EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S. No.
S E N A T E
54
a
BILLS
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
PROVIDING FOR AUTOMATIC ADJUSTMENT OF THE BASIC MONTHLY 
PENSION FOR RETIRED PERSONNEL COVERED BY THE GOVERNMENT 
SERVICE INSURANCE SYSTEM AND SOCIAL SECURITY SYSTEM TO THE 
PREVAILING COST OF LIVING INDEX
EXPLANATORY NOTE
A good retirement plan is a personal investment into one's self- sufficiency 
during the twilight years period. The State, alongside employers, partners with 
citizens in building up good retirement plans for the public. This is accomplished 
by providing retirement benefits to employees through the returns receivable by 
them from the Government Service Insurance System (GSIS) or Social Security 
System (SSS).
Employees invest valuable earnings as premiums to GSIS and/or SSS 
during the period of their employment and claim these upon their retirement. The 
fact that our economic managers have been experiencing difficulty in hitting the 
target inflation rate for the past years due to many factors raises the need to 
consider said inflation rate in the computation of the pension in order to keep the 
retiree's purchasing power. Although the law presently allows adjustments to be 
made on the basic monthly pension, experience shows that such adjustments are 
rarely made and if at all, they are highly unrealistic.
This bill seeks for the automatic adjustment of the basic monthly pension 
of retired personnel covered by the Government Service Insurance System (GSIS) 
and Social Security System (SSS) to appropriately take into consideration the rate 
of inflation.
In view of the foregoing, early passage of this bill is earnes
L "LITO'' M. LAP
Senator


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S E N A T E
S. No. 
54
S
BILLS
Introduced by SENATOR MANUEL "LITO" M. LAPID
AN ACT
PROVIDING FOR AUTOMATIC ADJUSTMENT OF THE BASIC MONTHLY 
PENSION FOR RETIRED PERSONNEL COVERED BY THE GOVERNMENT 
SERVICE INSURANCE SYSTEM AND SOCIAL SECURITY SYSTEM TO THE 
PREVAILING COST OF LIVING INDEX
Be it enacted by the Senate and the House o f Representatives in the 
Philippines in Congress assembled:
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Section 1. This Act shall be known as the "Automatic GSIS and SSS Pension 
Adjustment Act".
Sec. 2. The 
basic monthly pension of members covered by the Government 
Service Insurance System (GSIS) and the Social Security System (SSS) shall be 
automatically adjusted to the prevailing cost of living index as determined by the 
National Economic and Development Authority (NEDA).
Sec. 3. The Government Service Insurance System and the Social Security 
System, as the case may be, shall issue such rules and regulations as may be 
necessary for the effective implementation of this Act.
Sec. 4. The benefits of this Act shall be extended to all pensioners still 
surviving at the time of its approval.


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Sec. 5. Such amount necessary for the implementation of this Act shall be 
charged to the State Insurance Fund of the Government Service Insurance System 
and to the Reserve Fund of the Social Security System, respectively.
Sec. 6. Should any part or provision of this Act be declared unconstitutional 
or invalid, the remaining parts or provisions not affected thereby shall remain in full 
force and effect.
Sec. 
7. 
All 
laws, 
decrees, 
executive orders, 
letters of instructions, 
proclamations, rules and regulations, or parts thereof inconsistent with this Act shall 
be deemed modified, amended, or repealed accordingly.
Sec. 8. This Act shall take effect fifteen (15) days after its complete 
publication in two (2) newspapers of general circulation.
Approved,