Republic of the Philippines
House of Representatives
Quezon City

NINETEENTH CONGRESS

First Regular Session

Introduced by Representative Albert Raymond S. Gai

EXPLANATORY NOTE

This measure aims to address two current challenges in the operations of the Philippine
Coast Guard (PCG): the lack of a clearly defined organizational structure in existing legislation
and the need to update the existing pension system of the organization.

Firstly, the PCG has encountered challenges in requesting for additional personnel and
ensuring timely procurement because of the lack of a much more clearly defined organizational
structure in existing legislation. Addressing this problem is necessary to ensure that the PCG is
able to operate at an optimal level.

Secondly, the measure also aims to align the PCG's pension system with that of the
other major uniformed services in the country. Updating the PCG’s pension system is seen as
contributory to sustaining the morale of the coast guard's personnel by providing them with
financial support that is much more aligned to the value and longevity of the service they have
provided for the country.

As one of the front liners in safeguarding our maritime security, a strong PCG is essential
to sustaining the country’s independent foreign policy. Support for this measure, then, is
earnestly sought.



Republic of the Philippines
House of Representatives
Quezon City

NINETEENTH CONGRESS
First Regular Session

Bil Ne, 2308

House Bill No.

Introduced by Representative Albert Raymond S. Garcia

AN ACT
PROVIDING FOR THE STRENGTHENING AND UPGRADING OF THE
ADMINISTRATION AND ORGANIZATION OF THE PHILIPPINE COAST GUARD

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:
CHAPTER |
THE PHILIPPINE COAST GUARD
Section 1. Short Title. - This Act shall be known as the “Revised Philippine Coast
Guard Law.”

Section 2. Philippine Coast Guard. - The Philippine Coast Guard (PCG),
established under Republic Act No. 9993 as an armed and uniformed service attached
to the Department of Transportation (DOTT) shall continue as such upon the effectivity
of this Act: Provided, That in times of war, as declared by Congress, the PCG or parts.
thereof, shall be attached to the Department of National Defense.

CHAPTER II
ORGANIZATION
Section 3. Organization. - The PCG organizational structure shall be headed by
a Commandant with the rank of Admiral assisted by the Deputy Commandant for
Operations and Deputy Commandant for Administration both with the rank of Vice

Admiral. It is divided into three functional service commands, namely, maritime safety,


marine environmental protection and maritime security. Other service commands,
major and support units are categorized as administrative support, operating
commands, operational support, technical services and special service commands.

a) Administrative support commands are Education and Training, Internal Affairs
Service, Surface Support Force, Human Resource Management Service and Logistics;

b) The operational support commands are Weapons, Communications,
Electronics, Information System Service, Special Operations Force, Aviation Force,
Community Relations Command and Canine Enforcement Force;

c) The technical services are the Judge Advocate General's Service Command,
Medical Service, Ecumenical Service, Dental Service, Veterinary Service, Medical
Administrative Corps, Nurse Corps, and other technical services that may or hereinafter
be created as needed;

d) Operating commands are the 15 districts located nationwide covering specific
areas of responsibilities composed of stations which in turn have field offices called sub-
stations down to detachments or posts. These coast guard districts are: National
Capital Region-Central Luzon (CGD NCR-CL), Central Visayas (CGD CV),
Southwestern Mindanao (CGD SWM), Southeastern Mindanao (CGD SEM), Palawan
(CGD PAL), Western Visayas (CGD WV), Southern Tagalog (CGD STL), Northern
Mindanao (CGD NM), Bicol (CGD BCL), Northwestern Luzon (CGD NWL), Eastern
Visayas (CGD EV), Northeastern Luzon (CGD NEL), Southern Mindanao (CGD SM),
Northeastern Mindanao (CGD NEM) and Coast Guard district BARMM (CGD BARMM).
The PCG shall continue to study and consider creation of other new districts in the
expediency of service;

e) The Special Services are the Legislative Liaison Affairs, Community Relations
Service, Finance Service, Internal Audit, Center for Strategic Studies, Accounting
Service and the Coast Guard Academy;

In addition to the basic structure of the PCG mentioned above, the Commandant
may, in the interest of public service and expediency of service, create or reorganize
districts, commands, services or units under the PCG which shall be forwarded for
adoption to the Organization, Position Classification and Compensation Bureau
(OPCCB) of the Department of Budget and Management: Provided, That the minimum
manning level of the PCG shall be computed based on the total coastline of the
Philippines with two (2) uniformed personnel per (1) kilometer of coastline. Provided
Finally, That the functional commands, administrative support units, operational support


units, operating units, technical services and special services shall be authorized and
designated to perform all duties and functions of the PCG within their individual area of
responsibility, including but not limited to, finance and procurement.

Section 4. The PCG Commandant. - The PCG shall be headed by a
Commandant who shall have the rank of Admiral which shall be equivalent to the rank
and pay of the Chief of Staff of the Armed Forces of the Philippines and the Chief of the
Philippine National Police. The Commandant shall be appointed by the President from
among the Flag Officers in the Coast Guard service. He shall have earned the
command-at-sea badge and must have served as District Commander and Functional
Service Commander. The Commandant shall have a maximum term of (3) three years
or upon reaching the age of 56 years old whichever comes earlier. Provided, however,
That if the maximum term is served before reaching the age of 56, the Commandant
shall be compulsorily retired with all the benefits appertaining thereto.

Section 5. Powers and Functions of the Commandant. - The Commandant
shall exercise the following powers and functions:

a) Under the authority and direction of the President, shall be responsible for the
elaboration and execution of national maritime laws relating to the functions of the PCG;

b) Direct and control tactical as well as strategic movements, deployment,
placement, utilization of the PCG or any of its units and personnel, including its
equipment, facilities and other resources: Provided that the Commandant may delegate
this power to subordinate officials with respect to the units under the latter's command,
subject to the guidelines as the Commandant may prescribe in accordance with existing
laws, rules and regulations.

¢) Prescribe, in accordance to existing laws the organization or re-organization,
powers, functions and duties of the various staff, services, installation and other units
of the PCG;

d) Issue policies and instructions regarding personnel, funds, properties, records,
correspondence and such other matters as may be necessary to effectively carry out
the functions, powers and duties of the PCG, in accordance with existing laws, rules
and regulations.

e) Appoint, enlist and call to active duty any member of the uniformed personnel,
non-commissioned officers and call to active duty members of the officers’ corps;


Seocwmryaaueun

f) Approve the recommendation of the different promotion and/or assignments
boards and ensure observance of merit and fitness in the process of promotion and
assignment;

g) Exercise disciplinary authority over all uniformed personnel and civilian
employees of the PCG;

h) Perform any task or directive issued by the President;

Further, such command and direction of the Commandant may be delegated to
subordinate officials with respect to the units under the latter's respective commands,
subject to the guidelines as the Commandant may prescribe in accordance with the
tules and regulation prescribed under existing laws.

CHAPTER Ill
ADMINISTRATION AND PERSONNEL

Section 6. - Personnel. - The PCG shall consist of the following categories of
personnel:

a) Officer — refers to uniformed members of the PCG who is commissioned as
officer by the President and belongs to the officers’ corps;

b) Enlisted personnel- general term for uniformed member of the PCG with ranks
below commissioned officers and performs jobs specific to their occupational specialty.
There are three classification of enlisted personnel, namely, strikers for those in grades
E-1 to E-3, junior non-commissioned officers for those in grades E-4 to E6 and senior
non-commissioned officers for ranks with equivalent grades of E-7 to E-10.

¢) Civilian employee — refers to the non-uniformed members of the PCG who are
appointed and employed under the Civil Service laws, rules and regulations;

d) Probationary Ensign — refers to a person who is called to active duty but
awaiting commissionship into the PCG or awaiting training;

e) Draftee — refers to a person who has completed basic training and is awaiting
enlistment into the PCG active service;

f) Cadet- refers to a person who is enrolled in service academies under the
sponsorship of the PCG;

g) Candidate ~ refers to a person who is undergoing training for commissionship;

h) Trainee — refers to a person who is undergoing training to qualify as member of
the enlisted personnel's corps of the PCG;


1 Provided, That the ranks and grades of all uniformed personnel in the PCG,
2 whether officer or enlisted personnel, shall be the same and equal as that used and
3. observed in the AFP and PNP.
4 Section 7. Ranks and Grades of PCG Officers. - The ranks and grades of PCG
5 Officers shall be as follows:
RANK ACRONYM PAY GRADE
Admiral ADM 0-10
Vice Admiral VADM 0-9
Rear Admiral RADM 0-8
Commodore COMMO 0-7
Captain CAPT 06
Commander CDR 05
Lieutenant Commander LCDR 0-4
Lieutenant Senior Grade LTSG 0-3
Lieutenant Junior Grade LTJG 0-2
Ensign ENS O-1
6
7 Section 8. Technical Officers. — Following are the professionals that may join
8 the PCG service as technical officers:
9 a) Lawyers
10 b) Doctors
a0 c) Priests, Pastors, Imam, and other certified clerics
12 d) Dentists
13 e) Veterinarians
14 f) Engineers and naval architects
15 g) Nurses
16 h) Certified Public Accountants
17 i) Clinical Psychologists
18 j) Physical Therapists
19 k) Chemists
20 |) Medical Technologists
21 m) Midwives
2 Any applicant holding the degree of any of the abovementioned professions shall

23 have qualified and passed the licensure examination, as applicable, of the respective


professions to be qualified for entry into the Coast Guard service. Other board
professions not listed may still be recruited as part of the technical stream upon
verification of the PCG of its need thereof.

Section 9. Officer Rank Distribution. - The officer rank distribution of the PCG.
shall be as follows: two per centum (2%) in the Flag Officer rank; six per centum (6%)
in the rank of Coast Guard Captain; twelve per centum (12%) in the rank of Coast Guard
Commander; eighteen per centum (18%) in the rank of Coast Guard Lieutenant
Commander; Twenty per centum (20%) in the rank of Coast Guard Lieutenant Senior
Grade; and forty-two per centum (42%) in the ranks of Coast Guard Lieutenant Junior
Grade and Coast Guard Ensign; Provided, That such distribution is based on the ratio
between officer and enlisted personnel which is one (1) officer for every seven (7)
enlisted personnel: Provided, finally, That if the actual number in a rank is less than the
number prescribed in a lower rank, the difference may be applied as an increase to the
number prescribed in the lower rank.

Section 10. Distribution of Flag Officers. - Other than the Commandant who
occupies the rank of Admiral, the total number of flag ranks shall not exceed two (2)
percent of the total population of officers distributed observing the pyramidal structure
as hereunder prescribed:

Vice Admiral 0.15%
Rear Admiral 0.35%
Commodore 1.50%

Total 2.00%

Provided, That if the actual number in a rank, except in the case of Coast Guard
Admiral and Coast Guard Vice Admiral, is less than the number herein prescribed, the
difference may be applied as an increase to the number prescribed in the lower rank:
Provided, further, That no officer shall be promoted to the rank of Coast Guard
Commodore or higher unless there is an existing vacancy, and the officer is occupying
a position in the table of organization that requires the rank of which he is being
considered for promotion.

Section 11. Maximum Tenure in Rank. - The maximum tenure of officers in the
ranks of Captain and Flag Officer in the PCG are hereby prescribed as follows:
Rank Maximum Tenure in Rank


Admiral three (3) years

Vice Admiral three (3) years
Rear Admiral three (3) years
Commodore five (5) years

Captain ten (10) years.

Unless earlier separated, retired or promoted to the next higher rank or occupying
a position calling for the higher rank in the PCG Table of Organization, Captains and
Flag Officers shall be retired upon the attainment of the maximum tenure in rank herein
prescribed, or upon reaching the age of compulsory retirement whichever comes
earlier: Provided, That Captains or flag officers who have not reached age of retirement
shall be retired due to attrition if they have at least twenty (20) years in service otherwise
it shall be separation from service.

Section 12. Maximum Tenure in Position. - Officer holding the following key
Positions are hereby limited to a maximum tenure of three (3) years, unless otherwise
earlier relieved by competent authority or compulsory retired under existing laws:

a) Commandant
b) Deputy Commandant
c) Functional Service Commander

Provided, That except for the Commandant, no other officer shall be
assigned/designated to the aforementioned key positions or promoted to the rank of
Commodore or higher if he has less than (1) year of active service remaining prior to
compulsory retirement.

Section 13. Ranks and Grades of Enlisted Personnel. The ranks and pay
grades of PCG enlisted personnel shall be as follows:

RANK ACRONYM PAY GRADE
First Master Chief Petty Officer FMCPO E-10
Master Chief Petty Officer MCPO E-9
Senior Chief Petty Officer SCPO E-8
Chief Petty Officer cPO E-7
Petty Officer First Class PO1 E6
Petty Officer Second Class PO2 E-5
Petty Officer Third Class PO3 E-4


Seaman/Seawoman First Class SN1/SW1 E-3

Seaman/Seawoman Second SN2/SW2 E2
Class
Apprentice Seaman/Seawoman ASN/ASW E41

Section 14. Maximum Tenure in Rank for Enlisted Personnel. — The maximum
tenure of senior enlisted personnel in the ranks of Chief Petty Officer to First Master
Chief Petty Officer in the PCG are as follows:

Rank Maximum Tenure in Rank
First Master Chief Petty Officer Three (3) years
Master Chief Petty Officer Three (3) years
Senior Chief Petty Officer Five (6) years
Chief Petty Officer Eight (8) years

Any enlisted personnel holding lower ranks than the above who stays in a rank for
10 years without being promoted to the next higher rank shall be evaluated by the Re-
enlistment Fitness Board who shall verify suitability to continue in service and submit a
recommendation for the approval of the Commandant: Provided, That the original
enlistment term in the PCG shall be three (3) years and subsequent re-enlistment shall
be for the term of six (6) years, with the application for re-enlistment to be reviewed by
the Re-enlistment Fitness Board for recommendation to the Commandant for approval:
Provided, further, That the uniform allowance shall be payable every three (3) years
after complying with the physical fitness test.

Section 15. Civilian Employees. — There shall be civilian positions within every
office of the PCG. The head of the civilian employees shall occupy a rank of Director III
and shall be appointed by the President upon recommendation of the Commandant.
The civilian employees shall establish their own plantilla positions to complement the
strength of the PCG uniformed personnel.

Section 16. Appointments. - The appointment of the PCG Commandant and
Flag Officers shall be approved by the President upon the recommendation of the
Secretary of the DOTr. Appointments of all PCG enlisted personnel shall be made by
the PCG Commandant. Appointments of PCG officers, which shall be in the initial rank


of Coast Guard Ensign shall be through a commissionship into service by the President
upon the recommendation of the Commandant.

The initial entry ranks for technical officers like lawyers, medical doctors and
ecumenical clerics shall be in the rank of Lieutenant Senior Grade, dentists and
veterinarians shall be Lieutenant Junior Grade, while nurses and chemists shall be
commissioned in the rank of Ensign. Appointment of other technical professions that
may be required later shall be based on the academic attainment or ranking of licensure
examinations results issued by competent authority.

Appointments as well as the promotion of all civilian employees shall be in
accordance with the CSC laws, rules and regulations.

Section 17. Basic Qualification for Uniformed Personnel. — To qualify as
officer or enlisted personnel of the PCG, applicant shall possess the following at the
time of application:

a) Natural born citizen of the Philippines;

b) A person of good moral conduct;

c) Must have passed the psychiatric/ psychological, drug and physical tests to be
administered by the PCG Medical Service or by any PCG accredited government
hospital for the purpose of determining physical and mental health;

d) Must possess a formal baccalaureate degree, with appropriate license when
applicable or professional civil service eligibility for appointment as officer, and must
have finished at least 72 non-repetitive units of college education or senior high school
graduate with six (6) months TESDA skills course related to the functions of PCG for
appointment as enlisted personnel upon effectivity of this act; and

e) Must not have been dishonorably discharged from military employment or
dismissed for cause from any civilian position in the government.

Section 18. Promotions of Officers and Enlisted Personnel. — The promotion
of PCG officers and enlisted personnel shall be based on merit and fitness in
accordance with the following procedures:

a) Officers shall only be promoted after undergoing deliberation before promotion
boards. Provided, That promotion boards shall submit the results of their deliberation to
the Commandant for approval and corresponding transmittal to the President for
approval;


b) There shall also be appropriate promotion boards for enlisted personnel whose
recommendation shall be submitted to the Commandant for approval;

Provided, further, That at the time of promotion, the officer or enlisted personnel
concerned shall possess all the qualifications and none of the disqualifications provided
under pertinent laws, rules and regulations, specifically on the completion of required
career course, training, examination and minimum time-in-grade as applicable for

specific ranks.

Section 19. PCG Insignia, Decorations and Awards. - The PCG shall have its
own insignia and badges to denote rank, specialty and assignment including uniforms,
decorations and awards, all of which shall be submitted to the National Historical
Institute for registration in the flags and heraldic list: Provided, That there shall be an
established awards system which shall be administered by the PCG under such rules
and regulations as may be promulgated with the approval of the President

Section 20. Legal Assistance. — The Secretary of the Department of Justice, the
Secretary of Transportation, or the Commandant of the PCG may authorize lawyers of
their respective agencies to provide legal assistance to any member of the PCG
charged with an offense or crime resulting from the performance or on occasion of
official duty. The government lawyers so authorized shall have the power to administer
oaths. The Secretary of Justice, the Secretary of Transportation, and the Commandant
of the PCG shall jointly promulgate rules and regulations to implement the provisions of
this section.

Section 21. Power to Administer Oath. — Officers of the PCG in the active
service with the grade of O-5 or when designated with appropriate orders as
administrative officer of a unit, shall have the power to administer oaths on matters
which are connected with the performance of their official duties. Senior non-
commissioned officers (grades E-7 to E10) who are designated through appropriate
orders, as Chief-Master-At-Arms (CMAA) or unit master chief are also empowered to
administer oaths.

Section 22. Office of the Presidential Adviser on Coast Guard Affairs. - To
assist and provide advice to the President on maritime enforcement and security


matters, facilitate policy formulation and decision making in maritime issues, there shall
be an Office of the Presidential Adviser on Coast Guard Affairs headed by a PCG flag
officer holding a rank of Commodore.

Section 23. Maritime and Coast Guard Attaché. — The PCG shall have maritime
and coast guard attaché in the International Maritime Organization, other international
institution or as member of diplomatic missions or embassies with proper coordination
with the Department of Foreign Affairs.

CHAPTER IV
PAY, ALLOWANCES AND BENEFITS

Section 24. Salaries and Other Benefits. — The uniformed personnel of the PCG
shall receive the same base pay, longevity pay, hazard pay and other benefits and
allowances as are now or hereafter may be authorized for corresponding salary grades
and ranks in the AFP. The salaries and allowances of the civilian employees of the PCG.
shall be in accordance with existing laws, rules and regulations.

Section 25. Longevity Pay and Allowances. - Uniformed personnel of the PCG
shall be entitled to a longevity pay of ten percent (10%) of their basic monthly salaries
for every five (5) years of continuous active service, which shall be reckoned from the
date of actual service in the PCG: Provided, That the totality of such longevity pay shall
not exceed fifty percent (50%) of the basic pay. They shall also continue to enjoy the
subsistence allowance, quarters allowance, clothing allowance, cost of living allowance,
hazard pay, and other collateral allowances but not limited to sea duty pay, flying pay,
lawyers/legal incentive pay, occupational specialty pay, magna carta for medical
workers, specialization pay, instructors duty pay, combat pay for officers and enlisted
personnel of the PCG performing combat duties/activities or engaged in actual
performance of duties as defined in regulations to be issued by the Commandant and
all other applicable allowances as provided by existing laws. Provided, further, That the
PCG shall, subject to approval of the President, issue a specific policy pertaining to
collateral allowances for specific duties actually performed. All collateral allowances
shall be refiected in the pay slip of qualified personnel.

Section 26. Uniformed Personnel Missing in Action. - The survivors of any
officer or enlisted personnel who, while in the performance of duty, is officially confirmed


eI Aw eRe De

missing in action, kidnapped or captured by lawless elements shall be entitled to receive
the same pay and allowances to which such officer or enlisted personnel is entitled from
the time of the latter's disappearance: Provided, That the compulsory retirement of an
absentee, in applicable cases, shall be processed to allow his/her survivors to enjoy the
retirement benefits: Provided, further, That should the Commandant, upon the
recommendation of the proper authority or immediate supervisor, subsequently rule that
the officer or enlisted personnel concerned has been absent from duty without authority,
such member or the latter's survivors shall reimburse the PCG all such amount and
allowances that have been received in accordance with this section and other pertinent
sections of this Act.

CHAPTER V
ACTIVE SERVICE AND SEPARATION

Section 27. Active Service. — For purposes of this Act, active service of the
uniformed personnel shall refer to services rendered as an officer and enlisted
personnel, cadet, trainee or draftee in the PCG and services rendered as a civilian
official or employee in the Philippine Government prior to the date of separation or
retirement from the PCG: Provided, That, for purposes of retirement, the personnel shall
have rendered at least ten (10) years of active service as officer or enlisted personnel
in the PCG: Provided, further, That no period of such civilian government service be
longer than the active coast guard service shall be credited for purposes of retirement.
Service rendered as cadet in any service academy in the Philippines or abroad under
sponsorship of the PCG such as the Philippine Merchant Marine Academy,
probationary officer, draftee or trainee shall be included in computing the years in active
service for retirement purposes if such personnel joins the service right after graduation.

Section 28. Retirement. — Upon attaining 56 years of age or accumulation of 30
years of continuous satisfactory active service, whichever comes later, a PCG
uniformed personnel shall be compulsorily retired: Provided, That in case the disparity
between the length of service and retirement age mentioned above is more than a year,
then tenure in service may be extended for a maximum of four (4) years but in no case
shall the personnel concerned serve beyond sixty (60) years of age. Any officer or
enlisted personnel may choose to retire on their own option upon accumulating at least
twenty (20) years in active service.


Comer aAneen

For purposes of this Act, an officer or enlisted personnel who dies after
accumulating at least twenty (20) years of satisfactory active service shall be
considered as retired.

The retirement of civilian employees of the PCG shall be governed by the GSIS
law, rules and regulations.

Section 29. Separation. — Separation from the Coast Guard service may be done
through compulsory retirement, optional retirement upon reaching 20 years in service,
disability discharge, expiration of enlistment term, voluntary resignation, attrition,
dismissal for cause, or death.

The separation of civilian employee of the PCG shall be governed by the Civil
Service law, rules and regulations.

Section 30. Attrition. - There shall be established a system of attrition within the
uniformed members of the PCG within one (1) year from the effectivity of this Act to be
submitted by the PCG to the President for approval.

Section 31. Retirement Benefits. - An officer or uniformed personnel who is
retired under Section 31 of this Act, or his/her qualified survivors, are entitled to receive,
and may choose from, any of the following benefits:

a. Gratuity Pay. — A lump sum payment of gratuity pay equivalent to one (1) month
of base and longevity pay computed based on one grade higher than the permanent
salary grade last held for every year of service; or

b. Retirement Pay — A monthly retirement pay equivalent to fifty percent (50%) of
monthly base and longevity pay computed based on one grade higher than the
permanent salary grade last held by the personnel in case of twenty (20) years of active
service, increasing by two and one-half percent (2 % %) for every year of service
rendered beyond twenty (20) years up to a maximum of ninety percent (90%) for thirty-
six (36) years of active service and over.

Provided, That enlisted personnel who attain the rank of Chief Petty Officer, Senior
Chief Petty Officer and of Master Chief Petty Officer shall, upon retirement, be entitled
to the retirement pay and benefits of an Ensign: Provided, further, That a Master Chief
Petty Officer shall receive a gratuity equivalent to that of an Ensign, plus one-half (1/2)
of the difference between the gratuity of an Ensign and a Chief Petty Officer, and a


Senior Chief Petty Officer shall receive a gratuity equivalent to that of an Ensign, plus
one-half (1/2) of the difference between the gratuity of a Master Chief Petty Officer and
a Chief Petty Officer, while a First Master Chief Petty Officer shall be retired with the
rank of Ensign but with the retirement pay and benefits of a Lieutenant Junior Grade
(O-2), as provided for in existing laws: Provided, furthermore, That officers and enlisted
personnel who availed of optional retirement are entitled to receive monthly retirement
pay upon retirement: Provided, finally, That upon retirement, an officer or enlisted
personnel is entitled to receive a lump sum equal to eighteen (18) months of the monthly
fetirement pay.

The retirement pay of officers and enlisted personnel who are killed in action or
wounded in action resulting in total permanent disability shall be computed at the rate
of ninety percent (90%) of the monthly base and longevity pay based on one grade
higher than the permanent salary grade last held by the personnel regardless of years
in active service.

The retirement pay of all PCG retirees shall be subject to adjustment on the
prevailing scale of base pay of uniformed personnel in the active service.

The retirement benefits of civilian employees shall be governed by applicable Civil
Service laws and regulations and the Government Service Insurance System Law.

Section 32. Separation Pay. — Officers and enlisted personnel separated from
the PCG without having accumulated at least twenty (20) years of satisfactory active
service, or their qualified survivors, shall receive a separation pay equivalent to one-
month base plus longevity pay based on one grade higher than the permanent salary
grade the officer and enlisted personnel holds at the time of separation for every year
of active service: Provided, That cadets, candidates, trainees and draftees who
voluntarily resigns from service shall not be entitled to any separation pay.

The separation benefits of civilian employees shall be governed by applicable Civil
Service laws and regulations and the Government Service Insurance System Law.

Section 33. Benefits for Death and Total Permanent Disability in the Line of
Duty or During Training. — Qualified survivors of officers and enlisted personnel,
including cadets, candidates, trainees and draftees, who died in the line of duty without
having accumulated at least twenty (20) years of satisfactory active service are entitled
to a monthly life annuity, equivalent to fifty percent (50%) of the base and longevity pay


computed based on one grade higher than the permanent salary grade last held by the
deceased officer and enlisted personnel at the time of death: Provided, That, survivors
of cadets, candidates, trainees and draftees who die during training through their own
fault or negligence shall not be entitled to this benefit.

Officers or enlisted personnel, including cadets, candidates, trainees and
draftees, who suffer total permanent physical disability in the line of duty or during
training without having accumulated at least twenty (20) years of satisfactory active
service shall be entitled to a monthly life annuity, equivalent to fifty percent (50%) of the
base and longevity pay computed based on one grade higher than the permanent salary
grade last held by the officer and enlisted personnel when the disability occurred:
Provided, That the extent of the disability or sickness which renders such member unfit
or unable to further perform the duties of the position held shall be certified by the
appropriate Government hospital like the Philippine General Hospital: Provided, further,
That cadets, candidates, trainees and draftees who suffer total permanent physical
disability during training through their own fault or negligence shalll not be entitled to this
benefit.

The death and disability benefits of civilian employees shall be governed by
applicable Civil Service laws and regulations and the Government Service Insurance
System Law.

Section 34. Survivors. — The family of deceased officer or enlisted personnel
who are alive and may claim benefits after such uniformed personnel dies in line of duty
or the pensioner dies. The following criteria shall apply:

a) Surviving spouse if married to the deceased prior to the latter's
retirement/separation and not legally separated by judicial decree from the deceased
issued on grounds not attributable to said spouse: Provided, That the spouse's
entitlement of benefits shall terminate when the spouse dies, remarries, cohabits or
engages in a common-law relationship;

b) Surviving children of officer or enlisted personnel born of marriage contracted
prior to his retirement/separation from the service, surviving children adopted legally
prior to his retirement/separation, illegitimate children born while the deceased parent
was still on active service: Provided, That entitlement to benefits shall terminate when
such children attain twenty-one (21) years of age or upon marriage: Provided, further,
That those who have reached the age of twenty-one (21) years but are incapacitated


Coeur aAHneun

21
22

2B
24

25
26

27
28
29
30
31
32
33

and incapable of self-support due to a mental or physical defect acquired prior to age
of majority shall remain entitled to the benefits.

c) In default of those mentioned in paragraph (a) and (b), the surviving parent or
parents.

As regards question of filiation involving survivor-claimants, the same shall be
submitted first by the claimants to competent court for determination before benefits

can be given

Section 35. Survivorship Benefits. — The qualified survivors are entitled to a
monthly annuity equivalent to seventy-five percent (75%) of the officer or enlisted
personne''s retirement or separation benefits, to be divided among them in equal shares
and with the right of accretion.

Survivorship benefits for civilian employees shall be governed by the GSIS Law.

Section 36. Disability Pension. — \n addition to the other benefits under this Act,
an officer or enlisted personnel who is retired or separated by reason of disability, which
is the proximate result of wounds or injuries sustained or sickness or disease acquired
in the line of duty shall receive a monthly disability pension as follows:

(a) If and while the disability is rated twenty-five percent (25%) — Three thousand
three hundred pesos (P5,000.00)

(b) If and while the disability is rated fifty percent (50%) — Ten thousand pesos
(P10,000.00)

(c) If and while the disability is rated seventy-five percent (75%) — Fifteen
thousand pesos (P15,000.00)

(d) If and while the disability is rated one hundred percent (100%) — Twenty
thousand pesos (P10,000.00)

The Coast Guard Pension and Gratuity Management Center may require the
officer and enlisted personnel receiving the benefits under this Section to undergo
periodic physical and medical examination to determine the extent of disability for
purposes of adjusting the disability pension.

Section 37. Old-Age Pension. — A retired PCG uniformed personnel who is at
least 65 years of age shall be entitled to old-age pension amounting to Five Thousand
Pesos (P5,000.00) monthly increasing by Five Thousand Pesos (P5,000.00) every five

1


years: Provided, That only retired PCG uniformed personnel who shall have been
honorably discharged or retired after at least twenty (20) years total PCG active service
or sooner separated while in the active service in the PCG due to disability arising or
incurred in actual operations or performance of duties are entitled to receive this
monthly benefit.

Section 38. Application of Related Laws on Retirement and Separation of
Uniformed Personnel. — The retirement system under Presidential Decree No. 1638,
as amended, and the provisions of Republic Act No. 8220, Republic Act No. 9365, and
other similar applicable laws, insofar as not inconsistent with applicable provisions of
this Act, shall be given suppletory effect.

Section 39. Incentives and Awards. - There shall be established an incentives
and awards system which shall be administered by a board under such rules,
regulations and standards as may be promulgated by the PCG: Provided, That
equivalent awards shall be given by the PCG for every award duly given by respectable
civic organizations in a nationwide selection for outstanding achievement and/or
performance of any member. Provided, further, that in the case of civilian employees,
the system of incentives and awards shall be approved and in accordance with the CSC.
laws, rules and regulations.

CHAPTER VI
DISCIPLINARY SYSTEM

Section 40. Disciplinary System. The PCG shall adopt the Military Justice
System which shall be applicable to all its uniformed personnel. Civilian employees
shall be covered under the disciplinary rules of the Civil Service. The Commandant
shall be assisted by the Coast Guard Internal Affairs in enforcing discipline and order
within its ranks though for disciplinary issues depending on gravity, unit commanders
shall exercise disciplinary powers over personnel under their command. The PCG shall
within six (6) months from the effectivity of this Act, issue policies, rules and procedures
applying military justice system based on the provisions of Commonwealth Act No. 408,
as amended by RA No. 516, RA No. 242, PD No. 1968 and PD No.1166. Provided,
That for civilian employees, the PCG shall issue rules and procedures implementing

Book VII of EO No. 292 and the Civil Service laws.


ew Y AH hw NO

Section 41. Disciplinary Authority. The Commandant exercises disciplinary
authority at any time over all personnel of the PCG. The authority to discipline shall also
be exercised by unit commanders and Commanding Officers including Station
Commanders, Sub-Station Commanders, head of Morning Report Carrying Units.

Section 42. Jurisdiction. — A complaint or a charge filed against a PCG member
shall be heard and decided exclusively by the disciplining authority who has acquired
original jurisdiction over the case notwithstanding the existence of concurrent
jurisdiction as regards the offense.

Section 43. Dismissal of PCG Personnel. — The Commandant, after due notice
and summary hearing, may immediately remove or dismiss any respondent PCG
personnel and major unit commanders may recommend such in any of the following
cases:

a) In cases of drug abuse where subsequent confirmation test confirms the use of
prohibited drugs;

b) When the charge is serious and the evidence of guilt is strong;

c) When the respondent is a recidivist or has been repeatedly charged and there
are reasonable grounds to believe that he is guilty of the charges; and

d)When the respondent is guilty of a serious offense involving conduct
unbecoming a PCG personnel.

An officer or enlisted personnel who is continuously absent without approved
leave for at least thirty (30) calendar days shall be considered on absence without
Official leave (AWOL) and shall be presumed voluntarily resigned: Provided, That he
shall be informed, by registered mail, at his address appearing on his 201 file of his
separation from the service not later than five (5) calendar days from the effectivity
thereof.

The dismissal of PCG civilian employees shall be governed by Civil Service laws,

rules and regulations.

Section 44. Coast Guard Internal Affairs Service. — To maintain accountability
in government service through discipline and efficiency, there shall be an Internal Affairs
Service (IAS) in the PCG. The CGIAS shall foster and promote accountability in


Cor aneene

government service within the PCG and follow the basic principles of integrity,
objectivity, independence, confidentiality, professionalism, competence, courage, trust,
honesty, fairness, forthrightness, public accountability and respect for others and
themselves. It shall have the power to investigate and inquire into any and all activities
of the PCG units and personnel, review processes, procedures and operations to
determine if such were conducted effectively and efficiently.

The personnel of the CGIAS whether officer or enlisted personnel, who are performing
actual investigative duties, shall, be granted occupational specialty pay which shall not
exceed fifty percent (50%) of their basic pay and shall be reflected in their pay slip for
performed work.

CHAPTER VII
MISCELLANEOUS PROVISIONS

Section 45. Coast Guard Reserve Force. - There is hereby created and
established a Philippine Coast Guard Reserve Force, the purpose of which is to
augment the PCG force in the event of national emergency or catastrophe as declared
by appropriate Government entity. The PCG reservist shall undergo regular training
and shall be organized, trained, equipped, and administered by a PCG Reserve
Command under the direction of the Commandant and whose members may be called
to active duty in the exigency of the service on aforementioned circumstances duly
declared by appropriate authority. The PCG may also participate in the Reserve
Officers’ Training Course program as an alternative offering focusing on maritime
safety, marine environmental protection and search and rescue: Provided, That the
PCG shall within six (6) months from the effectivity of this Act, draft pertinent policies
‘on the management and particulars of the Coast Guard Reserve Force, subject to the
approval of the President.

Section 46. Authority to Create Mutual Benefit Association. The PCG is
hereby authorized to create a mutual benefit association where membership is
voluntary to provide life and non-life insurance services for the benefits of its members
and their dependents to lift the morale and promote the welfare of PCG members and
their families. The management, operation, and control of such association shall be
under the direct control and supervision of the Commandant, Philippine Coast Guard.
Such mutual benefit association shall be exempt from all kinds of taxes and shall be


issued a certificate of exemption. The mutual benefit association shall comply with the
requirements of Securities and Exchange Commission (SEC) on registration and of
other regulatory government agencies.

Section 47. Exemption from Attachment and Taxes. - Retirement benefits
granted by this Act, including benefits received from a duly instituted provident fund and
mutual benefit association shall not be subject to attachment, levy, execution or any tax
of whatever nature.

Section 48. Special Account. - The PCG shall maintain a special account under
the General Fund, in which receivables from local or foreign entities shall be credited
including proceeds or excess of grants, fees or charges, dues, fines and rentals
generated in the regular conduct of service: Provided, that PCG shall have the authority
to use one hundred percent (100%) of this fund for capability enhancement and
modernization of the organization.

Section 49. Collection of Revenues. - The PCG shall collect fees, dues,
charges, and fines relevant to the exercise of its various functions: Provided, that the
thirty percent (30%) shall be credited to the special account.

Section 50. PCG Properties and Lighthouse Reservations. — The PCG shall
continue to exercise exclusive ownership, possession, management, control and
supervision over all properties transferred to it by virtue of Executive Order No. 475
dated 30 March 1998 and Executive Order No. 477 dated 15 April 1998, such as inter
alia, vessels, watercrafts, firearms, armaments, munitions, communications and
electronic equipment, vehicles, buildings, real state, lighthouse stations and
reservations.

Section 51. Establishment and Expansion of Coast Guard Bases, Equipment
and Facilities. - In accordance with other appropriate government agencies, the PCG
shall develop and enhance its capabilities in the performance of its mandated functions
and establish its strategic presence. To this extent the PCG shall, through the guidance
of Congress, draft its development pian that shall reflect its asset, equipment and facility
requirement that includes but not limited to floating assets, laboratories, land-based



support facilities, land mobility, arms and ammunition, rescue and hospital ship,
maritime monitoring surveillance and communications system, port facilities, air assets

and air stations.

Section 52. Implementing Rules and Regulations. — The Philippine Coast
Guard shall, not later than one hundred twenty (120) days from the effectivity of this
Act, issue rules and regulations, determine, fix and/or prescribe charges, rates, and
penalties, as may be necessary, to implement its provisions, as well as the provisions
of laws, issuances, decrees and orders related to the implementation of PCG functions.

Section 53. Appropriations. — The amount necessary to carry out the provisions
of this Act shall be included in the annual General Appropriations Act.

Section 54. Transitory Provisions. — The provisions of this Act, as far as the
computation of rate is concerned, shall have retroactive effect on the retirement benefits
of enlisted personnel whose retirement were affected by the implementation of Republic
Act No. 9993, and the discrepancy as a result of applying this Act and Republic Act No.
9993 shall be returned to the retiree. The same shall also be retroactively applicable to
indexation of pension to base pay scale adjustments affected by Republic Act No. 9993:
Provided, that the retirement benefits of the ranks of Admiral and Vice Admiral
adversely affected by CUR No. 4 s. 2008 and CJR No. 1 s. 2018 shall be adjusted in
the same level as its contemporary ranks of General and Lieutenant General in the AFP.
and the PNP, respectively: Provided, further, that those affected by the above-
mentioned Joint Resolutions shall be paid the difference in pay and allowances by
reason thereof.

Section 55. Separability Clause. — If for any reason, any provision of this Act is
declared unconstitutional or invalid, such parts not affected thereby shall remain in full
force and effect.

Section 56. Repealing Clause. — Laws, decrees, executive orders, rules and
regulations and other issuance's or parts thereof which are inconsistent with this Act
are hereby repealed, amended or modified accordingly


1 Section 57. Effectivity. - This Act shall take effect fifteen (15) days after its
2 publication in the Official Gazette or in any two (2) newspapers of general circulations.
3 Approved,