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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

COMMITTEE REPORT No. 2514

Submitted by the Committee on Govemment Enterprises & Privatization on

——-4 DEC_2012
6748

RE: House Bill No.__
Recommending its approval in substitution of House Bill No. 4365

Sponsors: Representatives Erico Basilio A. Fabian, Antonio 1. Tinio, Neri J.
Colmenares, Teddy A. Casino, and Catalina C. Bagasina

Mr. Speaker:

The Committee on Government Enterprises & Privatization, to which was
referred House Bill No. 4365, introduced by Representatives Neri Javier Colmenares,
Teddy A. Casino, Bemadette R. Herrera-Dy, Catalina C. Bagasina, Maria Carmen
Zamora-Apsay, Jesus Crispin C. Remulla, Giorgidi B. Aggabao, Salvador H. Escudero
Ill, Emil L. Ong, Antonio L. io, Pedro B. Acharon Jr., Cesar V. Sarmiento, Rodolfo
C. Farinas, Eduardo R. Gullas, Luzviminda C. llagan, Raymond V. Palatino, Sergio F.
Apostol, Ramon H. Durano VI, Jerry P. Trenas, Joaquin Carlos Rahman A. Nava, Mel
Senen S. Sarmiento, Tomas R. Osmena, Roger G. Mercado, Janette L. Garin, Benhur L.
Salimbangon, Rene L. Relampagos, Alfredo D. Maranon Ill, Emmi A. De Jesus,
Florencio T. Miraflores, Herminia B. Roman, Edgar S. San Luis, Edcel C. Lagman, Irvin
M. Alcala, Loreto Leo S. Ocampos, Victorino Dennis M. Socrates, Philip A. Pichay,
Jeffrey P. Ferrer, and David L. Kho, entitled:

“AN ACT
INCREASING PENSIONS UNDER THE SOCIAL SECURITY SYSTEM,
AMENDING FOR THE PURPOSE SECTION 12 OF RA NO. 1161, AS
AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW”
6748
has considered the same and recommends that the attached House Bill No. ——_"
entitled:


N ACT
INCREASING PENSIONS UNDER THE SOCIAL SECURITY SYSTEM,
FURTHER AMENDING FOR THE PURPOSE SECTION |2 OF RA 1161

AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY
LAW”

be approved in substitution of House Bill No. 4365, with Representatives Neni J
Colmenares, Teddy A. Casino, Catalina C. Bagasina, Maria Carmen Zamora-Apsay,
Jesus Crispin C. Remulla, Giorgidi B. Aggabso, Salvador H. Escudero II}, Emil L. Ong,
Antonio L.. Tinio, Pedro B. Acharon Jr, Cesar V. Sarmiento, Rodolfo C. Farinas,
Eduardo R, Gullas, Luzviminda C. Wagan, Raymond V. Palatino, Sergio F. Apostol,
Ramon H. Durano VI, Jerry P. Trenas, Joaquin Carlos Rahman A. Nava, Mel Senen S.
Sarmiento, Tomas R. Osmena, Roger G. Mercado, Janette L, Garin, Benhur L.
Salimbangon, Rene L. Relampagos, Alfredo D. Maranon Ill, Emmi A. De Jesus,
Florencio T. Miraflores, Herminia B. Roman, Edgar S. San Luis, Edcel C. Lagman, Irvin
M, Alcala, Loreto Leo S. Ocampos, Victorino Dennis M. Socrates, Philip A Pichay,
Jeffrey P. Ferrer, David L. Kho, Erico Basilio A. Fabian, Antonio L. Tinio and Ma
Amelita C. Villarosa as authors thereof.

Respectfully

ERICO BAS!
Chairman.
Committee on Go’

A. FABIAN;
cament Entetprises & Privatization
‘THE HONORABLE SPEAKER

HOUSE OF REPRESENTATIVES
Quezon City


Sowrausen—

i

i

Republic of the Phil
HOUSE OF REPRESEN
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

g
House pit no._ 6748

(In substitution of House Bill No. 4365)

eee SSS

Introduced by Representatives Neri J. Colmenares, Teddy A. Casifio, Bernadette
R. Herrera-Dy, Catalina C. Bagasina, Maria Carmen Zamora-Apsay, Jesus Crispin C.
Remulla, Giorgidi B. Aggabao, Salvador H. Escudero Ill, Emil L. Ong, Antonio L. Tinio,
Pedro B. Acharon Jr., Cesar V. Sarmiento, Rodolfo C. Farifias, Eduardo R. Gullas,
Luzviminda C. llagan, Raymond V. Palatino, Sergio F. Apostol, Ramon H. Durano VI, Jerry
P. Trefias, Joaquin Carlos Joaquin Carlos Rahman A. Nava, Mel Senen S. Sarmiento,
Tomas R. Osmefia, Roger G. Mercado, Janette L. Garin, Benhur L. Salimbangon, Rene Lt.
Relampagos, Alfredo D. Marafion tll, Emmi A. de Jesus, Florencio T. Miraflores, Herminia
8. Roman, Edgar S. San Luis, Edcel C. Lagman, Irvin M. Alcala, Loreto Leo S. Ocampos,
A. Pichay, Jeffrey P. Ferrer, David L. Kho, Erico
Basilio A. Fabian, Antonio L. Tinio, and Ma. Amelita C. Villarosa

AN ACT
INCREASING PENSIONS UNDER THE SOCIAL SECURITY SYSTEM, FURTHER
AMENDING FOR THE PURPO! CTION 12 OF RA 1161, AS AMENDED,
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW

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

SECTION I. Section 12 of Republic Act No. 1161, as amended by Republic Act
No. 8282, is hereby further amended to read as follows:

“SEC. 12. Monthly Pension. — (a) The monthly pension shall be the
highest of the following amounts:

(1) The sum of the following:

(i) Three hundred pesos (P300.00); plus

(ii). Twenty percent (20%) of the average monthly salary credit;
(iii) Two percent (2%) of the average monthly salary credit for each
credited year of service in excess of ten (10) years: or



(2) Forty percent (40%) of the average monthly salary credit; or

(3) One thousand pesos (P1,000.00): Provided, That the monthly pension
shall in no case be paid for an aggregate amount of less than sixty (60)
months.

(b) Notwithstanding the preceding paragraph, the minimum MONTHLY
pension shall be (One thousand two hundred pesos (P1,200.00)] ONE
THOUSAND SEVEN HUNDRED (P1,700.00) for members with at least
ten (10) credited years of service and [Two thousand four hundred pesos
(2,400.00)] THREE THOUAND FOUR HUNDRED PESOS (P3,400.00)
for those with twenty (20) credited years of service.

THREE YEARS AFTER THE IMPLEMENTATION OF THIS ACT,
THE SAID AMOUNTS SHALL BE INCREASED BY AT LEAST FIVE
HUNDRED PESOS (P500.00) FOR MEMBERS WITH AT LEAST TEN
(10) CREDITED YEARS OF SERVICE AND AT LEAST ONE
THOUSAND PESOS (P1,000.00) FOR MEMBERS WITH AT LEAST
TWENTY (20) CREDITED YEARS OF SERVICE.

THE COMMISSION SHALL EQUITABLY AND
PROPORTIONATELY ADJUST THE MONTHLY PENSION OF
OTHER ENTITLED MEMBERS OR BENEFICIARIES TO PRESERVE
THE INTEGRITY AND FAIRNESS OF THE PENSION PROGRAM.

SEC. 2. 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 force and effect.

SEC. 3. Repealing Clause. Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation inconsistent with this
Act is hereby repealed, modified or amended accordingly.

SEC. 4. Effectivity Clause, This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved


FACTSHEET |.
6748

House Bill No. 4365
(As Approved On. — )

“AN ACT
INCREASING PENSIONS UNDER THE SOCIAL
SECURITY SYSTEM, FURTHER AMENDING FOR THE
PURPOSE SECTION 12 OF RA 1161, AS AMENDED,
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW”

Introduced by

REPRESENTATIVES NERI| J. COLMENARES, TEDDY A. CASINO, CATALINA C
BAGASINA, MARIA CARMEN ZAMORA-APSAY, JESUS CRISPIN C. REMULLA,
GIORGIDI B. AGGABAO, SALVADOR H. ESCUDERO Ill, EMI. L. ONG, PEDRO B
ACHARON JR., CESAR V. SARMIENTO, RODOLFO GC. FARINAS, EDUARDO R.
GULLAS, LUZVIMINDA C. ILAGAN, RAYMOND V. PALATINO, SERGIO F APOSTOL,
RAMON H. DURANO VI, JERRY P. TRENAS, JOAQUIN CARLOS RAHMAN A. NAVA,
MEL SENEN S. SARMIENTO, TOMAS R. OSMENA, ROGER G. MERCADO, JANETTE
L. GARIN, BENHUR L SALIMBANGON, RENE L. RELAMPAGOS, ALFREDO D.
MARANON ill, EMMI A. DE JESUS, FLORENCIO T. MIRAFLORES, HERMINIA B.
ROMAN, EDGAR S. SAN LUIS, EDCEL C. LAGMAN, IRVIN M. ALCALA, LORETO LEO
$. OCAMPOS, VICTORINO DENNIS M. SOCRATES, PHILIP A PICHAY, JEFFREY P.
FERRER, DAVID L. KHO, ERICO BASILIO A. FABIAN, ANTONIO L. TINIO AND MA.
AMELITA C. VILLAROSA

Committee Referral: COMMITTEE ON GOVERNMENT ENTERPRISES &
PRIVATIZATION

Committee Chairperson: Rep. ERICO BASILIO A. FABIAN

OBJECTIVES

+ To enhance the purchasing power of SSS pensioners by increasing the
monthly pension

KEY PROVISIONS:

© Seeks to increase the minimum monthly pension of SSS pensioners by
500.00 and P1,000.00 for those with at least 10 and 20 years of service
respectively

RELATED LAWS:
« Republic Act No. 1161