Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 33 85

Introduced by: Rep. Keith Micah “Atty. Mike” D.L. Tan

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO PROMOTE EFFECTIVENESS,
EFFICIENCY AND ECONOMY IN THE DELIVERY OF SERVICES TO THE
PEOPLE

EXPLANATORY NOTE

President Ferdinand R. Marcos, Jr. in his first act as the chief executive
ordered a reorganization of his office, scrapping the Presidential Anti-Corruption
Commission and the Presidential Communications and Operations Office and
consolidating communications and media operations into the Office of the Press
Secretary.

This move highlighted a major thrust of the new administration making
“rightsizing” of the bureaucracy as a top priority.

The Philippine bureaucracy with a total of 186 departments, agencies and
other offices has already been bloated to some 1.5 million workers to date.

These figures have tremendously increased over the years without properly
managing its proper size in the workforce that led to duplications in functions and
redundancy of positions

In this light, this bill seeks to rationalize the operations of offices from and
among various government offices having related functions through streamlining of
the positions in any government bureaucracy. It is hoped that through this initiative,
the government will be enabled to promote efficiency and cost in the delivery of
public service.

With the Personal Services eating almost 30% of the entire pie of the national
budget, the concept of ‘rightsizing” as proposed in this measure seeks to operate the
national government with optimal cost and efficient human resources

At the core of this measure is to enhance the government's institutional
capacity to improve public service delivery

This bill, which was filed by Senate President Vicente C. Sotto lil during the
18" Congress, will affect particularly the national government agencies, including


departments, bureaus, offices, commissions, boards, councils, and all other entities
attached to or under their administrative supervision.

Consistent with the aforementioned objectives, this bill proposes to give the
President the authority to abolish, create and transfer offices within the National
Government, among others.

While there might be eventual changes in the organizational structure and
staffing in the affected offices, affected personnel, whether hired on a permanent,
temporary, casual or contractual basis, shall be entitled to retirement benefits and
separation incentives.

In view thereof, immediate passage of the measure is earnestly requested.

pera [a
Keith Micah “Atty. Mike” D.L. Tan
4" District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House BILL No. _3385

Introduced by: Hon. Rep. Keith Micah “Atty. Mike” D.L. Tan

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO PROMOTE EFFECTIVENESS,
EFFICIENCY AND ECONOMY IN THE DELIVERY OF SERVICES TO THE
PEOPLE

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 “Rightsizing the
National Government Act”.

SEC. 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 objective.
Consistent with this, the government shalll 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.

SEC. 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 recognize, merge, streamline, abolish or privatized any government-owned
or -controlled corporation (GOCC), in consultation with the department or agency to
which the GOCC is attached.

SEC. 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;

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) 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;

d) 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

f) 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.

SEC. 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 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;

a.2 Create, establish or regularize offices; and

a3 Transfer offices, functions, programs and projects, and/or the
corresponding appropriations, equipment, properties, records, personnel, and
transactions, from one department/agency to another.

b) 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.


SEC. 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 Rigtsizing Program, in accordance with
the provisions of this Act.

The Committee shall be composed of the Executive Secretary as Chairman,
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 effectivity
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.

SEC. 7. Powers and Functions of the Committee on Rightsizing the National
Government. - The Committee shall have the following powers and functions:

a) To develop the policies, framework, strategies and mechanisms to be
adopted in the implementation of the National Government's Rightsizing Program;

b) To conduct studies on the functions, programs, projects, operations,
structure and manpower complement of the different departments/agencies,

c) To develop and prepare the rightsized organizational structure of
departments/agencies concerned and the corresponding executive issuances for
approval by the President;

d) 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 any
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.

SEC. 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.

SEC. 9. Submission of the Detailed Organizational Structure and Staffing to
the DBM. — The 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

SEC. 10. Retirement Benefits and Separation Incentives for Personne! 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

») Retirement benefit under RA No. 660 (An Act to Amend Commonwealth Act

Numbered One Hundred 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

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 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) the actual monthly basic salary for every year of government
service, for those who have rendered less than 11 years of service;

b) 1 % of actual monthly basic salary for every year of government
service, computed starting from the 1" year, for those who have rendered 11
to less than 21 years of service;



c) 2 of the actual monthly basic salary for every year of government
service, computed starting from the 1* year, for those who have rendered 21
to less than 31 years of service; and

d) 2 % of the actual monthly basic salary for every year of government
service, computed starting from the 1® 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.

A minimum of five (5) years of government service is required in order for
affected personnel to be entitled to avail of Program's separation incentives under
Section 10.2 of this Act.

Provided, That, for the purpose of computing total amount of separation
incentives that an affected personnel would receive, only his/her government service
up to the 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 probability scheme under RA No. 7699
(An Act Instituting Limited Portability Scheme in Social Security Insurance Systems
by Totalizing the Workers’ Creditable Services or Contribution 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.

SEC. 11. Other Benefits of Retired/Separated Personnel. - The affected
personnel who retired/separated shalll, in addition to 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.

SEC. 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 concemed.

SEC. 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.

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).

SEC. 14. Report to Congress. - The President shall submit a report to
Congress on the results of the Program after the completion of its implementation.

SEC. 15. Funding Requirements. - The amount necessary for the
implementation of this Act shall be sourced against any applicable appropriation
items under 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.

SEC. 16. Implementing Rules and Regulations. - The Committee on the
Rightsizing of the National Government shall formulate the necessary implementing
rules and regulations (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

SEC. 17. Separability Clause. - If any of provision of this Act is held invalid or
unconstitutional, the same shall not affect the validity and effectivity of the other
provisions hereof,

SEC. 18. Repealing Clause. - All laws, decrees, orders, and issuances, or
portions thereof, which are inconsistent with the provisions of this Act, are hereby
Tepealed, amended or modified accordingly.

SEC. 19. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,

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