Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH (16™) CONGRESS
First Regular Session

House Bill No_ 8254

Introduced by Hon. Joseph Gilbert F. Violago

EXPLANATORY NOTE

The proposed bill seeks to provide a charter that shall govern the operation and
administration of the Overseas Workers Welfare Administration (OWWA), the lead membership
welfare institution that serves the interest and welfare of member-Overseas Filipino Workers
(OFWs).

For many years now, the OWWA has been bombarded with questions and intrigues
ranging from mismanagement to issues involving graft and corruption. Our OFWs who have put
their greater stakes through their monetary contributions must thus be assured that the hard-
earned money they invested in OWWA shall only be spent only for programs and initiatives that
will primarily and largely redound for their greater benefit and advancement,

This deserves a more serious attention as they are our modern-day heroes whose labors
have kept our national economy despite the myriad threats and swings of the unpredictable global
order. This concer is not irrelevant as, verily, the OWWA funds deserve to be protected at all
times-—as they are built on the sweat, tears and blood of millions of our OFWs.

Hence, OWWA"s operation and administration has to be made more efficient,
professionalized and consistent with the constitutional mandate of according greater mantle of
benefit, advancement and protection of our OFWs. Its delivery of welfare services must be made
more efficient and responsive, and the management of its funds must be more transparent and
judicious.

It can only be done through the passage of an OWWA charter and not by a prolonged
maintenance of a string of policies, assembled through time from May 1977 up to July 2005, which
has no stability as it could be easily distorted, diluted, discontinued or dispensed with at the mere
whim or caprice of those holding the push and control buttons.

Absent a charter to which a clear roadmap could be assured will forever confine OWWA to
an uncertain course, as there is neither a reliable compass nor a strong rudder to guide its voyage.

It must be mentioned that a similar bill by this representation was filed last Congress and
which was approved on second reading. Urgent approval of this bill, therefore, is earnestly sought
for the benefit and in the greater interests of almost ten million OFWs.

ae
HON. JOSEPH F. VIOLAGO
Representative
2 District, Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH (16) CONGRESS
First Regular Session

House Bill No. 32 5 4

Introduced by Hon. Joseph Gilbert F. Violago

AN ACT.
TO GOVERN THE OPERATIONS AND ADMINISTRATION OF THE
OVERSEAS WORKERS WELFARE ADMINISTRATION

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

CHAPTER I
‘TITLE, POLICY AND OBJECTIVES

SECTION 1. Short Title. - This Act shall be known as the “OWWA Act of 2013”.

SEC. 2. Declaration of Policy. ~ It is the policy of the State to afford full protection to labor,
local and overseas, organized and unorganized, and promote full employment opportunities for
all. Towards this end, it shalll be the State’s responsibility to protect the overseas Filipino workers
(OFWs). The Overseas Workers Welfare Administration (QWWA) shall be one of the principal
agencies of the State to serve and promote the interest and welfare of the OFWs and their families.

SEC. 3. Objectives. - This Act is enacted to provide guidelines on matters concerning the
OWWA, its mandate, purposes and objectives, membership, collection of contributions, and
availment of benefits and services. This Act also embodies the policies on fund management,
programs and services administration.

CHAPTER I
NATURE, SCOPE AND FUNCTIONS OF OWWA.

SEC. 4. Nature of OWWA as a Government Body. - The OWWA is a national government
agency vested with a special function of developing and implementing welfare programs and
services that respond to the needs of its member-OFWs and their families. It shall have the powers
to administer a trust fund. Being a national government agency, the OWWA shall not fall under
the category of any of the following: (a) government instrumentalities with corporate powers; (b)
government corporate entities; (c) government financial institutions; and/or (d) government-
owned or -controlled corporations.

SEC. 5. Scope. - This Act shall apply to all OFWs who are duly registered with the
Philippine Overseas Employment Administration (POEA) and those who will avail of the
voluntary membership program of the OWWA.

SEC. 6. Functions. - The main functions of the OWWA are:
a) To protect the interest and promote the welfare of member-OFWs in all phases of

overseas employment in recognition of their valuable contribution to the overall
development effort;


b) To facilitate the implementation of the provisions of the Labor Code and Republic Act
No. 8042, as amended, concerning the responsibility of the government to promote the
well-being of OFWs. Pursuant thereto, and in furtherance thereof, it shall provide legal
assistance to its members and beneficiaries;

©) To provide social and welfare programs and services to member-OFWs including, but
not limited to, social assistance, education and training, cultural services, financial
management, reintegration and entrepreneurial development services;

d) To provide prompt and appropriate response to global emergency or crisis situations;

e) To ensure the efficiency of collections and the viability and sustainability of the Fund
through sound, judicious, and transparent investment and management policies;

f) To undertake studies and research for the enhancement of social, economic and
cultural well-being of member-OFWs; and

g) To develop, support and finance specific projects for the welfare of member-OFWs.

CHAPTER IIL
DEFINITIONS

SEC. 7. Definition of Terms. - For purposes of this Act, the following terms shall mean:

a) Overseas Filipino Worker (OFW) - refers to a person who is to be engaged, is engaged,
or has been engaged in a remunerated activity in a State of which he or she is not a
citizen, or on board a vessel navigating the foreign seas other than a government ship
used for military or non-commercial purposes, or on an installation located offshore or
on the high seas.

b) Dependent - refers to any of the following: (a) the legal spouse dependent for support
upon the member or pensioner; (b) the legitimate, legitimated, legally adopted child,
including the illegitimate child, who is unmarried, not gainfully employed, not over
the age of majority, or is over the age of majority but incapacitated and incapable of
self-support due to a mental or physical defect acquired prior to age of majority; and (c)
the parents dependent upon the member for support.

©) Compensation - refers to the basic pay or salary received by an employee, pursuant to
his or her appointment, excluding per diems, bonuses, overtime pay, honoraria,
allowances and any other emoluments received in addition to the basic pay which are
not integrated into the basic pay under existing laws.

d) Contribution or Membership Fee - refers to the amount payable to the OWWA by an
OFW or the employer in accordance with the provisions of this Act.

©) OWWA Member- refers to an OFW with a paid contribution or membership fee.

f) Non-Active OWWA member - refers to an OFW whose OWWA membership has
expired.

2) Non-Member OFW - refers to an undocumented OFW and who has not availed of the
voluntary membership of the OWWA on-site.


CHAPTER IV
MEMBERSHIP, CONTRIBUTION AND COLLECTION

SEC. 8. Registration of Membership. - Registration or enrolment of members shall be in
accordance with the provisions of this Act. Membership in the OWWA can be obtained in two (2)
ways:

a) By compulsory registration upon processing of employment contracts of OFWs at the
POEA; and

b) By voluntary registration of OFWs at job-sites overseas or at the OWWA regional
welfare offices.

SEC. 9. Proof of Membership. - All members shall be issued official receipt upon payment
of the required contribution. They shall likewise be issued an OWWA E-Card, identification card
or other proof of OWWA membership. No additional or extra charges shall be levied on members.

The OWWA is mandated to maintain an updated database of member-OFWs and to
update this regularly.

SEC. 10. Amount of Contribution and Effectivity of Membership. - Membership to the
OWWA, either through the compulsory or voluntary coverage, shall be effective upon payment of
membership contribution in the amount of Twenty Five US Dollars (US $ 25.00) or its equivalent
in the current foreign exchange rates. Such membership shall be considered active until the
expiration of the OFW’s existing employment contract.

In case of voluntary members who register on-site, membership coverage shall not exceed
two (2) years.

Based on actuarial studies and taking into consideration the welfare and interest of the
members, the Board may adjust or modify the amount of membership contribution,

SEC. 11. Renewal of Membership. - Membership shall be renewed upon payment of
contribution on contract renewal or issuance of a new contract of employment, In the case of
voluntary membership, coverage shall be renewed upon payment of contribution of Twenty Five
US Dollars (US $25.00) or its equivalent in the current foreign exchange rates.

There shalll be a grace period of two (2) months in both instances.

SEC. 12. Separation of Sea-based and Land-based Workers Contributions. ~ To effect a
more efficient fund management between the two (2) sub-sectoral groups of land-based and sea-
based workers, the collection of membership contributions shall be accounted for in two (2)
separate books of account

SEC. 13. Authorized Collecting Officers. ~

a) Membership contributions shall be collected by duly authorized OWWA collecting
officers, deputized collecting officers or accredited collecting agents. The collection of
membership contributions shall be made at the POEA contract processing hub, the
OWWA regional and overseas offices, and other accredited collection centers.


b) Incase of voluntary members who register on-site, membership contributions shall be
made directly to the OWWA overseas offices located in the various diplomatic stations,
embassies or consulate offices of the Philippines.

SEC. 14. Reportorial Requirements and Handling of Collections. - The collecting officer,
deputized collecting officer, or the accredited collecting agent shall prepare and submit the
required monthly reports to the OWWA Central Office in the Philippines, Handling of collections
and deposits by collection officers shall be governed by the usual accounting and auditing rules.

SEC. 15. Sanctions for Erring Officers. - Corresponding administrative sanctions and other
disciplinary measures, including recall from post/suspension/or separation from service, shall be
imposed upon any officer who violates the provision of the preceding section.

SEC. 16. Prohibition Against Discrimination on Membership. - No OFW shall be denied
membership to the OWWA by reason of age, gender, nationality, religious belief, or political
opinion or affiliation. The OWWA shall take affirmative steps to enhance the access of OFWs to its
programs and services.

SEC. 17. Payment of Contribution or OWWA Fee by Employer. - Contributions to the
OWWA Fund must be paid by the employers/principal, or in their default, the
recruitment/manning agency in the case of new-hires. The POEA shall ensure that a provision to
this effect shall be made an integral part of the overseas employment contract.

SEC. 18. Penalty for Violation by Recruitment/Manning Agency. - Violation by a
recruitment/manning agency of the preceding section shall constitute an offence punishable by
revocation of its license and all its officers and directors shall be perpetually disqualified from
engaging in the business of recruitment/ placement of overseas workers. Such penalty is without
prejudice to any other liability which such officers and directors may have incurred under existing
laws, rules and regulations.

SEC. 19. Deposit and Remittance of Collection. ~

a) OWWA Central Office and Regional Offices - The collecting officer shall, on a daily
basis, deposit all OWWA fee contributions to the OWWA Capital Fund Account with
the Land Bank of the Philippines. For reconciliation and record purposes, bank
validated deposit slips shall be prepared in triplicate forms to be distributed to the (1)
servicing bank; (2) OWWA, together with the Report of Collections, and (3) collecting,
officer.

b) OWWA Overseas Officers - The collecting officer shall, on a daily basis, deposit all
OWWA fee contributions in the same currency received to a separate bank account for
collections in the name of the "Office of the Labor Attaché - OWWA Collections," in the
depository bank of the Department of Foreign Affairs (DFA), or in the accredited
correspondent bank of the Land Bank of the Philippines. Accumulated monthly
collections shall be remitted to the OWWA Capital Fund Account with the Land Bank
of the Philippines not later than the 5th day of the following month.

No withdrawals, except remittances of collections, can be made from the bank accounts for
collections without prior written approval of the Administrator or his or her duly authorized
representative, subject to the policies approved by the Board.

Overseas offices shall be authorized to retain the required amount for the beginning and
maintaining balance of the above-mentioned bank accounts for collections.


CHAPTER V
‘THE OWWA BOARD OF TRUSTEES

SEC. 20. The OWWA Board of Trustees. - To carry out the purposes of this Act, the
OWWA shall be directed and controlled by a Board of Trustees as its policy-making body. It shall
be composed of the following members:

a) Secretary of the DOLE, as Chairperson;

b) OWWA Administrator, as Vice Chairperson;

©) Secretary of the DFA;
a) Secretary of the Department of Finance (DOF);

e) Secretary of the Department of Budget and Management (DBM);
f) POEA Administrator;

g) Two (2) representative of land-based OFWs who are nominated and appointed in
accordance with the provisions of Republic Act No. 10022, which amended Republic
Act No. 8042 or the Migrant Workers and Overseas Filipinos Act of 1995;

h) One (1) representative of the sea-based OFWs who is nominated and appointed in
accordance with the provisions of Republic Act No. 10022;

i) One (1) representative of the women sector who is nominated and appointed in
accordance with the provisions of Republic Act No. 10022;

j) One (1) representative of the land-based recruitment sector who is selected from
among the various associations of registered overseas placement and recruitment
agencies based in the Philippines who shall be appointed by the President to serve a
single term of three (3) years; and

k) One (1) representative of the sea-based manning sector who is selected from among
the various associations of registered overseas placement and manning agencies based
in the Philippines who shall be appointed by the President to serve a single term of
three (3) years.

‘The Trustees holding office as members of the OWWA Board at the time of the effectivity
of this Act shall continue to serve until the expiration of their term of appointments.

In case of vacancy in any of the appointive positions in the OWWA Board, the vacancy
shall be filled by the subsequent nomination by the respective sector concerned in the same
manner as the selection of the predecessor. Such successor shall hold office for the unexpired term.

SEC. 21. Per Diem. - The members of the OWWA Board shall not receive any
compensation but shall be provided with per diem at rates allowed under existing laws, rules and
regulations.

SEC. 22. Responsibilities and Powers of the Board of Trustees. - The OWWA Board shall
exercise the following specific powers and duties:



a) To define the thrusts of the OWWA and adopt broad policy guidelines to ensure their
implementation;

b) To preserve the integrity of the OWWA Trust Fund;

©) To approve programs, projects, and the organizational structure of the OWWA
Secretariat;

d) To modify or adjust the membership fee and other necessary charges based on
actuarial studies;

¢) To formulate rules and regulations governing financial transactions and fix the yearly
appropriations of the Secretariat;

f) To ensure the efficiency of collection and the viability and sustainability of the fund
through sound and judicious investment and fund management policies;

g) To receive and appropriate all sums as may be provided by law for the support of the
OWWA to the ends specified by law, and all other sums in the manner it may, in its
discretion, determine to carry out the purposes and functions of the OWWA;

h) To authorize the construction or repair of its buildings, machinery, equipment and
other facilities, and the purchase and acquisition of real and personal properties,
including the necessary supplies, materials and equipment;

i) To receive in trust legacies, gifts and donations of real and personal property of all
kinds and to administer and dispose the same when necessary for the benefit of the
OWWA general membership and subject to the instructions of the donor, if any;

j) To delegate any of its powers to the Chairperson of the OWWA Board or any other
officials or officers as it may deem necessary;

Kk) To prescribe such general policies, rules and regulations not contrary to law, as are
consistent with the purposes of the OWWA, and

1) To exercise such powers as may be proper and necessary to carry out the objectives of
this Act.

‘CHAPTER VI
BOARD MEETINGS, PROXIES, AND RECORDS MANAGEMENT

SEC. 23. Schedule of Meetings and Quorum of the Board. ~ The regular meetings of the
OWWA Board shalll be held every last Friday of the month. If a change of date becomes necessary,
the same shall be held at the most convenient time set by the Board.

Special Board meetings and executive meetings may be scheduled as the need arises.
Special Board meetings may be called upon by the Chairperson or by five (5) members of the
Board.

The Board Secretary shall distribute to all members of the Board the notice of meeting,
together with the discussion materials, at least three (3) working days prior to the scheduled
meeting.


rules:

SEC. 24. Board Proceedings. - The Board proceedings shall be guided by the following

a) Notice of Meetings - The Board Secretary shall distribute to all members of the Board,
the notice of meeting, together with the discussion materials, at least three (3) working
days prior to the scheduled meeting.

b) Quorum - In determining the existence of a quorum, the Board shall adopt the simple
majority rule of one half plus one of the total filled Board seats.

©) Voting - For the approval of any policy requiring the disbursement of the OWWA.
Fund, an affirmative vote of a majority of all the members shall be required. For the
approval of all other policies, an affirmative vote of a majority of the members present
constituting a quorum shall be necessary.

d) Attendance in Board Meetings - Board members are responsible for attending all
board meetings. The ex officio members of the Board of Trustees may designate in
writing their permanent alternate who shall have voting power. The Board shall install
teleconferencing facilities in order to muster quorum during Board Meetings.

e) Presiding Officer ~ The Chairperson shall preside over meetings of the Board. In the
absence of the Chair, the Vice-Chairperson shall preside.

f) Board Resolution - All decisions of the Board shall be expressed in the form of
resolutions signed by all the members present. Resolutions may be modified or
superseded by another resolution. Resolutions shall take effect upon adoption and
signing by the members present, subject to requisite publication.

g) Records Management and Archiving of Board Documents - The Board Secretary shall
ensure a complete and thorough recording of all proceedings during a Board meeting.
The minutes of the previous meeting shall be made available for approval during the
succeeding scheduled Board meeting.

The minutes of the meeting shall contain the attendance, business arising from the minutes,
major agreements reached, corresponding resolutions and other items noted or discussed, and
instructions issued by the Board.

‘All minutes of meetings and Board resolutions, tape recordings, and other documents
pertaining to the business of the Board shall be kept and archived pursuant to standard records
management systems and procedures.

CHAPTER VIL
OWWA SECRETARIAT

SEC. 25. The OWWA Secretariat. - The OWWA Secretariat is the implementing arm of the

OwWwWA.

SEC. 26. Duties and Responsibilities of the OWWA Secretariat. - The OWWA Secretariat

shall perform and assume the following duties and responsibilities:

a) To manage programs and the delivery of welfare services locally and overseas to its
members, supported by advocacy and information programs;

b) To implement Board policies on investment and fund management;


©) To formulate medium-term development plans responsive to the welfare, needs and
demands of member-OFWs;

d) To submit work and financial plans for Board consideration;
©) To provide policy analyses and recommendations for Board consideration;

f) To conduct continuing researches and studies, including impact evaluation, in aid of
policy and program development;

To regularly monitor and conduct assessment and evaluation of organizational
8 gularly 8
performance;

h) To establish and maintain an on-line management information system, to include
database on membership;

i) Toestablish and maintain linkages and networks with local and international social and
institutional partners;

j) To conduct annual planning, budgeting and organizational performance assessment
and render the report to the Board.

k) To submit annual reports to the Board, Congress and the President;

1) To submit written quarterly reports on the assessment, and evaluation of programs,
projects and services and such other reports as may be required by the Board;

m) To undertake the periodic review of programs, standards, thrusts and policies;
n) To perform other functions as may be instructed by the Board; and
0) To adopt internal rules of procedure consistent with the provisions of this Act.

SEC. 27. The OWWA Administrator. - The administration of the OWWA is vested in the
Administrator. As the Chief Executive Officer of the Secretariat, the Administrator shall exercise
general supervision and control of all OWWA personnel and resources, and assume full
responsibility and accountability thereof.

The Administrator must possess good leadership and managerial skills, The Administrator
shall be appointed by the President. The Administrator shall report to the President through the
Secretary of the DOLE, and shall perform the duties and functions elsewhere stated in this Act and
all the usual, necessary and related functions of the Office of the Administrator, subject to the
policies and rules prescribed by the OWWA Board.

SEC. 28. The Deputy Administrators. - Two (2) Deputy Administrators shall assist the
Administrator in the administration and supervision of operations of the OWWA. They shall be
appointed by the Board upon the recommendation of the Administrator. They must also possess
good leadership and managerial skills. The Board may assign specific functional responsibilities to
the Deputy Administrators.

SEC. 29. Regional and On-Site Welfare Officers. - OWWA shall maintain regional offices
and on-site welfare offices under the Philippine Overseas Labor Offices of the DOLE.


CHAPTER VIII
PERSONNEL AND STAFFING PATTERN

SEC. 30. New Structure and Pattern.

a) Upon the effectivity of this Act, the officers and employees of the OWWA shall, in a
holdover capacity, continue to perform their respective duties and responsibilities and
receive the corresponding salaries and benefits unless in the meantime they are
separated from the service. The new structure and staffing pattern for the OWWA shall
be approved and prescribed by the OWWA Board and the President of the Philippines.
The salaries and benefits of all personnel shall be in accordance with existing
compensation laws

b) The officers or employees whose positions are not included therein or who are not
reappointed shall be deemed separated from the service. Those separated from the
service shall receive the retirement benefits to which they may be entitled under
existing laws, rules and regulations.

SEC. 31. Qualifications Upgrading Program. - Pursuant to the provision of paragraph (1)
of the immediately preceding section, the OWWA Board shall design and establish a qualifications
upgrading program for the staffing of the OWWA, in coordination with the DOLE and the Civil
Service Commission (CSC), within one hundred twenty (120) days from the effectivity of this Act:
Provided, That those who are already in the service from the effectivity of this Act shall have, not
later than five (6) years, to obtain the required academic degree and/or qualification counted from
the implementation of the qualifications upgrading program: Provided, further, That those who
are already in the service from the effectivity of this Act shall have, not later than one (1) year, to
obtain the necessary CSC qualification required for the position they are currently holding.

SEC. 32. Authority of the Board to Reorganize the Administration. - Notwithstanding the
provisions of existing laws, the OWWA Board shall conduct a management audit, prepare and
submit to Congress a proposed reorganization plan of the OWWA not later than one (1) year from.
effectivity of this Act, subject to the limitations provided under this Act and based on the
following criteria:

a) Increased OWWA visibility from the head office to the various regional offices and by
the appointment and assignment of personnel to positions which are purely
administrative, technical, clerical or menial in nature and other positions which are not.
actually and directly related to its operation and administration; and

b) Efficient and optimized delivery of OWWA services to the OFWs and their respective
families.

SEC. 33. General qualifications for appointment. - The general qualifications for
appointment of OWWA personnel shall be in accordance with the minimum requirements set by
the CSC. The OWWA may hire experts in actuarial studies, information technology, finance and
investment, and such other fields as may be deemed necessary in the implementation of its
programs and services.


CHAPTER Ix
OWWA BENEFITS AND SERVICES.

SEC. 34. Guiding Principles. - Pursuant to its mandate, the OWWA shall provide
reintegration programs, repatriation assistance, loan and credit assistance, workers assistance on-
site, death and disability benefits, health care benefits, education and skills training, social
services, family welfare assistance, and other appropriate programs that provide timely social, and
economic services.

Nothing in this Act shall be construed as a limitation or denial of the right of the OFW to
avail of any benefit plan which may be adopted in the employment contract, or offered voluntarily
by employers, or by the laws of the receiving country which are over and above those provided
under this Act.

SEC. 35. Benefits and Services to OFWs. -

(a) Reintegration of OFWs = Reintegration of OFWs shall be one of the core programs of
OWWA. To be able to sustain the viability of this program, not less than thirty percent
(30%) of the OWWA’s annual collection of contributions shall be allocated for
reintegration program. It shall be made available to all current and former OFWs,
including their families and dependents.

(b) Repatriation Assistance - Consistent with the provisions of Republic Act No. 8042, as
amended, members shall be repatriated and provided with all the services necessary
for repatriation.

(©) Loan and Credit Assistance - The OWWA shall provide low-interest loans to member-
OFWs. It shall have the authority to hire experts in finance and banking to assist in
implementing the said loan programs.

(@) Workers Assistance and On-site Services - The OWWA shall sustain and maintain
assistance to OFWs in all its overseas and regional offices. Services shall include
information regarding the names, occupation/job category and addresses of OFWs,
providing guidance, developing materials for the Pre-Departure Orientation Seminars,
conducting. psycho-social counselling, conciliation services and outreach missions,
among others. On behalf of the OFWs, the OWWA may provide appropriate
representation with employers, agents and host government authorities, including, but
not limited to assisting OFWs to regain unpaid wages.

(e) Social Benefits - A member-OFW shall be covered with the following benefits:

(1) Death Benefits - A member shall be covered with life insurance for the duration of
one’s employment contract. The coverage shall include One hundred thousand
pesos (P100,000.00) for natural death and Two hundred thousand pesos
(P200,000.00) for accidental death;

(2) Disability and Dismemberment Benefits - A member shall be entitled to
disability/dismemberment benefits as a rider provision of one’s life insurance as
provided for in the impediment schedule contained in the Manual of Systems and
Procedures. The coverage is within the range of Two thousand pesos (P2,000.00) to
Fifty thousand pesos (P50,000.00);

(3) Total Disability Benefit - In case of total permanent disability, a member shall be
entitled to One hundred thousand pesos (P100,000.00); and


(4) Burial Benefit - A burial benefit of Twenty thousand pesos (P20,000.00) shall be
provided in case of the member's death.

(g) Based on actuarial studies, the Board may increase the amount of the abovementioned
benefits.

(h) Health Care Benefits - Within two (2) years from the effectivity of this Act, the OWWA.
is mandated to develop and implement health care programs for the benefit of
member-OFWs and their families.

(i) Education and Training Benefits - A member or a designated beneficiary may avail of
the following scholarship programs, subject to a selection process and accreditation of
participating institutions. Annual scholarship lists shall be submitted to the Board.

j) Skills-for-Employment Scholarship Program - For technical or vocational training
scholarship.

(k) Education for Development Scholarship Program - For baccalaureate programs.

(I) Seafarers’ Upgrading Program - To ensure the competitive advantage of Filipino
seafarers in meeting International Maritime Organization (IMO) competency
standards, sea-based members shall be entitled to one (1) upgrading program for every
three (3) membership contributions.

SEC. 36. Extension of Services to Non-members. - The OWWA may also extend
appropriate programs or services to non-members, as may be determined by the Board.

The OWWA shall continue to develop and implement new programs to meet new OFW
needs and requirements as they arise, and to assess the effectiveness of existing services and
benefits in serving OFW welfare.

OWWA shall also maintain an interactive website to collect OFW feedbacks, comments,
suggestions, and complaints on existing programs and services.

CHAPTER X
THE OWWA TRUST FUND

SEC. 37. The OWWA Fund. - The OWWA Fund is a private fund held in trust by OWWA.
The OWWA Fund, being a trust fund, is not government money. No portion thereof or any of its
income, dividends or earnings shall accrue to the general fund of the national government.
Neither shall any amount or portion thereof be conjoined with the government money nor revert
to the national government. In the same manner, it is exempted from the “one fund doctrine” of
the government.

SEC. 38. Purpose of the OWWA Fund. - The OWWA Fund can only be used for the
purposes for which it was created, that is, to exclusively serve the welfare of member-OFWs and
their beneficiaries. The fund is to be used exclusively to finance the core programs and services of
the OWWA.

SEC. 39. Reporting of the Fund. - Within fifteen (15) days after receipt of audited reports
from the Commission on Audit, the OWWA Board of Trustees shall submit to the President and
Congress a report showing the total collections of, and the disbursements from, the OWWA Fund.


SEC. 40. Disbursement of the OWWA Fund. - Any provision of existing law to the
contrary notwithstanding, all incomes generated by the OWWA shall, upon their collection, be
retained by the OWWA and disbursed at the discretion of the Board for the general welfare and
other benefits of the OWWA general membership and the OWWA Secretariat personnel; for the
acquisition, construction, maintenance and repair of urgently needed auxiliary facilities,
equipment, buildings and other infrastructure; and for expenses necessary for the attainment of its
purposes under its approved program of expenditures.

No fund shall be withdrawn from the OWWA Fund to respond, aid, supplement or in any
manner augment any required expenditure by other government agencies.

SEC. 41. Source of the OWWA Trust Fund. - The OWWA Fund is the sum total of the
amounts currently under the management and fiscal administration of the OWWA Board and the
Secretariat, including the Twenty-five U‘S. dollars (US$25.00) contributions that shall accrue to the
Fund as fees, investment and interest income, and income from other sources,

SEC. 42. Trustees of the Fund. - The OWWA Board is designated as the trustee of the
OWWA Fund. It shall be bound by a fiduciary duty to manage the Fund with extraordinary
diligence and with utmost skill, care and judiciousness.

SEC. 43. Transparency. - The OWWA Fund shall be managed with full transparency and
full public disclosure. It shall make available all records of how the funds are utilized, disbursed
and invested in accordance with existing laws.

CHAPTER XI
INVESTMENT ADMINISTRATION: SAFEGUARDS

SEC. 44. Safeguards of the OWWA Fund; Acquired Assets: Unredeemed Investments. -

a) The OWWA Trust Fund shall be managed and expended in accordance with the purpose
of the Fund and safeguarded against any possible loss and misuse.

The OWWA shall ensure an appropriate growth rate in the fund sufficient to sustain the
growing needs of OFW members. It shall ensure that all investment instruments are
periodically inventoried and properly kept at a government bank under a custodianship
agreement.

‘A monthly report on all investment schedules showing the interest rates, yields, discount
rates, and other relevant data, shall be submitted to the Board.

b) The OWWA shall administer all properties, acquired or foreclosed. To ensure that the
properties are safeguarded and preserved, the same must be properly accounted for and
documented; re-inspected, re-appraised, and insured with taxes paid.

‘An asset development/disposal plan shall be submitted by the Administrator for the
consideration of the Board.

Foreclosed properties shall be registered as OWWA assets within one (1) month after
foreclosure.

©) Unredeemed investments and other receivables shall be inventoried semi-annually and
corresponding redemption plan shall be submitted to the Board. All receivables shall be
supported by documents appropriately acknowledged by the accountable party.


SEC 45, General Investment Policy. - Upon approval of the Board, all OWWA investments shall be
placed only in government securities and bonds which provide optimum earnings, liquidity and
protection of the Fund. Portfolio management of investible funds shall be outsourced to
government financial institutions (GFls).

It shall likewise be exempt from any and all fees, taxes, charges and other imposition
arising from the management of the investment of the OWWA funds.

SEC. 46. Examination and Valuation of the Funds, ~ The OWWA shall make a periodic actuarial
examination and valuation of its funds in accordance with accepted actuarial principles.

CHAPTER XII
FISCAL AND BUDGET POLICY: MANAGEMENT

SEC. 47. Operative Budget. - The operative budget must be sufficient to support full
protection of the OFW welfare. The budget shall be reviewed annually by the Board with
emphasis on adequate funding for services and agency efficiency.

The Board shall approve, by a majority vote of all its members, the operating budget which
shall support the planned work programs and administrative costs to include, but shall not be
limited to, salaries, emoluments and transportation expenses for OWWA personnel, office rentals,
office supplies, equipment, technological support, communications and utilities, requirements for
personal services, and maintenance. Provided, That appropriations for personal services (PS) and
its regular maintenance and other operating expenses (MOOE) shall not exceed twenty percent
(20%) of the total member contributions realized in the immediately preceding year.

The approved operating budget shall be drawn from the OWWA Trust Fund.

SEC. 48. Benefits and Services Budget ~ The annual budget shall include all benefits and
services to OFWs. The budget shall prioritize protecting OFW welfare. The amount necessary to
defray the cost of these benefits and services shall be drawn from the OWWA Trust Fund.

SEC. 49, Budget Preparation and Approval. ~ In preparing the annual budget, OWWA
shall follow the national government budget system, format and cycle.

SEC. 50. Re-enacted Budget. - In case the proposed annual budget has not been approved
by the Board at the start of the year, OWWA shall operate within the budget level of the previous
year allocated on a month-to-month basis. All savings realized within a previous year shall be
deducted from a current year’s budget.

SEC. 51. Work and Financial Plans. - All cost centers/offices/units of the OWWA shall
submit their annual work and financial plans (WFP), which should correspond to the approved
budget. The Directors shall endorse the WEP of their respective units for approval of the
Administrator. The consolidated OWWA-WEP shall be reported to the Board.

SEC. 52. Budget Realignment - Realignment of funds including adjustments in targets
shall be submitted to the Board for approval. Similarly, in the event that extraordinary
circumstances may occur which require additional funds beyond the coverage of the approved
budget, the same shall be submitted for approval by the Board.

SEC. 53. Branch Accounting System; Financial Reports; Auditing Procedures; Annual
Reports. - The OWWA regional units shall maintain their respective books of account which shall
be consolidated by the central office.


The OWWA shall install sound internal control and monitoring systems and submit
quarterly prescribed financial statements to COA such as income statement, balance sheet, and
cash flow as prescribed in post auditing reports by the COA.

‘The OWWA Secretariat is mandated to submit a monthly fund utilization report to the
Board, copies of which shall be made available to Congress. It is further mandated to submit an
Annual Report on its overall performance for the previous year within the first sixty (60) days of
the following year to the OWWA Board, Congress and the President, through the DBM.

SEC. 54. Chart of Accounts. - The OWWA shall adopt the appropriate and standard chart
of accounts as prescribed by the COA

SEC. 55. Approriation from the National Government. ~ Nothing in this Act shall prevent
the national government from allocating funds for the operation or implementation of any of the
programs or services stated herein, including the budget for MOOE.

CHAPTER XIII
MISCELLANEOUS PROVISIONS

SEC. 56. Rebates for Long-time Members. - In recognition of the contribution of long-time
members on the OWWA Trust Fund, the OWWA is mandated to develop and implement a
program for the grant of rebates or some form of financial assistance to OFWs who have been
members of the OWWA for at least five (5) years and who have not availed of any services or
benefits, including their families, from the OWWA.

SEC. 57. Procurement System. - The OWWA procurement system shall be governed by
Republic Act No. 9184, also known as the Government Procurement Reform Act.”

SEC. 58. Implementing Rules and Regulations. - ‘The present OWWA Board, in
consultation with the Senate Committee on Labor and Employment and the House Committee on
Overseas Workers Affairs, shall, within Sixty (60) days from the effectivity of this Act, formulate
the necessary rules and regulations for its effective implementation.

SEC. 59. Separability Clause. - If any provision or part of this Act, or the application
thereof, is held invalid, the remainder of this Act, or the application of such provisions, shall not
be affected thereby.

SEC. 60. Repealing Clause. - All laws not adopted as part of this Act, either directly or
indirectly, are hereby repealed. All provisions of existing laws, orders, rules and regulations
inconsistent herewith are likewise repealed.

SEC. 61. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication
in two (2) newspapers of general circulation.

Approved,