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

SEVENTEENTH CONGRESS
Third Regular Session

8759

House Bill No.

Introduced by Representatives Ron P. Salo and Paul P. Hernandez

EXPLANATORY NOTE

The retirement pension is a social mechanism that is intended to provide
income for the retirees who have already completed paying their contributions when
they were still engaged in active employment. This pension will be the source of funds
for these retirees to enable them to live a comfortable life, after years of active
employment.

However, despite the existence of this pension benefit, our retirees both in the
public and private sectors still struggle to sufficiently provide for their personal daily
needs because of the meager amount of pension that they are receiving, coupled with
the rising cost of goods and services, among others. Most retirees or pensioners of
the Government Service Insurance System (GSIS) and the Social Security System
(SSS) hardly have the means to provide for their basic needs. Sadly, many of the
pensioners are still relying heavily from dole outs from their children and relatives.

It is incumbent upon the State to look after the welfare of its retirees who have
made significant contributions to the economy and government coffers through the
taxes they have paid during their productive years. It is not enough that they are able
to live long beyond their retirement age, but that they are able to live comfortably from
the contributions they have made.

It is therefore proposed that both the GSIS and SSS shall include a 13" and
14" month benefit for all its retired members. The 13" month benefit shall be paid to
the pensioner on or before May 31 of each year. The 14" month benefit, on the other,
shall be given to the pensioners on or before November 30 of each year in time for the
traditional Christmas celebrations.

In view of the foregoing, the approval of this bill is urgently sought.

nol PAUL P. HERNANDEZ

KABAYAN Partylist BAYAN Partylist

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

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8759

Introduced by Representatives Ron P. Salo and Paul P. Hernandez

AN ACT
MANDATING 137 AND 14™ MONTH BENEFITS FOR ALL PENSIONERS OF THE
GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) AND SOCIAL
SECURITY SYSTEM (SSS)

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

SECTION 1. Short Title. - This Act shall be known as the “Mandatory 13"
Month and 14" Month Pension Act.”

SEC. 2. Mandatory 13” and 14% Month Pensions to all GSIS and SSS
Pensioners. — All Government Service Insurance System (GSIS) and Social Security
System (SSS) pensioners shall be entitled to 13" and 14" month pension benefits in
the amount equivalent to their monthly pension.

SEC. 3. Time of Payment. - The 13" month pension shall be given by the
GSIS and the SSS not later than the 31% of May of every year, while the 14" month
pension shall be given not later than the 30" of November of every year.

SEC. 4. Premium Payments. - The SSS and GSIS may increase their
respective monthly premium contribution in order to meet the amount necessary for
the implementation of this Act. Provided that such increase is based on the actuarial
study which will be conducted by the SSS and GSIS in relation to this additional
benefit; Provided, further, that any increase in the monthly premium contribution shall
be subject to public consultation with stakeholders; and Provided, finally, that such
increase shall be subject to the approval of the President.

SEC. 5. Appropriation from the State Insurance Fund. — The SSS and GSIS
are hereby directed to appropriate the amount necessary to cover the additional
pension benefit under this Act.

SEC. 6. Implementing Rules and Regulations. — The necessary rules and
regulations to carry out the provisions of this Act shall be issued by the Department of

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Finance (DOF), Department of Budget and Management (DBM), GSIS, and SSS
within thirty (30) days from the approval of this Act.

SEC. 7. Separability Clause. — If any provision of this Act is declared invalid
or unconstitutional, the remaining parts or provisions not affected shall remain valid.

SEC. 8. Repealing Clause. — All acts, executive orders, administrative orders,
proclamations, rules and regulations or parts thereof inconsistent with any of the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved.

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