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First Regular Session 
T 
enator 
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One of the greatest paradoxes of our age is that physical assets have 
ceased to be the main sources of wealth. In its place, human creativity has 
become the source of economic growth, impelling leaps and bounds in 
technology and economic productivity. 
Human brainpower will be the strongest motive force behind Philippine 
economic development in the third millenium. In order to harness the country’s 
intellectual resources, we need to put in place measures that will put an end to 
the brain drain and the migration of our brightest talents, and the non- 
development of potentials due to poverty. 
This bill seeks to harness and optimize our country’s intellectual 
resources through the establishment of the “Pensionado Program.” 
This 
program shall pool together all foreign and local public and private sponsorship 
intended for further education, enrichment and training of exceptionally able and 
highly motivated Filipinos employed in both the government and private sectors. 
The program will align sponsorships among priority areas identified to be critical 
to Philippine economic development, and provide incentives for the beneficiaries 
to put the skills and education acquired under training to the service of the 
Filipino nation. 
All parents know that education is tt-e most important investment for the 
future, and the most valuable legacy to bequeath to one’s children. We should 
therefore provide for measures to manage our country’s investments in higher 
education, and to ensure that they be put to productive use for the welfare of 
the entire nation. 
In view of the foregoing, early passage of this bill is earnestly requested 
a 
Senator 


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, 
Introduced 
enator 
. ~ s r n e ~ a  
Ill 
FOR 
THE 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
. - This bill shall be known as "The Pensionado 
Act of 2004." 
SECTION 2. Q ~ c l a ~ ~ ~ ~ o f f  
of olicies. - Human resources development is 
essential for economic development and progress. 
In pursuit of economic 
development and progress, the State shall give priority to the creation of a critical 
mass of elite professionals 
who shall take the lead in harnessing science, 
technology 
and related disciplines towards accelerating the productivity of the 
country's human resources. 
Consonant with this thrust, it is hereby declared a policy of the State to 
devise a program for exceptionally able and highly motivated employees, preferably 
age 30 - 45, from the government, the private sector and/or the self-employed to 
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undertake advanced studies in a branch of science, technology, or related fields 
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of learning on which depends the development and progress of the country. As 
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such, it shall provide for fellowships to enable them to pursue advanced studies ro 
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research.in their field of expertise. 
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The State shall develop a critical mass of first-rate specialists in various 
disciplines and areas of specialization vital to national development to form a 
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collective national “think tank” who shall place continuously their knowledge and 
skills at the service of the nation, be it in industry, the academe or the highest 
policy-making levels of the government, with the government taking the lead in 
harnessing their knowledge and skills for the greatest good of the country. 
SECTION 3. 
. - For purposes of this Act, the following 
terms are hereunder defined accordingly : 
a) Post-graduate - 
a formal degree course program or program of 
traininglresearch requiring at least a Master’s Degree for entry; a student 
pursuing such program; 
b) Advanced studies - a post-graduate problem-oriented program of studies 
and/or research, not necessarily leading to a degree, undertaken for further 
specialization or advanced knowledge in a specific field of study, or to 
acquire specialized knowledge andlor skills in a particular area of science or 
technology; 
c) Pensionado - A Filipino citizen selected and supported by the Philippine 
government under this Program to undertake advanced studies in selected 
institutions of hig heir learning or recognized 
research centers, in fields 
relevant to the officially declared priority areas for development. 
SECTION 4. € § f a ~ / i s ~ ~ ~ ~ ~  
of a Program .- There shall be established 
under the Commission on Higher Education, hereafter referred to as CHED, in 
coordination with the non-government organizations (NGOs) the private sector and 
other government agencies, namely the National Economic and Development 
Authority (NEDA), the Department of Trade and Industry (DTI), the Department of 
Science and Technology (DOST), 
and the Department of Education (DepEd) 
fellowship program 
to be called as the “Pensionado Program” 
for 
Filipinos 
employed in the government and the private sectors and those who are self- 
employed. 
The Program shall pool together all fellowships, scholarships, training grants 
sponsored or extended by foreign governments, agencies and other bodies, as 
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well as by local agencies and organizations, whether public or private, intended for 
advanced studies in international centers of advanced learning, or scholarship and 
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research. 
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SECTION 5. 
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referred to as the Secretariat, with the following functions: 
There shall be established a National Secretariat, hereafter 
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1. To identify and assist in negotiations with sponsors (foreign and local, public 
and private) of fellowships, scholarships and grants; 
2. To provide assistance to the Selection Panel in accomplishing its work; 
3. To provide the Pensionados continuing assistance from the time of selection 
through the time of their return to the country, including assistance for the 
productive utilization of their newly gained expertise; 
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5. In general, 
to promulgate and implement 
the policies and guidelines 
4. To serve as the administrative arm of the government for the Program; 
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governing the Program. 
The National Secretariat shall be headed by an Executive Officer, with the 
rank of Assistant Secretary, to be appointed by the President of the Republic of 
the Philippines upon the recommendation of the CHED. 
Members of the Secretariat shall consist of representatives from the National 
Economic and Development Authority (NEDA), Department of Trade and Industry 
(DTI), Department of Science and Technology (DOST) and the Commission on 
Higher Education (CHED). 
These representatives shall be seconded to the 
Secretariat for a period of one year, subject to renewal every year. 
Service 
rendered thereat shall be considered as service in their prospective agencies and 
shall also be considered as part of their performance for promotions purposes. 
SECTION 6. Number of Pensionados and Length of Grant - There shall 
be selected twenty-four (24) fellows annually - three (3) fellows for each priority 
discipline/industry/field of the eight vital disciplines or areas of specialization 
identified by CHED in consultation with the NEDA as frontiers 
or new areas 
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essential for pushing the economic and social development thrusts of the country. 
The scholarship shall be for one year only. 
. - There shall be a Selection Panel under 
SECTION 7. 
the Secretariat consisting of three (3) university presidents and two (2) eminent 
members from the academe to be appointed by the CHED. They shall serve, on 
a staggered basis for purposes of continuity and consistency, each for a term of 
three (3) years. 
The Selection Panel shall make the final selection of the Pensionados from 
among the nominees from the academe, industry 
and research centers. The 
integrity and objectives of the Program are paramount considerations for the Panel 
in making the selection. 
SECTION 8. 
Qua/ificafions. - 
In order to qualify for the Fellowship 
Program, the applicant must be: 
(a) A Filipino citizen; 
(b) Gainfully employed; 
(c) A college degree graduate, with honors; 
(d) With demonstrated 
leadership and proven exceptional 
performance in 
his/ h er present work; 
(e) Enthusiastic in undergoing further training 
(f) Willing to sign a contract requiring him/her to return to his job or in another 
capacity after one year of training 
SECTION 9. Place of §tu 
. - The Pensionados shall be sent to a foreign 
country well-known 
for its advanced stage in a particular discipline or area of 
specialization. Training and education may be in an academic institution, research 
and development center (R&D) or a major industrial establishment with an R&D 
program. It may or may not lead to an advanced degree. 
SECTION 10. 
ssistance to ranfees. - The Pensionado is entitled to 
the following benefits: 
(a) One year leave with pay, including allowances and other benefits; 
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(d) Monthly stipend which on study abroad, of such amount to be determined 
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by the Secretariat; 
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(b) One economy round trip air fare to and from the host country plus other 
travel expenses required for foreign travel; 
(c) Clothing allowance to be determined by the Secretariat; 
(e) Books, Instructional Materials/Research allowance of such amount to be 
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determined by the Secretariat. 
(9 Health, travel and insurance fees of such amount to be determined by the 
Secetariat. 
SECTION 11. Prog 
. - The cost of each fellowship grant shall 
be shared by the Pensionado’s employer and the National Government. The 
employer pays the salary, 
allowances and other benefits due the Fellow as 
employed during one year period of advanced studies overseas while the National 
Government, thru the Program, shall be responsible for items Letter b, c, d, e and 
f as enumerated in Section 10 hereof. 
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With the transfer of all pertinent foreign and local sponsored grants for 
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coordination under the Program, the Government, thru the Program may negotiate 
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bilateral arrangements with host governments, host universities, host research 
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institutions and host corporations to share at least 50% of the total cost of items 
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Letter b, c, d, e and f under Section 10 hereof. 
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The National Government may also negotiate bilateral agreements with host 
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governments, host universities, research institutions and corporations to enable 
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our scholars to stay abroad and continue their studies or training at a minimal cost 
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to the National Government. A sharing program can be established where the 
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host government, host universities, research institutions and corporations can pick 
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up a part of the expenses of the scholars while he is abroad. 
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SECTION 12. 
ation. - 
Immediately upon completion of the 
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studies or training, a Fellow shall be required to return to his job or in another 
capacity approved by the Secretariat and serve on a full-time basis for a minimum 
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period equivalent to twice the period covered by the fellowship grant. In addition, 
the scholar shall be required to hold seminars or training sessions for employees 
from the government and the private sectors on topics related to the course or 
training he has completed. 
Any recipient of the program 
who has not completed his course shall 
reimburse the Fellowship the grant received or render service to the sponsoring 
agency or company for a period equivalent to the period covered by the fellowship 
grant. 
Any Pensionado who violates the service obligation imposed under this 
Section shall reimburse the sponsoring agency or company and the National 
Government of the fund assistance received under this Act in full or in part as the 
case may be. 
SECTION 13. ~ e ~ ~ a n i s ~  
for ~ ~ i l i ~ a t i Q ~  
of Returned Fellows. - There 
shall be established 
and developed a National Network of Specialized Institutes 
for Advanced Studies in universities selected by CHED in consultation with the 
DOST and other appropriate agencies to be determined by the Secretariat to 
provide returned scholars an office, laboratory, library and conference facilities 
for their continuing scholarly work, research development and training activities. 
The Institute shall also 
serve as a place for an Exchange Program 
and 
Collaborative Research among local and international scientists and scholars in 
priority areas of research and development. 
The National Government may, thru 
the 
CHED and/or 
the National 
Secretariat, negotiate bilateral agreements with foreign government, universities, 
research institutions and corporations, 
public and private to effect exchange of 
scholars and scientists for collaborative advanced studies, as well as to equip the 
Institute for purposes of benefit to the cause of scholarly or scientific advancement 
and national development 
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A 
sharing ' program 
may 
be 
established 
whereby 
the 
host 
can pick up part of the expenses of 
governrnent/university/institution/corporation 
the Fellow in pursuit of his/her Fellowship. 
SECTION 14. 
. - The amount necessary to carry out the 
initial implementation if this Act shall be drawn from the savings of the National 
Government. Thereafter, the funds necessary for the continuous implementation 
of the Program shall be included in the General Appropriations Act. 
The Program shall receive two-tents percent (0.2%) from the share of the 
DOST and one percent (1%) from the share of the Philippine Youth Commission in 
the Bases Conversion Development Authority (BCDA) proceeds. 
SECTION 15. Tran 
fher ~ e l l o w ~ ~ i  
rants. - All foreign and locally sponsored fellowship, scholarship and training 
grants 
will be transferred 
to the Program for coordination. 
With respect to 
government employees who may be affected by the transfer, the pertinent rules 
and regulations of the Civil Service Commission (CSC) shall apply. 
SECTION 16, 
egulafions. - Within ninety (90) days from the 
approval of this Act, the Secretariat shall promulgate the necessary rules and 
regulations for the effective implementation of the provisions thereof. 
SECTION 17. Repealing Clause. - All laws, decrees, orders, rules and 
regulations or portions thereof, inconsistent with this Act are hereby repealed or 
modified accordingly. 
SECTION 18. Separability Clause. - In the even any of the provisions of 
this Act is declared unconstitutional, the validity of the other provisions shall not be 
affected by such declaration. 
SECTION 19. EfTecfivify 
use . - This Act shall take effect fifteen (IS) 
days after its publication in the Official Gazette or in at least two (2) national 
newspapers of general circulation. 
Approved, 
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