EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

fus

3812,

House Bill No.
EXPLANATORY NOTE.

Section 4 of Article XV of the Constitution states that the family has the duty to care
for its elderly but the State may also do so through just programs of social security

Republic Act No. 1616 introduced a gratuity retirement mode, a one- time payment
scheme of retirement benefits to government employees who have not yet reached the
minimum number of years of service to qualify for the Old-Age Pension for Life retirement
mode. However, the ambiguous phraseology of R.A. 1616 makes the govemment
‘employees who were already legally qualified to retire under the Old-Age Pension for Life
retirement mode were also covered by the said law.

This bill seeks to remedy the prejudice caused to retirees by allowing them to convert
their mode of retirement to the more beneficial Old-Age Pension for Life retirement with
survivorship benefits.

Funding for the implementation of the law shall be generated from a portion of the
GSIS Residual Actuarial Reserve, part of which were accumulated from the payments and
the investment earnings thereon that were saved by the GSIS for not having paid the retirees
qualified to receive old-age pension for life who were instead paid a measly one-time lump
sum by their employers

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

RuFps 6. RODRIK


EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus
House Bill No, 9842

AN ACT
GRANTING OLD AGE PENSION FOR LIFE TO SENIOR CITIZENS WHO RETIRED
UNDER REPUBLIC ACT 1616 AS WELL AS SURVIVORSHIP BENEFITS TO THEIR
SURVIVORS

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

SECTION 1. Declaration of Policy. It is the declared policy of the State to promote and
provide a rising standard of living and an improved quality of life for all. In pursuit of such
Policy, the State recognizes the need and so undertakes to grant old age pension for life to
senior citizens who retired under Republic Act 1616, as well as survivorship benefits to their
survivors who are otherwise deprived thereof, in order that such pension would be
responsive to their increasing needs.

SECTION 2. Coverage. This Act shall cover senior citizens who retired under R.A. 1616
effective June 1, 1977 and thereafter.

SECTION 3. Change of Mode of Retirement. An employee who retired not earlier than June
1, 1977 under R.A. 1616 but who is otherwise qualified to retire under R.A. 660 or PD 1146,
shall hereafter automatically have this gratuity retirement converted to a pension system of
his choice under existing laws that is more beneficial to him, and thereafter shall receive the
old-age pension for life as well as the survivors’ benefits for this survivors provided under
such laws.

Additionally. the retiree or his survivors shall no longer be required to reimburse to
the Govemment Service Insurance System (GSIS) the retirement gratuity previously
received by him from his last employer as well as the refunds from the GSIS of the personal
and employer's premium as the case may be but shall be considered as partial payment by
the GSIS to the retiree under the pension law of his choice

SECTION 4. Status of the Converted Senior Citizen-Retiree. Upon approval of this Act, the
status of the converted senior citizen - retiree shall, for all intents and purposes, be the same
as though he has originally retired under the annuity Pension System, and henceforth be
accorded all the present and future benefits and privileges accruing to a retiree under the
annual Pension System. However, if an R.A. 1616 retiree prefers not to be converted under
this Act, then he shall so state in writing to the GSIS.

SECTION 5. Funding. Such sum as may be necessary for the payment of the
retiremen/survivorship benefits under Section 3 of this Act, shall be charged against the
accumulated aggregate residual actuarial reserves as established pursuant to Section 24 (b)
of Commonwealth Act 186, as amended, that the GSIS essentially saved from not being
required to pay the old-age pension for life, as well as the survivorship benefits of thousand
of R.A. 1616 retirees whose lump sum gratuity was each paid instead by his employer
effective from the time R.A. 1616 took effect on May 31, 1975.


SECTION 6. implementing Guidelines. The GSIS, in connection with the Department of
Budget and Management, shall issue the necessary guidelines for the implementation of this
Act not later than sixty (60) days after the approval hereof

SECTION 7. Separability Clause. Should any provision of this Act or any part thereof be
declared invalid, the other provisions, so far as they are separable from the invalid ones,
shall remain in full force and effect.

SECTION 8. Repealing Clause. All laws, presidential decrees, letter of instruction, executive
orders, rules and regulations or parts thereof inconsistent with the provisions of this Act are

hereby repealed or modified accordingly.

SECTION 9. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete
Publication in at least two (2) newspapers of general circulation

Approved,