NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 1230
Senate
of ti)C *r j-.Tlfu'j’
•22 AUG 30 A 9 26
RECEIVED BV
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
ESTABLISHING AN AGRICULTURAL PENSION FUND TO PROVIDE PENSION 
BENEFITS TO FARMERS AND FISHERFOLK
EXPLANATORY NOTE
Agriculture is considered the backbone of the Philippine economy. It employs 
about 22.52 percent of Filipino workers in 2020, according to the World Bank collection 
of development indicators, and unfortunately, it only contributes an average of 10 
percent to the Gross Domestic Product. 1
A World Bank study found that poor Filipinos live in large households with low 
educational attainment, headed by individuals who are self-employed or work in 
agriculture as laborers or smallholder producers. They rely mostly on income from 
agriculture (including subsistence farming, agricultural wages, and agriculture-related 
self-employment), domestic remittances, and government transfers.
In the latest data of 2018 provided by the Philippine Statistics Authority (PSA), 
farmers and fisherfolk residing in rural areas still remain the poorest since 2006. 
Farmers were recorded with 31.6% poverty incidence in 2018 while fishers with 
26.2%. Basically, around 5.5 million farmers and 4.6 million fishers are poor.2
Although the country's agriculture output is in decline, it remains to play a 
significant role in the Philippine economy. The sector is important for inclusive growth.
1 Agricultural Indicator System | Philippine Statistics Authority (PSA) | psa.gov.ph
2 Farmers, Fisherfolks, Individuals Residing in Rural Areas and Children Posted the Highest Poverty Incidences 
Among the Basic Sectors in 20181 Philippine Statistics Authority (PSA) | psa.gov.ph


with agriculture being a major source of employment as the key driver of the economy 
in the rural areas where most Filipinos live.3
Da hi! kinikilala natin ang kontribusyon ng sektor ng agrikultura sa pagbibigay 
ng nakabubuhay na trabaho at di matatawarang ambag sa pambansang kaunlaran, 
ngayon, higit kailanman, na dapat ipakita ng pamahalaan ang kanyang 
pagmama/asakit sa ating mga magsasaka at mangingisda na sa mataga! na panahon 
ay nakalimutang ka!ingain ng ating iipunan.
Hence, it is imperative for the government to assist our farmers and fisherfolk 
through the establishment of a farmers' pension program. This proposed measure 
seeks to encourage farmers and fisherfolk to save for their pension and social security 
benefits that Is subsidized by the government. The establishment of an agricultural 
pension fund and social security scheme guarantees better quality of life for our retired 
farmers and fisher folk, stabilize rural society, and promote rural economic 
development.
In view of the foregoing, the approval of this bill is urgently sought.
UEL "LITO" M. LAPID
Senator 
!/
Integrated Natural Resources and Environmental Management Project [Asian Development Bankj adb.org


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 1230
&fiU
(©fftrp of tl)p -■; (■{(Irp
‘22 AUG 30 A 9 :26
RFCEfVcO 3V;
Introduced by Senator Manuel "Lito" M. Lapid
1 
AN ACT
2 
ESTABLISHING AN AGRICULTURAL PENSION FUND TO PROVIDE PENSION
3 
BENEFITS TO FARMERS AND FISHERFOLK
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. This Act shall be known as the '^Agricultural Pension Fund Act"
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SECTION 2. Declaration of Policy. - It is hereby declared policy of the State to
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give due recognition to the great contribution of our farmers and fisherfolk to the
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Philippine economy. Farmers and fisherfolks are key contributors to the country's
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development and shall thus be entitled to protection from the Philippine Government.
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The State shall formulate appropriate Social Security Programs for our agricultural
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sector to ensure that our farmers and fisherfolks are protected in case of disability and
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cared for during retirement.
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Moreover, the State should augment its current efforts to ensure that the needs
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of the retired indigent farmers and fisherfolk are properly addressed.
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SECTION 3. Creation of the Agricultural Pension Fund. - The Agricultural
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Pension Fund (APF) is hereby established to provide a voluntary pension scheme that
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shall benefit underprivileged farmers, agrarian reform beneficiaries, agricultural
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workers and fisherfolks.


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SECTION 4. Implementing Agency. - A Supervisory Board for the Agriculture
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Pension System is hereby convened under the Social Security Commission of the Social
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Security System (SSS), it shall:
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a. Create a pension plan for under privileged farmers, agrarian
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reform beneficiaries, agricultural workers and fisherfolks;
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b. Administer the social security and pension scheme and maintain
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the required actuarial and financial reports;
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c. Supervise matters related to its revenues and expenditures as well
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as the use, operation, and administration of funds allocated to the
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program;
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d. Determine the criteria for eligibility, in coordination with relevant
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government agencies;
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e. Coordinate with Philippine Crop Insurance Corporation (PCIC), an
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agency that manages the registration system of eligible
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agricultural workers under the Registry System for Basic Sectors
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in Agriculture (RSBSA);
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f. To adopt, amend and rescind, subject to the approval of the
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President, such rules and regulations as may be necessary to carry
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out the provisions and purposes of this Act; and
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g. Perform other duties and functions towards the efficient and
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effective implementation of this Act.
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SECTION 5. Eligibility. - Agricultural workers, farmers and fisherfolks who meet
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the following qualifying criteria can, based on this Act, make payments into farmers'
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pensions:
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a. Those who actually cultivate the land and are 18 - 40 years old, at the time
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of enrollment to the pension fund;


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b. Those who are included in the Registry System for Basic Sectors in 
Agriculture (RSBSA);
c. Those who possesses cultivable land which size is not more than three (3) 
hectares;
d. Those who are not covered under any other public or private insurance 
scheme such as, but not limited to, SSS and GSIS;
e. Those who do not receive payments for the elderly from relevant 
government and private social insurance; and
f. Those who not belong to the category of in-service or retired employees or 
officials of Government offices, departments and agencies.
SECTION 6. Rate of Premium. - The rate of premium shall be determined by 
the Supervisory Board under the Social Security Commission of the SSS. The Board 
must ensure that the premium to be paid by the subsistence farmers, agrarian reform 
beneficiaries, agricultural workers and fisherfolks must be reasonably affordable to 
them.
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SECTION 7. Benefits. - The Agricultural Pension Fund shall provide various
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benefits to the enrolled pensioners, such as, but not limited to:
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a. 
Retirement Benefits - On the maturity of the scheme, an individual will 
be entitled to obtain not lower than One Thousand Five Hundred Pesos (Php 
1,500.00) monthly as a minimum guaranteed monthly pension, once they reach 
the age of 65 years old;
b. 
Death Benefits - In the case of an eligible pensioner's death, his 
designated beneficiary shall receive a lump sum amount of not less than 
Eighteen Thousand Pesos (Php 18,000) for every year of contribution;
c. 
Disability Benefits - An individual registered under the Agricultural 
Pension Fund, who is not delinquent in his payments, or otherwise disqualified, 
and becomes permanently disabled before they reach the age of 65 years of


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age may avail of either of two options as follows:
1. Their spouse or legal guardian may continue with the Scheme in 
their behalf or pay the remaining balance in lump sum to qualify 
for retirement; or
2. 
They can exit the Scheme and receive their contribution share 
deposited so far, along with any interest earned thereon. The 
interest amount will be higher than the savings bank interest rate 
or interest earned by the Pension Fund.
d. Benefits if the Candidate Leaves the Agricultural Pension Fund - If the 
underprivileged farmer, agrarian reform beneficiaries, agricultural worker or 
fisherfolk leaves the Pension Scheme, they will be entitled to receive some 
benefits. They are as follows:
1. If the pensioner exits this Scheme before ten (10) years from the 
date of commencement of the Scheme but before they turn sixty- 
five (65) years of age, they will only get their contribution share 
with a savings bank rate of interest payable thereon;
2. If the pensioner exits after ten (10) years or more from the date of 
commencement of the Scheme. In such cases, if the pensioner 
withdraws from the Scheme before attaining sixty-five (65) years 
of age, they will only get their share of contribution along with 
accumulated interest thereon. This will be the higher amount of 
interest earned by the interest at the savings bank interest rate or 
the Pension Fund; and
3. If the pensioner has died before the completion of the Scheme but 
has made regular contributions under the Scheme, and their 
spouse who continued their account wants to exit the Scheme, the 
latter will be eligible to receive the total contribution share made in 
the name of the subscriber along with accumulated interest.


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SECTION 8. Monitoring. - An effective and appropriate monitoring and 
evaluation mechanism should be established by the SSS in partnership with the 
Department of Finance, Department of Agriculture, and Local Government Units to 
ensure proper implementation and identification of future improvements.
For the year of its enactment and each year thereafter, the Supervisory Board 
for the Agricultural Pension Fund shall submit an annual report to both Houses of 
Congress of its accomplishments.
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A review on the viability of the program shall be made by the both Houses of
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Congress and other concerned agencies after three (3) years of its implementation.
SECTION 9. Penai Provisions. - Any person who through malfeasance, 
misfeasance or nonfeasance allows a spurious claim to be paid, including the claimant 
himseif, shall, upon final conviction, be punished by imprisonment of not less than one 
(1) year but not more than six (6) years or a fine of not less than Fifty thousand pesos 
(Php 50,000) but not more than Five hundred thousand pesos (Php 500,000) or both 
at the discretion of the court.
The SSS and PCIC personnel who allowed the commission of the offense shall, 
in addition, be dismissed from office, and forfeit all privileges and benefits which may 
accrue to him.
SECTION 10. Impiementing Ruies and Reguiations (IRR). - Within ninety (90) 
days from the effectivity of this Act, the SSS, in coordination with the PCIC, and in 
consultation with the Secretary of Finance, Secretary of Agriculture and 
representatives of recognized farmers and fisherfolks groups, shall promulgate the 
rules and regulations necessary for the effective implementation of this Act.
SECTION 11. Appropriations. Such amount necessary to implement the 
provisions of this Act shall be included in the annual appropriations for Social Security 
System of the General Appropriations Act.
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SECTION 12. Separabiiity Cause. - In the event that any part, section or
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provision of this Act shall be declared unconstitutional or invalid by a competent court.


1 
the remaining provisions thereby shall remain valid and in full force and effect as if
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the sections or provisions so annulled or voided had never been incorporated herein.
SECTION 13. Repealing Clause. - All laws, decrees, executive orders, 
issuances, rules and regulations, or parts thereof not consistent with the provisions of 
this Act are hereby repealed or modified and/or superseded as case may be by this 
Act accordingly
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SECTION 14. Effectivity. - This Act shall take effect fifteen (15) days after Its
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publication in the Official Gazette or in any newspaper of general circulation.
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Approved,