Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

483

H. B. No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

This bill establishing the Career Executive System seeks to improve on the current concept
of the Career Executive Service provided for under the Integrated Reorganization Plan of 1972,
as approved in Presidential Decree No. 1, as amended. The passage of this bill has become

imperative by virtue of the adoption of the 1987 Constitution, which provided for the creation of
one civil service system

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.

Approval of this bill is therefore earnestly recommended.

Representative
Lone District, (Province of Aurora


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

H.B.No._ 483

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
ESTABLISHING THE CAREER EXECUTIVE SYSTEM

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

CHAPTER |
GENERAL PROVISIONS

SECTION 1. Short Title. This Act shall be known as the “Career Executive System
Act of 2010.”

SEC. 2. Declaration of Policy. 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, instrumentalities and agencies of the government including
government-owned or controlled corporations with original charters.

The executive and managerial class constitutes the largest and the most crucial
component of the third level. As such, 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

Recognizing the vital role of the Career Executive System in public sector governance,
the State shall infuse the System with 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 and careerism in the civil service, and a
critical link between government and the people.

SEC. 3. Definition of Terms. As used in this Act, the following terms shall be construed
as follows:

a. Third Level - The third level is an integral part of the civil service system being managed by
the Civil Service Commission.

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 other systems,
as may be applicable, across the executive, legislative, and judicial branches, including
constitutional offices.

b. Career Executive System — system for the professionalization and career development of
the executive and managerial component of the third level.

c. 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.


d. Career Executive Officer-Eligible — 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.

e. Career Executive Officer — refers to a Career Executive Officer-Eligible occupying a
Position in the Career Executive System, who is appointed to a rank by the Civil Service
Commission, upon the recommendation of the Board.

f. 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.

h. 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 and other forms
‘of maladministration.

i. Mobility — refers to the movement of a Career Executive Officer from one position to
another without reduction in rank or salary.

CHAPTER II
CAREER EXECUTIVE SYSTEM

SEC. 1. The Career Executive System. The Career Executive System shall cover all
executive and managerial 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 of security of tenure and mobility.

SEC. 2. 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 representative not lower than an
Undersecretary; the President of the Development Academy of the 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.

SEC. 4. 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, classification, compensation, mobility,
performance management, tour of duty, rewards and incentives, and training and career
development of Career Executive Officers and Career Executive Officer-Eligibles.

SEC. 5. 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

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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 lV, both of whom shall be Career Executive
Officers and appointed by the Chairperson of the Civil Service Commission upon
recommendation by the Board

CHAPTER III
POLICIES AND STANDARDS IN THE
CAREER EXECUTIVE SYSTEM.

SEC. 1. 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

SEC. 2. 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

. SEC. 3. Compensation. A Career Executive Officer shall be compensated according to
rank and shall be provided with an attractive salary, fringe benefits, and reasonable allowances.
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 than that of his/her rank, he/she shall receive the difference
between the salary grade of 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.

SEC. 4. 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.

SEC. 5. 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.

SEC. 6. Promotion in Rank, 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.

SEC. 7. 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 Executive Officer, during
which period he/she shall not be transferred to another office or position without his/her consent.

SEC. 8. Career Executive System Resource Pool. The Civil Service Commission shall
establish a Career Executive System Resource Pool drawn from Career Executive Officers who

3


may be tapped by other agencies of the government for cross-posting to undertake 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 recommendation 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.

SEC. 9. 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 becomes available.

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 Undersecretaries and Assistant Secretaries.

The Civil Service Commission shall establish a mechanism to ensure that assignments
to positions in the Career Executive System conform to the standards prescribed under this Act.

SEC. 10. Discipline. The Civil Service Commission shall have the authority to discipline
occupants of positions in the Career Executive System

SEC. 11. Training and Career Development. The Board shall establish a continuing
program of training and career development for Career Executive Officers and Career Executive
Officer-Eligibles

SEC. 12. Performance Management. The Board shall develop a system for periodic
evaluation of performance of occupants of positions in the Career Executive System, taking into
account their accomplishments and managerial capability. This 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

SEC. 1. 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 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-Eligibles. 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 shall be
required to undergo further screening process.

SEC. 2. Implementing Rules and Regulations. The Board, in coordination with the
Civil Service Commission, shall promulgate implementing rules and regulations as may be

4


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.

SEC. 3. Repealing Clause. Article |V, Part lll 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

SEC. 4. Separability 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.

SEC. 5. 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,