SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
‘Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.
House Bill No. 7634
EXPLANATORY NOTE

Section 4 of Article XV of the Constitution states that the family has the duty to
care for its elderly but the State may also do so through just programs of social
security

Republic Act No. 1616 introduced a gratuity retirement mode, a one- time
payment scheme of retirement benefits to government employees who have not yet
reached the minimum number of years of service to qualify for the Old-Age Pension for
Life retirement mode. However, the ambiguous phraseology of R.A. 1616 makes the
goverment employees who were already legally qualified to retire under the Old-Age
Pension for Life retirement mode were also covered by the said law.

This bill seeks to remedy the prejudice caused to retirees by allowing them to
convert their mode of retirement to the more beneficial Old-Age Pension for Life
retirement with survivorship benefits.

Funding for the implementation of the law shall be generated from a portion of
the GSIS Residual Actuarial Reserve, part of which were accumulated from the
payments and the investment eamings thereon that were saved by the GSIS for not
having paid the retirees qualified to receive old-age pension for life who were instead
paid a measly one-time lump sum by their employers.

In view of the foregoing, early passage of this bill is eamestly sought.

MAXIMO B. RODRIGUEZ, JR.


SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.
House Billo, 7634

AN ACT
GRANTING OLD AGE PENSION FOR LIFE TO SENIOR CITIZENS WHO RETIRED
UNDER REPUBLIC ACT 1616 AS WELL AS SURVIVORSHIP BENEFITS TO THEIR
SURVIVORS

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

‘SECTION 1. Declaration of Policy. It is the declared policy of the State to promote and
provide a rising standard of living and an improved quality of life for all. In pursuit of
such policy, the State recognizes the need and so undertakes to grant old age pension
for life to senior citizens who retired under Republic Act 1616, as well as survivorship
benefits to their survivors who are otherwise deprived thereof, in order that such
pension would be responsive to their increasing needs.

SECTION 2. Coverage. This Act shall cover senior citizens who retired under R.A.
1616 effective June 1, 1977 and thereafter.

‘SECTION 3. Change of Mode of Retirement. An employee who retired not earlier than
June 1, 1977 under R.A. 1616 but who is otherwise qualified to retire under R.A. 660
or PD 1146, shall hereafter automatically have this gratuity retirement converted to a
pension system of his choice under existing laws that is more beneficial to him, and
thereafter shall receive the old-age pension for life as well as the survivors’ benefits for
this survivors provided under such laws.

Additionally, the retiree or his survivors shall no longer be required to reimburse
to the Govemment Service Insurance System (GSIS) the retirement gratuity previously
received by him from his last employer as well as the refunds from the GSIS of the
personal and employer's premium as the case may be but shall be considered as
partial payment by the GSIS to the retiree under the pension law of his choice.

SECTION 4. Status of the Converted Senior Citizen-Retiree. Upon approval of this Act,
the status of the converted senior citizen - retiree shall, for all intents and purposes, be
the same as though he has originally retired under the annuity Pension System, and
henceforth be accorded alll the present and future benefits and privileges accruing to a
retiree under the annual Pension System. However, if an R.A. 1616 retiree prefers not
to be converted under this Act, then he shall so state in writing to the GSIS.

SECTION 5. Funding. Such sum as may be necessary for the payment of the
retirement/survivorship benefits under Section 3 of this Act, shall be charged against
the accumulated aggregate residual actuarial reserves as established pursuant to
Section 24 (b) of Commonwealth Act 186, as amended, that the GSIS essentially
saved from not being required to pay the old-age pension for life, as well as the
survivorship benefits of thousand of R.A. 1616 retirees whose lump sum gratuity was
each paid instead by his employer effective from the time R.A. 1616 took effect on May
31, 1975.


SECTION 6. Implementing Guidelines. The GSIS, in connection with the Department
of Budget and Management, shall issue the necessary guidelines for the
implementation of this Act not later than sixty (60) days after the approval hereof.

SECTION 7. Separability Clause. Should any provision of this Act or any part thereof
be declared invalid, the other provisions, so far as they are separable from the invalid
ones, shall remain in full force and effect.

SECTION 8. Repealing Clause. All laws, presidential decrees, letter of instruction,
executive orders, rules and regulations or parts thereof inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.

SECTION 9. Effectivity Clause. This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) newspapers of general circulation.

Approved,