FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
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Second Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Improving financial literacy is a critical and complex task for Filipinos of all ages. 
Low levels of savings and high levels of personal and real estate debt are serious 
problems for many households nearing retirement. Personal savings rates have fallen to a 
dangerously low 2 percent. 
Studies have revealed that there is a substantial gender gap in all sources of 
retirement income including Social Security, pensions, savings and earnings from post- 
retirement employment. Because women have longer life expectancies, the number of 
poor older women is more than twice the number of poor older men. 
Mid-life and older individuals and families have a more limited time frame to 
assess the realities of their individual circumstances, to recover from counter-productive 
choices and decision-making processes, and to benefit from more informed financial 
practices. This situation has an immediate impact and near term consequences for 
Filipinos nearing or of retirement age. 
Research indicates that there are now four basic sources of retirement income 
security. Those sources are social security benefits, pensions and savings, healthcare 
insurance coverage, and, for an increasing number of older individuals, necessary 
earnings from working during 'retirement' years. It was also revealed that about a quarter 
of baby-boomer households have so far failed to accumulate significant savings and that 
they appear likely to depend entirely on government benefits in retirement. 
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Fraud against older individuals, including telemarketing schemes, predatory 
lending, identity theft and Internet fraud has risen dramatically. It is therefore the sense of 
Congress that, in providing assistance under this Act, the government will place a high 
priority on the provision of such assistance to organizations that have demonstrated 
experience in providing financial education to older women. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
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, 
Second Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
ESTABLISHING A GRANT PROGRAM TO ENHANCE FINANCIAL AND 
RETIREMENT LITERACY FOR MID-LIFE AND OLDER FILIPINOS 
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 “Retirement Security 
Education Act of 2008”. 
SECTION 2. Dejinition of Terms. As used in this Act unless the context indicates 
otherwise, the following definition of terms shall be adopted: 
A. “Financial Education” refers to education that promotes an understanding of 
consumer, economic, and personal finance concepts, including saving for 
retirement, long-term care, and estate planning and education on predatory 
lending, identity theft, and financial abuse schemes. 
B. “Mid-Life Individual” refers to an individual aged 45 to 64 years. 
C. “Older Individual” refers to an individual aged 65 or older. 
D. “Secretary” refers to the Secretary of Health. 
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SECTION 3. Grant Program to Enhance Financial and Retirement Literacy and 
Reduce Financial Abuse and Fraud among Mid-Lijie and Older Filipinos. 
A. Authority - The Secretary is authorized to award grants to eligible entities to 
provide financial education programs to mid-life and older individuals who reside 
in local communities in order to-- 
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a. services to mid-life and older individuals; 
1. enhance and promote knowledge of financial issues, long-tern care, and 
retirement issues among such individuals; and 
2. reduce financial abuse and fraud, including telemarketing, mortgage, and 
pension fraud, among such individuals. 
B. Eligible Entities- An entity is eligible to receive a grant under this section if such 
entity belongs to the following categories: 
1. a government agency or area agency on aging; or 
2. a non-profit organization with a proven record of providing-- 
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b. consumer awareness programs; or 
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c. supportive services to low-income families. 
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under this section. 
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E. Evaluation and Report- 
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1. Establishment of Performance Measures - The Secretary shall develop 
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measures to evaluate the programs provided with grant funds under this 
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section. 
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2. Evaluation According to Performance Measures - Applying the 
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performance measures developed under paragraph (l), the Secretary shall 
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evaluate the programs provided with grant funds under this section in 
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order to-- 
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a. judge the performance and effectiveness of such programs; 
C. Application - An eligible entity desiring a grant under this section shall submit an 
application to the Secretary in such form and containing such information as the 
Secretary may require, including a plan for continuing the programs provided 
with grant funds under this section after the grant expires. 
D. Limitation on Administrative Costs - A recipient of a grant under this section may 
not use more than 4 percent of the total amount of the grant in each fiscal year for 
the administrative costs of carrying out the programs provided with grant funds 
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b. identify which programs represent the best practices of entities 
developing such programs for mid-life and older individuals; and 
c. identify which programs may be replicated. 
F. Annual Reports - For each fiscal year in which a grant is awarded under this 
section, the Secretary shall submit a report to Congress containing a description of 
the status of the grant program under this section, a description of the programs 
provided with grant funds under this section, and the results of the evaluation of 
such programs under paragraph (2). 
SECTION 4. National Training and Technical Assistance Program. 
A. Authority - The Secretary is authorized to award a grant to one or more eligible 
entities to-- 
1. create and make available instructional materials and inforination that 
promote financial education ; and 
2. provide training and other related assistance regarding the establishment 
of financial education programs to eligible entities awarded a grant under 
section 3. 
B. Eligible Entities- An entity is eligible to receive a grant under this section if such 
entity is a nonprofit organization with substantial experience in the field of 
financial education. 
C. Application- An eligible entity desiring a grant under this section shall submit an 
application to the Secretary in such form and containing such information as the 
Secretary may require. 
D. Basis and Term- The Secretary shall award a grant under this section on a 
competitive, merit basis. 
SECTION 5. Appropriation. - The amount of One million.pesos (Pl,OOO,OOO.OO) is 
hereby authorized to be appropriated for the Grant Program to Enhance Financial and 
Retirement Literacy. Thereafter, the funds necessary for the operation of the Grant shall 
be included in the General Appropriations Act. 
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SECTION 6. Separability Clause. - If any provision or part thereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
SECTION 7. Repealing Clause. - All laws, presidential decree or issuance, executive 
orders, letter of instruction, administrative order, rule and regulation contrary to, or 
inconsistent with the provisions of this Act are hereby repealed, modified, or amended 
accordingly. 
SECTION 8. Effectivity Clause. - This Act shall take 'effect fifteen (15) days 
following its publication in at least two (2) newspapers of general circulation. 
Approved, 
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