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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
Third Regular Session 
fi .I' 
SENATE 
Senate Bill No. 3 4 14 
FtEGc,vrr, il 
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Introduced by SENATOR LACSON 
EXPLANATORY NOTE 
Year in and year out, retiring employees have to go through numerous delays, 
unnecessary aggravation, unreasonable excuses, and financial difficulties before they 
receive the retirement benefits that is rightfully theirs to begin with. This scenario is 
experienced by all types of employees, regardless if they are in the government or in 
the private sector. 
Whether the problem lies in the unexplainable delay in the 
processing of their retirement papers, or in the people who are responsible for releasing 
their retirement benefits, it is undeniable that this problem deserves the utmost attention 
of the government and must therefore be resolved through appropriate legislation. 
Retirement should be the rewarding moment of every employee who had 
rendered numerous years of service and dedication to his work. It should be the time to 
enjoy the benefits of so many years of hardwork. This prospect, however, of a relaxed 
and leisurely life is being dimmed by the trouble and intricacies of the process of 
receiving retirement benefits. 
This bill seeks to mandate the immediate release of all retirement benefits for 
both the government and private sectors, including but not limited to members of the 
Social Security System (SSS) and the Government Service and Insurance System 
(GSIS), on the day of an employment's retirement from the service. Employers should 
see to it that the processing of retirement papers is completed three (3) months prior to 
the date of retirement. Both the SSS and GSIS are also mandated to provide retirees 
the necessary prompt assistance for the early completion of their needed requirements 
as well as in the processing of their documents at least three (3) months prior to date of 
retirement. Any person who violates the right of retiring employees will, upon conviction, 
be penalized with imprisonment of not less than three (3) years and a fine of Twenty 
Thousand Pesos (P 20,000.00). 
Retirement benefits are ways of compensating and recognizing the long years of 
hardwork and dedicated service of employees. It is their right to receive this full and 
proper recognition. 
In view of the foregoing, the immediate enactment of this bill is earnestly sought. 


FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Third Regular Session 
1 
SENATE 
Senate Bill No. 39148 
Introduced by SENATOR LACSON 
"AN ACT MANDATING THE PAYMENT OF ALL RETIREMENT BENEFITS TO ALL 
GOVERNMENT AND PRIVATE EMPLOYEES ON THE DATE OF THEIR 
RETIREMENT" 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
Section 1. The retirement pay of all employees, whether in the government or private 
sector, including employment benefits under the law or collective bargaining agreement, 
shall be released on the date of their retirement. 
The payment of retirement benefits and pensions to all members of the Social 
Security System (SSS) and the Government Service and Insurance System (GSIS) 
shall also be made on the date of retirement. 
Section 2. The heads of all government agencies bureaus, corporations and private 
employers shall see to it that the processing of the papers of all their employees under 
compulsory and optional retirement shall be completed three (3) months before the date 
of their retirement, and for this purpose, immediately after the filing of application of 
retirement, shall notify or inform the retirees of the required papers and documents, and 
for them to submit the same within six (6) months before their date of retirement. 
Section 3. A Court Clearance shall be sufficient for the retirement of government 
employees, no other clearances shall be required: Provided, That any administrative 
case against a government employee shall be terminated at least three (3) months 
before the date of his retirement; and Provided, further: That any administrative case 
filed against a compulsory retiree within three (3) months before his date of retirement 
shall be considered a harassment suit unless otherwise found meritorious by the head 
of office or agency concerned. 
Section 4. The requirements for retirement in the SSS and in the GSlS shall be in 
simple forms and the retiring member shall be provided with the prompt assistance from 
said offices in the accomplishment of whatever requirements shall be needed as early 
as six (6) months prior to the retirement date. The SSS and GSlS shall expedite the 
processing of retirement papers and shall ensure that retirement papers are completed 
three (3) months prior to retirement date. 


Section 5. The government offices, bureaus and agencies or corporations concerned 
shall see to it that the funds shall be made available to the GSlS for the payment of 
benefits and gratuities of their retiring employees at least three (3) months before the 
date of their retirement. 
Section 6. The Department of Labor and Employment (DOLE) and the respective 
boards of the SSS and GSlS shall promulgate rules and regulations necessary to 
implement the provision of this Act within a period of thirty (30) days from the approval 
of this Act. 
Section 7. Penal Clause. -Whoever fails or refuses to comply with the provisions of 
this Act shall, upon conviction, be penalized with imprisonment of not less than three (3) 
years and a fine of Twenty Thousand Pesos (P 20,000.00). 
Section 8. Separability Clause. - If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions thereof. 
Section 9. Repealing Clause. - All laws, decrees, orders and issuances or portion 
thereof which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
Section I O .  Effectivity. -This Act shall take effect fifteen (15) days after its publication 
in at least two (2) national newspapers of general circulation. 
Approved,