FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S.B.No. $649 
Introduced by Senator LOREN B. LEGARDA 
EXPLANATORY NOTE 
Article IX-B, Section 3 of the Constitution provides the Civil Service Commission 
shall, among others, i.) establish a career service and adopt measures to promote 
morale, efficiency, integrity, responsiveness, progressiveness, and courtesy in the civil 
service; ii.) strengthen the merit and rewards system; and iii.) institutionalize a 
management climate conducive to public accountability. 
The civil service system is composed of three levels, namely, the first, second, 
and third levels. The third level embraces positions in the executive, scientific, artistic, 
foreign service, technical, and academic services. Positions in the executive and 
managerial services constitute the biggest component of the third level. The executive 
and managerial component has the following features: security of tenure, mobility, and 
classification based on ranks. 
The executive and managerial component of the civil service has a significant 
role in the bureaucracy since they have a direct hand both in the formulation and 
implementation of government policies. It is imperative that a system for their 
professionalization and career development be provided for by law. 
In furtherance of the aforementioned State policies, this bill seeks to establish a 
Career Executive System that will improve the current concept of the Career Executive 
Service and infuse well-selected and development-oriented managers, who shall 
provide a strong, competent, and accountable corps of public managers, who possess 
the necessary expertise and responsive leadership that will serve as a stabilizing force, 
an instrument for change, a vanguard of professionalism in the civil service, and a 
critical link between government and the people. 
In view of the foregoing, the immediate approval of this bill is earnestly sought. 
Senator 


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FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S.B.No. 1649 
Introduced by Senator LOREN B. LEGARDA 
AN ACT 
ESTABLISHING THE CAREER EXECUTIVE SYSTEM 
Be if enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
GENERAL PROVISIONS 
Section 1. Short Title. This Act-shall be known as the "Career Executive System 
Act of 2007." 
Section 2. Declaration of Policy. It is hereby declared State policy to establish a 
career service and adopt measures to promote morale, efficiency, integrity, 
responsiveness,, progressiveness and co&esy 
in the civil service. The State shall 
endeavor to ensure an effective, efficient, and responsible administration of the 
managerial and executive class within the. third level through the establishment of a 
Career Executive System that will maintain continuity and stability in the bureaucracy. 
Towards this end, the State shall recognize the vital role of the Career Executive 
System in public sector governance and infuse the System with well-selected and 
development-ariented managers, who shall provide a strong, competent, and 
accountable corps of public managers who possess the necessary expertise and 
responsive leadership that will serve as a stabilizing force, an instrument for change, a 
vanguard of professionalism and careerism in the civil service, and a critical link 
between government and the people. 
Section 3. Definition of Terms. As used in this Act, the following terms shall be 
construed as follows: 
a. Third Level - The third level covers positions in the executive and managerial 
class, the foreign service, the scientific, technical, artistic,,and academic fields, 
in 'all branches, subdivisions, inst?ti;mentalities and agencies of the government 
including government-owned or controlled corporations with original 
charters. 


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b. 
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The third level shall include all positions higher than division chief based on 
the position classification system of the Department of Budget and 
Management or such 6ther systems, as may be applicable, across the 
executive, legislative, and judicial branches, including constitutional offices. 
Career Executive System - system for the professionalization and career 
development of the executive and managerial component of the third level. 
Career Executive System Board (hereinafter referred to as the Board) - is the 
policy making body responsible for the development, maintenance, and 
administration of the Career Executive System. 
Career Executive Officer-Eligibk - refers to a person who passed the 
examination process set by the Board through the Civil Service Commission to 
qualify for, but has not yet been assigned to a position in the Career Executive 
System. 
Career Executive Officer - refers to a Career Executive Officer-Eligible 
occupying a position in the Career Executive System, who is appointed to a 
rank hy the Civil Service Commission, upon the recommendatibn of the 
Board. 
Rank - is the index of classification of Career Executive Officers to which a 
Career Executive Officer-Eligible: may be appointed by the Civil Service 
Commission in accordance with the requirements prescribed by the Board. 
Administrative Supervision- refers to the authority of the department or its 
equivalent to generally oversee the operations and to ensure that they are 
managed effectively, efficiently, and economically; or to take such action as 
may be necessary for the proper performance of official functions, including 
rectification of violations; abuses z-.d other forms of maladministration. 
Mobility - refers to the movement of a Career Executive Officer from one 
position to another without redudion in rank or salary. 
CHAPTER I1 
CAREER EXECUTIVE SYSTEM 
Section 4. The Career Executive System. The Career Executive System shall 
cover all executive and mapagerial positions in the Executive, Legislative, and Judicial 
branches, including Constitutional offices and such other equivalent positions as may 
be identified by the Board. 
Entry and advancement in the Career Executive System shall be governed by the 
principles of merit and fitness, and other requirements as may be prescribed by the 
Board through the Civil Service Commission. The Career Executive System shall be 
essentially characterized by the principles cr' security of tenure and mobility. 
Section 5. Career Executive System Board - The Board shall consist of the 
Chairperson of the Civil Service Commission, as the Board's ex-officio Chairperson; the 
Secretary of the Department of Budget and Management or his/her permanent 
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representative not lower than an Undersecretary; the President of the Development 
Academy of tine Philippines; and the Dean of the National College of Public 
Administration and Governance of the University of the Philippines as ex-officio 
members. 
The Board shall also include a representative of the nationwide association of 
career executive officers, a representative of the nationwide association of personnel 
managers in the private sector, both of whom shall be nominated by their respective 
associations, and one from the ranks of retired Career Executive Officers, all of whom 
shall be appointed by the Chairperson for a term of three (3) years. 
Members of the Board shall be provided with per diems and allowances as may 
be determined by the Commission. 
The Civil Service Commission shall exercise administrative supervision over the 
Board. 
Section 6. Powers and Functions of the Board. The Board is the policy making 
body of the Career Executive System. It shall promulgate rules, standards, and 
procedures in the recruitment, selection, assignment to positions, claspification, 
compensation, mobility, performance management, tour of duty, rewards and 
incentives, and training and career development of Career Executive Ofkcers and 
Career Executive Officer-Eligibles. 
Section 7. Office of the Career Executive System. The Office of the Career 
Executive System, which shall be an office under the Civil Service Commission with its 
own administrative and financial support system, shall serve as the CESB Secretariat. In 
addition, it shall be responsible for the implementation of the policies, rules, 
regulations, decisions, directives, and instructions pertaining to the third level. 
The Office of the Career Executive System shall be headed by an Assistant 
Commissioner, who shall be assisted by a Director IV, both of whom shall be Career 
Executive Officers and appointed by the Chairperson of the Civil Service Commission 
upon recommendation by the Board. 
CHAPTER 111 
POLICIES'AND STANDARDS IN THE 
CAREER EXECUTIVE SYSTEM 
Section 8. Membership in the Career Executive System. A Career Executive 
Officer-Eligible who is assigned to a position in the Career Executive System shall 
automatically be given the entry rank as Career Executive Officer by the Civil Service 
Commission upon recommendation by the Board. This process completes his/her 
membership in the Career Executive System. 
Section 9. Security of Tenure. A Career Executive Officer shall enjoy security of 
tenure in the Career Executive SyStem and shall not be suspended or dismissed, except 
for cause and after due process. 
Section 10. Compensation. A Career Executive Officer shall be compensated 
according to rank and shall be provided with an attractive salary, fringe benefits, and 
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reasonable allcwances. A Career Executive Officer occupying a position in the Career 
Executive System shall enjoy an added premium based on his/her rank. In case a 
Career Executive Officer occupies a position whose salary grade is higher thqn that of 
his/her rank, he/she shall receive the difference between the salary grade sf his/her 
position and his/her rank while assigned to the position. 
The Board, in coordination with the Civil Service Commission, and in 
consultation with the Department of Budget and Management, shall develop, and 
periodically review a compensation plan for Career Executive Officers. 
The employing agency shall provide the funds to pay the salary, fringe benefits, 
and allowances of a Career Executive Officer. 
Section 11. Rank System in the Career Executive System. Career Executive 
Officers shall be classified according to ranks, which shall be establiShed and 
determined by the Civil Service Commission upon recommendation by the Board. The 
classification of ranks shall be based on proven competence, qualifications, broad levels 
of responsibility, and other relevant considerations. 
§ection 12. Appointment to Rank. Only a Career Executive Officer-Eligible 
assigned to a position in the Career Executive System within the coverage of the Salary- 
Standardization Law, shall be appointed to a rank by the Civil Service Commission 
upon recommendation by the Board. The issuance of rank shall be done by the 
Chairperson of the Civil Service Commission. 
Section 13. Promotion in R,ank. The Board shall recommend to the Civil Service 
Commission the criteria which shall be the basis for promotion in rank. The criteria to 
be established shall include, but are not limited to, dimensions such as performance, 
qualifications, and proven competence. 
Section 14. Mobility in the Career Executive System. Notwithstanding any 
provision of law to the contrary, Career Executive Officers may be assigned to any 
position in the Career Executive System without diminution in rank and salary. 
There shall be a tour of duty of three (3) years for each Career Executiqe Officer, 
during which period he/$he shall not be transferred to another office or position 
without his/her consent. 
Section 15. Career Executive System Resource Pool. The Civil Service 
Commission shall establish a Career Executive System Resource Pool drawn from 
Career Executive Officers who may be tapped by other agencies of the government for 
cross-posting to undertakd special works and unique assignments within a specific 
period, depending on the needs of the requesting agency. Participation of Career 
Executive Officers in the Pool may either be voluntary or involuntary. 
For this purpose, the Civil Service Commission upon recommendatiun of the 
Board shall establish the systems and procedures in the assignment of Career Executive 
Officers to the Career Executive System Resource Pool. 
The Civil Service Commission shall administer the Pool and pay for the salaries, 
benefits, and other expenses of Career Executive Officers assigned to the Pool. 
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The Civil Service Commission shall establish a mechanism to enkure that 
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assignments to positions in the Career Executive System conform to the standards 
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prescribed under this Act. 
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and Career Executive Officer-Eligibles. 
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Section 16. Assignment to Positions in the Career Executive System. Career 
Executive Officer-Eligibles shall be given priority in assignments to vacant positions in 
the Career Executive System. In exceptional cases, a non-Career Executive Officer- 
Eligible may be assigned to a position in the Career Executive System on a temporary 
status. He/she shall, however, be replaced once a Career Executive Officer-Eligible 
Those who are in Salary Standard Law (SSL)-exempt agencies shall also be 
required to be Career Executive Officer-Eligibles prior to their assignments to positions 
in the Career Executive System. 
As far as practicable, all Undersecretaries and Assistant Secretaries shall come 
from the Career Executive Officers and Eligibles. In no case shall the number of non- 
career Undersecretaries and Assistant Secretaries exceed more than fifty percent (50%) 
of the number of career Undersecrktaries and Assistant Secretaries. 
Section 17. Discipline. The Civil Service Commission shall have the authority to 
discipline occupants of positions in the Career Executive System. 
Section 18. Training and Career Development. The Board shall establish a 
continuing program of training and career development for Career Executive Officers 
§ection 19. Performance Management. The Board shall develop a system for 
periodic evaluation of performance of occupants of positions in the Career Executive 
System, taking into accouht their accomplishments and managerial capability. This 
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periodic evaluation system shall be the basis for the grant of incentives and awards, as 
well as for sanctions for poOr performance. 
CHAPTER V 
MISCELLANEOUS PROVISIONS 
Section 20. Transitory Provisions. Upon the effectivity of this Act, all Career 
Executive Service Officers shall be.accredited as Career Executive Officers. They shall be 
appointed to Career Executive Officer ranks corresponding to their Career Executive 
Service Officer ranks. 
Career Executive Service Eligibles and Career Service Executive Eligibles 
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assigned to positions in the Career Executive System shall likewise be appointed to 
entry rank as Career Executive Officer. 
Those who possess Career Executive Service Eligibility shall be accredited as 
Career Executive Officer-Eligible$. Career Service Executive Eligibles who have not 
been assigned to positions in the Career Executive System at the time of the effectivity 
of this Act shaIl be required to undergo further screening process. 
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Section 22. Implementing Rules and Regulations. The Board, in coordination 
with the Civil Service Commission, shall promulgate implementing rules and 
regulations as may be necessary to implement the intent and purposes of this Act. The 
said implementing rules and regulations shall be published in two (2) newspapers of 
general circulation. 
Section 23. Repealing Clause. Article IV, Part I11 of the Integrated 
Reorganization Plan, as approved by Presidential Decree No. 1, as amended all laws, 
rules and regulations, or parts thereof that are inconsistent with the provisions of this 
Act are hereby repealed or modified accordingly. 
Section 24. SeparabiIity Clause. If any part, section, or provision of this Act is 
held invalid or unconstitutional, no other part, section, or provision shall be affected by 
the invalidity or unconstitutionality. 
Section 25. Effectivity. This Act shall take effect after fifteen (15) days from its 
publication in the Official Gazette and in a newspaper of general circulation. 
Approved, 
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