Guidelines and Procedures on the Grant of Monetization of Leave Credits for PNP Personnel

January 24, 2017

PNP MEMORANDUM CIRCULAR NO. 2017-007

GUIDELINES AND PROCEDURES ON THE GRANT OF MONETIZATION OF LEAVE CREDITS FOR PNP PERSONNEL

1. REFERENCES:

a. Section 22 of Rule XVI of the CSC Omnibus Rules on Leave (Tab "A"); HTcADC

b. Executive Order No. 291 dated September 27, 2000 n entitled: "Monetization of Leave Credits of Government Officials and Employees" (Tab "B");

c. CSC-DBM Joint Resolution No. 2-97 dated June 25, 1997 (Tab "C");

d. DBM Budget Circular No. 2016-2 dated March 29, 2016 with subject: "Computation and Funding of Terminal Leave Benefits and Monetization of Leave Credits" (Tab "D");

e. CSC MC No. 02 s. 2016 with subject: "Amendment on the Computation of Constant Factor in the formula for Terminal Leave Credits and Monetization of Leave Credits of the Omnibus Rules on Leave" (Tab "E"); and

f. CSC MC No. 16 s. 2002 with subject: "Amendment to Section 23, Rule XVI of the Omnibus Rules Implementing Book V of the Administrative Code of 1987, otherwise known as Omnibus Rules on Leave" (Tab "F").

2. RATIONALE:

The Civil Service Commission (CSC) and the Department of Budget and Management (DBM) allow the monetization of leave credits of government employees based on their existing rules and regulations. Hence, the PNP has deemed it necessary to establish guidelines and procedures to ensure that this privilege is equally and reasonably enjoyed, taking into consideration the availability of funds to provide for the welfare of its members. CAIHTE

3. PURPOSE:

This Memorandum Circular (MC) provides the guidelines and procedures on the grant of Monetization of Leave Credits (MLC) pursuant to CSC and DBM rules. The MLC aims to provide the active members of the PNP a source of funds derived from their earned leave credits to augment their income and/or to provide for their personal or families' needs without having to contract loans from financial institutions.

4. DEFINITION OF TERMS:

a. Monetization of Leave Credits (MLC) — refers to payment in advance, under prescribed limits and subject to specified terms and conditions, the money value of leave credits of an employee upon his request without actually going on leave. MLC is categorized as follows:

1) Regular Monetization — refers to the monetization of a minimum of ten (10) vacation leave (VL) credits, provided that at least five (5) days of vacation leave credits are retained after the monetization per CSC MC 41 s. 1998;

2) Special Monetization — refers to the use of the accumulated VL and sick leave (SL) credits provided, that at least ten (10) days of VL credits and ten (10) days SL credits are retained after monetization.

b. Accumulated Leave Credits — refer to the total number of leave credits accumulated by the PNP personnel from the time he/she entered the service until his/her retirement or separation from the service. aScITE

c. Permanent Status — a permanent appointment shall be issued to a person who meets all the requirements for the position to which he is being appointed, including the appropriate eligibility prescribed, in accordance with the provisions of law, rules and standards promulgated in pursuance thereof.

d. Temporary Appointment — in the absence of appropriate eligibility and it becomes necessary in the public interest to fill a vacancy, a temporary appointment shall be issued to a person who meets all the requirements for the position to which he is being appointed except the appropriate civil service eligibility: Provided, That such temporary appointment shall not exceed twelve months, but the appointee may be replaced sooner if a qualified civil service eligible becomes available.

e. Coterminous — an appointment issued to a person whose entrance and continuity in the service is: (1) based on the trust and confidence of the appointing authority or of the head of the organizational unit where he/she is assigned; (2) limited by the duration of the project; or (3) co-existent with the life span of the agency or office created.

f. Casual — an appointment issued to a person for services in an emergency or during a peak work period to positions which do not have regular items in the plantilla of personnel of the department or agency. A casual appointment shall not exceed twelve (12) months.

g. Vacation leave — refers to leave of absence granted to PNP personnel for personal reasons, the approval of which is contingent upon the necessities of the service.

h. Sick leave — refers to leave of absence granted only on account of sickness or disability on the part of the PNP personnel concerned or any member of his immediate family.

i. Longevity Pay/Long Pay — refers to ten percent (10%) of the basic monthly salaries for every five (5) years of service, which shall be reckoned from the date of the personnel's original appointment in the AFP, or appointment in the police, fire, jail or other allied services to the integration of the PC and the INP: Provided, That the totality of such longevity pay shall not exceed fifty percent (50%) of the basic pay. DETACa

j. Immediate family — refers to the spouse, children, parents, unmarried brothers and sisters and any relative living under the same roof or dependent upon the PNP personnel for support. (Amended by CSC MC 6, s. 1999)

5. GUIDELINES:

a. General Guidelines:

1) All PNP personnel who are on full duty status whether permanent, temporary, casual or coterminous appointment, who have accumulated 15 days of vacation leave credits shall be allowed to apply for MLC, as follows:

a) Regular MLC — Monetize a minimum of 10 days and maximum of 30 days of vacation leave in a given year; and/or

b) Special MLC — Monetize 50% or more of accumulated total leave credits.

2) Those who are due to retire within one year are disqualified from availing the MLC;

3) Computation — Pursuant to Section 40 of CSC MC No. 14, MLC shall be computed as follows:

a) Uniformed Personnel and Non-Uniformed Personnel who are authorized to receive long pay.

The one rank higher benefit shall not be applicable for MLC computation.

 

Current Monthly Base Pay + Long Pay

x

No. of days to be monetized

x

Constant Factor (0.0481927)

=

Money value of the monetized leave

 

b) Non-Uniformed Personnel HEITAD

 

Current Monthly Base Pay

x

No. of days to be monetized

x

Constant Factor (0.0481927)

=

Money value of the monetized leave

 

4) Monetization of 50% or more of the accumulated leave credits may be allowed under any of the following reasons:

a) Health, medical, and hospital needs of the PNP personnel and the immediate members of his/her family;

b) Financial aid and assistance brought about by force majeure events such as calamities, typhoons, fire, earthquake, and accidents that affect the life, limb, and property of the employee and his/her immediate family;

c) Educational needs of the PNP personnel and the immediate members of his/her family;

d) Payment of mortgages and loans which were entered into for the benefit or which inured to the benefit of the employee and his/her immediate family; and

e) In cases of extreme financial needs of the PNP personnel or his/her immediate family where the present sources of income are not enough to fulfill basic needs such as food, shelter and clothing.

5) The application for MLC shall be processed on a first-come-first-serve basis in accordance with the procedures stated herein (See Annex "B");

6) The monetization, whether regular or special, may be availed only once a year. However, a second MLC may be allowed in any of the emergency cases enumerated in paragraph 5.a.4 hereof subject to availability of funds; aDSIHc

7) At the start of calendar year, depending on prior year's savings under the General Fund, Directorate for Comptrollership (DC) shall allocate and inform the PNP units of the total amount available for payment of MLC for the National Headquarters (NHQ) including the National Support Units (NSUs) and the Police Regional (PROs). The pro-rata allocation shall be computed as follows:

ALLOCATION

=

Actual No. of Personnel per NHQ or PRO

x

Funds Available

8) The Directorate for Personnel and Records Management (DPRM) shall provide DC with the updated data on the number of personnel per office/unit;

9) For PNP active personnel who had been paid of the applied MLC claim which resulted in insufficient leave balance, offsetting shall be done by the Records Management Division (RMD), DPRM against the future accrued leave credits;

10) For PNP personnel detailed with other agencies, MLC application shall be submitted to Personnel Holding and Accounting Unit (PHAU), DPRM for processing; and

11) All requests for cancellation of MLC Order shall only be allowed within three months after issuance of order, provided the leave credits have not been monetized and claimed.

b. Procedures for Application and Payment of Regular/Special Monetization of Leave Credits: ATICcS

1) All PNP Personnel qualified to avail the Regular MLC shall submit duly accomplished MLC Application Form to their respective Administrative Officer;

2) For Special MLC, the following documents shall be submitted:

a) Duly accomplished MLC Application Form; and

b.1) n Clinical abstract/medical procedures to be undertaken in case of health, medical and hospital needs;

b.2) Barangay certification, in case of need for financial assistance brought about by calamities, typhoons, fire, etc.;

b.3) School assessment/official receipts in case of educational needs;

b.4) Demand letter or statement of account, in case of need for payment of mortgages and loans; or

b.5) Any other pertinent supporting documents.

3) The Admin Officer/C, ARMD/C, RPHRDD shall process and submit to RMD, DPRM the list of their approved MLC applications for issuance of appropriate orders;

4) Upon receipt of the MLC Order from DPRM, the RPHRDD shall prepare the Disbursement Voucher (DV) together with the required documents and after checking the completeness and correctness of requirements, shall submit the same to the Regional Comptrollership Division (RCD), PRO for processing prior to submission to BFO, DPRM. For MLC claims processed by the Admin Officer/C, ARMD, the DV shall be forwarded directly to BFO, DPRM; and ETHIDa

5) BFO, DPRM shall reprocess and program the claim submitted by NHQ/NSUs and PROs prior transmittal to Fiscal Division, DC for processing and subsequent payment by the Finance Service (FS).

c. Tasks:

1) DPRM

a) Issue Breakdown of Leave Credits of active PNP Personnel and provide authenticated copies upon request of the concerned offices/units;

b) Verify Leave Credits of approved MLC applicants submitted by PNP Offices/Units;

c) Issue MLC Order of active PNP Personnel and furnish same to concerned Units/Offices;

d) Ensure that the number of leave credits used for purposes of MLC shall be deducted to reflect the correct/adjusted leave balance of the personnel who availed of the MLC;

e) Ensure that paid MLC are encoded/updated in PAIS database for monitoring;

f) Notify the personnel and the unit of paid MLC claim which resulted in insufficient leave balance, and the offsetting to be done in the future for purposes of adjustment in the unit's record of leave; and

g) Perform other tasks as directed.

2) DC TIADCc

a) Inform the offices/units of the amount available for the payment of monetization and their respective allocation;

b) Process and provide funds for the approved monetization of leave credits of PNP active personnel subject to the availability of funds; and

c) Perform other tasks as directed.

3) FS

a) Process the payment of approved MLC through List of Due and Demandable Accounts Payable-Advice to Debit Account (LDDAP-ADA), or through the issuance of check;

b) Furnish Admin Officers/C, ARMD/C, RPHRDD and RMD, DPRM with authenticated copies of the paid DV and photocopy of the LDDAP-ADA validated by LBP; and

c) Perform other tasks as directed.

4) Command Group, D-Staff, P-Staff, IAS, NSUs and PROs:

a) Process MLC application and submit list of personnel with approved application to RMD, DPRM for issuance of appropriate orders; and

b) Perform other tasks as directed.

d. Coordinating Instructions:

1) All Admin Officers/C, ARMD/C, RPHRDD shall ensure widest dissemination of this MC; and

2) All Admin Officers/C, ARMD/C, RPHRDD shall ensure that the policies and guidelines stated herein are strictly complied.

6. PENAL PROVISION:

Any violation hereof shall be dealt with in accordance with the provisions of NAPOLCOM Memorandum Circular No. 2016-002. cSEDTC

7. RESCISSION:

All issuances inconsistent with this MC are hereby rescinded, repealed, or modified accordingly.

8. EFFECTIVITY:

This MC shall take effect after 15 days from filing a copy thereof at the UP Law Center in consonance with Section 3, Chapter 2, Book VII of Executive Order 292 otherwise known as the "Revised Administrative Code of 1987," as amended.

(SGD.) RONALD M. DELA ROSA

Police Director General

Chief, PNP

ANNEX A

Application for Monetization of Leave Credits

ANNEX B

Flowchart of Processing of Application and Approval of MLC

ANNEX B.1

Application and Approval of MLC

1. PNP qualified active personnel submit duly accomplished application for MLC to Admin Officer/ARMD/RPHRDD.

2. RCD certifies that the requested MLC is within the allocated funds available. (For PROs only) (2 days)

3. PROs prepare endorsement of list and approved MLC application to RMD, DPRM for issuance of MLC order. (2 days) AIDSTE

 CG-DPs/NSUs — prepare endorsement of list and approved MLC application to RMD, DPRM thru BFO, DPRM for issuance of MLC order. (2 days)

4. RMD, DPRM verifies leave credits balance. (1 day)

5. Approval of MLC application.

* NO> RMD, DPRM returns the application documents to Admin Officer/ARMD/RPHRD and copy furnished BFO, DPRM/RCD.

* Yes> GO TO Step 6.

6. Applicant opts to withdraw his MLC (only on this stage can the applicant withdraw or cancel application).

* Yes> RMD, DPRM returns the application documents to Admin Officer/ARMD/RPHRD and copy furnished BFO, DPRM/RCD.

* No> GO TO Step 7.

7. RMD, DPRM Prepares MLC orders (endorsement to DPRM Admin > Ex-O > then to Publication, then back to DPRM Command Group for approval of MLC Order & TDPRM signature). (10 days)

8. Publication, RMD, DPRM emails the MLC orders to concerned Units. (1 day)

• Then, GO TO ANNEX B.2. Processing and payment of MLC

ANNEX B.2

Processing and Payment of MLC

1. Admin Officer/C, ARMD/C, RPHRDD, upon receipt of the MLC Order thru email, prepares the disbursement voucher to be certified by the Heads of Office and to be forwarded to BFO, DPRM/RCD. (3 days)

2. RCD processes, indexes and endorse same to BFO, DPRM. (For PROs only) (1 day)

3. BFO, DPRM reprocesses/revalidates the claim, and programs the fund, for submission to DC. (3 days) SDAaTC

4. Fiscal Division, DC prepares letter request for DBM, as necessary, and/or issues Notice of Fund Allocation (NFA). (3 days)

5. Accounting Division, DC, prepares Obligation Request and Status (ObRS). (2 days)

6. Management Division, DC performs pre-audit on the claim/s. (3 days)

7. Budget Division, DC issues Notice of Cash Allocation (NCA). (3 days)

8. Chief, Accounting Division, DC certifies the availability of funds in Box B of the voucher, and issues Journal Entry Voucher (JEV). (3 days)

9. Disbursement Division, FS prepares MDS Checks or Advice to Debit Account (ADA), and Advice of Checks Issued and Cancelled (ACIC). (3 days)

10. Authorized signatories affix their signatures on the voucher, ADA, ACIC, and/or other pertinent docs. (1 day)

11. Disbursement Division, FS releases MDS check and/or submits ADA and other pertinent documents to Land Bank of the Philippines (LBP). (3 days) — END OF PROCESS

n Note from the Publisher: Copied verbatim from the official copy.

n   Note from the Publisher: Written as "Executive Order No. 291 dated September 27, 2002" in the original document.