Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5092
HOUSE BILL NO.

Introduced by Representative Gabriel H. Bordado Jr.

EXPLANATORY NOTE

In the State’s pursuit of providing good quality education to the Filipino
people, great emphasis should be placed on taking care of our teachers, who play an
integral part in shaping the minds of our youth, and in making the teaching
profession competitive and appealing to those who wish to engage in it.

With the current level of salary provided to them, some if not many teachers
might find it difficult to have additional funds for their financial security like availing
financial investments. Without such capacity, some wishing to go into the teaching
profession might be dissuaded and some teachers might leave the profession to look
for better opportunities. If this happens, the quality of education in the country
would surely be affected and would decline. Therefore, benefits extended to
teachers should not stop at salary increases alone but should also include access to
other financial instruments - like mutual funds - that could guarantee a more
financially stable future for them.

This Act seeks to establish an initial fund for teachers through a mutual fund
to ensure the financial security of our educators. It also seeks to designate a
government bank that will manage said mutual fund.

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GABRIEL H. BORDADO, J


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5092

Introduced by Representative Gabriel H. Bordado Jr.

AN ACT
ESTABLISHING AN EDUCATION MUTUAL FUND

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

SECTION 1, Short Title. - This Act shall be known as the “Educational Mutual Fund
Acti 3

SEC. 2. Declaration of Policy. a) The State recognizes the indispensable role of
teachers in educating our citizenry. It is thus but fitting that the State ensure that the
teaching profession attract the best and the brightest by making teachers’
compensation and benefits reasonably competitive.

b) In this regard, it is essential that the financial security of the teaching
profession be secured by contemporary and available means such as facilitating
their investment in mutual funds, an investment security type that enables investors
to pool their money together into one professionally managed investment.

SEC. 3. a) Upon approval of this Act, the Department of Education, Commission on
Higher Education (CHED) and the Technical Education Skills and Development
Authority (TESDA) shall create an Education Mutual Fund Committee that shall
study, formulate, and issue guidelines for the orientation of teachers on the
importance of mutual funds, and thereafter, the creation of a mutual fund for
educators, including the selection of the appropriate government banking
institution that will manage said fund.

SEC. 4. The Department of Education, Commission on Higher Education, and the
Technical Education Skills and Development Authority shall include in its programs


the provision of free financial education seminars to teachers that would include an
orientation on the ramifications of investments such as mutual funds,

SEC. 5. The funds necessary to carry out the provisions of this Act shalll be included
in the General Appropriations Act of the year following its enactment into law and
thereafter.

SEC, 6. All laws, orders, issuance rules and regulations or parts thereof inconsistent
with any provision of this Act are hereby repealed, modified, or amended
accordingly.

SEC. 7. This Act shall take effect upon its approval.

Approved.