NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
Section 4 of Article XV of the Constitution states that the family has the duty to care for 
its elderly but the State may also do so through just programs of social security. 
 Republic Act No. 1616 introduced a gratuity retirement mode, a one- time payment 
scheme of retirement benefits to government employees who have not yet reached the 
minimum number of years of service to qualify for the Old-Age Pension for Life retirement 
mode. However, the ambiguous phraseology of R.A. 1616 makes the government employees 
who were already legally qualified to retire under the Old-Age Pension for Life retirement mode 
were also covered by the said law.  
This bill seeks to remedy the prejudice caused to retirees by allowing them to convert 
their mode of retirement to the more beneficial Old-Age Pension for Life retirement with 
survivorship benefits. 
Funding for the implementation of the law shall be generated from a portion of the 
GSlS Residual Actuarial Reserve, part of which were accumulated from the payments and the 
investment earnings thereon that were saved by the GSlS for not having paid the retirees 
qualified to receive old-age pension for life who were instead paid a measly one-time lump 
sum by their employers. 
In view of the foregoing, early passage of this bill is earnestly sought. 
 RUFUS B. RODRIGUEZ 
April 11, 2023
8:00 am
7831


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
GRANTING OLD AGE PENSION FOR LIFE TO SENIOR CITIZENS WHO RETIRED UNDER 
REPUBLIC ACT 1616 AS WELL AS SURVIVORSHIP BENEFITS TO THEIR SURVIVORS  
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Declaration of Policy. It is the declared policy of the State to promote and provide 
a rising standard of living and an improved quality of life for all. In pursuit of such policy, the 
State recognizes the need and so undertakes to grant old age pension for life to senior citizens 
who retired under Republic Act 1616, as well as survivorship benefits to their survivors who 
are otherwise deprived thereof, in order that such pension would be responsive to their 
increasing needs. 
SECTION 2. Coverage. This Act shall cover senior citizens who retired under R.A. 1616 
effective June 1, 1977 and thereafter. 
SECTION 3. Change of Mode of Retirement. An employee who retired not earlier than June 
1, 1977 under R.A. 1616 but who is otherwise qualified to retire under R.A. 660 or PD 1146, 
shall hereafter automatically have this gratuity retirement converted to a pension system of his 
choice under existing laws that is more beneficial to him, and thereafter shall receive the old-
age pension for life as well as the survivors' benefits for this survivors provided under such 
laws. 
Additionally, the retiree or his survivors shall no longer be required to reimburse to the 
Government Service Insurance System (GSIS) the retirement gratuity previously received by 
him from his last employer as well as the refunds from the GSIS of the personal and employer's 
premium as the case may be but shall be considered as partial payment by the GSlS to the 
retiree under the pension law of his choice. 
SECTION 4. Status of the Converted Senior Citizen-Retiree. Upon approval of this Act, the 
status of the converted senior citizen - retiree shall, for all intents and purposes, be the same 
as though he has originally retired under the annuity Pension System, and henceforth be 
accorded all the present and future benefits and privileges accruing to a retiree under the 
annual Pension System. However, if an R.A. 1616 retiree prefers not to be converted under 
this Act, then he shall so state in writing to the GSIS. 
SECTION 5. Funding. Such sum as may be necessary for the payment of the 
retirement/survivorship benefits under Section 3 of this Act, shall be charged against the 
accumulated aggregate residual actuarial reserves as established pursuant to Section 24 (b) 
of Commonwealth Act 186, as amended, that the GSlS essentially saved from not being 
required to pay the old-age pension for life, as well as the survivorship benefits of thousand of 
R.A. 1616 retirees whose lump sum gratuity was each paid instead by his employer effective 
from the time R.A. 1616 took effect on May 31, 1975. 
7831


SECTION 6. Implementing Guidelines. The GSIS, in connection with the Department of 
Budget and Management, shall issue the necessary guidelines for the implementation of this 
Act not later than sixty (60) days after the approval hereof. 
 
SECTION 7. 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 full force and effect. 
 
SECTION 8. Repealing Clause. All laws, presidential decrees, letter of instruction, executive 
orders, rules and regulations or parts thereof inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
 
SECTION 9. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete 
publication in at least two (2) newspapers of general circulation. 
 
Approved,