Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

@ SIXTEENTH CONGRESS
First Regular Session

”” House ei n6. 290°
4 ¥

Tniroduced by Rep. Winston “Winnie” Castio +

EXPLANATORY NOTE

In the light that no government agency undertakes a conscious monitoring on
how pension funds under the care of the Social Security System on the one hand and by
the Government Service Insurance Service on the other are being administered, it
behooves upon a cognizant entity to adopt a proactive approach as would insure that
state pension funds are carefully invested at no risk whatsoever on either SSS or GSIS.
against losses or the likely possibility that such funds are being siphoned off to benefit
private sector entities

Toward this end, the Bangko Sentral ng Pilipinas or the Monetary Board, as the
case may be, shall issue rules, regulations, guidelines and other sanctions as it may see
fit that will introduce a culture of transparency in the business or corporate affairs of both
the SSS and the GSIS.

There shall be an internal system of disclosure initiated by the state pension fund
itself for the full dissemination and information as regard how substantial chunk of funds
may be utilized for all their bonafide members and stakeholders. Not surprisingly, SSS
or GSIS is awash with cash but this shall not lend freedom for them to invest in anyway
they see.

Itis of paramount consideration that pension funds are contributed by private and
Public workers in the SSS and GSIS, respectively and therefore it is only fiting and


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon city

SIXTEENTH CONGRESS
+ First Regular Session

e '
House BiLL RO.490 _
|

Introduced by Rep. Winston “Winnie” Castelo

‘AN ACT
INSURING THAT PENSION FUNDS OF SOCIAL SECURITY SYSTEM AND THE
GOVERNMENT INSURANCE SERVICE SYSTEM ARE SUBJECT OF A CULTURE OF
TRANSPARENCY AND INTERNAL SYSTEM OF DISCLOSURE IN ALL ITS
BUSINESS OR CORPORATE AFFAIRS AND FOR OTHER PURPOSES

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

SECTION 1. This Act shall be known as the “Pension Funds Disclosure Act of
2013".

SEC. 2. There shall be adopted a culture of transparency and intemal system of
disclosure in all the business and corporate affairs of the Social Security System and the
Government Service Insurance System as a matter of right and privilege on the part of
their private and public workers, respectively.

To this end, the Bangko Sentral ng Pilipinas or the Monetary Board, as the case
may be, must undertake a proactive approach to insure that no funds whatsoever could
be siphoned off for purposes other than the benefits of the state pension funds members.
and contributors.

‘SEC. 3. All retums on investment under this system of disclosure shall be fully
disseminated for the information of the private workers in the case of SSS and public
workers in the case of GSIS.

SEC. 4. The Social Security System shall issue appropriate rules, regulations,
guidelines, and sanctions against violations under this Act. Similarly, the Government
Service Insurance System shall likewise have its own set of rules, regulations, guidelines
and sanctions against violations hereof.

SEC. 5. This Act shall take effect after its publication in at least three (3)
newspapers of general circulation.

Approved,