Republic of the Philippines 
1 
FOURTEENTH CONGRESS 
) 
First Regular Session 
1 
S E N A T E  
Introduced bv Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
It is the moral obligation of Congress and its members to see to it that the State 
policies, ordained in the Constitution are translatable into tangible pieces of worthy 
legislation, especially, Constitutional injunctions which provides: 
“The State shall, from time to time, review to upgrade the pesnsion and other 
benefits due to retirees of both government and private sectors (Article XVI, Section S).” 
A survey conducted of retirees who opted to retire under Republic Act No. 1616 
revealed that a majority of this class of retirees has been living in abject poverty, and 
many of them have to depend on dole-outs from close relatives and friends. Aged 
government personnel who retired need monthly pension because at their late age their 
opportunities of earning are already almost nil. 
The lump sum they have received from RA 1616 was greatly eroded by economic 
slump and high cost of living. Their economic difficulties were krther aggravated when 
our country suffers from devastating effects of natural calamities. 
This Bill proposes the granting of monthly pension to government retirees who 
have availed of retirement benefits under RA 1616 when they reach the age of seventy 
(70 ). 
In view of the foregoing, the immediate passage of this Bill is earnestly requested. 


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Republic of the Philippines 
) 
FOURTEENTH CONGRESS 
1 
First Regular Session 
) 
{ 
'1: , i i :  , ), ' 
Iiitroduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
TO GRANT MONTHLY PENSION TO GOVERNMENT RETIREES UNDER R.A. 
1616 WHO HAVE REACHED THE AGE OF SEVENTY (70) YEARS, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives ofthe Philippines in 
Congress assem bled: 
Section 1. Declaration of Policy- The Constitution provides that the State shall, 
from time to time, review to upgrade the pensions and other benefits due to retirees of 
both the government and private sectors. As far as may be possible, it should provide to 
those who have less in life the opportunity to earn for their living so that they may play a 
more active role in social life and especially in the economic and political spheres. It is 
the duty of the State to create conditions which are necessary to realize the right of all 
citizens particularly the underprivileged the equal opportunity. To this end, the State 
shall grant Monthly Pension to government retirees who have availed of retirement 
benefits under Republic Act No. 1616. 
Section 2. Definition of Terms- The following terms shall be understood in this 
Act to mean: 
1. Government Service Insurance System (GStS)- refers to the agency entrusted 
to take charge of all matters pertaining to the benefits and insurance claims of 
all government officials and employees, as created and established under 


Presidential Decree No. 1146 and further amended by Republic Act. No. 
8291; 
2. Retiree- refers to government officials and employees who have availed of 
retirement benefits under Republic Act No. 1616 whose annuity computed in 
accordance with the mortality table and the rate of interest adopted by the 
system; 
3. Monthly pension- refers to the monthly benefits to be granted to government 
retirees under RA 1616 as embodied in this Act, to be determined by the 
GSIS: 
Section 3. Rules and Guidelines- To implement this Act, the Government Service 
Insurance System shall determine the Monthly Pension of a retiree as defined herein and 
formulate guidelines in the disbursement for said beneficiaries. 
Section 4. Funding- The President of the .Republic is hereby authorized to realign 
or transfer any item appropriate within the GSIS and/or utilize any savings therein to 
carry out the purpose of this Act. Whatever additional amount as may be needed for its 
implementation shall be included in the overall Appropriations Act of the ensuing Fiscal 
Years. 
Section 5. Separabiliw Clause.-In 
the event any portion or provision of this Act 
is declared unconstitutional, the remainder of this Act or any provisions not affected 
thereby shall remain in force and in effect. 
Section 6. Repealing Clause- All other laws, decrees, rules and regulations 
contrary or inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 


Section 7. E#ectivi@.- 
This Act shall take effect 15 days after its complete 
publication in at least two (2) newspapers of national circulation. 
Approved,