Republic of the Philippines f 35
HOUSE OF REPRESENTATIVES KON
Quezon City CEIVED “A
SIXTEENTH CONGRESS OS FEB 2014

First Regular Session

HOUSE BILL No. 8851

Introduced by BAYAN MUNA.
Representatives NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE.

AN ACT INCREASING PENSIONS AND OTHER BENEFITS
UNDER THE SOCIAL SECURITY SYSTEM,
AMENDING FOR THE PURPOSE SECTION 12 OF R.A. 1161, AS AMENDED,
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW

EXPLANATORY NOTE

‘A large number of SSS pensioners have further suffered difficulties owing to the continuing
escalation of the cost of living in the country, which is due, in large part, to the downturn of the
global economy. ‘The amount that these retirees receive as their monthly pension is rendered sadly
inadequate to meet even the barest of their needs.

Under the new Social Security Act, otherwise known as Republic Act No. 8262, SSS
members with at least 10 credited years of service are provided a monthly pension of P1,200.00,
while those with 20 credited years are given P2,400.00. Those who retired under the old SSS Law,
R.A. 1161, are even more hard pressed because their monthly pension pays much less.

During the 15" Congress, House Bill 4365 was filed by Bayan Muna Party-List that sought
to increase the minimum SSS pension to P7,000. Bayan Muna launched a nationwide campaign to
gather support for the said bill to be enacted into law. Thousands of SSS pensioners and senior
citizens, as well as Local Government Units from all over the country, responded through petitions,
resolutions, letters, and telephone calls/messages which only reflected that there was indeed a
clamor for higher SSS pension rate. After a series of congressional hearings with consultations with
Senior Citizens and the SSS management in between, however, Congress was able to pass on third
reading HB 6748 adding only P1,000 - P2,000 to the current minimum Pension. ‘The effort was
also not enough to push the Senate and the Executive Department to enact the bill.

While also pushing for an increase in the SSS pension, the authors believe that there was no
need for a corresponding increase in the SSS premium to the pension increases because data


gathered state that SSS is capable of doing so. However, the premiums were inevitably increased by
the President, and without a corresponding increase in the pension rate.

Te.was also provided in Section 12-B of Republic Act No. 8262, otherwise known as the
Social Security Law, as amended, that the SSS pensioner “shall have the option to receive his first
eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest to be
determined by the SSS.” This provision, when availed by the members upon retirement, deprives
them of their monthly pension for eighteen (18) succeeding months.

“The above provision is inconsistent with the commitment of the law to provide monthly
pension to retitees, who worked hard and tirelessly and having separated a portion of their salary to
be contributed to the SSS so that when they retire they shall have monthly pension that they can use
to meet their needs, especially medical and other health needs,

It is the intention of this bill to augment the pension of our esteemed senior citizens who are
members of the SSS and contributed to the fund’s growth through their contributions. It is
necessary to provide additional benefit such as a six-month equivalent of their monthly pension to
be availed right after retirement which shall not be deducted from their monthly pension.

Having no other source of income, our senior citizen retirees depend only on their pension
to support their basic necessities, most especially medical and health needs. Giving them an
additional benefit upon retirement will help our retirees start a new life without ever worrying where
to get income for the succeeding months.

Our bill increasing the S8S pension is the approved House Bill 6748 re-filed that seeks to
increase the current SSS pension rate to make it more responsive to the basic necessities of SSS
pensioners. Immediate passage of this bill is eamestly sought for the benefit of SSS pensioners who
are mostly Senior Citizens with no other sources of income to support theit, and thei family’s, ever
increasing needs.

WS

(OLMENARES Rep. CARLOS ISAGANI T. ZARATE.
ha Party List Bayan Mina Party-List



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNo S891

Introduced by BAYAN MUNA.
Representatives NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE

AN ACT INCREASING PENSIONS AND OTHER BENEFITS
UNDER THE SOCIAL SECURITY SYSTEM,
AMENDING FOR THE PURPOSE SECTION 12 OF R.A. 1161, AS AMENDED,
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW

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

SECTION 1. Section 12 of Republic Act No. 1161, as amended by Republic Act No. 8282, is
hereby further amended to read as follows:
“SEC. 12. Monthly Pension. —
(@) The monthly pension shall be the highest of the following
amounts:
“(1) The sum of the following:
“() Three hundred pesos (P300); plus
“Gi) Twenty percent (20%) of the average monthly
salary credit; plus
“(ii) Two percent (2%) of the average monthly salary
credit for each credited year of service in excess of ten (10)
years; or
(2) Forty percent (40%) of the average monthly salary
credit; or
«@) One thousand pesos (P1,000): Provided, That the
monthly pension shall in no case be paid for an aggregate
amount of less than sixty (60) months.

“(b) Notwithstanding the preceding paragraph, the
minimum MONTHLY pension shall be [One thousand two
hundred pesos (P1,200)] FIVE THOUSAND PESOS
(P5,000.00) for members with at least ten (10) credited years of
setvice,fand Two thousand four hundred pesos (P2,400)for those
with twenty (20) credited years of service).



“THE NEW INCREASE SHALL BE GIVEN IN TWO
EQUAL INSTALLMENTS AND MUST BE COMPLETED
IN THREE (3) YEARS AFTER THE EFFECTIVITY OF
THIS ACT.

“THE COMMISSION SHALL EQUITABLY AND
PROPORTIONATELY ADJUST THE MONTHLY
PENSION OF OTHER ENTITLED MEMBERS OR
BENEFICIARIES TO PRESERVE THE INTEGRITY
AND FAIRNESS OF THE PENSION PROGRAM.”

SECTION 2. Section 12-B(a) of Republic Act No, 1161, as amended by Republic Act No. 8282, is

hereby further amended to read as follows:
“SEC. 12-B. Retirement Benefits,

(a) A member who has paid at least one hundred twenty (120)

monthly contributions prior to the semester of retirement and who
(1) has reached the age of sixty (60) years and is already separated
from employment ot has ceased to be self-employed or (2) has
reached the age of sixty-five (65) years, shall be entitled for as long
as he lives to the monthly pension{: Provided, That he shall have
the option to receive his first eighteen (18) monthly pensions in
lump sum discounted at a preferential rate of interest to be
determined by the $8S.}.”

“THEMEMBER SHALL ALSO BE ENTITLED TO AN
EQUIVALENT OF SIX (6) MONTHLY PENSIONS IN.
LUMP SUM,WHICH HE SHALL RECEIVE IN
ADDITION TO HIS FIRST MONTHLY PENSION.”

SEC. 3. Separability Clause. ~ Should any provision of this Act or any part thereof be declared invalid,
the other provisions, so far as they are separable from the invalid ones, shall remain in force and
effect.

SEC. 4, Repealing Clause
instruction, administrative order, rule or regulation inconsistent with thi
modified or amended accordingly.

~ Any law, presidential decree or issuance, executive order, letter of
Act is hereby rep

led,

SEC. 5. Effctivity Clause. "This Act shall take effect fifteen (15) days after its publication in at least
two (2) newspapers of general circulation.

Approved,