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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City ?
SEVENTEENTH CONGRESS yy
First Regular Session

House BILL No. 3790

Introduced by Rep. Winston “Winnie”Castelo

EXPLANATORY NOTE
These are hard times.
The cost of living is rising and the prices of basic commodities are skyrocketing.
Thus, there ought to be a scheme in the Social Security System whereby private
employees could avail of two things, namely - shelter and cash — as a form of “safety
Certainly, the welfare and benefit of employees in the private sector have equal weights

with those in the public sector since the funds that go into these insurance systems do
come from them.

It is only fitting and proper that the funds get back to them, one way of another in thd,
form of institutionalizing a system where Reserve Funds could be ipCreased in order to
satisfy members seeking loans for housing, salary, calamify, emergency and
educational loans in the case of the SSS.

Hence, the swift passage of this humble measure is most earngstly prayed.


Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

House BiLLNo,_ 3790

Introduced by Rep. Winston “Winnie”Castelo

AN ACT
AMENDING SECTION 26 OF REPUBLIC ACT NO. 8282 OTHERWISE KNOWN AS THE
SOCIAL SECURITY ACT OF 1997 INCREASING THE INVESTMENT FOR HOUSING
PURPOSES AND SHORT AND MEDIUM TERM LOANS FROM THE INVESTMENT
RESERVE FUNDS OF THE SYSTEM

Be it enacted in the Senate and the House of Representatives of the Republic of the
Philippines in Congress assembled”

SECTION 1. Section 26 of Republic Act No. 8282 is hereby amended to read as
follows:

“SEC. 26. Investment of Reserve Funds. — All revenues of the SSS that are not
needed to meet the current administrative and operational expenses incidental to
the carrying out of this Act shall be accumulated in a fund to be known as the
“Reserve Fund.” Such portions of the Reserve Fund as are not needed to meet
the current benefit obligations thereof shall be known as the Investment Reserve
Fund which the Commission shall manage and invest with the skill, care,
prudence and diligence necessary under the circumstances then prevailing that a
prudent man acting in like capacity and familiar with such matter would exercise
in the conduct of an enterprise of a like character and with similar aims.
Pursuant thereto, and in line with the basic principles of safety, good yield and
liquidity, the Commission shall invest the funds to earn an annual income not less
than the average rates of treasury bills or any other acceptable market yield
indicator in any or all of the following:

“(a) 000 OK OOK)
*(b) x00 300K XXX!
#(c) 00x 00K 0006;
“(d) 0K OOK XXX)

“(e) in bonds, securities, promissory notes or other evidence of
indebtedness of shelter agencies of the National Government or financial
intermediaries to finance housing loans of members, and in long-term direct or
individual or group housing loans giving priority to the low-income groups, up to a


maximum of ninety percent (90%) of the appraised value of the properties to be
mortgaged by the borrowers; and

“In short and medium term loans to members such as salary, educational,
livelihood, marital, calamity and emergency loans; Provided, That NOT MORE
THAN FORTY-FIVE PERCENT (45%) of the Investment Reserve Fund at any
time shall be invested for housing purposes: Provided, further, That not more
than FIFTEEN PERCENT (15%) of the Investment Reserve Fund shall be
invested in short and medium term loans;

“(f) x00 200K 20006;
"(g) xxx 200K 20K;
“(h) xOK 000K 00K;
“(i) 00x 200K XXX;
“G) 00% 300K 20K;
*(k) 00K 200K XXX;
“() 00K OOK 20x; and
“(m) 00x 200K YOOX;

No portion of the Investment Reserve Fund or income thereof shall accrue
to the general fund of the National Government or to any of its agencies or
instrumentalities, including government-owned or controlled corporations, except
as may be allowed under this Act: Provided, that no portion of the Investment
Reserve Fund shall be invested for any purpose or in any instrument, institution
or industry over and above the prescribed cumulative ceilings as follows:

40% in private securities
45% in housing

30% in real estate related investments

45% in short and medium-term members’ loans

30% in government financial institutions and corporation
30% in infrastructure projects

15% in any particular industry

7.5% in foreign-currency denominated investments;

SEC. 2. If any provision of this Act is declared invalid, the other provisions not
affected thereby shall remain valid.

SEC. 3. All laws, proclamations, executive orders, rules and regulations or parts
thereof inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) national newspapers.

Approved,