Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

This proposal aims to serve as a social assistance measure.

It shall allow retirees under Republic Act No. 1616, also known as the
‘Government Service Insurance Act’ to cope with their social and economic
plight.

Apparently, said R.A. no longer fully satisfies the true objectives of social
security especially so that gratuity benefits are being phased out. In fact, under
this law, government retirees have to confront the high cost of living after
retirement to the extent that they have to live at the mercy of their relatives if not
of loan sharks.

When receiving lump sums is not synonymous with pensions, they
become vulnerable victims of loan sharks such that this close prospect of
receiving any other financial support for their daily and medicines when their
social security benefits under RA 1616 would have been_exhausted, we see how
wrong choices may have been made as well as wfong scheméNnay have set
them up.

In their twilight years, should not they/be blest to receive old-dge pension
benefit equivalent to fifty percent (50%) of their average monthly compensation
as defined under Republic Act No. 82917/ The urgency of this hil's passage
cannot be underestimated.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

”
HOUSE BILL NO. 2773

Introduced by Rep. Winston “Winnie” Castelo

AN ACT
GRANTING OLD-AGE PENSION BENEFIT TO RETIREES UNDER REPUBLIC
ACT NO. 1616, AS AMENDED, FOR AGED 70 YEARS OR OVER, AND
PROVIDING FUNDS THEREFOR

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

SECTION 1. Short Title. This Act shall be known as the “Special
Retirement Act of 2010”

SEC. 2. Declaration of Policy. It is the declared policy of the State to
provide social security benefits to the Elderly Members of society. Pursuant to
this, the State shall grant old-age pension benefit to senior citizens who retired
under Republic Act No. 1616, otherwise known as the “Government Service
Insurance Act’ as well as survivorship benefit to their survivors to promote decent
standard of living.

SEC. 3 Coverage. This Act shall apply to government personnel who
retired under Republic Act No. 1616, as amended, and who have reached the
age of seventy (7) years or over at the time of the effectivity of this Act.

SEC. 4. Old-age Pension. A government employee who retired under
Republic Act No. 1616, as amended, and who is seventy (70) years old or above,
shall receive an old-age pension benefit equivalent to fifty percent (50%) of their
average monthly compensation as defined under Republic Act No. 8291,
otherwise known as the “Revised Government Service Insurance Act of 1977”:
Provided, That the retiree shall not be required to reimburse to the Government
Service Insurance System the retirement gratuity previously received by him from
his last employer as well as the refunds from the GSIS of the person and
employer's premiums as the case may be but shall be considered as partial


payment by the GSIS to the retiree: Provided, further, That when the retiree
dies, his beneficiaries shall be entitled to survivorship benefits provided for under
Republic Act No. 8291.

SEC. 5 Funding. Such sums as may be necessary for the payment of the
retirement and survivorship benefits shall be charged against the GSIS Insurance
Fund provided for under Republic Act No. 8291. Whatever additional amount as
may be needed for its implementation shall be included in the General
‘Appropriations Act of the ensuing fiscal years.

SEC. 6. Implementing Guidelines. The Government Service Insurance
System (GSIS), in coordination with the Department of Budget and Management,
shall issue the necessary rules and regulations for the effective implementation
of this Act.

SEC. 7 Separability Cla Should any part or provision of this Act or
any part hereof be declared invalid, or unconstitutional, the other provisions so
far as they are separable from the invalid ones, shall remain in force and effect.

SEC. 8. Repealing Clause. All laws, executive orders, decrees, letters of
instruction, cules and regulations, or parts thereof, inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 9 Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,