Chapter

11
PART II. HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

SEPARATION
There is always a way out of the NEDAone may choose to leave it or he may be asked to do so.

A. Types of Separation
1. Voluntary Separation
This is initiated through his voluntary and personal act and may come in many forms such as:
a. Resignation - An employee's resignation should be in writing, addressed to the Director-General,
through channels. Action on it is deferred if he is facing an administrative charge. After due
investigation and once his resignation is accepted, he collects payment for the money value of his
unused accumulated leave credits and other benefits due him;
b. Optional retirement - He may also retire optionally provided he complies with the retirement
rules, presented in Chapter 6, for his mode of separation from the service;
c.

Filing of certificate of candidacy - If he is holding an appointive position, he ceases to be an

employee on the day he files his candidacy to any elective position;

d. Abandonment of office - When he fails to report back to work after his authorized leave of
absence has expired, this means that he is already abandoning his office. Failure to report for
work for more than one month without informing his supervisor will result in dropping him from the
rolls. However, this is not considered a disciplinary manner of separation; and
e. Transfer - His decision to transfer does not result in the termination of employment from the
government service but, nevertheless, results in the termination of the employment relationship
with NEDA.
2. Involuntary Separation
He can also be forced to leave NEDA for the following reasons:
a. Compulsory retirement - He is compulsorily retired at age 65 and his service could be
extended for a period of six (6) months or to a maximum of one (1) year in highly justifiable
reasons and subject to CSC approval (CSC MC # 15, s.1999);

b. Separation for disciplinary reason - He can be separated from NEDA for disciplinary reasons
if he commits grave offenses carrying the punishment of dismissal;
c.

Reduction in force - Reduction of personnel can include him. It takes place when there is lack of
funds for continued operations or when NEDA reorganizes to streamline its operations. Should
he be one of those to be separated, he is given a 30-day notice which indicates his last day of
service;

Expiration or termination of appointment - If his appointment is temporary, casual, seasonal or

contractual, it terminates after a maximum of 12 months, unless renewed. In the case of
temporary appointment, it may also be renewed when there are no civil service eligibles who are
actually and immediately available for appointment. On the other hand, if the status of his
appointment is coterminus, he can also be terminated as follows:
1) depending upon the pleasure of the appointing authority if his appointment is "coterminous
with the Appointing Authority";
2) depending upon the term of office of the official he serves if his appointment is "coterminous
with the head of organizational unit where assigned";
3) co-existent with the term of office of the incumbent if his appointment is "coterminous with the
incumbent";
4) depending upon the duration of the project if his appointment is "coterminous with the
project"; and
5) co-existent with the period for which an agency or office was created if his appointment
"coterminous with the life span of the agency".

is

e. Reorganization;
f.

Abolition of an employee's position;

g. Disability; and
h. Death - If the employee's separation is for cause or not, this does not disqualify him from
claiming benefits that he has earned so far, unless the terms of his separation provide otherwise.

B. Procedures to be Observed in Claiming Benefits Relative to Separation

1. On Claims of Retirement Benefits

Step 1. The retiree prepares a letter of retirement and submit the same to the DirectorGeneral, thru channels, for approval.
Step 2. Upon approval of the DG, the retiree submits a xerox copy of his letter to the
Administrative Staff (Admin. Staff).
Step 3. The Admin. Staff (PAIS) advises the retiree of the documentary requirements to be
accomplished/submitted as follows:

a) GSIS Application for Social Insurance Benefit Form (Annex 25) to be signed by the DirectorGeneral;
b) Office Clearance from Property and Money Accountabilities;
c) Clearance of No Pending Administrative Case from the Legal Staff;
d) Sworn Statement of Assets and Liabilities;
e) Application for Terminal Leave, in case of availability of unused leave credits;
f) Ombudsman Clearance (Annex 26).
In seeking Ombudsman Clearance, the Admin. Staff, upon receipt of duly accomplished form,
transmits same to the Office of Ombudsman. However, the retiree may opt to personally
submit the said document to said Office; and
g) Exit Interview from the Chief, Human Resource Planning and Management Services
(HRPMS), Admin. Staff. If the retiree is an official, it is conducted by the DDG-CSO.
Step 4.
a)
b)
c)
d)

The Admin. Staff, on the other hand, prepares the following:

Complete Statement of Service Record indicating the last day of actual service rendered;
Copy of last appointment or Notice of Salary Adjustment showing the highest salary received;
Computation of the terminal leave benefit; and
Certificate of LWOP/SLWOP/AWOL.

Step 5. Upon completion of item 3, the retiree submits all the accomplished documentary
requirements to the Admin. Staff.
Step 6. Upon receipt of complete documents from the retiree, the Admin. Staff transmits the papers to
GSIS for:
a) Issuance of GSIS Certificate of Clearance (for retirees under RA 1616)
b) Computation and payment of Retirement Annuity, Cash Payment and Pension (for retirees
under RA 8291 and RA 660)
Step 7. For RA 1616, the Admin. Staff computes the retirement gratuity and requests for funding
requirements of the retirement benefits from DBM
Step 8. The Admin. Staff, upon the release of funds by DBM, prepares check and issues payment to
retiree under RA 1616 and terminal leave benefits. For RA 660 and 8291, GSIS pays the
retirement benefits.
2. On Claims Relative to Resignation
The resigning employee shall observe the following steps:
Step 1. The resignee prepares letter of resignation and submits same to the Director-General, thru
channels, for approval.
Step 2. Upon approval by the DG, the resignee submits a xerox copy of his letter to the Admin. Staff
Step 3. The Admin. Staff (PAIS) advises the resignee of the documentary requirements to be
accomplished/submitted as follows:
a) Office Clearance from Property and Money Accountabilities;
b) Clearance of no pending administrative case from the Legal Staff;

c) Sworn Statement of Assets and Liabilities;

d) Application for Terminal Leave, in case of availability of unused leave credits; and
e) Exit Interview from the Chief, Human Resource Planning and Management Services
(HRPMS), Admin. Staff. In the case of officials, it is conducted by the DDG-CSO.
Step 4. The Admin. Staff, on the other hand, prepares the following:
a) Complete Statement of Service Record indicating the last day of actual services rendered;
b) Copy of last appointment or Notice of Salary Adjustment (NOSA) showing the highest salary
received;
c) Computation of the Terminal Leave Benefit; and
d) Certificate of LWOP/SLWOP/AWOL.
Step 5. Upon completion of item 3, the resignee submits all the accomplished documentary
requirements to the Admin. Staff
Step 6. Upon receipt of all documentary requirements, the Admin. Staff transmits the papers to:
a. GSIS - for processing and payment of the following:
Under RA 8291, there are two types of separation benefits and eligibility requirements, as
follows:
1) A member who has rendered at least three years but not more than 15 years of
service is eligible for separation benefit in the form of a cash payment equivalent to
100 percent of the Average Monthly Compensation for every year of service payable
upon reaching the age 60 or upon separation, whichever comes later, if the member
is not receiving a monthly pension benefit from Permanent Total Disability; and
2) A member who has rendered at least 15 years service and who is below 60 years of
age at time of resignation or separation is eligible for
separation benefit in the
form of a cash payment equivalent to 18 times the Basic Monthly Pension payable at
time of separation plus the basic monthly pension for life starting at age 60.
b. DBM - for funding requirement of terminal leave benefit. If there is no claim for such benefit
due to absence of unused leave credits, the papers will be included in the employee's 201 file.
3. On the Payment of Terminal Leave Benefit
Upon submission by the retiree and/or the resignee of the complete documents enumerated above
(steps 1 to 5 on Claims of Retirement Benefits and Resignation) the Admin. Staff requests for funding
requirements from DBM. Upon release of funds, the
Admin. Staff prepares the check and
issues payment of terminal leave to the retiree or resignee.
4. On Claims of GSIS Benefits
a. Life Insurance Proceeds
The total face value of the Policy/CM written on the face of the contract including the
supplementary values corresponding to the salary increases/adjustments which is payable to the
member on the maturity date as indicated in the contract.

The claim must be submitted 60 days before maturity. If the member is still in the service,
salary loan balance will not be deducted from the maturity proceeds. Policy account shall be
deducted.
On claiming the maturity proceeds, the employee shall personally go to the GSIS with the
following required documents:
1) Certificate of Membership/Policy Contract. If not available, submit an affidavit citing the
circumstances why the Certificate of Contract cannot be submitted;
2) Letter-claim for benefit applied for;
3) Updated Statement of Service Record. If already separated from the service, indicate the
effective date and cause of separation; and
4) Certificate of Clearance from property and money accountability if no longer in the service. If
retired, indicate the retirement number.
b. Cash Surrender Value
After the employee's insurance shall have been in force for one year, a member separated
from the service prior to the maturity of the insurance may be paid the cash value less any
indebtedness therein unless the terms of the employee's separation provide otherwise.
On the availment of such benefit, the employee shall personally go to the GSIS with
the following supporting documents:
1) Certificate of Membership/Policy Contract. If not available, submit an affidavit citing the
circumstances why the Certificate of Contract cannot be submitted;
2) Letter-claim for benefit applied for;
3) Updated Statement of Service Record. If already separated from the service, indicate the
effective date and cause of separation;
4) Certificate of Clearance from property and money accountability if no longer in the service. If
retired, indicate the retirement number;
5) Certificate of no pending criminal/administrative charges. If already retired, indicate the
retirement number;
6) Certificate that Statement of Assets and Liabilities was filed;
7) Certificate of option of CM policy contract. Indicate retirement number if already retired
(Forms available at the GSIS office). Additional documents may be requested depending upon
the peculiar circumstances surrounding the particular cases); and
8) Written request for refund of life/retirement premiums.
5. On Claims of PAG-IBIG Benefits upon Separation
An employee can only be refunded of his contributions with PAG-IBIG under the following instances:
a. At the retirement age of 65;
b. To go abroad as immigrant; and
c. In case of death of the member.
If any of the above instances is met, the following requirements should be submitted by the member
personally or his beneficiary to the PAG-IBIG Office:
a. Birth Certificate;
b. Approved Letter of Retirement; and
c. Clearance from Property and Money Accountability from the last employer.