REPRE,
X SEN

Key
fs’ Received
ix

Republic of the Philippines
House of Representatives

Quezon City, Metro Manila

e

‘Twentieth Congress
First Regular Session

House BILL NoL6O1

Introduced by Ako Bicol Partylist Representative Alfredo A. Garbin Jr.

EXPLANATORY NOTE

This bill seeks to grant a universal social pension for senior citizens, whether
or not they are indigent. To provide inclusive and sustainable coverage, this bill
proposes a minimum of One Thousand Pesos (Php!,000.00) to all senior citizens,
subject to review every two years, taking into consideration such factors as inflation
and availability of funds. Older persons are increasing in absolute numbers and
proportion as the overall population increases.

Based on 2010 estimates, older persons aged 60 years and over account for
6.23 million or 6.7% of the total population. Life expectancy at birth has risen from
'55 years in the early 1950s to around 69 years today, while an individual reaching
the age of 60 today can expect to live for another 17 years. This increase in life
expectancy, coupled with reductions in fertility rates, translates to an aging
population. According to population projections undertaken by the Philippines
Statistics Authority, the number of Filipinos over the age of 60 is set to nearly triple
in the next 30 years, from 7.6 million in 2015 to 22.6 million in 2045.

Over the same period, the proportion of the total population over the age of 60
will double from 7.5 to 15.9%. While this trend is something to be celebrated,
growing older can only be truly considered a success if our elders can live their later
years with dignity and security. Despite constitutionally mandated social security for
senior citizens, not all older people receive financial support from children.

When they do, it is often Inadequate to cover basic needs such as health
expenditures. This is mainly due to widespread poverty and vulnerability of Filipino
families, with working adults forced to make a trade-off between supporting older
people and investing in young children Depending completely on their children for
financial support also threatens the dignity of older persons - many of whom fear
becoming dependent, and feel too proud or ashamed to ask for support.

Many factors have led to the economic insec ty of older Filipinos. These
include the challenges of securing a job as an individual ages because of ill health
and disability, family responsibilities, and age discrimination in the workplace.
Moreover, most Filipinos cannot currently expect to receive a pension in their old
age. In 2016, only a quarter of senior citizens (29%) received pensions based on



previous working history (SSS, GSIS, and other pensions). There are two major
barriers to expanding coverage of these pensions. First, the majority of Filipino
workers are working in informal employment (estimated between 70 and 75%).

Second, many workers simply do not have sufficient disposable income to save
for a pension. Furthermore, receipt of a pension doesn't guarantee income security
asa third of SSS retirees (34%) receive less than PhP 2,000 per month, and a half
(52%) receive less than PhP 3,000 per month.

The Social Pension Program, which was first implemented in 2011 by virtue
of Republic Act No.9994 or the Expanded Senior Citizens Act of 2010, has made
a significant dent in reducing the coverage gap. From 1S4,000 beneficiaries in
2011, the program expanded to 2.8 million or 33% of the total population of
indigent senior citizens in 2017. However, with the coverage of these schemes
combined, there would still be around 3 million or 38% of senior citizens with no
pension at all.

Ina review conducted by the Coalition of Services of the Elderly (COSE)
and HelpAge International, the social pension for indigent seniors has
significantly increased their income and expenditure, but it remains limited. Two
main issues limit the impact of the social pension. First, the means-tested nature
of the scheme excludes-by design a large proportion of vulnerable older people
whose incomes are too meager to contribute to social security earlier in their lives,
and who fail to meet the strict eligibility criteria for the current social pension.
Targeting errors also mean many of the very poorest older people are left out.

A key finding of the research is that there are major issues to be addressed
in the process of targeting and validating older people. A common observation by
both implementers and older people was that many older people recipients appear
not to be the poorest, while many of the poorest are being missed out. One major
issue identified is that the Listahanan database, which is based on household data
- does not adequately measure issues related to the vulnerability of individual
older people. The increasing role of LGUs in the targeting process is unlikely to
resolve issues of accuracy and may create additional challenges. One is that the
highly subjective nature of decision-making can leave space for clientelism and
corruption in the targeting process. Another issue is that LGUs struggle to
mobilize the necessary human resources to undertake the time-intensive process,
which can lead to older people being enrolled without adequate validation.

Second, the benefit level of PhP 500 is low relative to both Filipino and
international benchmarks, providing a limited level of income security. The
benefit of Php 500 amounts to less than half (41%) of the 2014 food poverty line
(Php 1,225 per month) and just 28% of the national poverty line (Php 1,756).
The inadequacy of the benefit is exacerbated by the fact it is not indexed to
inflation. With rises in prices over the last 5 years, the real value of the social
pension benefit has depreciated from PhP 500 when RA 9994 was passed into law
to approximately PhP 415 -a 17% reduction in the real value of the benefit. Older
persons have contributed immensely to the nation in all manner of ways
throughout their lives: by paying taxes, contributing to the growth of the
economy, and raising future generations of Filipinos.


Thus, this bill seeks to amend the
expand the coverage of social pension
current benefit amount to inflation.

rovision of RA 9994 and
izens while indexing the


Republic of the Philippines
House of Representatives

‘Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

HOUSE BILL NO._1§ 91

Introduced by Ako Bicol Partylist Representative Alfredo A. Garbin Jr.

AN ACT GRANTING UNIVERSAL SOCIAL PENSION TO SENIOR
CITIZENS, FURTHER AMENDING REPUBLIC ACT NO. 7432, AS
AMENDED BY RA 9994, OTHERWISE KNOWN AS THE "EXPANDED
SENIOR CITIZENS ACT OF 2010"

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

SEC. I. Number (1), Paragraph (H), Section 5 of the Republic Act 2 No. 7432, as
amended by Republic Act No. 9994, otherwise known as the 3 "Expanded Senior
Citizens Act of 2010", is hereby further amended to 4 read as follows:

“Sec. 5. Government Assistance ~ the government shall provide the
following:

XXX
(h) Additional Government Assistance

(1) Social Pension — x x x All Senior Citizens shall be
entitled to a monthly stipend amounting to a minimum of One
Thousand Pesos (Php 1,000.00) per day to augment the daily
subsistence and other medical needs of senior citizens, subject to
review every two (2) years by Congress, in consultation with the
DSWD.

PROVIDED THAT SUCH SENIOR CITIZEN DOES NOT
RECEIVE A PENSION OF MORE THAN THREE THOUSAND.
FIVE HUNDRED (PHP 3,500.00 FROM GOVERNMENT
SERVIVE INSURANCE SYSTEM, THE SOCIAL SECURITY
SYSTEM, AND OTHER PRIVATE OR PUBLIC SOCIAL
PROTECTION SYSTEM”


SEC. 2. Separability Chase. - If any part, section, or provision of this Act is
declared invalid or unconstitutional, the other provisions not affected by such
declaration shall remain in full force and effect.

°. 3. Repealing Clause. -AU laws, decrees, executive orders, rules, and regulations
inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 4. Effectivity - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,