SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 1123 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
,~ 
. 
~~rnlit~ 
(Il}HHI_~ ,;f itl!' ~i">rrf"f~ 
'13 
JUL 29 !lS:59 
Investments in children's education, homeownership, and small business development and 
entrepreneurship can be made possible through family savings. However, family savings is, at 
the most part, unpopular in the country. 
In the Philippines, households that have a checking account are not so common, and few have a 
savings account. The rising cost of tertiary education decreases access to higher education for 
low-income and moderate-income families. 
Increasing the number of families saving for their children's tertiary education will increase the 
number of youths who will attain higher education. An increased educational attainment levels 
can definitely generate a more competitive workforce, more jobs and innovation, more savings 
and investment, stronger communities, and a thriving economy. 
This bill provides for a savings program, tied to financial education, that aims to improve family 
financial responsibility and encourage saving for education, homeownership, small business, and 
entrepreneurship. 
In light of promoting financial literacy and increasing asset-building opportunities for all 
residents of the country, the immediate approval of this bill is earnestly sought. 
"ON 
"F. TRILLANES IV 
Senator 
1 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. No. 1123 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
£!. "11 'j b 
;J;jtl;-,.. ,,-,%IF 
_ ~' (i?ffHt \If Hlit :i""tJ'ri.:1ru ' 
'13 
JUL 29 
118 :59 
ESTABLISHING CHILDREN'S SAVINGS ACCOUNT PROGRAM, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Children's Savings Accounts 
2 
Act" 
3 
4 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
5 
encourage families' savings, to increase families' financial knowledge, to promote higher 
6 
educational aspiration and attainment, to encourage homeownership, to assist small business 
7 
development, to promote job creation, to strengthen communities, and to increase asset-building 
8 
opportunities for all people. 
9 
10 
SEC. 3, Goals of the Program. - Goals of the program shall include increasing the levels 
11 
of financial literacy and savings in the country, increasing the number of children who own 
12 
assets and who attend tertiary education or training, purchase a home, or open a small busin.ess. 
13 
14 
SEC. 4. Children's Savings Account Task Force. - There is hereby created a Children's 
15 
Savings Account Task Force to review and make recommendations about children's savings 
16 
account program options and to create a strategic implementation plan to create savings accounts 
17 
at birth for every child bom. The Task Force shall consist ofa maximum of thirty (30) members, 
18 
to be appointed within sixty (60) days after the effectivity of this Act. One member shall be 
1 


1 
appointed by the President of the Senate, one member appointed by the Senate Minority Leader, 
2 
one member appointed by the Speaker of the House, one member appointed by the House 
3 
Minority Leader, and one member representing the Department of Finance appointed by its 
4 
Secretary. All other members shaH be appointed by the President as follows: 
5 
a) a member of the Presidential staff; 
6 
b) public members with an interest in asset-building in the country, including a 
7 
representative from each of the following types of organizations or entities: 
8 
I) an operator of an individual development account or matched savings and 
9 
financial education program or both; 
10 
2) a grassroots organizing entity; 
11 
3) a service-based human rights provider organization; 
12 
4) a business organization; 
13 
5) a bankers' professional association; 
14 
6) a child advocacy organization; 
15 
7) a rural economic development entity; 
16 
8) an organized labor; 
17 
9) a bank; 
18 
10) it credit union; and 
19 
11) an investment services provider. 
20 
In addition, the following officials shall serve as ex-officio members of the task force: i) 
21 
Department of Finance Secretary of hislher designee; ii) Department of Education Secretary or 
22 
hislher designee; iii) the Secretary of Department of Budget and Management or hislher 
23 
designee; iv) the Secretary of Department of Trade and Commerce or hislher designee; v) t!:e 
24 
Secretary of Department of Social Welfare and Development or hislher designee; vi) the 
25 
Chairman of the Commission on Higher Education or hislher designee. Representatives of the 
26 
Office of the President and the Department of Finance shall serve as co-chairpersons of the task 
27 
force. The President shall designate one of the public members to serve as a third co-chairperson. 
2 


1 
The Department of Finance shall be responsible for administrative and logistical support 
2 
of the task force, including coordination of task force member appointments, distribution of 
3 
meeting notices and minutes, coordination of meeting logistics, providing a staff liaison to the 
4 
task force, facilitation of public meetings, and drafting and filing of the final report. Task force 
5 
members, or the staff liaison, or both may confer and collaborate with national organizations 
6 
with expertise in asset building, financial education, college savings, investing, homeownership, 
7 
and small business development. 
8 
The task force shall hold at least four (4) public meetings at a variety of geographic 
9 
locations throughout the country at times and places established by the task force. The purpose of 
10 
the public meetings is to gather information from community residents and institutions, families 
11 
with children, financial education providers, schools, and local financial services providers. The 
12 
initial meeting of the task force shall be called by the co-chairs and held no later than thirty (30) 
13 
days after the task force members are appointed. The activities of the task force shall conclude 
14 
not later than September 1 st of the year this Act was approved. 
15 
16 
SEC. 5. Recommendations for the Design of the Program. - The task force shall 
17 
consider the following factors in its recommendations for the design of the program: 
18 
a) return on investment, safety of the investment and insurance for the account, ease of 
19 
managing the account, and ease of making various forms of deposits; 
20 
b) the impact on eligibility for student financial aid, public assistance, and other public 
21 
benefits, and taxation of the account earnings and distributions; 
22 
c) the provision of financial education to children and families, and access to additional 
23 
financial services; 
24 
d) restrictions on the withdrawal or distribution prior to the child reaching age eighteen 
25 
(18), portability of the account, and limits on permissible uses of the account; 
26 
e) revenue sources for the initial deposit and any savings match for deposits for children 
27 
in low-income families; 
3 


1 
2 
3 
f) mechanisms for data collection and tracking; and 
g) all other factors that the task force deems important to the program design. 
4 
SEC. 6. Report and Implementation Plan. - The task force shall make a written report 
5 
of its findings and recommendations, including a strategic implementation plan for children's 
6 
savings account program, as well as make any additional reports deemed necessary and 
7 
appropriate to the Department of Finance not litter than September 1 st of the year this Act was 
8 
approved. 
9 
On or before the year this Act was approved, the Department of Finance shall present all 
10 
reports issued by the task force to the President and members of the Congress. The reports shall 
11 
be made available to the public. 
12 
13 
SEC. 7. Separability Clause. - If any provision of this Act shall at any time be found to 
14 
be unconstitutional or invalid, the remainder thereof not affected by such declaration shall 
15 
remain in full force and effect. 
16 
17 
SEC. 8. Repealing Clause. - All laws, decrees, rules or regnlations inconsistent with the 
18 
provisions of this Act are hereby repealed or modified accordingly. 
19 
20 
SEC. 9. Effectivity Clause. - This Act shall take effect after fifteen (15) days following 
21 
its complete publication in two (2) newspapers of general circulation. 
22 
23 
Approved 
4