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SIXTEENTH CONGRESS OF THE 
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H}lh{f (If t<l~ ~?", nba~ 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
"! 3 JUL 16 
f'~;:1 0 
SENATE 
829 
S.No. ___ _ 
Introduced by Senator Antonio "SONNY" F. Trillanes IV 
Explanatory Note 
Overseas Filipino Workers (OFWs) have been infusing a large amount of contribution into our 
nation's growth and development. Their remittances, to be specific, have significantly 
contributed in keeping the current account deficit manageable and in stabilizing the economy. 
OFW remittances, as estimated by the Bangko Sentral ng Pilipinas (BSP) almost tripled to $16.4 
billion in 2008, from $6.0 billion in 2000, or an annual average growth rate of 13.3%. Earlier this 
year, money sent home by the OFWs rose by 8.4 percent to $1.855 billion in January compared 
to last year's $1.7 billion1 
In this light, OFWs must be encouraged to remit their earnings from overseas and in tum, the 
State should safeguard and oversee the participation of the said workers' remittances and savings 
in investment and other productive undertakings for the benefit of our national economy. 
It is an undisputed fact that most of our OFWs are subject to strenuous and risky working 
conditions. Undeniably, they have been the victims of their employer's iniquitous labor practices. 
Bereft of opportunities in their mother country, they manage to endure these dismal plights 
abroad just to support their families left at home. 
Therefore, it is essential to devise a system that can afford these modern day heroes and their 
families a guaranteed capital to start off in the event that an unforeseen misfortune afflicts them 
in the course oftheir work. 
This bill essentially seeks the creation of the OFWs Pension Fund. It envisions to provide a 
mechanism for a more efficient and rationalized management of the OFWs pension fund through 
creating a board primarily tasked to administer and promote the OFWs and their families' 
interests. With this bill, a better promotion ofthe welfare of our OFWs will be put forward. 
In view of the foregoing, the inimediate approvai of this bill is fervently sought. 
ANTONIO "SONNY" F. TRILLANES IV 
Senator 
1 Data retrieved from http:/(www.phiistar.com(business(2013(03(16!920126(ofw-remittances-8-jan on 25 June 
2013. 
1 


F F 
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,~;H,;rUlh' 
SIXTEENTH CONGRESS OF THE 
) 
V,."'.,::(j (I~lfnr d til'; ~'f"'-~'~br~ 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL 16 P 5 :1 0 
SENATE 
829 
S.No. ___ _ 
Introduced by Senator Antonio "SONNY" F. Trillanes IV 
AN ACT 
CREATING 
THE 
OVERSEAS 
HLIPINO 
WORKERS 
PENSION 
AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House a/RepresentatIves of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Overseas Filipino 
2 
Workers Pension Fund Act of2013". 
3 
4 
SEC. 2. Declaration 0/ Policy. - It is the policy of the State to protect and 
5 
promote the welfare of Overseas Filipino Workers (OFWs) and to uplift the living 
6 
standards of the workers' families. Pursuant thereto, OFW s shall be encouraged remit 
7 
earnings from overseas and the State shall, in turn, safeguard and oversee the 
8 
participation of the said workers' remittances and savings in investment and other 
9 
productive undertakings for the benefit of the national economy. 
10 
11 
SEC. 3. Definition of Terms. -
12 
1) 
"Overseas Filipino Worker" shall refer to a Filipino citizen who IS 
13 
employed or has been employed outside of the Philippines; 
14 
2) 
"Fund" shall refer to Overseas Filipino Workers Fund; 
15 
3) 
"Board" shall refer to Overseas Filipino Workers Pension Fund Board; 
1 


1 
4) 
"Beneficiaries" shall refer to the dependent spouse of an Overseas 
2 
Filipino Worker, his dependent children, who are the primary 
3 
beneficiaries. 
4 
In the absence of the foregoing, any other person designated by the OFWs. 
5 
6 
SEC. 4. OverSeas Workers Pension Fund. - In accordance with the above-stated 
7 
policy, there shall be created an Overseas Filipino Workers Pension fund. All Overseas 
8 
Filipino Workers who are duly registered as such with the Philippine Overseas 
9 
Employment Administration (POEA) and the Commission on Filipino Overseas (CPO) 
10 
shall remit five percent (5%) oftheir gross monthly income to the Fund for five (5) years. 
11 
--
--
12 
SEC. 5. Overseas Filipino Workers Pension Fund Boar. - The fund shall be 
13 
administered by the Overseas Filipino Workers Pension Fund Board, hereinafter referred 
14 
to as the Board. The Board is hereby vested with corporate powers in accordance with 
15 
existing laws and shall be composed of the following: 
16 
1) The Secretary of Labor and Employment, as Chairman; 
17 
2) The Secretary of Finance, as Member; 
18 
3) The Governor of the Bangko Sentral ng Pilipinas, as Member; 
19 
4) The Administrator of the Philippine Overseas Employment Administration 
20 
(POEA), as Member; and 
21 
5) One (1) representative of the OFWs, as Member, to be appointed by the 
22 
President upon the recommendation of the Secretary of Labor and 
23 
Employment. The representative shall receive a per diem of One Thousand 
24 
Pesos (PI ,000.00) and transportation cost for every Board meeting attended. 
25 
All ex-officio members of the Board shall receive no additional compensation. 
26 
The Board, shall within forty-five (45) days from the appointment of its members, 
27 
promulgate such regulations as may be necessary to implement the provisions of this Act. 
2 


1 
In addition, the Board shall adopt the by-laws of the fund and set the date, time 
2 
and place of regular board meetings. The Board shall establish the eventual 
3 
organizational support, hire and oversee highly-competent personnel and/or existing 
4 
institution to implement the appropriate operating systems, plans and other provision of 
5 
this Act. 
6 
The Board shall, on a semi-annual basis, report to the President and to Congress 
7 
the progress of its tasks and business. 
8 
9 
SEC. 6. Powers (!.nd Functions of the OFW Pension Fund Board. - The 
10 
Overseas Workers Pension Fund Board shall have the following powers and functions: 
11 
1) To encourage the greater participation of OFWs in official remittances of 
12 
pension by way of: 
13 
a. developing a network/consortium of commercial banks to maximize 
14 
the use of their resources in serving the pension remittance needs of 
15 
OFWs; 
16 
b. enlisting the support of various government agencies in information 
17 
and marketing campaign concerning pension remittance services and 
18 
other programs; 
19 
c. issuing special receipts through accredited financial institutions as 
20 
evidence of the government's guarantee for the workers' foreign 
21 
exchange pension remittances; and 
22 
d. pooling the peso equivalent of pension remittances of OFWs coursed 
23 
through the banking system. 
= 
24 
25 
2) 
To accept and administer pension funds which shall then be guaranteed 
26 
by the Republic of the Philippines, 
3 


1 
3) 
To establish and implement a system to ensure that workers shall remit 
2 
five percent (5%) of their gross monthly earnings to their host 
3 
countries, 
4 
4) 
To cause the conduct of periodic surveys about the condition of 
5 
workers and workers' pension remittances, 
6 
5) 
To administer other property under its custody, 
7 
6) 
To adopt, amend or change its by-laws, to adopt, alter or use a seal; to 
8 
enter into contracts; to sue and be sued; to exercise the general powers 
9 
of a corporation. 
10 
11 
SEC. 7. Administration. - There shall manage the day to day affairs of the Fund. 
12 
He shall serve as the Chief Executive Officer immediately responsible for carrying out 
13 
the programs and policies of the fund. He shall be assisted by a deputy administrator. 
14 
Both the administrators shall be appointed by the President of the Philippines. 
15 
16 
SEC. 8. Effectivity Date of Coverage. - All OFWs are duly registered as such 
17 
with the Philippine Overseas Employees Administration and/or the Commission of 
18 
Filipino Overseas as provided in Section 4 hereof shall, for pension purposes, be 
19 
compulsorily covered on the first day of his employment in a foreign land. 
20 
21 
SEC. 9. Effect of Separation from Employment. -
When a covered OFW is 
22 
separated from employment his obligation to pay contributions arising from that 
23 
employment shall cease at the end of the month of separation. However, he shall be 
24 
credited with all contributions paid and shall be entitled to pension benefit provided 
25 
under this Act, provided he has paid the minimum number of contributions. Otherwise, 
26 
his contribution shall be refunded to him with interest to be determined by the Board. 
4 


1 
SEC. 10. Monthly Pension. - The monthly pension of an OFW under this Act 
2 
shall be the sum of the following: 
3 
a. the average monthly salary credited multiplied by the replacement ratio; and 
4 
b. one and a half percent (1 Yz %) of the average monthly salary credit for each 
5 
credit year of service in excess often (10) years; 
6 
c. the monthly pension shall in no case be less than Five Hundred Pesos 
7 
(P500.00) nor paid in aggregate amount ofless than sixty (60) times the 
8 
monthly pension. 
9 
10 
SEC. 11. Dependent's Pension. - The dependent's pension shall be equivalent to 
11 
ten percent (10%) of the monthly pension for each dependent's child, which shall not 
12 
exceed five, beginning with the youngest and shall be without substitution. 
-
-
[3 
"-'--:: 
14 
SEC. 12. Death Benefits. - Upon the death of a covered OFW, his primary 
15 . beneficiaries shall be entitled to the monthly pensions and dependents' pensions, 
16 
Provided, however, that the deceased has paid at least thirty-six (36) monthly 
17 
contributions prior to the semester of his death. If the foregoing condition is not satisfied, 
18 
his primary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-five 
19 
(35) times his monthly pension. 
20 
21 
SEC. 13. Permanent Disability Benefits. - When a covered OFW suffers from a 
22 
permanent total disability, and such occurs after he had paid at least thirty-six (36) 
23 
monthly contributions prior to the semester of disability, he shall be entitled to the 
24 
monthly pension and his dependents to the dependents' pension. If the disability occurs 
25 
before ha has paid thirty-six (36) monthly contributions prior to the semester of disability, 
26 
he shall be entitled to a lump sum benefit equivalent to thirty-five (35) times the monthly 
27 
pension. 
5 


I 
SEC. 14. Rules and Regulations. - The Department of Labor and Employment 
2 
shall in coordination with the Overseas Employment Administration and the Commission 
3 
on Overseas, formulate the necessary rules and regulations that shall govern the 
4 
implementation of this Act. 
S 
6 
SEC. 15. Appropriation. - The amount of Two Million Pesos (P2,OOO,OOO.OO) is 
7 
hereby appropriated from the National Treasury for the operation of the Fund, its 
8 
secretariat and personnel. Thereafter, the amount of Twenty Million Pesos 
9 
(P20,000,000.00) is hereby appropriated to be taken from the Contingency Fund of the 
10 
Office of the President to complement the OFWs Pension Fund's Reserve. 
II 
12 
SEC. 16. Repealing Clause. -
All laws, decrees, rules and regulations 
13 
inconsistent with the provision of this Act are hereby repealed or modified accordingly. 
Approved, 
6