THIRTEENTH CONGRESS 0 
E REPUBLIC 
) 
OF THE PHILIPPINE§ 
) 
Firsf Regular Session 
1 
Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
Based on data released by the Department of Labor and Employment, for 
the year 2002, the average inflation rate stood at 2.8%. For the year 2003, this 
figure increased to 3.4% indicating a decline in the purchasing power of the peso. 
Furthermore indicative of a rapidly deteriorating poverty situation and lowering of 
the value of the peso, the Annual Per Capita Poverty Threshold increased from 
P9,843 in 1997 to P I  1,605 in 2000. The Annual Per Capita Threshold is defined 
as the annual per capita income required to be spent to satisfy the nutritional 
requirements and other basic needs. 
Based on the above poverty threshold data, the present monthly pension 
would not even allow the recipients to satisfy the basic food requirement and 
other necessities. The amount is barely enough to provide an average family of 
five with two meals a day. It is no longer adequate considering the spiraling cost 
of basic commodities not to mention the rising cost of transport, education and 
shelter. It is high time the pensions are adjusted to enable pensioners to cope 
with the high cost of living. 
This bill seeks to provide retirees who have faithfully contributed hard- 
earned money to the Social Security System a living pension by increasing their 
monthly pension by P I  ,200. The increase, which applies to pensioners with more 
than 20 years of SSS membership, will help them cope with the current economic 
hardship brought about by the financial crisis. 
In line with the vision of social security for the Filipino, early approval of 
this bill is earnestly sought. 
AA++Gih 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE RE 
OF THE PHILIPPINE 
1 
First Regular Session 
1 
A T E  
S. No 
Introduced by Senator S. R. Osmefia 111 
AN ACT 
AMENDING SECTION 12 (B) OF REPUBLIC ACT NO. 8282, OTHERWISE 
KNOWN AS THE “SOCIAL SECURITY ACT OF 1997” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. - Section 12, paragraph (b) of Republic Act No. 8282 is 
2 hereby amended to read as follows: 
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“Section 12. Monthly Pension - (a) The monthly pension shall be 
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the highest of the following amounts: 
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(I) 
the sum of the following 
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(i) 
Three hundred pesos (P300.00); plus 
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(ii) 
twenty percent (20%) of the average monthly salary credit; 
plus 
(iii) 
two percent (2%) of the average monthly salary credit for 
each credited year of service in excess of ten (IO) years; or 
(2) forty percent (40%) of the average monthly salary credit, or 
(3) One thousand pesos (PI ,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 pension shall 
be One thousand two hundred pesos (P1,ZOO.OO) for members with at 
least ten ( I O )  credited years of service and Two thousand four hundred 
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t 
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pesos (P2,400.00) for those with twenty (20) credited years of service. 
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(P2,400.00) for those with twenty (20) credited years of service. 
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MEMBERS WITH MORE THAN TWENTY (20) CREDITED YEARS OF 
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SERVICE SHALL HAVE AN INCREASE OF ONE THOUSAND TWO 
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HUNDRED PESOS (P1,200.00) IN THEIR PENSION FOR EVERY 
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ADDITIONAL TEN (10) CREDITED YEARS OF SERVICE.” 
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SEC. 2, - All laws, executive orders, letters of instructions, rules and 
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regulations, or provisions thereof which are inconsistent with the provisions of 
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this Act are hereby repealed, amended or modified accordingly 
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SEC. 3. - This Act shall. take effect fifteen (15) days after its publication in 
the Official Gazette or in at least two (2) national newspapers of general 
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circulation. 
Approved, 
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