (30) days from the organization of the Committee. Such rules and 
regulations shall take effect fifteen (15) days after its publication in a 
newspaper of general circulation.
S ection 17. S eparability C lause. - If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not otherwise affected shall 
rem ain in full force and effect.
S ection 18. R epealing Clause. - All laws, decrees, executive orders, rules and 
regulations, and other issuances or parts thereof which are inconsistent with 
this Act are hereby repealed, am ended or modified accordingly.
Section 19. E ffectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) new spapers of general circulation.
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Approved,