THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORYNOTE 
Year after year, thousands of Filipinos seek advanced degrees and specialized training 
from various institutions abroad through scholarship grants. These scholarship 
programs have produced a considerable number of high-level professionals, vital to the 
country's economic development and progress. Sadly, many of the scholars who return 
to the country fail to find the opportunity for the maximum utilization of their newly 
acquired knowledge and training. Thus, the country continues to experience brain 
drain as these scholars leave for better pay and opportunities abroad. 
To put an end to this unfortunate occurrence, we must devise a program that shall 
pool together all foreign and local scholarship, whether public or private, meant for 
further education, development and training of our bright and promising Filipinos who 
are employed. 
This bill seeks to provide our country with a constant supply of highly trained leaders 
for industry, research and the academe. In this proposed measure, the maximum 
utilization of returning scholars will be coordinated under a single body where all 
scholarships are pooled together. 
In view of the significance of this bill to the country's development and progress, the 
approval of this bill is earnestly sought. 


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THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
AN ACT 
CREATING AN ADVANCED STUDIES DEVELOPMENT PROGRAM FOR 
EXCEPTIONAL EMPLOYEES FROM THE GOVERNMENT AND THE 
PRIVATE SECTOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and house of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This bill shall be known as "The Pensionado Act of 
2004." 
SECTION 2. Declaration of Policies. - Human resources development is essential 
for the economic development and progress. In the pursuit of economic development 
and progress, the State shall give priority to the creation of a critical mass of elite 
professionals who shall take the lead in harnessing science, technology and related 
disciplines towards accelerating the productivity of the country's human resources. 
Consonant with this thrust, it is hereby declared a policy of the State to devise 
a program for exceptionally able and highly motivated employees, preferably age 30 - 
40, from the government, the private sector and/or the self-employed to undertake 
advanced studies in branch of science, technology or related fields on learning on 
which depends the development and progress of the country. As such, it shall provide 
for fellowships to enable them to pursue advanced studies or research in their field of 
expertise. 
The State shall develop a critical mass of first-rate specialists in various 
disciplines and areas of specialization vital to national development to form a collective 
national "think tankt who shall place continuously their knowledge and skills at the 
service of the nation, be it in industry, the academe or the highest policy-making levels 
of the government, with the government taking the lead in harnessing their knowledge 
and skills for the greatest good of the country. 
SECTION 3. Definition of Terms. -For the purpose of this Act, the following terms 
(a) Post -- graduate - a formal degree course program of training/research 
(b) Advanced studies - a post-graduate problem oriented program of studies 
are hereunder defined accordingly: 
requiring at least a Master's Degree for entry; a student pursuing such program; 
and/or research, not necessarily leading to a degree, undertaken for further 
specialization or advanced knowledge in a specific field of a study, or to acquire 
specialized knowledge and/or skills in a particular area of science and 
technology; 
government under this program to undertake the advanced studies in selected 
institutions of higher learning or recognized research centers, in fields relevant to 
the officially-declared priority areas for development. 
(c) Pensionado - a Filipino citizen selected and supported by the Philippine 
SECTION 4. Establishment of a Program. - There shall be established under the 
Commission on Higher Education, hereafter referred to as the CIIED, in coordination 
with the non-government organizations (NGOs) , the private sector and other 


government agencies, namely, the National Economic Development Authority (NEDA) , 
the Department of Trade and Industry (DTI), the Department of Science and 
Technology (DOST) and the Department of Education (DepEd), fellowship program 
to 
be called as the "Pensionado Program'' for the private sectors and those who are 
self-employed. 
The Program shall pool together all fellowships, scholarships, training grants 
sponsored or extended by foreign governments, agencies and other bodies, as well as 
by local agencies and organizations, whether public or private, intended for advanced 
studies in international centers of advanced learning scholarship. 
SECTION 5. Establishment of a National secretariat; Functions and Composition. 
There shall be established National Secretariat, hereafter referred to as the Secretariat, 
with the following functions: 
1. To identify, and assist in negotiations with, sponsors (foreign and local, 
2. To provide assistance to the Selection Panel in accomplishing its work; 
3. To provide the Pensionados continuing assistance from the time of selection 
thru the time of their return to the country, including assistance for the productive 
utilization of their newly-gained expertise; 
4. To serve as the administrative arm of the government for the Program; 
5. In general, to promulgate and implement the policies and guidelines 
public and private) of fellowships, scholarships and grants; 
governing the Program. 
The National Secretariat shall be headed by an Executive Officer, with the rank 
of Assistant Secretary, to be appointed by the President of the Republic of the 
Philippines upon the recommendation of the CHED, 
Members of the Secretariat shall consist of representatives from the National 
Economic and Development Authority (NEDA), Department of Trade and Industry 
(DTI), Department of Science and Technology (DOST) and the Commission on Higher 
Education (CHED). These representatives shall be seconded to the Secretariat for a 
period of one year, subject to renewal every year. Service rendered thereat shall be 
considered as service in their prospective agencies and shall also be considered as part 
of their performance for promotions responses. 
SECTION 6. Number of Pensionados and Length of Grant. - There shall be 
selected twenty-four (24) fellows annually - three (3) fellows for each priority 
discipline/industry field of the eight (8) vital disciplines or areas of specialization 
identified by the CHED in consultation with the NEDA as frontiers or new areas 
essential for pushing the economic and social development thrusts of the country. The 
scholarship shall be for one year only. 
SECTION 7. Selection Process, - There shall be a Selection Panel under the 
Secretariat consisting of three (3) university presidents and two (2) eminent members 
from the academe to be appointed by the CHED. They shall serve, on a staggered basis 
for purposes of continuity and consistency, each for a term of three (3) years. 
The Selection Panel shall make the final selection of the Pensionados 
from among the nominees from the academe, industry and research centers. The 
integrity and objectives of the Program are paramount considerations for the Panel in 
making the selection. 
SECTION 8. Qualifications. -In order to qualify for the Fellowship Program, the 
applicant must be: 
(a) A Filipino citizen; 
(b) Gainfully employed; 
(c) A college degree graduate ,with honors; 


(d) With demonstrated leadership and proven exceptional performance in 
(e) Enthusiastic in undergoing further training; 
(q Willing to sign a contract requiring him/her to return to his job or in another 
his/her present work; 
capacity after one year of training. 
SECTION 9. Place of Study. - The Pensionados shall be sent to a foreign country 
well-known for its advanced stage in a particular discipline or area of specialization. 
Training and education may be in academic institution, research and development 
center (R & D) or a major establishment with an R & D program. It may or may not 
lead to an advanced academic degree. 
SECTION 10. Assistance to Grantees. - The Pensionado is entitled to the 
following benefits: 
(a) One year leave with pay, including allowances and other benefits; 
(b) One economy round-trip air fare to and from the host country plus other 
(c) Clothing allowance to be determined by the Secretariat; 
(d) Monthly stipend while on the study abroad , of such amount to be 
(e) Books/Instructional Materials/Research allowance of such amount to be 
(r) Health, Travel and Insurance fees of such amount to be determined by the 
travel expenses required for foreign travel; 
determined by the secretariat; 
determined by the Secretariat; 
Secretariat. 
SECTION 11. Program Funding. - The cost of each fellowship grant shall be 
shared by the Pensionado employer and the National Government- The employer pays 
the salary, allowances and other benefits due the Fellow as employed during one year 
period of advanced studies overseas while the National Government, thru the program, 
shall be responsible for items b, c, d, a and f as enumerated in Section 10 hereof. 
With the transfer of all pertinent foreign and local sponsored grants for 
coordination under the Program, the Government, thru the Program, may negotiate 
bilateral arrangements with host governments, host universities, most research 
institutions and host corporations to share at least 50% of the total cost of items b, c, 
d, a and f under Section 10 hereof. 
The National Government may also negotiate bilateral agreements with host 
governments, host universities research institutions and corporations to enable our 
scholars to stay abroad and continue their studies or training at a minimal cost to the 
National Government. A sharing program can be established where the host 
government, host universities, research institutions and corporations can pick up part 
of the expenses of the scholars while he is abroad. 
SECTION 12. Service Obligation. - Immediately upon completion of the studies 
or training, a Fellow shall be required to return to his job or in another capacity to 
approve by the Secretariat and serve on a full-time basis for a minimum period 
equivalent to twice the period covered by the fellowship grant. In addition, the scholar 
shdl be required to hold seminars or training sessions for employees from the 
government and the private sectors on topics related to the course or training he has 
completed. 
Any recipient of the program who has not completed his course shall 
reimburse the Fellowship the grant received or render service to the sponsoring agency 
or company for a period equivalent to the period covered by the fellowship grant. 
Any Pensionado who violates the service obligation imposed under this 
Section shall reimburse the sponsoring agency or company and the National 
Government of the fund assistance received under this Act in full or in part as the 
case may be. 


SECTION 13. Mechanism for Utilization of Returned Fellows. - There shall be 
established and National Network of Specialized Institutes for Advanced Studies in 
universities selected by CHED in consultation with the DOST and other appropriate 
agencies to be determined by the Secretariat to provide returned scholars an office, 
laboratory, library and conference facilities for their continuing scholarly work, 
research development and training activities. The institute shall also serve as a place 
for an Exchange Program and Collaborative Research among local and international 
scientist and scholars in priority areas or research and development. 
The National Government may, thru CHED and/or the National 
Secretariat, negotiate bilateral agreements with foreign government, universities, 
research institutions and corporations, public and private, to effect exchange of 
scholars and scientists for collaborative advanced studies, as well as to equip the 
institute for purpose of benefit to the cause of scholarly or scientific advancement and 
national development. 
A sharing program may be entitled may be established whereby the host 
government /university / institution / corporation can pick up part of the expenses of 
the Fellow in pursuit of his/her Fellowship. 
SECTION 14. Appropriations - The amount necessary to carry out the 
initial implementation of this Act shall be drawn from the savings of the National 
Government. 
Thereafter, the funds necessary for the continuous implementation of the 
Program shall be included in the General Appropriations Act. The Program shall 
receive 2% from the share of the DOST and 1% from the share of the Philippine Youth 
Commission in the Bases Conversion Development Authority (BCDA) proceeds. 
SECTION 15. Transfer of Other Fellowship, Scholarship and Training Grants. - 
All foreign and locally sponsored fellowship, scholarship and training grants will be 
transferred to the Program for coordination. With respect to government employees 
who may be affected by the transfer, the pertinent rules and regulations of the Civil 
Service Commission (CSC) shall apply. 
SECTION 16. Rules and Regulations. - Within ninety (90) days from the approval 
of this Act, the Secretariat shall promulgate the necessary rules and regulations for 
the effective implementation of the provisions thereof. 
SECTION 17. Repealing Clause. - All laws, decrees, orders, rules and 
regulations, or portions thereof, inconsistent with this Act are hereby repealed or 
modified accordingly. 
SECTION 18. Separability Clause - In the event that any of the provisions of 
this Act is declared unconstitutional, the validity of the other provisions shall not be 
affected by such declaration. 
SECTION 19. Effectivity. - This act shall take effect fifteen ( 15) days after its 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation. 
Approved,