Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2393

House Bill No.

Introduced by: HON. LORD ALLAN JAY Q. VELASCO

“AN ACT INCREASING PENSIONS 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

Under Republic Act No. 8262 or the Social Security Act, members with at least ten (10)
credited years of service are provided a monthly pension of P1,200; while those with
twenty (20) credited years are given P2,400.

With the rise in the cost of living, especially in the prices of medicines and other prime
commodities, these amounts are inadequate to meet the needs of the member
pensioners.

It is imperative, in light of the Social Justice policy enshrined in the Constitution, to
adjust the SSS pension rates to make them fairly responsive to the basic nec:
private employment retirees.

sities of

The early passage of this bill is earnestly sought to provide immediate relief to the
needs of our pensioners

LORD ALLAN JAY Q. VELASCO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

Introduced by: HON. LORD ALLAN JAY Q. VELASCO

“AN ACT INCREASING PENSIONS 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 the 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. -
(a) The monthly pension shall be the highest of the following amounts:
(1) The sum of the following:
(i) Three hundred pesos (P300); plus
Twenty percent (20%) of the average monthly salary credit, plus

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

(3) 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 TWO THOUSAND PESOS (P2,000) for members with at least ten (10)
credited years of service and FOUR THOUSAND PESOS (P4,000) for those with twenty
(20) credited years of service.

THE AFOREMENTIONED AMOUNTS SHALL BE SUBJECT TO
MANDATORY REVIEW BY THE COMMISSION THREE (3) YEARS AFTER THE
IMPLEMENTATION OF THIS ACT, AND EVERY THREE YEARS THEREAFTER.

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


SEC. 2. Implementing Rules and Regulation. - The Social Security Commission shall
promulgate the necessary rules and regulation or accordingly amend existing ones in
order to give effect to the provisions of this Act.

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

SEC. 4. Repealing Clause. - Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation inconsistent with this Act
is hereby repealed, modified or amended accordingly.

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

Approved,