Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits
DBM Circular Letter No. 04-18, issued on January 24, 2018, outlines revised guidelines for the payment of Retirement Gratuity and Terminal Leave benefits for government employees in the Philippines. Effective February 1, 2018, operating units are directed to utilize their Regular Modified Disbursement System (MDS) Sub-Accounts for these payments, and Notice of Cash Allocations (NCAs) will be valid until the end of the quarter of issuance. The Circular also mandates that the Advice to Debit Account (ADA) mode be used for settling these benefits. Previous circulars conflicting with this new directive are rescinded, but existing documentary requirements for processing RG/TL requests remain intact. The Circular takes effect immediately and will continue until amended or repealed.
Quick Answers
- What is Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits about?
- DBM Circular Letter No. 04-18, issued on January 24, 2018, outlines revised guidelines for the payment of Retirement Gratuity and Terminal Leave benefits for government employees in the Philippines. Effective February 1, 2018, operating units are directed to utilize their Regular Modified Disbursement System (MDS) Sub-Accounts for these payments, and Notice of Cash Allocations (NCAs) will be valid until the end of the quarter of issuance. The Circular also mandates that the Advice to Debit Account (ADA) mode be used for settling these benefits. Previous circulars conflicting with this new directive are rescinded, but existing documentary requirements for processing RG/TL requests remain intact. The Circular takes effect immediately and will continue until amended or repealed.
- What type of law is DBM Circular Letter No. 04-18?
- Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits (DBM Circular Letter No. 04-18) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits enacted?
- Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits (DBM Circular Letter No. 04-18) was enacted on Jan 24, 2018.
- What is the citation for Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits?
- Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits, DBM Circular Letter No. 04-18, Jan 24, 2018 (Philippines)
Law Information
- Reference Number
- DBM Circular Letter No. 04-18
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Department of Budget and Management
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
January 24, 2018
DBM CIRCULAR LETTER NO. 04-18
| TO | : | All Heads of Departments/Agencies/State Universities and Colleges and Other Offices of the National Government, Budget Officers; Heads of Accounting Units, COA Auditors, Heads of Modified Disbursement System-Government Servicing Banks (MDS-GSBs) and All Others Concerned |
| SUBJECT | : | Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits |
1.0 Pursuant to Budget Circular No. 2013-1, dated April 12, 2013 (Guidelines Prescribing the Documentary Requirements and Procedures in Processing/Payment of Retirement Benefits of Government Employees) and Circular Letter No. 2011-15, dated December 26, 2011 (Validity of Notice of Cash Allocation (NCA)) the following are being observed in the issuance and crediting of NCAs for the payment of RG/TL benefits:
1.1 NCAs for the purpose shall be credited to Special MDS Sub-Accounts effective upon issuance; and
1.2 Shall be valid up to the last working day of the following month.
2.0 In line with the policy of maximizing the use of the available resources in FY 2018 and reducing the number of existing MDS sub-accounts, operating units (OUs) are directed to use their Regular MDS-Sub Accounts for payment of RG/TL benefits effective February 1, 2018. aICcHA
2.1 The validity of NCAs issued for RG/TL shall thus be from the date of issuance of the NCA until the end of the quarter said NCA was issued.
2.2 All OUs concerned shall make the necessary coordination with their respective MDS Government Servicing Banks for the closing of their Special MDS Sub-Account.
3.0 All NCAs issued for RG/TL benefits prior to February 1, 2018 shall still follow the lapsing of one month after issuance.
4.0 It is understood that all OUs shall use the Advice to Debit Account (ADA) mode of payment in the settlement of RG/TL benefits.
5.0 All provisions of existing circulars and other issuances inconsistent with this Circular are hereby rescinded/repealed and/or modified accordingly.
6.0 Except as expressly repealed, or by necessary implication, modified by this Circular, the existing provisions regarding the documentary requirements for the processing of requests for payment of RG/TL Benefits, shall remain in full force and effect.
7.0 This Circular shall be effective immediately and remain to be in force unless otherwise repealed/amended.
(SGD.) BENJAMIN E. DIOKNOSecretary
Cite This Law
Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits, DBM Circular Letter No. 04-18, Jan 24, 2018 (Philippines)
Modified Guidelines for the Payment of Retirement Gratuity and Terminal Leave (RG/TL) Benefits, DBM Circular Letter No. 04-18 (Phil. 2018)
Related Laws
- Guidelines Prescribing the Documentary Requirements and Procedures in the Processing and Payment of Retirement Benefits of PNP PersonnelPNP Memorandum Circular No. 010-13 • Aug 13, 2013 • Other Rules and Procedures
- Guidelines for the Early Release of Retirement Pay, Pensions, Gratuities and Other Benefits of Retiring PNP PersonnelPNP Memorandum Circular No. 014-14 • Apr 28, 2014 • Other Rules and Procedures
- Rules, Regulations and Procedures in the Processing/Payment of Retirement Benefits of BOC EmployeesCustoms Memorandum Order No. 003-13 • Jul 16, 2013 • Other Rules and Procedures
- Computation and Funding of Terminal Leave Benefits and Monetization of Leave CreditsDBM Budget Circular No. 02-16 • Mar 29, 2016 • Other Rules and Procedures
- Guidelines on the Release of Funds for FY 2016DBM National Budget Circular No. 561-16 • Jan 4, 2016 • Other Rules and Procedures
- Constant Factor in the Formula for Computing Terminal Leave Benefits and Monetization of Leave CreditsCSC Resolution No. 1501530 • Dec 21, 2015 • Other Rules and Procedures
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