RMC No. 84-2021: Circularizes Executive Order No. 138 titled “Full Devolution of Certain Functions of the Executive Branch to Local Governments, Creation of a Committee on Devolution, and for Other Purposes”

Key points

1. Coverage and devolution. The EO covers all Local Government Units (LGUs), departments, agencies and instrumentalities whose functions fall under the devolved functions in Section 17 of RA No. 7160. The functions are fully devolved no later than the end of FY 2024, and LGUs become responsible for basic services except those still shared with the National Government under Section 2.
2. Funding. Devolved basic services are funded from the LGUs’ share in national tax proceeds and other local revenues under Section 17(g). Local chief executives allocate available funds first to devolved basic services.
3. Devolution Transition Plans. National Government Agencies and LGUs prepare Devolution Transition Plans (DTPs) under DBM and DILG guidelines, with one DTP per department covering its agencies and GOCCs. NGAs submit the DTP to the DBM within one hundred twenty (120) days from the EO’s effectivity date for evaluation and approval.
4. Capacity development. The DILG, through its Local Government Academy, oversees capacity development for LGUs and harmonizes interventions by other agencies. The DILG, DBM and the Bureau of Local Government Finance include public financial management processes in this training.
5. Options for affected personnel. Permanent personnel affected may apply for transfer within their agency or to other Executive Branch agencies without reduction in pay. They may instead take retirement benefits and separation incentives and, at the LGU’s discretion, apply to vacant LGU positions as a new entry to the civil service.
6. Separation incentives and rehiring. Incentives range from 1/2 of actual monthly basic salary per year of service for under eleven (11) years to 1 1/4 for thirty-one (31) years and above, with a minimum of five (5) years of service and service counted only up to age fifty-nine (59). Those who retire or separate cannot be reemployed in the Executive Branch for five (5) years, except as teaching and medical staff, and rehiring within that period requires a pro-rated refund.

Who is affected

• Local Government Units
• Departments, agencies and instrumentalities of the Executive Branch with devolved functions
• Permanent personnel affected by devolution

Deadlines and effectivity

• Functions fully devolved no later than the end of FY 2024
• DTP due to DBM within one hundred twenty (120) days from effectivity of the EO
• Five (5) year bar on Executive Branch reemployment