S. No. 
Introduced by Senator Biazon 
EXPLANATORY NOTE 
One of the greatest paradoxes of our age is that physical assets have ceased to be the 
main sources of wealth. In its place, human creativity has become the source of economic 
growth, impelling leaps and bounds in technology and economic productivity. 
Human brainpower will be the strongest motive force behind Philippine economic 
development in the third millennium. In order to harness the country’s intellectual resources, we 
need to put in place measures that will put an end to the brain drain and the migration of our 
brightest talents, and the non-development of potentials due to poverty. 
This bill seeks to harness and optimize our country’s intellectual resources through the 
establishment of the “Pensionado Program.” This program shall pool together all foreign and 
local public and private sponsorship intended for further education, enrichment and training of 
exceptionally able and highly motivated Filipinos employed in both the government and private 
sectors. The program will align sponsorships among priority areas identified to be critical to 
Philippine economic development, and provide incentives for the beneficiaries to put the skills 
and education acquired under training to the service of the Filipino nation. 
All parents know that education is the most important investment for the future, and the 
most valuable legacy to bequeath to one’s children. We should therefore provide for measures to 
manage our country’s investments in higher education, and to ensure that they be put to 
productive use for the welfare of the entire nation. 
In view of the foregoing, early passage ofthis bill is earnestly requested. 
RODOLFO ~ I A Z O N  
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
" .  
7 
Jli. .2 
, . I _  
OF THE PHILIPPINES 
1 
First Regular Session 
) 
SENATE 
S. No. 831 
Introduced by Senator Rodolfo G. Biazon 
AN ACT 
CREATING 
AN 
ADVANCED 
STUDIES DEVELOPMENT PROGRAM 
FOR 
EXCEPTIONAL EMPLOYEES FROM THE GOVERNMENT AND PRIVATE SECTOR 
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 bill shall be known as "The Pensionado Act of 2007." 
SEC. 2. Declaration of Policies - Human resources development is essential for 
economic development and progress. In pursuit of economic development and progress, the State 
shall give priority to the creation of a critical mass of elite professionals who shall take the lead 
in harnessing science, technology and related disciplines towards accelerating the productivity of 
the country's human resources. 
Consonant with this thrust, it is hereby declared a policy of the State to devise a program 
for exceptionally able and highly motivated employees, preferably aged 30 - 45, from the 
government, the private sector andor the self-employed to undertake advanced studies in a 
branch of science, technology, or related fields of learning on which depends the development 
and progress of the country. As such, it shall provide for fellowships to enable them to pursue 
advanced studies to research in their field of expertise. 
The State shall develop a critical mass of first-rate specialists in various disciplines and 
areas of specialization vital to national development. They shall form a collective national "think 
tank" who shall continuously place their knowledge and skills at the service of the nation, be it in 
industry, the academe or the highest policy-making levels of the government, with the 


government taking the lead in harnessing their knowledge and skills for the greatest good of the 
country. 
SEC. 3. Definition of Terms - For purposes of this Act, the following terms are 
hereunder defined accordingly: 
a) ”Post-graduate ” - a formal degree course program or program of training/research 
requiring at least a Master’s Degree for entry; a student pursuing such program; 
a) “Advanced studies” - a post-graduate problem-oriented program of studies and/or 
research, not necessarily leading to a degree, undertaken for further specialization or 
advanced howledge in a specific field of study, or to acquire specialized knowledge 
and/or skills in a particular area of science or technology; 
c) “Pensionado” - A Filipino citizen selected and supported by the Philippine 
government under this Program to undertake advanced studies in selected institutions 
of higher learning or recognized research centers, in fields relevant to the officially 
declared priority areas for development. 
SEC. 4. Establishment ofa Program - There shall be established under the Commission 
on Higher Education, hereafter referred to as the CHED, in coordination with non-government 
organizations (NGOs), the private sector and other government agencies, namely the National 
Economic and Development Authority (NEDA), the Department of Trade and Industry (DTI), 
the Department of Science and Technology (DOST), and the Department of Education (DepEd) 
felfowship program to be called as the “Pensionado Program”, hereinder referred to as the 
Program for Filipinos employed in the government and the private sectors and those who are 
self- employed. 
The Program shall pool together all fellowships, scholarships, training grants sponsored 
or extended by foreign governments, agencies and other bodies, as well as by local agencies and 
organizations, whether public or private, intended for advanced studies in international centers of 
advanced learning, or scholarship and research. 
SEC. 5. Establishment of National Secretariat: Functions and Composition - There 
shall be established a National Secretariat, hereafter referred to as the Secretariat, with the 
following functions: 


1. To identify and assist in negotiations with sponsors (foreign and local, public and 
private) of fellowships, scholarships and grants; 
2. To provide assistance to the Selection Panel in accomplishing its work; 
3. To provide the Pensionados continuing assistance from the time of selection to the 
time of their return to the country, including assistance for the productive utilization 
of their newly gained expertise; 
4. To serve as the administrative arm of the government for the Program; and 
5. To promulgate and implement the policies and guidelines governing the Program. 
The National Secretariat shall be headed by an Executive Officer, with the rank of 
Assistant Secretary, to be appointed by the President of the Republic of the Philippines upon the 
recommendation of the CHED. Members of the Secretariat shall consist of representatives from 
the National Economic and Development Authority (NEDA), Department of Trade and Industry 
(DTI), Department of Science and Technology (DOST) and the Commission on Higher 
Education (CHED). These representatives shall be seconded to the Secretariat for a period of one 
year, subject to renewal every year. Service rendered thereat shall be considered as service in 
their prospective agencies and shall also be considered as part of their performance for 
promotions purposes. 
SEC. 6. Number of Pensionados and Length of Grant - There shall be selected twenty- 
four (24) fellows annually - three (3) fellows for each priority discipline/industry/field of the 
eight vital disciplines or areas of specialization identified by the CHED in consultation with the 
NEDA as frontiers or new areas essential for pushing the economic and social development 
thrusts of the country. 
SEC. 7. Selection Process - There shall be a Selection Panel, hereafter referred to as the 
Panel, under the Secretariat consisting of three (3) university presidents and two (2) eminent 
members from the academe to be appointed by the CHED. They shall serve, on a staggered basis 
for purposes of continuity and consistency, each for a term of three (3) years. 
The Panel shall make the final selection of the Pensionados from among the nominees 
from the academe, industry and research centers. The integrity and objectives of the Program are 
paramount considerations for the Panel in making the selection. 


SEC. 8. Qualifications - In order to qualify for the Program, the applicant must be: 
(a) A Filipino citizen; 
(b) Gainfully employed; 
(c) A college degree graduate, with honors; 
(d) With demonstrated leadership and proven exceptional performance in 
hisher 
present work; 
(e) Enthusiastic in undergoing further training; and 
(0 Willing to sign a contract requiring hidher to return to his job or in another capacity 
after the scholarship. 
SEC. 9. Place ofstudy - The Pensionados shall be sent to a foreign country well-known 
for its advanced stage in a particular discipline or area of specialization. Training and education 
may he in an academic institution, research and development center (R&D) or a major industrial 
establishment with an R&D program. It may or may not lead to an advanced degree. 
SEC. 10. Assistance to Grantees - The Pensionado is entitled to the following benefits: 
(a) Leave with pay, for the duration of the scholarship including allowances and other 
benefits; 
(b) One economy round trip airfare to and from the host country plus other travel 
expenses required for foreign travel; 
(c) Clothing allowance to be determined by the Secretariat; 
(d) Monthly stipend while on study abroad, of such amount to be determined by the 
Secretariat; 
(e) Books, Instructional MateriaMResearch allowance of such amount to be determined 
by the Secretariat. and 
(0 Health, travel and insurance fees of such amount to be determined by the Secretariat. 
SEC. 11. Progrurn Funding - The cost of each fellowship grant shall be shared by the 
Pensionado’s employer and the National Government. The employer pays the salary, allowances 
and other benefits due the Fellow as employed during the duration of advanced studies overseas 
while the National Government, thru the Program, shall be responsible for items letter b, c, d, e 
and f as enumerated in Section 10 hereof. 


With the transfer of all pertinent foreign and local sponsored grants for coordination 
under the Program, the Government, thru the Program may negotiate bilateral arrangements with 
host governments, host universities, host research institutions and host corporations to share at 
least 50% of the total cost of items Letter b, c, d, e and f under Section 10 hereof, 
The National Government may also negotiate bilateral agreements with host 
governments, host universities, research institutions and corporations to enable our scholars to 
stay abroad and continue their studies or training at a minimal cost to the National Government. 
A sharing program can be established where the host government, host universities, research 
institutions and corporations can pick up a part of the expenses of the scholars while he is 
abroad. 
SEC. 12. Service Obligation - Immediately upon completion of the studies or training, a 
Fellow shall be required to return to his job or in another capacity approved by the Secretariat 
and serve on a full-time basis for a minimum period equivalent to twice the period covered by 
the fellowship grant. In addition, the scholar shall be required to hold seminars or training 
sessions for employees from the government and the private sectors on topics related to the 
course or training he has completed. 
Any recipient of the program who has not completed his course shall reimburse the 
Fellowship the grant received or render service to the sponsoring agency or company for a period 
equivalent to the period covered by the fellowship grant. 
Any Pensionado who violates the service obligation imposed under this Section shall 
reimburse the sponsoring agency or company and the National Government of the fund 
assistance received under this Act in full or in part as the case may be. 
SEC. 13. Mechanism for Utilization of Returned Fellows - There shall be established 
and developed a National Network of Specialized Institutes for Advanced Studies in universities 
selected by the CHED in consultation with the DOST and other appropriate agencies to be 
determined by the Secretariat to provide returned scholars an office, Iaboratory, library and 
conference facilities for their continuing scholarly work, research development and training 
activities. The Institute shall also serve as a place for an Exchange Program and Collaborative 


Research among local and international scientists and scholars in priority areas of research and 
development. 
The National Government may, thru the CHED and/or the National Secretariat, negotiate 
bilateral agreements with foreign government, universities, research institutions and 
corporations, public and private to effect exchange of scholars and scientists for collaborative 
advanced studies, as well as to equip the Institute for purposes of benefit to the cause of scholarly 
or scientific advancement and national development. 
A sharing program may be established whereby the host can pick up part of the expenses 
of government, university, institution or corporation, the Fellow in pursuit of hisher Fellowship. 
SEC. 14. Appropriations - The amount necessary to carry out the initial implementation 
if this Act shall be drawn from the savings of the National Government. Thereafter, the funds 
necessary for the continuous implementation of the Program shall be included in the General 
Appropriations Act. 
The Program shall receive two-tenth percent (0.2%) from the share of the DOST and one 
percent (1%) from the share of the Philippine Youth Commission in the Bases Conversion 
Development Authority (BCDA) proceeds. 
SEC. 15. Transfer of Fellowships, Scholarship and Training Grants - All foreign and 
locally sponsored fellowships, scholarships and training grants will be transferred to the Program 
for coordination. With respect to government employees who may be affected by the transfer, the 
pertinent rules and regulations of the Civil Service Commission (CSC) shall apply. 
SEC. 16. Rules and Reguldions - Within ninety (90) days from the approval of this Act, 
the Secretariat shall promulgate the necessary rules and regulations for the effective 
implementation of the provisions thereof. 
SEC. 17. Repealing Clause - All laws, decrees, orders, rules and regulations or portions 
thereof, inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 18. Separability Clause - In the even any of the provisions of this Act is declared 
unconstitutional, the validity of the other provisions shall not be 
affected by such declaration. 


SEC. 19. Effectivity Clause - 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 
circulation. 
Approved,