Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

NINETEENTH CONGRESS
First Regular Session

tno. 2077

HOUSE BILL NO.

Introduced by: HON. MARCELINO C. LIBANAN

EXPLANATORY NOTE

Republic Act No. 7157, otherwise known as the Philippine Foreign Service Act of 1991, was
enacted into law on September 19, 1991

Section 63 thereof provides that “the President upon recommendation of the Secretary of
Foreign Affairs may, as soon as practicable practicable, submit for enactment by Congress of
a foreign affairs retirement and disability system, taking into account the difficulties of foreign
service personnel in setting aside sufficient savings to take care their eventual retirement in
the Philippines due to old age or some other disability, with the increased burden of
establishing a home in the Philippines after completion of their tour of duty abroad.”

Presently, the Congress has yet to pass a to implement the above provision.

In view thereof, this measure is humbly proposed in order to provide both the present and
future retirees of the foreign service the support that is adequate and responsive to their
needs, and to reassure them that their dedication and loyalty to the Filipino people is not
forgotten. This measure provides for the automatic adjustment of monthly pension of
covered members of the Foreign Service and other additional entitlements such as disability
and death benefits as provided under RA 8291 and other relevant laws

The approval of this bill is earnestly sought.

MARCELI! C> LIBANAN



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No, 4077

Introduced by: HON. MARCELINO C. LIBANAN

AN ACT ESTABLISHING THE FOREIGN SERVICE RETIREMENT PROGRAM
UNDER THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS),
IMPLEMENTING SECTION 62 OF REPUBLIC ACT NO. 7157,

ALSO KNOWN AS THE "FOREIGN SERVICE ACT OF 199°

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Declaration of Policy. — Article XVI, Section 8 of the 1987 Philippine
Constitution states that “the State shall from time to time review to upgrade the pensions and
benefits due to retirees of both government and private sectors.”

It is hereby declared as a State policy to provide adequate and reasonable retirement
program to the members of the Philippine Foreign Service to take care their eventual
retirement in the Philippines due to old age or some other disability, with the increased burden
of establishing a home in the Philippines after completion of their tour of duty abroad.

SEC 2. Coverage. - This Act shali apply to all officers and personnel of the Foreign
Service who retired prior to the enactment of this Act and will retire after the effectivity hereof,
provided the following conditions are met

a. Service in the Department of Foreign Affairs (OFA)or in other agencies of the government
for at least fifteen (15) years;

b. Members of and are eligible to receive a monthly pension from the Government
Service Insurance System (GSIS).

SEC. 3, Automatic Adjustment of Monthly Pension. - The monthly pension of all
members of the Foreign Service covered under this Act shall be automatically adjusted at the
same rate as any future or subsequent increase in the salary grade of the same rank he or she
retired from.

SEC. 4. Additional Entitlements. - All officers and employees by this Act shall be
eligible for disability and death benefits as provided under Republic Act No. 8291 and other
relevant laws.

SEC. 5. Funding. - Funding for the implementation of this Act shall be sourced from the
member-government contribution of the DFA, in accordance with RA 8291.


Differential funding for the implementation of this Act shall be sourced from any available
savings of the DFA, and from percentage of the annual consular income of the DFA as
included in the General Appropriations Act.

To ensure that the cost of this Retirement Program is adequately met, DFA and GSIS
shall meet on a yearly basis to discuss on the yearly funding requirement. Such funds
necessary to meet the yearly funding requirement which are beyond the GSIS mandated
contribution, shall be for the account of the DFA. The DFA shall remit to the GSIS as much
funds as may be necessary for the continued implementation of this Program.

SEC. 6. Implementing Rules and Regulations. - Within one hundred eighty days
(180 days) after the effectivity of this Act, the GSIS and the DFA shall jointly draft and issue
the rules and regulations for the implementation of this Act.

SEC. 7. Separability Clause. ~ \f any provision or part hereof is held invalid or
unconstitutional, the remainder hereof or the provision not otherwise affected shall remain
valid and subsisting.

SEC. 8. Repealing Clause. - All laws, presidential decrees or issuances,
executive orders, letters of instructions, administrative orders, rules and regulations contrary
to or inconsistent herewith are hereby repealed, modified or amended accordingly.

SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation.

Approved,