, ' 
FIFTEENTH CONGRESS OF TilE 
) 
REPUBUC OF THE PHIUPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 318 
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%. For the first two months of 2009 when deployment grew by 47.4%, remittances 
have reached $1.3 billion, which is 2.5% higher relative to the same period last yearl . 
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 modem day heroes and 
their families a guaranteed capital to start off in the event that an unforeseen misfOltune 
afflicts them in the course of their work. 
This bill essentially seeks the creation of 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 of the welfare of our OFWs will be 
put forward. 
In view of the foregoing, the immediate approval of this bill is fervently sought. 
~1~\-
, 
~~TriNI~ "SONNY" F. TRILLANES IV 
Senator 
'Data retrieved 
from 
www.adb.orgldocuments/events/2009/Povertv-Social-Developmenllremittances: 
decline-phi-Songco-paper,pdf on 03 November 2009, 
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FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 318 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
.' .. 
CREATING 
THE 
OVERSEAS 
FILIPINO 
WORKERS 
PENSION 
AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Sltort Title. - This Act shall be known as the "Overseas Filipino 
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Workers Pension Fund Act of2010". 
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SEC. 2. Declaration of Policy. - It is the policy of the State to protect and 
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promote the welfare of Overseas Filipino Workers (OFWs) and to uplift the living 
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standards of the workers' families. Pursuant thereto, OFWs shall be encouraged remit 
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earnings from overseas and the . State shall, in tum, safeguard and oversee the 
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participation of the said workers' remittances and savings in investment and other 
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productive undertakings for the benefit of the national economy. 
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SEC. 3. Defillitioll of Terms. -
I) 
2) 
3) 
"Overseas Filipino Worker" shall refer to a Filipino citizen who is 
employed or has been employed outside of the Philippines; 
"Fund" shall refer to Overseas Filipino Workers Fund; 
"Board" shall refer to Overseas Filipino Workers Pension Fund Board; 
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4) 
"Beneficiaries" shall refer to the dependent spouse of an Overseas 
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Filipino Worker, his dependent children, who are the primary 
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beneficiaries. 
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In the absence of the foregoing, any other person designated by tlle OFWs. 
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SEC. 4. Overseas Workers Pension FUnll. - In accordance with the above-stated 
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policy, there shall be created an Overseas Filipino Workers Pension fund. All Overseas 
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Filipino Workers who are duly registered as such with the Philippine Overseas 
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Employment Administration (POEA) and the Commission on Filipino Overseas (CPO) 
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shall remit five percent (5%) of their gross monthly income to the Fund for five (5) years. 
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SEC. 5. Overseas Filipino Workers Pension Fund Boar. - The fund shall be 
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administered by the Overseas Filipino Workers Pension Fund Board, hereinafter referred 
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to as the Board. The Board is hereby vested with corporate powers in accordance with 
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existing laws and shall be composed of the following: 
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1) The Secretary of Labor and Employment, as Chairman; 
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2) The Secretary of Finance, as Member; 
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3) The Governor ofthe Bangko Sentral ng Pilipinas, as Member; 
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4) The Administrator of the Philippine Overseas Employment Administration 
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(POEA), as Member; and 
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5) One (1) representative of the OFWs, as Member, to be appointed by the 
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President upon the recommendation of the Secretary of Labor and 
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Employment. The representative shall receive a per diem of One Thousand 
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Pesos (PI ,000.00) and transportation cost for every Board meeting attended. 
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All ex-officio members of the Board shall receive no additional compensation. 
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The Board, shall within forty-five (45) days from the appointment of its members, 
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promulgate such regulations as may be necessary to implement the provisions of this Act. 
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In addition, the Board shall adopt the by-laws of the fund and set the date, time 
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and place of regular board meetings. The Board shall establish the eventual 
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organizational support, hire and oversee highly-competent personnel and/or existing 
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institution to implement the appropriate operating systems, plans and other provision of 
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this Act. 
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The Board shall, on a semi-annual basis, report to the President and to Congress 
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the progress of its tasks and business. 
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SEC. 6. Powers and Functions of the OFW Pension Fund Board. - The 
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Overseas Workers Pension Fund Board shall have the following powers and functions: 
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I) To encourage the· greater participation of OFWs in official remittances of 
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pension by way of: 
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a. developing a network/consortium of commercial banks to maximize 
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the use of their resources in serving the pension remittance needs of 
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OFWs; 
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b. enlisting the support of various government agencies in information 
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and marketing campaign concerning pension remittance services and 
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other programs; 
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c. issuing special receipts through accredited financial institutions as 
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evidence of the government's guarantee for the workers' foreign 
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exchange pension remittances; and 
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d. pooling the peso equivalent of pension remittances of OFWs coursed 
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through the banking system. 
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2) 
To accept and administer pension funds which shall then be guaranteed 
by the Republic of the Philippines, 
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3) 
4) 
5) 
6) 
To establish and implement a system to ensure that workers shall remit 
five percent (5%) of their gross monthly earnings to their host 
countries, 
To cause the conduct of periodic surveys about the condition of 
workers and workers' pension remittances, 
To administer other property under its custody, 
To adopt, amend or change its by-laws, to adopt, alter or use a seal; to 
enter into contracts; to sue and be sued; to exercise the general powers 
of a corporation. 
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SEC. 7. Administration. - There shall manage the day to day affairs of the Fund. 
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He shall serve as the Chief Executive Officer immediately responsible for carrying out 
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the programs and policies of the fund. He shall be assisted by a deputy administrator. 
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Both the administrators shall be appointed by the President of the Philippines. 
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SEC. 8. Effectivity Date of Coverage. - All OFWs are duly registered as such 
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with the Philippine Overseas Employees Administration andlor the Commission of 
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Filipino Overseas as provided in Section 4 hereof shall, for pension purposes, be 
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compulsorily covered on the first day of his employment in a foreign land. 
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SEC. 9. Effect of Separation from Employment. -
When a covered OFW is 
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separated from employment his obligation to pay contributions arising from that 
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employment shall cease at the end of the month of separation. However, he shall be 
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credited with all contributions paid and shall be entitled to pension benefit provided 
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under this Act, provided he has paid the minimum number of contributions. Otherwise, 
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his contribution shall be refunded to him with interest to be determined by the Board. 
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SEC. to. Monthly Pension. - The monthly pension of an OFW under this Act 
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shall be the sum of the following: 
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a. the average monthly salary credited mUltiplied by the replacement ratio; and 
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b. one and a half percent (1 Yz %) of the average monthly salary credit for each 
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credit year of service in excess of ten (10) years; 
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c. the monthly pension shall in no case be less than Five Hundred Pesos 
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(P500.00) nor paid in aggregate amount ofless than sixty (60) times the 
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monthly pension. 
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SEC. lI. Dependent's Pension. - The dependent's pension shall be equivalent to 
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ten percent (10%) ofthe monthly pension for each dependent's child, which shall not 
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exceed five, beginning with the youngest and shall be without substitution. 
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SEC. 12. Death Benefits. - Upon the death of a covered OFW, his primary 
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beneficiaries shall be entitled to the monthly pensions and dependents' pensions, 
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Provided, however, that the deceased has paid at least thirty-six (36) monthly 
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contributions prior to the semester of his death. If the foregoing condition is not satisfied, 
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his primary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-five 
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(35) times his monthly pension. 
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SEC. 13. Permanent Disability Benefits. - When a covered OFW suffers from a 
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permanent total disability, and such occurs after he had paid at least thirty-six (36) 
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monthly contributions prior to the semester of disability, he shall be entitled to the 
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monthly pension and his dependents to the dependents' pension. If the disability occurs 
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before ha has paid thirty-six (36) monthly contributions plior to the semester of disability, 
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he shall be entitled to a lump sum benefit equivalent to thirty-five (35) times the monthly 
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pensIOn. 
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SEC. 14. Rules and Regulations. - The Department of Labor and Employment 
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shall in coordination with the Overseas Employment Administration and the Commission 
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on Overseas, formulate the necessary rules and regulations that shall govern the 
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implementation of this Act. 
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SEC. 15. Appropriation. - The amount of Two Million Pesos (P2,OOO,OOO.OO) is 
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hereby appropriated from the National Treasury for the operation of the Fund, its 
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secretariat and personnel. Thereafter, the amount of Twenty Million Pesos 
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(P20,OOO,OOO.OO) is hereby appropriated to be taken from the Contingency Fund of the 
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Office of the President to complement the OFWs Pension Fund's Reserve. 
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SEC. 16. Repealing Clause. -
All laws, decrees, rules and regulations 
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inconsistent with the provision of this Act are hereby repealed or modified accordingly. 
Approved, 
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