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Republic of the Philippines ty
HOUSE OF REPRESENTATIVES
Quezon City
TWENTIETH CONGRESS

First Regular Session

77
HOUSE BILLNO._777_

Introduced by Representative Ma. Victoria Co-Pilar

EXPLANATORY NOTE

Social Security is recognized as one of the basic human rights. The Philippines as a
party to the International Covenant on Economic, Social and Cultural Rights is committed
to ensure its application within our jurisdiction.

Article XV, Section 4 of the Philippine Constitution affirm this commitment.
However, despite having a national policy that upholds universal security coverage, a
sizable proportion of workers and their families remain uncovered, with only 38.4 percent
of labor force contributing either through the SSS or GSIS (Philippine Statistics Authority,
2017). Similarly, the labor force contributing to Pag-ibig Fund accounted for 45.9 percent
only in 2018. On the other hand, the population covered by the National Health Insurance
Program (NHIP) is maintained high and generally increasing either through direct or
indirect contributions due to the enactment of RA 11223 Universal Health Care Act.

Ina study conducted by the International Labor Organization, among the reasons
why there is low coverage of social security pension is the complex and burdensome
procedures. Particularly in rural areas, people face difficulties in accessing, social
protection schemes due to a low density of administrative structures and services.

To ease the burden of daunting processes of registration, collection of
contributions, processing of loan applications, release of loans and pensions, among
others, this bill proposes to create a One-Stop Shop for all state-controlled provident funds
and other government mandated benefit institutions in every Legislative District of the

country.

Through these One-Stop Shops called the Pangarap Centers, a member does not
need to go to different government mandated provident funds agencies, with different
locations just to remit their contributions or remittances. This will not only cut the time
and effort in processing their transactions, moreover this will encourage members of the
workforce and those who are from the informal sector to register and contribute to their



social security funds. Through this sudden ease in their transactions, we can expect that
the coverage of our social security instruments to increase and become streamlined.

This measure is aligned with the President's vision of creating a single operating
system for all government transactions to ensure ease of doing business across the
Philippines.

In view of the foregoing passage of this bill is earnestly sought.


Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. _777

Introduced by Representative Ma. Victoria Co-Pilar

AN ACT
ESTABLISHING PANGARAP CENTERS IN ALL LOCAL GOVERNMENT
UNITS IN THE COUNTRY AND PROVIDING FUNDS THEREFOR AND FOR
OTHER PURPOSES

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

SECTION 1. Short Title - This Act shall be known as the "Pangarap Centers Act of
2023"

SEC. 2. Declaration of Policies - It is a declared policy of the State to improve the
delivery of social security, health and housing services to the people and to ensure access
to and efficiency in the process of availing services and assistance to fund social security,
health and housing services.

Further, the State shall adopt a multi-sectoral and streamlined approach in
addressing social security, health and housing issues and affirm their inherently
integrated and indivisible linkage consistent with the emphasis of "work, save, invest,
and prosper framework".

Towards this end, the State shall adopt a well-coordinated One-Stop Shop for all
beneficiaries of state-controlled provident funds and other government mandated benefit
institutions.

SEC. 3. Pangarap Program - The Department of Labor and Employment shall
establish a Pangarap Program that shall adopt and implement the following objectives:

a) Provide a policy framework for integrated- and people-centered social benefit
program that shall:
1. Ensure and promote organizational culture geared towards responsiveness;
2. Ensure the promotion of information for beneficiaries to know every avenue of
investments in the Pangarap One-Stop Shop System;


3. Ensure appropriate infrastructure and processes;
4. Promote client engagement and empowerment.

b) Ensure financial risk protection and alleviate financial burden of financially
incapacitated beneficiaries who avail of the different benefit programs of
government mandated benefit institutions;

©) Maximize investment opportunities for workers through the different benefit
programs such as, but not limited to, PAG-IBIG MP1 and PAG-IBIG MP2; and

d) Eliminate the transferring and the inconvenience of long and arduous processes
for first time workers to obtain necessary identity numbers.

The Department of Labor and Employment shall provide the policy direction and
pertinent guidelines together with the Home Development Mutual Fund (HDMF),
Government Service Insurance System (GSIS), the Social Security System (SSS),
Philippine Health Insurance Corporation (PhilHealth), and the Department of Migrant
Workers (DMW) to ensure and promote responsive and effective benefit engagement in
Pangarap Centers.

SEC. 4. Pangarap Center Office -There shall be established a Pangarap Center
Office under the Department of Labor and Employment. The Pangarap Center Office
shall oversee the operations of Pangarap Centers nationwide.

SEC. 5. Pangarap Center - There shall be established a Pangarap Center in all Local
Government units which shall serve as a One-Stop shop for all government mandated
benefit institutions for workers, including but not limited to, collection of contributions,
processing of loan applications, release of loans and pensions, processing of documentary
requests from members;

a. Provide beneficiary navigation and referral to proper agencies and benefit
packages;

b. Provide information with regard to membership, coverage and other
packages to maximize all benefit programs according to each one's
investments and contributions;

¢. Provide capacity building and performance evaluation to ensure good
client interaction;

d. Document, process and utilize date from beneficiaries through a
standardized form if institutional changes in government benefit
institutions; and

e. Provide critical information on future benefit programs that will emanate
from each government mandated benefit institution.

There shall be a special lane in each Pangarap Center for exclusive use of Senior
citizens and persons with Disabilities.

The Pangarap Center shall be non-partisan, convenient, free of charge, accessible
and shall have a standard system of availment of benefits.

SEC. 6. Administration of Pangarap Center -The Department of Labor and
Employment shall designate its Regional Directors to oversee the proper management
and efficient operation of the Pangarap centers in their respective localities. The Pangarap
center Director shall:

a) Ensure the provision of appropriate space, furniture, equipment and fixtures
based on the standard Pangarap centers plan of the Department of Labor and

Employment;


b) Promote harmony, coordination and cooperation among. the participating
agencies in the Pangarap centers and strengthen the delivery of services by
upholding the highest performance of duties and responsibilities; and

©) ¢. Perform such other functions as may be necessary for the accomplishment of the
objectives of the Pangarap center program.

The Pangarap Center Director shall assign the Head Officer of the respective
DOLE local office as the Pangarap center Operations Manager, who shall take charge of
the day-to-day management and operations of the Pangarap Centers. The Pangarap
Center Director, and the Pangarap Center Operations Manager, shall receive no extra
compensation.

SEC. 7. Personnel Complement - The Pangarap Center shall be adequately staffed
by the employees of the Department of Labor and Employment and support staff . The
Pangarap Center Director and the Pangarap Center Operations Manager shall appoint
and assign such other personnel as may be necessary for the effective operation of the
pangarap center.

Each Pangarap Center shall consist of duly designated representatives from the
HDME, GSIS, SSS, PhilHealth and DMW. The HDME, GSIS and SSS representatives shall
process and approve the application of new members and requests for loans, requests for
increase of contributions. The DMw representative shall process and approve
applications for benefits of overseas Filipino workers and their respective beneficiaries.

The HDME, GSIS, SSS, PhilHealth and DMW are hereby authorized to create the
required plantilla and staffing pattern necessary for the implementation of this Act in
coordination with the Department of Budget and Management (DBM). The civil service
commission (CSC), and the Governance commission for Government owned or
controlled corporations (GCG), as the case may be.

The DMW and PhilHealth shall include in their budgetary submission to the DBM
the required budget for the personnel services requirements of each Pangarap Center.
Such budgetary requirement shall be included in the budgets of the respective agencies
in the General Appropriations Act.

SEC 8. Monitoring and Evaluation - The DOLE shall conduct monitoring and
evaluation to assess the responsiveness of the Pangarap Centers, including a client
satisfaction survey, utilizing indicators such as reduced waiting time, percentage of
beneficiaries and individuals served, and percentage of complaints endorsed for action,
among others.

SEC 9. Annual Report -The HDMF, GSIS, SSS, PhilHealth and the DMW shall
jointly submit to the Office of the President of the Philippines, Senate Committee on
Labor, Employment and Human Resources Development, House Committee on Labor
and Employment on or before the end of December of every year, or upon the request of
any of the aforesaid offices, a report giving a detailed account of the status of the
implementation of this Act.

SEC 10. Appropriations -The DOLE shall immediately include in the program of
the Department the operationalization of this Act, the initial funding of which shall be
charged against its current year's appropriations. Thereafter, the amount necessary for
the establishment and operation of the Pangarap Centers shalll be included in the General
‘Appropriations Act.


SEC 11. Implementing Rules and Regulations - Within one year from the
Approval of this Act, the Secretary of DOLE, in coordination with the Departments
stipulated in the preceding section of this Act, shall formulate rules and guidelines as
may be necessary for the proper implementation and enforcement of this Act.

SEC 12. Separability Clause - If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting.

SEC 13. Repealing Clause - Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or
inconsistent with the provision of this Act is hereby repealed, modified, or amended
accordingly.

SEC 14. Effectivity Clause - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,