SS
? RecevED™® ~
one: 26 AUG 2014 4

TIME:

Republic of the Philippines
HOUSE OF REPRESENTATIVE!
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

House BILL No. 4903

Introduced by Honorable MARK A. VILLAR:

EXPLANATORY NOTE

The Social Security System recently announced a five percent across-the-
board pension increase for its 1.9 million retired members effective June, 2014
However, the said increase is too small to meet skyrocketing expenses.

Indeed, a large number of SSS pensioners have been experiencing difficulties
‘owing to the continuing escalation of the cost of living in the country. Sadly, the
amount that these retirees receive as their monthly pension is rendered inadequate
to meet even the barest of their needs.

Under the 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.

In view of the social justice thrust of our Constitution, this bill seeks to
increase the current SSS pension rates until no retiree should receive no less than

P7,000 a month thus making it more responsive to the basic necessities of SSS
pensioners.

In light of the foregoing, immediate passage of this bill is earnestly sought.

eae

MARK A. VILLAR,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

House BILL No.4903

Introduced by Honorable MARK A. VILLAR

AN ACT
INCREASING PENSIONS UNDER THE SOCIAL SECURITY SYSTEM,
AMENDING FOR THE PURPOSE SECTION 12 OF R.A. 1161, AS AMENDED.

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. 2 8282, otherwise known, as the Social Security Act 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 (P300.00); plus

ii. Twenty percent (20%) of the average
monthly salary credit; plus

ill, 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 (P1,000.00): 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
(P1,200.00) for members with at least ten (10) credited years of
service and Two thousand four hundred pesos (P2,400.00) for
those with twenty (20) credited years of service] FOUR
THOUSAND PESOS (P4,000.00), THE FOUR THOUSAND
PESOS MONTHLY PENSION BENEFIT SHALL BE
INCREASED ANNUALLY BY FIVE HUNDRED PESOS
(P500.00) PER MONTH UNTIL THE MINIMUM MONTHLY
PENSION SHALL REACH SEVEN THOUSAND PESOS
(P7,000.00) PER MONTH

THE COMMISSION SHALL EQUITABLY ADJUST THE
MONTHLY PENSIONS OF OTHER ENTITLED MEMBERS OR
BENEFICIARIES WHOSE MONTHLY PENSIONS ARE
HIGHER THAN THE MINIMUM MONTHLY PENSION TO
PRESERVE THE INTEGRITY OF THE PENSION PROGRAM.

SEC. 2. THE NEW MONTHLY PENSION AND ITS ANNUAL INCREMENT
PROVIDED HEREIN SHALL APPLY TO ALL BENEFICIARIES REGARDLESS OF
THE EFFECTIVITY OF THEIR RETIREMENT.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in at
least two (2) national newspapers of general circulation, whichever comes earlier.

Approved,