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Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.1642

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

EXPLANATORY NOTE

According to the 2015 Economic Insight Report of the Institute of Chartered
Accountants in England and Wales or the ICAEW cites the Philippines as the fastest
growing economy in the Southeast Asian region, recording a gross domestic product
growth of 6.2 percent in 2015. However, the growth momentum of the economy is
undermined by human capital flight or “brain drain.” The ICAEW further reported that
the Philippines lost an estimated ten percent of its population to work abroad, including
many highly-qualified professionals. This phenomenon continues to deprive us of
national development as the best and the brightest of the Filipinos have left the country
for greener pastures.

This bill sceks to reverse human capital flight by establishing a fellowship
program for qualified Filipino professionals from the public and private sectors and for
those who are self-employed

Through this initiative, we are allowing our helping our professionals obtain high-
quality credentials, new skills, and expanded professional networks. This may lead to the
development of the country’s workforce as the returning professional scholars are
expected to exert a broader influence on those around by applying their knowledge and
networks that they developed overseas. Therefore, this proposal will surely effect the
advancement of the Philippine economy and improvement of the country’s capacity and
potential for innovation.

In view of the foregoing, the passage of this bill is sought.

ALFRED VARGAS


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.1642

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

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
2019."

SEC. 2. Declaration of Policies - Human resources developments are essential
for 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 30 to 40
years old, from the government, the private sector and/or the self-employed to undertake
advanced studies in a branch of science, technology or related fields of learning on which
the development and progress of the country depends on. 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 specialist in various disciplines
and areas of specializations vital to national development to form a collective national
“think tank” who shall place their knowledge and skills continuously at the service of the
nation, be itin industry, the academe or the highest policy-making levels of government,
with the government taking the lead in harnessing their knowledge and skills for the
greatest good of the country,

SEC. 3. Definition of Terms, - For purposes of this Act, the following terms are
hereunder defined accordingly:


a) Graduate - formal degree course program of education, training or research
requiring at least a Bachelor's Degree for entry; a student pursuing such
program;

b) Post-Graduate - a formal degree course program of education, training or
research requiring at least a Master's Degree for entry; a student pursuing such
program:

©) Advanced studies ~a graduate or post-graduate, problem-oriented program of
studies 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
or technology; and

d) Pensionado - a Filipino citizen selected and supported by the Philippine
government under this program to undertake advanced studies in selected
institutions of higher learning or recognized research centers, in fields
relevant to the officially-declared priority areas for development.

SEC. 4. Establishment of a Program.-There shall be established under the
Commission on Higher Education, hereafter referred to as CHED, in coordination with the
non-government organizations (NGOs), the private sector and other government
agencies, namely, the National Economic and Development Authority (NEDA), the
Department of Trade and Industry (DTI), the Department of Science and Technology
(DOST) and the Department of Education (DepEd), a fellowship program to be called as
the "Pensionado Program” for Filipinos employed in the government and the private
sectors and those who are self-employed. The program must be designed based on
specific objectives and include concrete plans to measure their impact on the country's
national development.

The program shall pool together all fellowships, scholarships, training grants
sponsored or extended by foreign government, 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 and research.

SEC, 5. Establishment of a National Secretariat; Functions and Composition.
- There shall be established a National Secretariat, hereafter referred to as the
Secretariat, with the following functions

a} Identify and assist in negotiations with sponsors (foreign and local, public and
private) of fellowships, scholarships and grant

b) Provide assistance to the selection panel in accomplishing its work;

c) Provide the Pensionados continuing assistance from the time of selection
through the time of their return to the country, including assistance for the
productive utilization of their newly-gained expertise;

d) Serve as the administrative arm of the government for the program; and


¢) In general, promulgate and implement the policies and guidelines 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 NEDA, DTI, DOST and 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 part of their performance for promotions
purposes.

SEC. 6, Number of Pensionados and Length of Grant. - There shall be selected
twenty-four (24) fellows annually - three (3) fellows of each priority discipline /industry
field of the eight (8) vital disciplines or areas of specializations 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 a period not
exceeding three (3) years

SEC. 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 the
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.

SEC, 8. Qualifications. - In order to qualify for the Fellowship Program, the
applicant must be:
a) A Filipino citizen;
b) Gainfully employed;
©) Acollege degree graduate;
d) With demonstrated leadership and proven exceptional performance in his/her
present work;
©) Enthusiastic in undergoing further training; and
} Willing to signa contract requiring him/her to return to his/her job in another
capacity after training;

SEC. 9. Place of Study. - The Pensionados shall be sent to a foreign country well-
known for its advanced stage in particular discipline of area of specialization. Training
and education may be an academic institution, research and development (R&D) center
ora major industrial establishment with and R&D program. It may or may not lead to an
advanced academic degree.

SEC. 10. Assistance to Grantees. - The Pensionado is entitled to the following
benefits:

a) Up to three (3) years leave with pay, including allowances and other benefits;


b) One economy round-trip air fare to and from the host country plus other travel
expenses required for foreign travel;

©) Clothing allowance to be determined by the Secretariat;

d) Monthly stipend while on study abroad, of such amount to determine by the
Secretariat;

ec) Books/Instructional Materials/Research allowance of such amount to be
determined by the Secretariat; and

1) Health, Travel and Insurance fees of such amount to be determined by the
Secretariat.

SEC, 11, Program Funding. - The cost of each fellowship grant shall be shared by
the Pensionado’s employer and the National Government. The employer pays the salary,
allowances and other benefits due the Fellow as employed during the one year period of
advance studies overseas while the National Government, through the program, shall be
responsible for items b, c, d, e, and fas enumerated in Section 10 hereof. With the transfer
of all pertinent foreign and local grants for coordination under the Program, the
government, through the Program, may negotiate bilateral arrangements with hosts
governments, host universities, host research institutions and host corporations to share
at least 50% of the total cost of items b, c,d, e, 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 of the expenses of
the scholars while he is abroad.

SEC. 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 approved by
the Secretariat and serve on a full-time basis for a minimum period equivalent to two
twice the period covered by the fellowship grant. In addition, the scholar shall be required
to hold seminars or training sessions for employees of 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.

SEC. 13. Mechanism for Utilization of Returned Fellows. ~ There shall be
established and developed a 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 activities, The
Institute shall also serve as a place for an Exchange Program and Collaborative Research
among local and international scientists and scholars in priority areas of research and
development


The National Government may, through the 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 purposes
of benefit to the cause of scholar and scientists for collaborative advanced studies, as well
as to equip the institute for purposes of benefit to the cause of scholarly or scientific
advancement and national development.

A sharing program 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.

SEC. 14. Appropriations, - The amount necessary to carry out the initial
implementation of this Act shall be drawn from the savings of the National Government.
‘Therealter, 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.

SEC. 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.

SEC. 16. Implementing 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.

SEC. 17. Repealing Clause. - All laws, decrees, orders, rules and regulations, or
portions thereof inconsistent with this Act are hereby repealed or modified accordingly.

SEC, 18. Separability Clause. - In the event wherein any of the provisions of this
Act is declared unconstitutional, the validity of the other provisions shall not be affected
by such declaration

SEC. 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,