SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. _1_8_5_3_ 
'13 
OCT 16 All :04 
Introduced by SENATOR JOSEPH VICTOR G, EJERCITO 
EXPLANATORY NOTE 
While public officials in general, including elective officials, are 
given retirement pensions and other benefits upon their retirement or 
when they vacate office, barangay officials all over the country are treated 
differently as they are not given the same benefits. 
This is surely unjust since Barangay officials fulfill a major public 
function in administering to the needs of the people 'in barangays but 
unlike other public officials they are left to fend for themselves once they 
leave office. It is very likely that many of these officials do not have other 
jobs while serving as Barangay officials or have left their paying jobs in 
order to focus their attention on their work as Barangay officials. Adding 
insult to injury, the pay of Barangay officials are way below the already 
very low minimum wage standards and are grossly inadequate to afford 
these officials some form of savings while they are in office. In fact, their 
honoraria is dismally incapable of feeding and maintaining their family. 
These Barangay officials do not enjoy any form of social security 
upon leaving office as they do not have the means or the income to meet 
the rising cost of living, their increasing medical needs or just their day 
to day expenses. Instead of enjoying life during their retirement, these 
officials are forced to look for paying work as they worry about where 
their next meal will come from, or where they will get the funds for their 
maintenance medicine. They deserve some form of benefit during their 
retirement days. Even those who' are not yet of retirement age but who 
failed to retain their post, also deserve some form of benefit since they 
have also offered themselves to public service during their term, without 
receiving any salary. 


This Bill seeks to provide benefits to these barangay officials by 
providing them with the means through pension, to' start an income-
generating activity or jump start their post-Barangaylife or just have 
some means to sustain their daily living expense. Said pension shall be 
sourced from the use of the income derived from the extraction of natural 
gas in Malampaya that forms part of Special Account in the General 
Fund (SAGF) 151 otherwise known as the Malampaya fund. The 
Malampaya fund, which as of 2011 totaled to approximately PhP 125 
Billion, does not form part of the source of funds for the annual General 
Appropriations Act (GAA). This huge amount of money wastefully 
languishes in the said special account and merely serves as a 
"presidential pork barrel". It is usually abused -
if not for corrupt 
transactions, it is misused in misplaced priorities and projects unfairly 
given to favored individuals or agencies.' 
It is surely unacceptable that while Congress allocates and the 
national government spends billions of pesos annually to fund the 
pension benefits of members of the Armed Forces of the Philippines 
(AFP), whose pension fund was squandered by its pension fund officials 
years ago, we have refused to do the same for the Barangay officials. 
Unlike the soldiers, these Barangay officials took on their job without any 
salary, so it is certainly unjust for government to deprive these officials of 
pension just because they have rendered public service for free! In fact, 
unlike the billions allocated by.the national budget each year to the AFP 
pension fund, the Barangay pension fund will use the Malampaya fund, 
which does not even form part of the GAA. 
Previous bills seeking to provide pension for Barangay officials, 
because it sourced its funding from the 'GAA, foundered in the face of 
resistance from the Department of Budget and Management (DBM) who 
jealously guarded the national budget from being used for barangay 
pension. Many also found it improbable to source the same from the 
Local Government Unit (LGU) - Internal Revenue Allotment (IRA) which, 
in many cities and municipalities, 'are barely enough for the needs of 
their communities. Bayan Muna, aware of this situation, devoted a lot of 
effort in studying potential sources of funds before it filed this bill. 
This bill shoul not go the same route as the other bills because it 
has found a source of funding called the Malampaya.funQ.. Government 
cannot deny Barangay officials the use of the Malampaya fund because 
80% of the Malampaya fund has remained untapped every year, proof 
that there is no "pressing or urgent project or need" that will be deprived 
if the Malampaya fund is used for the Barangay pension fund. In fact, 
the Commission on Audit (COA) in its 2010 report criticized the lost 


opportunity, which results by allowing the Malampaya fund to languish 
untapped in a special account .. 
Congress is now asked to stand firm, and make use of the 
Malampaya funds for the benefit of thousands of Barangay officials all 
over the country. It is time that the Malampaya fund be used for a 
worthwhile purpose - the granting of pension to Barangay officials who 
have retired after years of service. 
This bill concretely addresses a need and provides a solution to a 
serious 
problem. 
Colleagues 
in 
Congress 
must 
help 
end 
the 
discrimination and unfair treatment, suffered by our Barangay officials, 
who unlike other government employees, are deprived of their basic right 
to social security. 
The immediate passage of this Bill is strongly urged. 
C5 &: 
JOSEPH VICTOR G. EJERCITO 
. . 


,§t'lWf? 
SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
) 
) 
) 
(~ff,;r of Hit' ~l'("f{ttlJ1'ij 
First Regular Session 
'13 
OCT 16 nn :04 
SENATE .. 
Senate Bill No .
. .1853 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT CREATING THE BARANGAY PENSION FUND 
TO PROVIDE PENSION BENEFITS TO ALL BARANGAY OFFICIALS 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. This Act shall be known as Barangay Pension Fund 
Actof2013. 
SECTION 2. Declaration of Policy. - It is .hereby declared the 
policy of the State to promote a just and dynamic social order that will 
free the people from poverty through· policies that provide adequate social 
services, promote full employment, a rising standard of living, and an 
improved quality of life for all. 
SECTION 3. The Barangay Pension Fund (Fund hereafter) is 
hereby established to provide pension benefits to all ,Bar~ngay officials, 
specifically the Punong Bararigay, members of the Barangay Council, the 
Barangay Treasurer and the Barangay Secretary. 
SECTION 4. Barangay Pension Fund Council - There is hereby 
created an independent body called Barangay Pension Fund Council with 
the following duties and functions: 
1.to manage the funds and invest it properly to ensure its 
sustainability and increased capacity to provide benefits; 
2.to approve the pension plan that shall become the basis for the 
allocation of benefits for its pensioners; .. 
, 


, , 
and 
3.to promulgate implementing rule~ and regulations of this Act; 
4.to perform other duties and functions towards the efficient and 
effective implementation of this Act. 
SECTION 5. The Barangay Pension .Fund shall be funded from 
Special Account in the General Fund (SAGF) 151 otherwise known as the 
Malampaya Fund and shall include all the revenues that shall accrue to 
the government from the service contracts and agreements involving the 
Malampaya natural gas. Section 8 of Presidential Decree No. 910 is 
hereby amended accordingly: 
"Section 6. All fees, revenues and receipts of the B~ard from any 
and all sources including receipts from service contracts and agreements 
such as application and processing fees, signature bonus, discovery 
bonus, production bonus; .all money collected from concessionaires, 
representing unspent work obligations, fines and penalties under the 
Petroleum Act of 1949; as well as the government share representing 
royalties, rentals, production share on service contracts and similar 
payments on the exploration, deVelopment and exploitation of energy 
resources, shall form part of a Special Fund to be used to finance energy 
resource development and exploitation programs and projects of the 
government and for such other purposes' as may be hereafter directed by 
the President. PROVIDED, THE REVENUES IN SAGF 151 OTHERWISE 
KNOWN AS THE MALAMPAYA FUND SHALL BE EXCLUSIVELY USED 
FOR THE BARANGAY PENSION FUND AS MAY BE PROVIDED BY 
LAW." 
SECTION 7. Repealing Clause. -
All laws, executive and 
administrative orders or parts thereof, inconsistent with any provision of 
this Act are hereby repealed or ammended accordingly. 
SECTION 8. Budgetary Appropriation. - An initial amount of 
TWENTY MILLION PESOS (PhP 20,000,000.00) shall be appropriated 
from the General Appropriations Act for the establishment and 
operations of the Barangay Pension Council. 
SECTION 9. This Act shall take effect after fifteen (15) days 
following the completion of its publication in the Official Gazette or in a 
national newspaper of general circulation. 
Approved, 
. .