THIRTEENTH CONGRESS OF THE REPUBLIC 1 
OF THE! PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
SBNo. 
P8z)e 
Introduced by: Senatup Lacsun 
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. I, 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 coinposed 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. 


THIRTEENTH CONGRESS OF THE REPUBLIC } 
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OF THE PHILIPPINES 
1 
First Regular Session 
I 
SENATE 
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SB No. & 
Introduced by Senator Lucson 
AN ACT ESTABLISHING THE CAREER EXECUTIVE SYSTEM 
Be in enacted by the Senate and House of represeniat7ve,~ of the Philippiiies 717 
Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
Section 1. Short Title. - This Act shall be known as the “Career Executive 
System Act of 2005.” 
Section 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. 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. 
Toward this end, 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. 
Section 3. Definitioii 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 - refers to a system for the professionalization and career 
development of the executive and managerial component ofthe third level. 


e) Career Executive System Board (hereinafter referred to as the Board) - refers to 
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 Oficer - 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 - refers to 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. 
g) 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 maybe necessary 
for the proper performance of official functions, including rectification of violations, 
abuses and other forms of maladministration. 
h) Mobility- refers to the movement of a Career Executive Officer from one position to 
another without reduction in rank or salary. 
CHAPTER I1 
CAREER EXECUTIVE SYSTEM 
Section 4. 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 inay 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. 
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 bidher 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 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, 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. 
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 principles, 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 hislher 
membership in the Career Executive System. 
Section 9. Security of Tenure. - A Career Executive OEcer 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 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 hislher rank. In case a Career 
Executive Officer occupies a position whose salary grade is higher than that of hislher 
rank, helshe shall receive the difference between the salary grade of hidher position and 
hidher 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. 


Section 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. 
Sectiou 13. 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. 
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 Executive Officer, 
during which period he/she shall not be transferred to another office or position without 
hidher 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 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. 
Section 16. Assignment to Positions in the Career Executive System. - Career 
Executive Officer-Eligibles shall be given priority in assignment to vacant positions in 
the Career Executive System. In exceptional cases, a non-career Executive Offcer- 
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 Office-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 the 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 with the standards 
prescribed under this Act. 
Sectiou 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 and 
Career Executive Officer -Eligibles. 
Section 19. Performance Management. - The Board shall develop a system for 
the periodic evaluation of performance of occupants of positions in the Career Executive 
System, taking into account their accomplishments and managerial capability. This 
periodic evaluation syatem shall be the basis for the grant of incentives and awards, as 
well as for sanctions for poor performance. 
CHAPTER IV 
MISCELLANEOUS PROVISIONS 
Section 20. Transitory Provisions. - Upon the effectivity o f  this Act, all Career 
Executive Service Officers shall be accredited as Career Executive Officers. They shall 
be appointed to Career Executive Officers 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. 
Section 21. 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 22. Repealing Clause. - Provisions of Article IV, Part 111 of the 
Integrated Reorganization Plan, as approved by Presidential Decree No. 1, as amended, 
which are inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
Section 23. Separability Clause. - If any part, section, or provision of this Act is 
declared invalid or unconstitutional, other provisions not affected thereby shall remain in 
full force and effect. 
Section 24. Effectivity. - This Act shall take effect after fifteen (15) days from its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,