SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SENATE 
S.B. No. 2096 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
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'14 
JAN 28 P 5 :08 
A good retirement plan is a personal investment into one's self-
sufficiency for the period of one's twilight years. 
The State, alongside 
employers, partners with citizens in building up good retirement plans for 
the public. 
This is accomplished by providing retirement benefits to 
employees through the returns receivable by them from the Government 
Service Insurance System (GSIS) or Social Security System (SSS). 
Employees invest valuable earnings as premiums to GSIS or SSS 
during the period of their employment. At the time of retirement, however, 
the rate of inflation will have eroded the purchasing power of his benefits. 
Although the law presently allows adjustments to be made on the basic 
monthly pension, experience shows that such adjustments are rarely made 
and if at all, they are highly unrealistic. 
This bill provides for the automatic adjustment of the basic monthly 
pension of retired personnel covered by the Government Service Insurance 
System (GSIS) and Social Security System (SSS) to appropriately take into 
consideration the rate of price inflation. 
In view of the foregoing, early passage of this bill is earnestly urged. 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
S.B. No. 
2096 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
'14 
JAN 28 P5 :08 
RECEIVED In. r 
PROVIDING FOR AUTOMATIC ADJUSTMENT OF THE BASIC MONTHLY 
PENSION FOR RETIRED PERSONNEL COVERED BY THE GOVERNMENT 
SERVICE INSURANCE SYSTEM AND SOCIAL SECURITY SYSTEM TO 
THE PREVAILING COST OF LIVING INDEX 
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines in Congress assembled: 
1 
SECTION 1. 
This Act shall be known as the "Automatic GSIS and SSS 
2 
Pension Adjustment Act". 
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4 
SEC. 2. 
The basic monthly pension of members covered by the 
5 
Government Service Insurance System (GSIS) and the Social Security System (SSS) 
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shall be automatically adjusted to the prevailing cost of living index as determined by 
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the National Economic and Development Authority (NEDA). 
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9 
SEC. 3. 
The Government Service Insurance System and the SOCial Security 
10 
System, as the case rnay be, shall issue such rules and regulations as may be 
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necessary for the effective implementation of this Act. 
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SEC. 4. 
The benefits of this Act shall be extended to the pensioners still 
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surviving at the time of its approval. 
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SEC. 5. 
Such amount necessary for the implementation of this Act shall be 
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charged to the State Insurance Fund of the Government Service Insurance System and 
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to the Reserve Fund of the Social Security System, respectively. 
19 
20 
SEC. 6. 
Should any part or provision of this Act be declared unconstitutional 
21 
or invalid, the remaining parts or provisions not affected thereby shall remain in full force 
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and effect. 
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SEC. 7. 
All laws, decrees, executive orders, 
letters of instructions, 
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proclamations, rules and regulations, or parts thereof inconsistent with this Act shall be 
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deemed modified, amended, or repealed accordingly. 
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SEC. 8. 
This Act shall take effect fifteen (15) days after its complete 
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publication in two (2) newspapers of general circulation. 
Approved,