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* HOST OF REPRESENTATIVES

RECEIVED
Republic of the Philippines } ~ IL 2015
HOUSE OF REPRESENTATIVES! OE 25 a att
Quezon City j Tie, NM
SEVENTEENTH CONGRESS ey:
First Regular Session |
House Bill No. 1856 j REGISTRATION UNIT

|_ BILLS AND INDEX SERVICE

Introduced by Hon. Sol Aragones

EXPLANATORY NOTE

The Social Security System is mandated to carry out the State policy to establish,
develop, promote and perfect a sound and viable tax-exempt social security system suitable to
the needs of the people throughout the Philippines which shall promote social justice and
ards of disa

provide meaningful protection to members and their families against the

bility,
sickness, maternity, old age, death and other contingencies resulting in loss of income or
financial burden, Toward this end, the State shall endeavor to extend social security
protection to workers and their beneficiaries

In the period starting from 1980 to 1999, there were three years (1987, 1991, and
1993) when the pension rate was increased twice. From 1980 to 1999, it has been reported
that there were a total of 17 pension hikes with no amendments to the contribution rates.
However, this should not deter government from increasing the pension of the members. The
answer is to heighten collection efforts and to ensure that the funds are managed and spent
prudently. Given the rising cost of living brought about by regular inflation, it is imperative

on Government to ensure that our retirees are given the capacity to cope with these changes.

This bill is based on House Bill No. 5842 or the Social Security Act. It was approved
on Third Reading by the House of Representatives on 9 June 2015 and sent to the Senate for
their concurrence. It seeks to increase the monthly pension under the Social Security System
by two thousand pesos (P2,000.00). This measure seeks to benefit some 1.8 million retirees.

In view of the foregoing, the immediate passage of this bill is eamestly requested.

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SOL ARAGONES
Representative, 3 District of Laguna



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS

First Regular Session
House Bill No. ‘1856

ss
Introduced by Hon. Sol Aragones

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AN ACT MANDATING A TWO THOUSAND (P2,000) ACROSS-THE-BOARD
INCREASE IN THE MONTHLY PENSION WITH CORRESPONDING ADJUSTMENT
OF THE MINIMUM MONTHLY PENSION UNDER THE SOCIAL SECURITY SYSTEM,
AMENDING FOR THE PURPOSE SECTION 12 OF REPUBLIC ACT NO. 1611, AS
AMENDED, OTHERWISE KNOWN AS THE “SOCIAL SECURITY ACT OF 1997”

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

SECTION 1. Any provision of law to the contrary notwithstanding, the Social
Security Commission is hereby mandated to implement a Two thousand peso (P2,000.00)

across-the-board increase in the monthly pension under the Social Security System.

SECTION 2. Section 12 of Republic Act No. 1161, as amended by Republic Act No.

8282, is hereby further amended to read as follows:

“SEC. 12. Monthly Pension. - (a) The monthly pension shall be the highest of

the following amounts:

(1) The sum of the following:
i, Three hundred pesos (P300); plus
ii, Twenty percent (20%) of the average monthly salary credit; plus
iii, ‘Two percent (2%) of the average monthly salary credit for each credited
year of service in excess of ten (10) years; or

(2) Forty percent (40%) of the average monthly salary credit; or


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(3) One thousand pesos (P1,000): Provided, That the monthly pension shall in no case
be paid for an aggregate amount of less than sixty (60) months.

(b) Notwithstanding the preceding paragraph, the minimum MONTHLY pension shall
be [One thousand two hundred pesos (P1,200)] THREE THOUSAND TWO
HUNDRED (3,200) for members with at least ten (10) credited years of service and
[Two thousand four hundred pesos (P2,400)] FOUR THOUSAND FOUR
HUNDRED PESOS (P4,400) for those with twenty (20) credited years of service.”

SECTION 3. Any law, presidential decree or issuance, executive order, letter of

instruction, administrative order, rule, or regulation contrary to or inconsistent with the

provisions of this Act is hereby repealed, modified, or amended accordingly.

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“TION 4. This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation.

Approved,