Dec 19 2013

The Department of Education (DepEd) clarifies that the Rationalization Plan is in accordance with Executive Order (EO) 366 issued in 2004. EO 366 directs a strategic review of the operations and organizations of the Executive Branch. It is meant to improve the quality and efficiency of government services by focusing government efforts and resources on its core services. This will improve the ability of the Department to respond to the needs of students, teachers, and schools.

The Rationalization Plan only covers non-teaching staff in the Central Office, Regional Offices, and Schools Division Offices. Schools are not included. The DepEd Rationalization Plan was submitted to the Department of Budget and Management (DBM) February 14, 2013 and was approved on November 15, 2013. It was drafted in consultation with officials and employees from all levels nationwide, including representatives from the Employees’ Union and the various national associations.

As provided by EO 366, employees deemed “affected” by the Rationalization Plan have several options to choose from.

 Those who wish to stay in government service may opt to apply
for similar positions they qualify for or choose to convert their items into
Co-Terminus with the Incumbent (CTI) status. CTI status means the employee
holds on to their item until they choose to retire, resign, or get appointed to
another position. They will be assigned to where their services and skills are

Employees may choose to leave government service, in which case
they will be entitled to more benefits than regular retirement or separation.
Aside from what they will be getting from GSIS, they will also get additional
incentives from government (through DBM) as stated in Section 10 of EO 366.
(Please see excerpts from EO 366 below.)

The DepEd has instituted a help desk to clarify common questions and help affected personnel with their options. Heads of offices, who have been briefed on the plan earlier, have also been conducting dialogues with employees to explain the plan and discuss options. For more information, check:

Excerpt from EO 366

SECTION 10.       Personnel Who Would Opt to
Retire or Be Separated from the Service. — Affected personnel, with
appointments attested by the CSC, whether hired on a permanent or temporar
basis, who would opt to retire or be separated from the service, and those
hired on a casual or contractual basis, if qualified, shall be given the option
to avail themselves of any of the following, whichever is beneficial to them:


Retirement gratuity provided under RA 1616 (An Act Further Amending Section
Twelve of Commonwealth Act Numbered One Hundred Eighty-Six, as Amended,
Prescribing Two Other Modes of Retirement and for Other Purposes), as amended,
payable by the last employer of the Affected personnel, plus the refund of
retirement premiums payable by the Government Service Insurance System (GSIS),
without the incentive herein provided.


Retirement benefit under RA 660 (An Act to Amend Commonwealth Act Numbered One
Hundred and Eighty-Six entitled “An Act to Create and Establish a Government
Service Insurance System, to Provide for its Administration, and to Appropriate
the Necessary Funds Therefor,” and to Provide Retirement Insurance and for
Other Purposes) or applicable retirement, separation or unemployment benefit|
provided under RA 8291 (An Act Amending Presidential Decree No. 1146, as
Amended, Expanding and Increasing the Coverage and Benefits of the Government
Service Insurance System, Instituting Reforms Therein and for other Purposes),
if qualified, plus the following applicable incentives:


½ month of the present basic salary for every year of government service and a
fraction thereof, for those who have rendered 20 years of service and below;


¾ month of the present basic salary for every year of government service and a
fraction thereof, computed starting from the 1st year, for those who have
rendered 21-30 years of service; and


1 month of the present basic salary for every year of government service and
fraction thereof, computed starting from the 1st year, for those who have
rendered 31 years of service and above.



shall pay, on the day of separation, the retirement/separation/unemployment
benefits to which are affected employee may be entitled to under RA 660 or RA
8291 and whenever there is an option, the one which the affected employee has
chosen as the most beneficial to him/her.


for the purpose of complying with the required number of years of service under
RA 8291, the portability scheme under RA 7699 (An Act Instituting Limited
Portability Scheme in the Social Security Insurance Systems by Totalizing the
Workers’ Creditable Services or Contributions in Each of the Systems) may be
applied, subject to existing policies and guidelines.


Those with that three (3) years of government service may opt avail of the
separation gratuity under RA 6656 (An Act to Protect the Security of Tenure of
Civil Service Officers and Employees in the Implementation of Government
Reorganization), plus the appropriate incentive provided under Section 10.2.

No affected employees who opted for retirement/separation shall receive less than an aggregate of

Fifty Thousand pesos (P50,000.00) as his retirement/separation gratuity
benefits from both the National Government and the GSIS.

Educators' Latest