Government to offer more attractive retirement package to employees

LAWMAKERS today said a more attractive compensation package should be offered to employees so they can avail of the voluntary separation
program of the government.

Reps. Rufus Rodriguez (2nd District, Cagayan de Oro City) and Maximo
Rodriguez (Party-list, Abante Mindanao) filed House Bill 1639 enticing
government employees to avail of the new compensation package under
the early retirement program of the government.

“As it is now, the government has been perceived as bloated and
overstaffed, leading the government to become a source of inefficiency
due to red tape so that the link between corruption and government
service has become inherent,” Rodriguez said.

Rodriguez said Congress enacted Republic Act 6683 to address the
bloated bureaucracy inducing government employees to retire by
providing ample incentives and benefits.

“Only a small number of employees have filed for early retirement
because the benefits being offered to them are not attractive,”
Rodriguez said.

“The law was enacted at a time when government salaries were scheduled
to be upgraded and so, they opted to wait for the salary adjustments
based on the computation by the Salary Standardization Law,” Rodriguez

Rodriguez said the bill will strengthen RA 6683 by offering, not only
higher benefits but benefits that are computed based on the present
salary schedule.

“To cushion any possible adverse effect on government employees in
the process of reducing the number of government personnel, a safety
net shall be created through a more attractive and viable retirement
and separation program,” Rodriguez said.

The bill will cover all appointive officials and employees of the
National Government, government-owned or controlled corporations with
original charters, and local government units (LGUs).

The early retirement program shall be automatically offered to all
government employees, and in no case shall this exceed 20 percent of
the total number of employees of the said agencies.

Those who will opt for early retirement shall receive separation
benefits equivalent to one to two months to be multiplied by their
years of service. The applicants must have rendered at least 10 to 23
years of government service.

Under the bill, additional benefits shall be given to officials and
employees who voluntarily separate from the service and shall be
entitled to the return of their Government Security and Insurance
System (GSIS) personal contributions pertaining to retirement.

They shall also be paid their corresponding share of the government
with the interest earned pursuant to existing GSIS rules and

They shall, likewise, be entitled to the commutation of unused
vacation and sick leaves in accordance with existing rules and

Under the bill, officials or employees who opt to retire shall not be
eligible for employment in the government, whether on a permanent,
temporary, casual or contractual status within five years after
separation unless they refund the benefits they received under the
proposed act.

Government officials who compel employees under any guise to retire or
separate from service under the proposed act shall be subject to a
fine not exceeding P10,000 and imprisonment not exceeding six months,
or both.

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