SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES

“Introduced by Representative Rufus B. Rodrigue? ha ,/
_ Representative Maximo B. Rodriguez, Jr.

House Bill No. 4198
EXPLANATORY NOTE

Last 2001, the Electric Power Industry Reform Act (EPIRA) of 2001 took effect and
resulted in the restructuring of the electric power industry. As a result of this restructuring,
some government employees were separated from service. Knowing that this would happen,
the authors of the law thought it wise to put section 63 in the EPIRA law.

Section 63 provides that:
SEC. 63. Separation Benefis of Officials and Employees of
Affected Agencies. — National government employees displaced
or separated from the service as a result of the restructuring of the
electricity industry and privatization of NPC assets pursuant to this
Act, shall be entitled to either a separation pay and other benefits
in accordance with existing laws, rules or regulations or be entitled
to avail of the privileges provided under a separation plan which
shall be one and one-half month salary for every year of service in
the government: Provided, however, That those who avall of such
privilege shall start their government service anew if absorbed by
any government-owned successor company. In no case shall
there be any diminution of benefits under the separation plan until
the full implementation of the restructuring and privatization.

Displaced or separated personnel as a result of the
privatization, if qualified, shall be given preference in the hiring of
the manpower requirements of the privatized companies.

The salaries of employees of NPC shall continue to be
exempt from the coverage of Republic Act No. 6758, otherwise
known as “The Salary Standardization Act’

With respect to employees who are not retained by NPC,
the government, through the Department of Labor and
Employment, shall endeavor to implement re-training, job
counseling, and job placement programs.

However, as a result of this provision, the Government Service Insurance System
(GSIS) eventually discontinued the monthly pension of the EPIRA affected employees and
the retiring employees were no longer given any GSIS retirement benefits because they
interpreted the meaning of “separation pay and other benefits granted in accordance with
the existing laws, rules and regulations" in such a way as to include the GSIS retirement
benefits. According to the GSIS, since the separated employees opted to receive “1.5
month’s salary for every year of service”, they are no longer entitled to receive retirement
benefits,


Section 63 clearly pertains to separation benefits only with no mention of retirement
benefits and even the Joint Congressional Power Commission (JCPC) deliberated on this
and the definition of the separation benefits under the EPIRA Law,

In order to clarify the provision of the EPIRA, it is wise to amend Section 63 so as to
clearly give the separated employees what is due them in terms of retirement pension.

In view of the foregoing, immediate passage of this bills eamestly requested,

a
We
MAX! B. ROL RIGUEZ, JR.



SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr. _

House Bill No. Al 38

An Act
AMENDING SECTION 63 OF REPUBLIC ACT 9136, OTHERWISE KNOWN AS THE
ELECTRIC POWER INDUSTRY REFORM ACT OF 2011, BY EXCLUDING RETIREMENT
BENEFITS FROM THE COVERAGE OF THE SAID SECTION

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

SECTION 1. Section 63 of Republic Act 9136, otherwise known as the EPIRA Law is hereby
amended to read as follows:

SEC. 63. Separation Benefits of Officials and Employees of
Affected Agencies. — National government employees displaced
or separated from the service as a result of the restructuring of the
electricity industry and privatization of NPC assets pursuant to this
Act, [shall be entitled to either a separation pay and other benefits
in accordance with existing laws, rules or regulations or be entitled
to avail of the privileges provided under a separation plan which
shall be one and one-half month salary for every year of service in
the government: Provided, however, That those who avail of such
privilege shall start their government service anew if absorbed by
any government-owned successor company] SHALL BE
ENTITLED TO A SEPARATION PAY EQUIVALENT TO ONE
AND ONE-HALF MONTH SALARY FOR EVERY YEAR OF
SERVICE IN THE GOVERNMENT WHICH IS OVER AND
ABOVE THE EXISTING RETIREMENT BENEFITS IN
ACCORDANCE WITH —_ LAWS, RULES AND
REGULATIONS: PROVIDED, HOWEVER, THAT THOSE WHO
ARE ABSORBED BY’ ANY GOVERNMENT-OWNED
SUCCESSOR COMPANY, OR ANY GOVERNMENT
INSTITUTION OR GOVERNMENT OWNED AND CONTROLLED
CORPORATION NOT CREATED UNDER THE CORPORATION
CODE SHALL NOT SUFFER THE PENALTIES OF
DISCONTINUED SERVICE AND SHALL BE CONSIDERED TO
HAVE CONTINUOUS GOVERNMENT SERVICE FOR
PURPOSES OF RETIREMENT BENEFITS. THIS PROVISION
SHALL HAVE RETROACTIVE EFFECT. In no case shall there be
any diminution of benefits under the separation plan until the full
implementation of the restructuring and privatization


Displaced or separated personnel as a result of the
privatization, if qualified, shall be given preference in the hiring of
the manpower requirements of the privatized companies.

The salaries of employees of NPC shall continue to be
exempt from the coverage of Republic Act No. 6758, otherwise
known as “The Salary Standardization Act’

With respect to employees who are not retained by NPC,
the government, through the Department of Labor and
Employment, shall endeavor to implement re-training, job
counseling, and job placement programs.

SEC. 2. Repealing Clause — All laws, presidential decrees, executive and administrative
orders, rules and regulations, or parts thereof, inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 3. Effectivity — This Act shall _ take effect fifteen (15) days from the date of its
publication in at least three (3) national newspapers of general circulation.

Approved,