Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 952

Introduced by Representative Crispin Diego “Ping” D. Remulla

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

EXPLANATORY NOTE

Republic Act No. 1616 was meant to offer a retirement option for government workers
who had not yet met the full requirements for pension. It gave a one-time lump sum payment
through their last employer. But due to unclear wording, it also applied to those who had
already earned the right to receive a lifetime pension.

These workers, who had given decades of dedicated service, were instead granted only
a small one-time gratuity, losing the dignity and security of receiving monthly support for the

rest of their lives.

Many of these retirees are now senior citizens. They served our government with
loyalty and dedication, yet in retirement, they are left without the steady support they rightfully

deserve.

This oversight has persisted for decades, and it is time to set things right. This bill
provides a path forward.


It allows qualified retirees to convert their retirement into a lifetime pension with
survivorship benefits. It honors their years of public service with fairness and long-overdue

recognition

CRISPIN DIEGO “PING” D. REMULLA


Comrnneune

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No, 992

Introduced by Representative Crispin Diego “Ping” D. Remulla

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. - \tis 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.

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

SEC. 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 his survivors provided under such
laws. Additionally, the retiree or his survivors shall no longer be required to reimburse to the
Government 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


Cor annrune

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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.

SEC. 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.

SEC. 5. Monitoring and Reporting. ~ The GSIS shall submit an annual report to the
House of Representatives and the Senate on the implementation of this Act.

SEC. 6. Funding. - Such sum as may be necessary for the payment of the
retiremenU/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.

SEC. 7. Implementing Rules and Regulations. - 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.

SEC. 8. 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.

SEC. 9. 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.

SEC. 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation.

Approved,