FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. No 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
EXPLANATORY NOTE 
Overseas Filipino Workers (OFWs) have been infusing a large amount of contribution 
into our nation’s growth and development. Their remittances, to be specific, have 
significantly contributed in keeping the current account deficit manageable and in 
stabilizing the economy. According to the 2005 Survey on Overseas Filipinos conducted 
by the National Statistics Office, the total OFW remittances was estimated at 85.4 billion 
pesos from April to September of the said year. 
In this light, OFWs must be encouraged to remit their earnings from overseas and in turn, 
the State should safeguard and oversee the participation of the said workers’ remittances 
and savings in investment and other productive undertakings for the benefit of our 
national economy. 
It is an undisputed fact that most of our OFWs are subject to strenuous and risky working 
conditions. Undeniably, they have been the victims of their employer’s iniquitous labor 
practices. Berefi of opportunities in their mother country, they manage to endure these 
dismal plights abroad just to support their familis k$&t home. 
Therefore, it is essential to devise a system that canrpffor&these modern day heroes and 
their families a guaranteed capital to start off in the evept &at an unforeseen misfortune 
afflicts them in the course of their work. 
This bill essentially seeks the creation of OFWs Pension Fund. It envisions to provide a 
mechanism for a more efficient and rationalized management of the OFWs pension fund 
through creating a board primarily tasked to administer and promote the OFWs and their 
families’ interests. With this bill, a better promotion of the welfare of our OFWs will be 
put forward. 
In view of the foregoing, the immediate approval of this bill is fervently sought. 
p ? ! 4 L  
AN ON 0 “SONNY” F. TRILLANES IV 
Senator 
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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
AN ACT 
CREATING THE OVERSEAS FILIPINO WORKERS PENSION AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known as the “Overseas Filipino 
Workers Pension Fund Act of 2008” 
SEC. 2. Declaration of Policy. - It is the policy of the State to protect and 
promote the welfare of Overseas Filipino Workers (OFWs) and to uplift the living 
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standards of the workers’ families. Pursuant thereto, OFWs shall be encouraged remit 
earnings from overseas and the State shall, in turn1 safeguard and oversee the 
participation of the said workers’ remittances and savings in investment and other 
productive undertakings for the benefit of the national economy. 
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SEC. 3. Definition of Terms. - 
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“Overseas Filipino Worker” shall refer to a Filipino citizen who is 
employed or has been employed outside of the Philippines; 
“Fund” shall refer to Overseas Filipino Workers Fund; 
“Board” shall refer to Overseas Filipino Workers Pension Fund Board 
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4) 
“Beneficiaries” shall refer to the dependent spouse of an Overseas 
Filipino Worker, his dependent children, who are the primary 
beneficiaries. 
In the absence of the foregoing, any other person designated by the OFWs. 
SEC. 4. Overseas Workers Pension Fund - In accordance with the above-stated 
policy, there shall be created an Overseas Filipino Workers Pension fund. All Overseas 
Filipino Workers who are duly registered as such with the Philippine Overseas 
Employment Administration (POEA) and the Commission on Filipino Overseas (CPO) 
shall remit five percent (5%) oftheir gross monthly income to the Fund for five (5) years. 
SEC. 5. Overseas Filbino Workers Pension Fund Board. - The fund shall be 
administered by the Overseas Filipino Workers Pension Fund Board, hereinafter referred 
to as the Board. The Board is hereby vested with corporate powers in accordance with 
existing laws and shall be composed of the following: 
1) The Secretary of Labor and Employment, as Chairman; 
2) The Secretary of Finance, as Member; 
3) The Governor of the Bungko Sentral ng Pilipinas, as Member; 
4) The Administrator of the Philippine Overseas Employment Administration 
(POEA), as Member; and 
5) One (1) representative of the OFWs, as Member, to be appointed by the 
President upon the recommendation of the Secretary of Labor and 
Employment. The representative shall receive a per &em of One Thousand 
Pesos (P1,OOO.OO) and transportation cost for every Board meeting attended. 
All ex-officio members of the Board shall receive no additional compensation. 
The Board, shall within forty-five (45) days from the appointment of its members, 
promulgate such regulations as may he necessary to implement the provisions of this Act. 
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In addition, the Board shall adopt the by-laws of the fund and set the date, time 
and place of regular board meetings. The Board shall establish the eventual 
organizational support, hire and oversee highly-competent personnel andor existing 
institution to implement the appropriate operating systems, plans and other provision of 
this Act. 
The Board shall, on a semi-annual basis, report to the President and to Congress 
the progress of its tasks and business. 
SEC. 6. Powers and Functions of the OFW Penrion Fund Board - The 
Overseas Workers Pension Fund Board shall have the following powers and functions: 
1) To encourage the greater participation of OFWs in official remittances of 
pension by way of: 
a. developing a networkkonsortium of commercial banks to maximize 
the use of their resources in serving the pension remittance needs of 
OFWs; 
b. enlisting the support of various government agencies in information 
and marketing campaign concerning pension remittance services and 
other programs; 
c. issuing special receipts through accredited financial institutions as 
evidence of the government’s guarantee for the workers’ foreign 
exchange pension remittances; and 
d. pooling the peso equivalent of pension remittances of OFWs coursed 
through the banking system. 
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To accept and administer pension funds which shall then be guaranteed 
by the Republic of the Philippines, 
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3) 
To establish and implement a system to ensure that workers shall remit 
five percent (5%) of their gross monthly earnings to their host 
countries, 
To cause the conduct of periodic surveys about the condition of 
workers and workers’ pension remittances, 
To administer other property under its custody, 
To adopt, amend or change its by-laws, to adopt, alter or use a seal; to 
enter into contracts; to sue and be sued; to exercise the general powers 
of a corporation. 
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SEC. 7. Administratioit. - There shall manage the day to day affairs of the Fund. 
He shall serve as the Chief Executive Officer immediately responsible for carrying out 
the programs and policies of the fund. He shall be assisted by a deputy administrator. 
Both the administrators shall be appointed by the President of the Philippines. 
SEC. 8. Effectivity Date of Coverage. - All OFWs are duly registered as such 
with the Philippine Overseas Employees Administration andor the Commission of 
Filipino Overseas as provided in Section 4 hereof shall, for pension purposes, be 
compulsorily covered on the first day of his employment in a foreign land. 
SEC. 9. Eflect of Separation from Employment. - When a covered OFW is 
separated from employment his obligation to pay contributions arising from that 
employment shall cease at the end of the month of separation. However, he shall be 
credited with all contributions paid and shall be entitled to pension benefit provided 
under this Act, provided he has paid the minimum number of contributions. Otherwise, 
his contribution shall be refunded to him With interest to be determined by the Board. 
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SEC. 10. Monthly Pension. -The monthly pension of an OFW under this Act 
shall be the sum of the following: 
a. the average monthly salary credited multiplied by the replacement ratio; and 
b. one and a half percent (1 ?4 %) of the average monthly salary credit for each 
credit year of service in excess of ten (10) years; 
c. the monthly pension shall in no case be less than Five Hundred Pesos 
(P500.00) nor paid in aggregate amount of less than sixty (60) times the 
monthly pension. 
SEC. 11. Dependent’s Pension. -The dependent’s pension shall be equivalent to 
ten percent (10%) of the monthly pension for each dependent’s child, which shall not 
exceed five, beginning with the youngest and shall be without substitution. 
SEC. 12. Death Benefits. - Upon the death of a covered OFW, his primary 
beneficiaries shall be entitled to the monthly pensions and dependents’ pensions, 
Provided, however, that the deceased has paid at least thirty-six (36) monthly 
contributions prior to the semester of his death. If the foregoing condition is not satisfied, 
his primary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-five 
(35) times his monthly pension. 
SEC. 13. Permanent Disability Bene$& - When a covered OFW suffers from a 
permanent total disability, and such occurs after he had paid at least thirty-six (36) 
monthly contributions prior to the semester of disability, he shall be entitled to the 
monthly pension and his dependents to the dependents’ pension. If the disability occurs 
before ha has paid thirty-six (36) monthly contributions prior to the semester of disability, 
he shall be entitled to a lump sum benefit equivalent to thirty-five (35) times the monthly 
pension. 
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SEC. 14. Rules and Regulations. - The Department of Labor and Employment 
shall in coordination with the Overseas Employment Administration and the Commission 
on Overseas, formulate the necessary rules and regulations that shall govern the 
implementation of this Act. 
SEC. 15. Appropriation. - The amount of Two Million Pesos (P2,000,000.00) is 
hereby appropriated from the National Treasury for the operation of the Fund, its 
secretariat and personnel. Thereafier, the amount of Twenty Million Pesos 
(P20,000,000.00) is hereby appropriated to be taken from the Contingency Fund of the 
Office of the President to complement the OFWs Pension Fund’s Reserve. 
SEC. 16. Repealing Clause. - All laws, decrees, rules and regulations 
inconsistent with the provision of this Act are hereby repealed or modified accordingly. 
Approved, 
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