Republic of the Philippines SSENTATIVES
HOUSE OF REPRESENTATIVHS "US % REPRESS s
Quezon City RECEIVED
"ong
Seventeenth Congress i
First Regular Session
7
HOUSE BILL No,__ 1853
QEEISTOATION UNIT
BALLS AND NCTX SERVICE

Introduced by Honorable Mark O.

EXPLANATORY NOTE
Section 8, Article XVI (General Provisions) of the 1987 Constitution states:

“SEC. 8. The State shall, from time to time, review to upgrade
the pensions and other benefits due to retirees of both the government
and the private sectors.”

This bill seeks to increase the benefits of pensioners under the Social
Security System (SSS) by implementing a P2,000.00 hike in their monthly
pension. The said increase must be given in four equal installments within a
period of four years from the effectivity of the proposed measure.

Republic Act (RA) No. 8282, otherwise known as the “Social Security Act
of 1997” provides a monthly pension of P1,200.00 for members with at least ten
(10) credited years of service and P2,400.00 for those with twenty (20) credited
years. Since the enactment of RA 8282 in 1997, the SSS pensioners have not
received any significant pension hike that will augment the meager amount of
monthly pension for their food sustenance and maintenance medicines. Thus,
several legislative measures were introduced to grant an increase in the monthly
pension of SSS pensioners and retirees.

During the Sixteenth Congress, House Bill No. 5842 was introduced to
substitute House Bill No. 3851, filed by Representatives Neri J. Colmenares and
Carlos Isagani T. Zarate, mandating an across-the-board increase of P2,000.00 in
the monthly pension under the SSS. The proposed bill was filed to help the private
sector retirees cope with the high cost of living expenses against an inadequate
financial source. Its objective was to protect the members, especially the senior
citizens against the hazards of disability, sickness, death and other contingencies
resulting in loss of income or financial burden.

However, the possibility of providing such relief to the pensioners last
Congress was put to halt when House Bill No. 5482 was vetoed by the President.
It was rationalized that the abrupt huge increase in the pension would severely


deplete the resources of the SSS should there be no concurrent hike in the
contribution of SSS members.

Thus, in order to redeem the initiative to raise the pension, this proposed
measure is re-filed with the caveat that the P2,000.00 increase has to be given in
four equal installments and has to be completely received within four years from
the effectivity of the law.

In view of the foregoing, passage of this bill is earnestly sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

HOUSE BILL No.__1853

Introduced by Honorable Mark O. Go

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

Be it enacted by the Senate and 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, 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); 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 (P1,000): Provided, That
monthly pension shall 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] THREE thousand two hundred
pesos [(P1,200)} (P3,200.00) for members with at least ten (10)


credited years of service and [Two] FOUR thousand four hundred
pesos [(P2,400)] (P4,400.00) for those with twenty (20) credited years
of service[.| TO BE IMPLEMENTED IN FOUR (4) TRANCHES AS

FOLLOWS:
MEMBERS WITH AT MEMBERS YUU
LEAST TEN (10) pe)
CREDITED YEARS SREDITES VEARSOF
OF SERVICE :

FIRST YEAR P1,200 + $00= 1,700.00 P2,400 + 500 = 2,900.00
SECOND YEAR 1,700 + 500 = 2,200.00 2,900 + 500 = 3,400.00
THIRD YEAR 2,200 + $00 = 2,700.00 3,400 + 500 = 3,900.00
FOURTH YEAR 2,700 + $00 = 3,200.00 3,900 + $00 = 4,400.00

SEC. 2. Any law, presidential decree or issuance, executive order, letter of
instruction, administrative order, rules and regulations inconsistent with this Act is
hereby repealed, modified, or amended accordingly.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in a newspaper of general circulation.

Approved,