Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1830

Introduced by Honorable Rex Gatchalian

EXPLANATORY NOTE

We may know what reasons our fellow Filipinos must have to leave the all
too familiar environment of their homeland to seek work in a foreign land, among a
cultural mix of employers. Bitter to the cold climate, indifferent to the racial slurs,
and painfully ignoring the angst of loneliness just to be able to earn that extra
money for the education of their children or in order to build that new house which
roof doesn’t get blown away by the passing storms. But we cannot really assume to
know what each of them goes through to fulfill these dreams.

Sometimes, these OFW's get lucky and through wise management of their
hard-earned money, they are able to establish small businesses or are able to save
up after their obligations are fulfilled. However, at the rate that our Philippine peso
is weakening in the world market, affected by the global increase of petroleum
products and the spiraling increase of the prices of our basic commodities, the
amount of remittances to the families of the OFW's now barely covers for their
needs. It has become more difficult to sustain the financial demands of daily living
much less project to expect savings for the proverbial rainy days. Some of them
come home, their bodies worn and tired with nary a single centavo to spare.

It is this concern for the welfare of our OFW's that we propose to initiate
this piece of legislation. In order to maximize the mantle of protection on our
Overseas Filipino Workers, we must extend to them the special benefit of a
Retirement Fund. Although this concept is not novel, as in fact a Provident Fund
was initiated by President GMA before, we propose herein a pecuniary aid that will
be set aside from the $25 contribution they put in to the Overseas Workers Welfare
Administration (OWWA) every time they depart from the Philippines or by voluntary
payment in job-sites overseas.

The objective of the bill is to provide the OFW’s who meet the requirements
set forth, to acquire the additional benefit when for some reasons, physical or
otherwise, they can no longer be further employed as an overseas worker. This
likewise provide as an incentive for our OFW's to diligently pay for their dues in


order that they may fall under the coverage of the Retirement Fund. This amount
although very meager, may come in handy in case of any financial set back that the
OFW may face when he returns to the Philippines.

The retirement fund does not seek any additional contribution from the
OFW. It only requires the payment of the $25 membership dues to the OWWA. This
bill will guarantee the payment of the retirement fund by the allocation of One
Billion Pesos (Php1,000,000,000) from the coffers of the now existing OWWA funds
amounting to over Ten Billion Pesos. The OWWA shall from time to time replenish
such sum or sums made from the grant of these retirement benefit, to maintain the
existing amount of one billion pesos.

If the OWWA Administration can spend hundreds of millions for mere
administrative expenses, all the more that in times when these OF W's return home,
their bodies worn and tired from physical and emotional struggles of working
overseas, and they need our hand to help them, our government should guarantee
them of the support.

Lest we forget, the Overseas Workers Welfare Administration is a
membership based institution. It was created to manage the funds of the OFW. Its
mandate then is to provide services to the OFW's.

1* Diétrict, Valenzuela City


Congress of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

1830

House Bill No.

Introduced by Honorable Rex Gatchalian

AN ACT
TO PROVIDE A RETIREMENT BENEFIT FOR
THE OVERSEAS FILIPINO WORKERS OTHERWISE KNOWN AS
“THE MIGRANT WORKER'S RETIREMENT ACT OF 2010”

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 “Migrant Worker's
Retirement Act of 2010”.

Section 2. Declaration of Policy. - It is the policy of the State to afford full
protection to labor, local and overseas, and towards this end, the State shall provide
adequate and timely social and economic services to Filipino Overseas Workers’, The
State shall endeavor to extend social security protection to OFW's and their
beneficiaries for contingencies that result in loss of income by reason of inability to
find another gainful employment overseas due to old age, disability and/or sickness.

Section 3. To carry out the purposes of this Act, the Overseas Workers
Welfare Administration (OWWA) is the agency duly designated to administer the
management of the retirement fund.

Section 4. Duties of the OWWA. - For the attainment of its main objectives
as set forth in Section 2 hereof, the OWWA shall have the following powers and
duties:

a) To adopt implementing rules, create guidelines as maybe necessary to
carry out the provisions of this Act, subject to the approval of Congress;

b) To establish a retirement fund for the members which will be set aside
from the $25 membership fee of the Overseas Filipino Worker, for the payment of
benefits to such members or their beneficiaries, subject to such rules and


regulations as it may promulgate;
c) To maintain this fund for the payment of benefits to such members,

d) To establish offices and authorize collecting agents in embassies or
consulates, wherever it maybe expedient and feasible provided that the persons
authorized to collect are bonded;

e) To submit annually, not later than April 30, a public report to Congress
covering its activities in the enforcement of this Act during the preceding year
including recommendations on policies for the development and perfection of the
Retirement Fund;

f) To require an actuarial reporting on the retirement benefit every four (4)
years, or more frequently as may be necessary, to undertake the necessary studies
and calculations concerning increases in benefits taking into account inflation and
the financial stability of the OWWA: Provided, That such increase in benefits shall
not require any increase in the rate of contribution;

g) To perform such other corporate acts as it may deem appropriate for the
proper enforcement of this Act

Section 5. Definition of Terms. - For purposes of this Act, the following
terms shall, unless the context indicates otherwise, have the following meanings:

a) OWWA - An attached agency of the Department of Labor and
Employment, is the lead government agency tasked to protect and promote the
welfare and well-being of Overseas Filipino Workers and their dependents.

b) Overseas Filipino Worker — refers to a worker who is to be engaged , is
engaged or has been engaged in a remunerated activity in a state of which he or she
is not a legal resident; to be used interchangeably with a Migrant Worker

c) Beneficiary — refers to an individual designated by the OFW to receive
the retirement benefit provided under this Act, upon his death. In the absence of an
express designation, the legal heirs provided in accordance with the law on
succession shall receive the retirement benefit.

d) Contributions — the amount of $25 paid to the OWWA by the OFW,
1) through enrollment, upon processing of the contract or; 2) by voluntary
registration at job-sites overseas, entitling him to various benefits and services.
These are properly receipted upon payment.

¢) Member ~ an OFW who has paid his yearly contributions and whose
name has been registered with the OWWA and the Philippine Overseas Employment
Administration (POEA) in a database which is updated regularly.


Section 6. Coverage. - Coverage in the OWWA Retirement Fund shall be
voluntary upon all Overseas Filipino Workers. Only those members who pay the
contribution may avail of this benefit. Provided however, that any other
benefit/privilege applied for or which otherwise may be availed of by the retiring
OFW at the time of the approval of this Act shall be cancelled in lieu of his
application for retirement. All other benefits/privileges which the migrant worker is
entitled to under the OWWA program shall be construed as forfeited, once the
application for the retirement benefits has been submitted. The OWWA member
shall be granted the retirement benefit only once during his lifetime.

Section 7. Date of Coverage — Coverage for the retirement benefit upon all
OWWA members shall commence upon the effectivity of this Act.

Section 8. Effect of Separation from Employment; grace period; - When a
migrant worker under the coverage of this Act, is temporarily separated from
employment, he may continue to pay his contributions in the same manner, in order
to maintain his right to the full benefit of the retirement fund. This manner of
contribution shall however be allowed for a period of two (2) years only. After the
grace period of two (2) years, the right to the retirement benefit shall be forfeited
unless gainful employment as an OFW, defined under the provisions of this Act, is
regained.

Section 9. Effect of Death of the Migrant Worker. - A migrant worker who
dies but is eligible to claim the retirement benefit provided under this Act, shall be
substituted in his claim by the persons he has appointed as beneficiaries, or in the
absence of such express provision, the legal heirs in accordance with the law on
succession.

Section 10. Retirement Benefits. - A member who has paid at least ten (10)
contributions of $25 to the OWWA Fund as membership dues shall be entitled to a
lump sum retirement amount of Fifty Thousand Pesos (P50,000.00).

The contribution shall be continuous and no retroactive payments shall be
allowed.

Any member who shall have exceeded the ten minimum contributions
shall be entitled to an additional ten percent (10%) increase of the retirement benefit
for every contribution made thereafter.

Section 11. Non-transferability of Benefits. - The OWWA shall promptly
pay the benefits provided for in this Act to the OFW or to such persons as maybe
entitled thereto. Such benefits are not transferable and is exclusive to the
beneficiaries appointed by the member or by law and no power of attorney or other
document executed by those entitled thereto, in favor of any agent, attorney, or any
other person for the collection thereof on their behalf shall be recognized

Section 12. OWWA Reserved Fund. - The OWWA shall appropriate the
amount of One Billion Pesos (P1,000,000,000.00) to assure the maintenance of an


adequate balance for the operation of the Retirement Fund. This amount shall be
held and applied exclusively for the retirement benefit of the OFW. Notwithstanding
any provision of law to the contrary, this amount shall not be diminished nor be
made chargeable with the liabilities arising out of any other business or programs
that the OWWA may conduct.

Section 13. Government Guarantee. - The benefits prescribed in this Act
shall not be diminished and to guarantee said benefits, the Government of the
Republic of the Philippines accepts general responsibility for the solvency of the
OWWA Retirement Fund.

Section 14, Remittance of Contributions. - The ten (10) minimum
contributions imposed in this Act shall be due from every departing OFW upon
enrollment or , by voluntary registration on job-sites overseas. The contributions
may be made on a contract basis, with renewal of memberships yearly or every two
years, depending on the stipulations in the contract of the OFW or in its absence, as
may be imposed by the OWWA or POEA.

Section 15, Method of Collection and Payment. - The OWWA shall require a
complete and proper collection and payment of contributions. It shall likewise
authorize collecting agents in embassies or consulates, provided that the persons so
authorized shall be bonded. Payment may be made in cash or check.

Section 16. Records and Reports. - The OWWA Administrator shall keep
and cause to keep records of operations of the funds of the OWWA and of
disbursements thereof and all accounts of payments made out of said funds. He
shall prepare for submission to the Congress of the Philippines a report of the
operations during the preceding year including the statistical data on the number of
persons covered and benefited. He shall likewise cause the publication in two (2)
newspapers of general circulation in the Philippines, one of which is a tabloid, a
synopsis of the annual report, showing in particular the status of the finances of the
OWWA and the retirement benefits administered.

Section 17. Penal Clause. - a) Whoever for the purpose of causing any
payment to be made under this Act, where none is authorized to be paid, or whoever
makes or causes to be made any false statement of a material fact in any claim for
the retirement benefit payable under this Act, shall suffer the penalties provided for
under Article One Hundred Seventy-Two of the Revised Penal Code.

b) Whoever shall obtain or receive any money or check under this Act or
any agreement there under, without being entitled thereto with intent to defraud any
member or the OWWA, shall be fined not less than Twenty Thousand pesos
(P20,000) or imprisoned for not less that six (6) years and one (1) day nor more than
twelve (12) years.

c) Whoever, with intent to defraud, alters, forges, makes or counterfeits
any receipt or any certification or document, issued by the OWWA or the employers
of the migrant worker, as proof for the collection or payment of any contribution


required herein or makes, uses, sells or lends or has in his possession any such
altered, forged or counterfeited materials shall be fined not less than Ten Thousand
pesos (P10,000) nor more than Twenty Thousand (P20,000), or imprisoned for not
less than six (6) years and one (1) day nor more than twelve (12) years, or both, at
the discretion of the court.

d) Whoever fails or refuses to comply with the provisions of this Act or with
the rules and regulations promulgated by OWWA, shall be punished by a fine of not
less than Ten (10) thousand pesos nor more than Twenty (20) thousand pesos and
imprisonment for not less than six (6) years and one (1) day nor more than twelve
(12) years.

e) Any employee or authorized representative of the OWWA who receives or
keeps funds or property belonging, payable or deliverable to the OWWA and who
shall appropriate the same, or shall take, or misappropriate, or shall consent or
through abandonment or negligence shall permit any other person to take such
property or funds, wholly or partially, or shall otherwise be guilty of
misappropriation of such funds or property, shall suffer the penalties provided in
Article Two Hundred Seventeen of the Revised Penal Code.

f) Criminal action arising from a violation of the provisions of this Act may
be commenced by the OWWA or the OFW concerned either under this Act or in
appropriate cases under the Revised Penal Code.

Section 18. Government Aid. - The establishment of the OWWA Retirement
Fund shall not disqualify the members from receiving such government assistance,
financial or otherwise as may be provided, from any other government agency of the
government.

Section 19. Separability Clause. - If any provision of this Act is declared
invalid, the other provisions not affected thereby shall remain valid.

Section 20. Repealing Clause. - All laws, proclamations, executive orders,
rules and regulations or parts thereof inconsistent with this Act are hereby repealed,
modified, or amended accordingly.

Section 21. Effectivity Clause. - This Act shall take effect fifteen (15) days
after after its complete publication in the Official Gazette or in at least two (2)
national newspapers of general circulation, one of which is a tabloid.

Approved,