01 AUG 2013
Republic of the Philippines eg fi

HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

HOUSE BILLNO, 2212

Introduced by » EVELINA G. E

EXPLANATORY NO’

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 carn 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.

In this light, this bill is being filed to provide monthly pension to government retirees
who have availed of retirement benefits under Republic Act No. 1616 when they reach the age of
seventy (70)

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 further aggravated when our country
suffers from devastating effects of natural calamities.

In view of the foregoing, the immediate passage of this Bill is earnestly requested

Loebrodd.f

ELINA G. ESCUDERO

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

2212

HOUSE BILL NO.

Introduced by REP, EVELINA 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 of the Philippines in
Congress assembled;

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 (GSIS) ~ 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:


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2) Retiree — refers to government officials and employees who have availed of
retirement benefits under Republic Act No. 1616 whose annuity corrupted 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 GSI

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. Separability Clause. ~ In the event of any portion of provision of this Act is
declared unconstitutional, the remainder of this Act or any provisions not affected thereby shall
remain in force and 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. Effectivity. This Act shall take effect 15 days after its complete publication in

at least two (2) newspapers of national circulation.

Approved,