Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

1
HOUSE BILL NO. 2551

Authored by HON. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Under Republic Act No. 8282, or the Social Security Act of 1997,
specifically in Section 12 (b) thereof, SSS members with at least ten
(10) credited years of service are provided a monthly pension of
P1,200.00, while those with twenty (20) credited years are given
P2,400.00.

With the spiraling cost of living, especially in the prices of medicines
and essential commodities, these amounts have been rendered
woefully inadequate to meet even the barest needs of the SSS
pensioners.

Retirees prior to the effectivity of RA 8282 are even more hardpressed
because their monthly pension is governed by the old Social Security
Law of June 18,1954 (RA 1161) that pays very much less.

Thus, it becomes imperative, in light of the social justice policy
enshrined in the Constitution, to adjust the SSS pension rates to keep
them fairly responsive to the basic necessities of private employment
retirees.

This measure is meant to carry out such adjustment through a two-
pronged approach: (1) raising the minimum monthly pension to
P3,000; and (2) annual increase of P500 until the minimum of P5,000
a month is reached. Additionally, this measure provides that the new
monthly pension rates shall be applicable to all SSS members
regardless of the effectivity of their retirement.

Early passage of this bill is thus earnestly urged to provide immediate
relief to the countless distressed SSS retirees.

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

2551
HOUSE BILL NO.

Authored by HON. JOSEPH VICTOR G. EJERCITO

AN ACT
INCREASING PENSIONS UNDER THE SOCIAL SECURITY SYSTEM
AMENDING FOR THE PURPOSE SECTION 12 OF REPUBLIC ACT
NO. 1161, OTHERWISE KNOWN AS THE “SOCIAL SECURITY ACT
OF 1997”

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Section 12 of Republic Act No. 1161, as amended by
Republic Act No. 8282, otherwise known, as the Social Security Act is
hereby further amended to read as follows:

"SEC. 12. Monthly Pension. - (a) The monthly pension
shall be the highest of the following amounts:

(1) The sum of the following:

(i) | Three hundred pesos (P300.00); plus

(ii) | Twenty percent (20%) of the average monthly
salary credit; plus

(iii) Two percent (2%) of the average monthly
salary credit for each credited year of service
in excess of ten (10) years; or

(2) Forty percent (40%) of the average monthly salary
credit; or

(3)One Thousand Pesos; Provided, That the monthly
pension in no case be paid for an aggregate amount
of less than sixty (60) months

(b) Notwithstanding the preceding paragraph, the
minimum MONTHLY pension shall be [One thousand two
hundred pesos (P1,200.00) for members with at least ten
(10) credited years of service and Two thousand four
hundred pesos (P2,400.00) for those with twenty (20)
credited years of service] THREE THOUSAND PESOS
(P3,000.00) IN THE SUCCEEDING YEARS STARTING
JANUARY 2005. THE THREE THOUSAND MONTHLY


PENSION BENEFIT SHALL BE INCREASED ANNUALLY BY
FIVE HUNDRED PESOS (P500.00) PER MONTH UNTIL THE
MINIMUM MONTHLY PENSION SHALL REACH FIVE
THOUSAND PESOS (P5,000.00). PER MONTH. THE
COMMISSION SHALL EQUITABLY ADJUST THE MONTHLY
PENSIONS OF OTHER’ ENTITLED MEMBERS OR
BENEFICIARIES WHOSE MONTHLY PENSIONS ARE HIGHER
THAN THE MINIMUM MONTHLY PENSION TO PRESERVE
THE INTEGRITY OF THE PENSION PROGRAM.”

SEC 2. THE NEW MONTHLY PENSION AND ITS ANNUAL INCREMENT
PROVIDED HEREIN SHALL APPLY TO ALL BENEFICIARIES REGARDLESS
OF THE EFFECTIVITY OF THEIR RETIREMENT.

SEC 3. This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national
newspapers of general circulation, whichever comes earlier.

Approved,