> ReCENVED
* oer UL 2013

Republic of the Philippines - L
HOUSE OF REPRESENTATIVES %
Quezon \

SIXTEENTH CONGRESS

First Regular Session
280
HOUSE BILL No.
Introduced by BAYAN MUNA

Representatives NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE

AN ACT CREATING THE B: iGAY PENSION FUND.
TO PROVIDE PENSION BENEFITS TO ALL BARANGAY OFFICIALS

EXPLANATORY NOTE

While public officials in general, including clective officials, are given retirement pensions
and other benefits upon their retirement or when they vacate office, Barangay officials all over the
country are treated differently as they are not given the same benefits.

‘This is surely unjust since Barangay officials fulfill a major public function in administering
to the needs of the people in barangays but unlike other public officials they are left to fend for
themselves once they leave office. It is very likely that many of these officials do not have other jobs
while serving as Barangay officials or have left their paying jobs in order to focus their attention on
their work as Barangay officials. Adding insult to injury, the pay of Barangay officials are way below
the already very low minimum wage standards and ar¢ grossly inadequate to afford these officals
some form of savings while they are in office. In fact, tHeie honoratia is distally incapable of feeding
and maintaining their family.

“These Barangay officials do not enjoy any form of social security upon leaving office as they do not
have the means or the income to meet the rising cost of living, their increasing medical needs or just
their day to day expenses. Instead of enjoying life during their retirement, these officials are forced
to look for paying work as they worry about where their next meal will come from, or where they
will get the funds for their maintenance medicine. They deserve some form of benefit during their
retirement days. Even those who are not yet of retirement age but who failed to retain theit post,
also deserve some form of benefit since they have also offered themselves to public service during
their term, without receiving salary.

This Bill seeks to provide benefits to these Barangay officials by providing them with the
means through pension, to start an income-generating activity or jump start their post-Barangay life
or just have some means to sustain their daily living expense. Said pension shall be sourced from the
use of the income derived from the extraction of natural gas in Malampaya that forms part of
Special Account in the General Fund (SAGE) 151 otherwise known as the ‘Malampaya Fund. The

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Malampaya Fund, which as of 2011 totaled to approximately PhP 125 Billion, does not form part of
the source of funds for the annual General Appropriations Act (GAA). This huge amount of money
‘wastefully languishes in the said special account and merely serves as a “presidential pork barrel”. It
is usually abused ~ if not for the corrupt transactions, itis misused in misplaced priorities and
projects unfairly given to favored individuals or agencies.

It is surely unacceptable that while Congress allcates and the national government spends
billions of pesos annually to fund the pension benefits of members of the Armed Forces of the
Philippines (AFP), whose pension fund was squandered) by its pension fund officials years ago, we
have refused to do the same for the Barangay officials. Unlike the soldiers, these Barangay officials
took on their job without any salary, so it is certainly unjust for government to deprive these officials
of pension just because they have rendered public service for free! In fact, unlike the billions
allocated by the national budget each year to the AFP pension fund, the Barangay pension fund will
use the Malampaya fund which does not even form part pf the GAA

Previous bills seeking to provide pension for| Barangay officials, because it sourced its
funding from the GAA, foundered in the face of resistance from the Department of Budget and
Management (DBM) who jealously guarded the national budget from being used for barangay
pension, Many also found it improbable to source the same from the Local Government Unit
(LGU) = Internal Revenue Allotment (IRA) which, in many cities and municipalities, are barely
enough for the needs of their communities. Bz Muha, aware of this situation, devoted a lot of
effort studying potential sources of funds before it filed this bill.

‘This bill should not go the same route as the éther bills because it has found a source of
funding called the Malampaya fund. Government cannot deny Barangay officials the use of the
Malampaya Fund because 80% of the Malampaya Fund has remained untapped every year, proof
that there is no “pressing or urgent project or need” that will be deprived if the Malampaya Fund is
used for the Barangay Pension Fund. In fact, the Comimission on Audit (COA) in its 2010 report
criticized the lost opportunity which results by allowing dhe Malampaya Fund to languish untapped
ina special account.

Congress is now asked to stand firm, and malceluse of the Malampaya Funds for the benefit
of thousands of Barangay officials all over the country, It is time that the Malampaya Fund be used
for a worthwhile purpose — the granting of pension to Barangay officials who have retired after years
of service.

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This bill concretely addresses a need and provides a solution to a serious problem.
Colleagues in Congress must help end the discrimiriation and unfair treatment suffered by our
Barangay officials, who unlike other government employees, are deprived of their basic right to

social security
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“The immediate passage of this Bill is strongly urged.


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§OLMENARES Rep. CARLOS ISAG: 'T. ZARATE
ys Party-List Bayan Muna Party-List



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City)

SIXTEENTH CONGRESS
First Regular Session 180

HOUSE BILL No.

Introduced by BAYAN MUNA
Representatives NERI J. COLMENARES: amt CARLOS ISAGANI T. ZARATE,

AN ACT CREATING THE BARANGAY PENSION FUND
‘TO PROVIDE PENSION BENEFITS TO ALL BARANGAY OFFICIALS.
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Beit enacted by the Senate andthe House of Representatives of th Philippines in Congress assembled:
SECTION 1. This Act shall be known as Barangay ae Fund Ad of 2013.

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to promote a just and
dynamic social order that will free the people from poyerty through policies that provide adequate
social services, promote fall employment, a rising standard of liviing, and an improved quality of life
for all.

SECTION 3. The Barangay Pension Fund (Fund hereafter) is hereby established to provide pension
benefits to all Barangay Officials, specifically the Punong Barangay, members of the Barangay
Council, the Barangay Treasure and the Barangay Secretary.

SECTION 4. Barangay Pension Fund Council. There is hereby created an independent body called
Barangay Pension Fund Council. The Council shall be composed of Nine (9) members:

a) Six (6) members appointed by the President who shall serve for a term of five years, Provided
That the appointee shall be an incumbent Batangay Official who shall be sueceeded by a
qualified Barangay Official upon his assumption of office in the Council, Provided further, ‘That
two @2) appointees shall come from Luzon, twp (2) appointees shall come from Visayas and
two (2) appointees shall come from Mindanao;

b) The President of the Government Service Insufance System (GSIS);

©) The President of the Social Security System (SSS); and

d) The Secretary of the Department of Interior and Local Government (DILG).

SECTION 4. Duties and Functions of the Barangay Pension Fund Council — The Council shall have the

following duties and functions:
2). t6 manage the fonds and invest it propery to ensure its ‘sustdinabliy and increased capatity

to provide benefits, |



b) to approve the pension plan that shall become the basis for the allocation of benefits for its
pensioners, |

©) to promulgate implementing niles and regulations of this Act, and

4d) to perfom other duties and functions towards the efficient and effective implementation of
this Act.

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SECTION 5. The Six (6) appointee members shall have the rank and remuneration equivalent to
that of a board member of the Board of the GSIS.

SECTION 6. ‘The initial capitalization of the Barangay ae Fund shall be sourced from Special
Accounts in the General Fund (SAGF) 151 otherwise known as the Malampaya Fund.

SECTION 7. All fees, revenues and receipts of the Board from any and all sources including
receipts from service contracts and agreements such a$ application and processing fees, signature
bonus, discovery bonus, production bonus; all money collected from concessionaires, representing
unspent work obligations, fines and penalties under the Petroleum Act of 1949; as well as the
government share representing royalties, rentals, produttion share on service contracts and similar
payments on the exploration, development and exploitation of energy resources, shall form part of a
Special Fund to be used to finance energy resource development and exploitation programs and
projects of the government and for such other p as may be hereafter directed by the
Congress. Provided, the special account shall be exclusively used by the Barangay Pension Fund.

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SECTION 8. Repealing Clause, — All laws, executive and administrative orders or parts thereof,
inconsistent with any provision of this Act are hereby cea or modified accordingly.

SECTION 9. Budgetary Appropriation. - Such amount a$ may be necessary to effectively implement
this Act shal be provided for by the special account of Malampaya,

SECTION 10. ‘This Act shall take effect after fifteen (15) days following the completion of its
publication in the Official Gazette or in a national newspaper of general circulation.

Approved,