Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 6765

Introduced by BAYAN MUNA PARTY LIST
Rep. NERI SAVIER COLMENARES

AN ACT CREATING THE BARANGAY PENSION FUND
TO PROVIDE PENSION BENEFITS TO ALL BARANGAY OFFICTALS

EXPLANATORY NOTE

While public officials in general, including elective officials, are given retirement
pensions and other benefits upon their retirement or when they vacate office, barangay
officials all over the country are treated differently as they are not given the same benefits.

This is surely unjust since Barangay officials fulfill a major public function in
administering to the needs of the people in barangays but unlike other public officials they
are left to fend for themselves once they leave office. It is very likely that many of these
officials do not have other jobs while serving as Barangay officials or have left their paying
jobs in order to focus their attention on their work as Barangay officials. Adding insult to
injury, the pay of Barengay officials are way below the already very low minimum wage
standards and are grossly inadequate to afford these officials some form of savings while they
are in office. in fact, their honoraria is dismally incapable of feeding and maintaining their
family.

‘These Barangay officials do not enjoy any form of social security upon leaving office
as they do not have the means or the income to meet the rising cost of living, their increasing
medical needs or just their day to day expenses. Instead of enjoying life during their
retirement, these officials are forced to look for paying work as they worry about where their
next meal will come from, or where they will get the funds for their maintenance medicine.
They deserve some form of benefit during their retirement days. Even those who are not yet
of retirement age but who failed to retain their post, also deserve some form of benefit since
they have also offered themselves to public service during their term, without receiving any
salary.

This Bill seeks to provide benefits to these barangay officials by providing them with
the means through pension, to start an income-generating activity or jump start their post-
Barangay Jife or just have some means to sustain their daily living expense. Said pension
shall be sourced from the use of the income derived from the extraction of natural gas in
Malampaya that forms part of Special Account in the General Fund (SAGF) 151 otherwise
known as the Malampaya fund. The Malampaya find, which as of 2011 totaled to

1


approximately PhP 125 Billion, does not form part of the source of funds for the annual
General Appropriations Act (GAA). This huge amount of money wastefillly languishes in the
said special account and merely serves as a “presidential pork barrel”. It is usually abused ~ if
not for corrupt transactions, it is misused in misplaced priorities and projects unfairty given to
favored individuals or agencies.

It is surely unacceptable that while Congress allocates and the national government
spends billions of pesos annually to fund the pension benefits of members of the Armed
Forces of the Philippines (AFP), whose pension fund was squandered by its pension fund
officials years ago, we have refused to do the same for the Barangay officials. Unlike the
soldiers, these Barangay officials took on their job without any salary, so it is certainly unjust
for government to deprive these officials of pension just because they have rendered public
service for free! In fact, unlike the billions allocated by the national budget each year to the
AFP pension fund, the Buranyay pension fund will use the Malampaya fund which dovs not
even form pert of the GAA.

Previous bills seeking to provide pension for Barangay officials, because it sourced its
funding from the GAA, foundered in the face of resistance from the Department of Budget
and Management (DBM) who jealously guarded the national budget from being used for
barangay pension, Many also found it improbable to source the same from the Local
Government Unit (LGU) - Intemal Revenue Allotment (IRA) which, in many cities and
municipalities, are barely enough for the needs of their communities. Bayan Muna, aware of
this situation, devoted a lot of effort in studying potential sources of funds before it filed this
bill.

This bill shoul not go the same route as the other bills because it has found a source of
funding called the Malampayu fund. Government camot deny Barangay officials the use of
the Malampaya fund because 80% of the Malampaya fund has remained untapped every year,
proof that there is no “pressing or urgent project or need” that will be deprived if the
‘Malampaya fund is used for the Barangay pension fund. In fact, the Commission on Audit
(COA) in its 2010 report criticized the lost opportunity which results by allowing the
Malampaya fund to languish untapped in a special account.

Congress is now asked to stand firm, and make use of the Malampaya funds for the
benefit of thousands of Barangay officials all over the country. It is time that the Malampaya_
fund be used for a worthwhile purpose — the granting of pension to Barangay officials who
have retired after years of service.

This bill concretely addresses a need and provides a solution to a scrious problem.
Colleagues in Congress must help end the discrimination and unfair treatment suffered by our
Barangay officials, who unlike other government employees, are deprived of their basie right
10 social security. The immediate passage of this Bill is strongly urged.

K\
a at JAVIER COI

Bayan Muna Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIV!
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

HOUSE BIEL No. 6765

Introduced by Reps. NERI JAVIER COLMENARES

AN ACT CREATING THE BARANGAY PENSION FUND
TO PROVIDE PENSION BENEFITS TO ALL BARANGAY OFFICIALS

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

SECTION 1.This Act shall be known as Baranguy Pension Fund Act of 2012.

SECTION 2. Dectaration of Policy. - It is hereby deciared the policy of the State to promote a
just and dynamic social order that will free the people from poverty through policies that provide
‘adequate social services, promote full employment, a rising standard of living, and an improved
quality of life for all.

SECTION 3. The Barangay Pension Fund (Fund hereafter) is hereby established to provide
pension benefits to all Barangay officials, specifically the Punong Barangay, members of the
Barangay Council, the Barangay Treasurer and the Barangay Secretary.

SECTION 4. Barangay Pension Fund Councit - There is hereby created an independent body
called Barangay Pension Fund Council with the foilowing duties and functions:
(1) to manage the funds and invest it properly to ensure its sustainability and increased
capacity to provide benefits,
(2) to approve the pension pian that shall become the basis for the allocation of benefits for
its pensioners,
(3) to promulgate implementing rules and regulations of this Act, and
(4) to perform other duties and functions towards the efficient and effective implementation
of this Act.


SECTION 5. Composition. - The Barangay Pension Fund Council shall be composed of the
Secretary of the Department of the Interior and Local Government (DILG), the Chairman of the
Government Service Insurance System (GSIS), the President of the Social Security System
(SSS), the President of the National Liga ng Barangay and five Punong Barangays to be
appointed by the President at large.

‘SECTION 6. The Barangay Pension Fund shall be funded from Special Account in the General
Fund (SAGF)151 otherwise known as the Malampaya Fund and shail include all the revenues
that shall accrue to the government from the service contracts and agreements involving the
Malampaya natural gas. Section 8 of Presidential Decree No. 910 is hereby amended
accordingly:

“Section 7. All fees, revenues and receipts of the Board from any and all sources including
receipts from service contracts and agreements such as application and processing fees, signature
bonus, discovery bonus, production bonus; all money collected from concessionsires,
representing unspent work obligations, fines and penalties under the Petroleum Act of 1949; as
well as the government share representing royalties, rentals, production share on service
contracts and similar payments on the exploration, development and exploitation of energy
resources, shall form part of a Special Fund to be used to finance energy resource development
and exploitation programs and projects of the government and for such other purposes as may be
hereafter directed by the President. PROVIDED, THE REVENUES IN SAGF 151
OTHERWISE KNOWN AS THE MALAMPAYA FUND SHALL BE EXCLUSIVELY USED
FOR THE BARANGAY PENSION FUND AS MAY BE PROVIDED BY LAW.”

SECTION 8. Repealing Ctause. — All laws, executive and administrative orders or parts thereof,
inconsistent with any provision of this Act are hereby repealed or ammended accordingly.

SECTION 9. Budgetary Appropriation. — An initial amount of TWENTY MILLION PESOS
{PhP 20,000,000.00) shall be appropriated from the General Appropriations Act for the
‘establishment and operations of the Barangay Pension Council

SECTION 10. This Act shall take effect after fifteen (15) days following the completion of its
publication in the Official Gazette or in a national newspaper of general circulation.

Approved,