Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

House Bill No.__5930

Introduced by Hon. James “Jojo” Ang Jr.

EXPLANATORY NOTE

This bill seeks to adjust the monthly pension and disability benefits of retirees of
the Department of Foreign Affairs (DFA) to be at par with the current pay scale enjoyed
by those in active service.

The Foreign Service Act (FSA) was enacted in 1952, providing the salaries and
benefits of the officers and employees of the Foreign Service. It was then revised in 1991
The FSA gave the power to the President, upon recommendation of the Secretary of
Foreign Affairs, to submit for enactment to Congress, a Foreign Affairs Retirement
Disability System, taking into account the difficulties of Foreign Service personnel in
settling aside sufficient savings to take care of their eventual retirement in the Philippines.
This is exacerbated by the increased burden of establishing a home in the Philippines
upon completion of their tour of duty abroad.

It has been thirty (30) years since the enactment of RA 7157. Now is therefore the
appropriate time to properly adjust the retirement benefits of those from the DFA by
enacting this bill. The adjustment of their monthly pension and disability benefits are all in
line with statutory intention to consider the difficulty of service that Foreign Service officers
and employees endure. In their years of service, they have prominently stood the in the
frontlines of international representation. Their voice was the voice of the Filipino people
overseas. They have served innumerable Filipinos in terms of crisis and critical situations
since the existence of the DFA.

The State is committed, and duty-bound, to honor the service of the officers and
‘employees of the DFA. As such, the adjustment in monthly pension and disability benefits
is a conscientious act to compensate what due to them in their retirement age.

In view of the foregoing the immediate consideration and pa:
eamestly sought.

Ge of this bill is



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

House Bill No.__ 5930.

Introduced by Hon. James “Jojo” Ang Jr.

AN ACT ADJUSTING THE MONTHLY PENSION AND DISABILITY BENEFITS OF
RETIREES OF THE DEPARTMENT OF FOREIGN AFFAIRS

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

Section 1. Short Title. The Act shall be known as the “Foreign Affairs Retirement
and Disability Benefits Act.”

Section 2. Covered Retirees and Retirement Benefits. This Act shall apply to
all retired officers and employees of the DFA who’

a. served in the Department for at least 15 years; and

b. are eligible to receive a monthly pension from the Government Service
Insurance System (GSIS)

They shall receive, during the residue of their natural life, an additional pension
which shall be the difference between their monthly pension and the highest monthly
salary of an incumbent officer or employee occupying the same or equivalent rank and
subject to further adjustment as provided under this Act.

This Act shall also apply prospectively to DFA officers and employees who
retired prior to the effectivity of this Act

All other officers and employees of the DFA who have also retired after serving
in the DFA but who have not met all the above-mentioned requirements, shall instead
be covered by applicable benefits under the GSIS Act, as amended.



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Section 3. Adjustment of Monthly Pension. The monthly pension benefits of all
retirees of the DFA, as provided under Republic Act No. 7157, shall, upon the
effectivity of this Act, be automatically adjusted to the existing rate, and any
‘subsequent increase thereof, of the salary grade of the rank they held upon their
retirement.

Section 4. Additional Entitlements. All officers and employees covered by
Section 2 of this Act, shall be eligible for disability and death benefits in the same
manner provided under the GSIS Act, as amended, and other relevant laws.

Section 5. Exemption of Pension from Income Tax, Attachment, Levy,
Gamishment. — Any pension granted to a beneficiary under this Act shall not, wholly
or partly, be subject to income tax, attachment, execution, forfeiture, or retention under
any legal or equitable proceedings, nor shall any lien of any kind or under any
consideration be imposed thereon

Section 6. Survivorship Benefits. In case of death of a DFA retiree or personnel
who has met the requirements provided in Section 2, the following shall be entitled to
receive the adjusted retirement benefits that the deceased was receiving or entitled to
receive: (a) their surviving spouse, during their lifetime, or until they remarry; and (b)
their dependent children. Said benefits shall be distributed or apportioned in
accordance with the GSIS Act, as amended

Section 7. Appropriation and Funding Source. - The differential funding
requirements for the initial implementation of this Act shall be charged against the
current year's savings of the DFA.

Thereafter, the annual differential amount necessary for GSIS to pay the
adjusted monthly pension and other benefits to implement the provisions of this Act
shall be included in the General Appropriations Act annually, to be sourced from the
DFA’s annual consular income as a percentage thereof.

Section 8. Implementing Rules and Regulations. - Within one hundred eighty
(180) days after the effectivity of this Act, DFA shall issue the necessary rules and
regulations for the effective implementation of this Act, in coordination with relevant
government agencies,

Section 9. Separability Clause. — if any provision of this Act is declared invalid
or unconstitutional, the remaining provisions not affected shall continue to be in full
force and effect. 5



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Section 10. Repealing Clause. — All laws, decrees, executive orders, or rules
and regulations contrary to or inconsistent with this Act are hereby repealed or
modified accordingly.

Section 11. Effectivity Clause. - This Act shall take effect fifteen (15) days
from its publication in the Official Gazette.

Approved,