" 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 662 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Tnis bill seeks to harness and optimize our country's intellectual resources 
through·the establishment of the "Pension ado Program." This program shall pool 
together all foreign and local public and private sponsorship intended for further 
education, enrichment and training of exceptionally able and highly motivated 
Filipinos employed in both the government and private sectors. 
The program will align sponsorships among priority areas identified to be 
critical to Philippine economic development, and provide incentives for the 
beneficiaries to put the skills and education acquired under training to the service 
of the Filipino nation. 
All parents know that education is the most important investment for the 
future, and the most valuable legacy to bequeath to one's children. We should 
therefore provide for measures to manage our country's investments in higher 
education, and to ensure that they be put to productive use for the welfare of the 
entire nation. 
In view of the foregoing, early passage of this bill is earnestly requested. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regu/ar Session 
) 
SENATE 
Senate Bill No. 662 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
CREATING AN ADVANCED STUDIES DEVELOPMENT PROGRAM FOR 
EXCEPTIONAL EMPLOYEES FROM THE GOVERNMENT AND 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 2010. " 
SEC. 2. Declaration of Policies - Human resources development is 
essential for economic development and progress. In 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 aged 30 - 45, 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 depends the development and progress of the 
country. As such, it shall provide for fellowships to enable them to pursue 
advanced studies to 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. They shall 
form a collective national "think tank" who shall continuously place 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. 
SEC. 3. Definition of Terms - For purposes of this Act, the following 
terms are hereunder defined accordingly: 
a) "Post-graduate " - a formal degree course program or program of 
training/research requiring at least a Master's Degree for entry; a student 
pursuing such program; 
b) "Advanced studies" - a 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 study, or to 


acquire specialized knowledge and/or skills in a particular area of science or 
technology; 
c) "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 the CHED, in 
coordination with 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) 
felfowship program to be called as the "Pensionado Program", hereinder referred 
to as the Program for Filipinos employed in the government and 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, or 
scholarship and research. 
SEC. 5. Establishment of National Secretariat: Functions and 
Composition -
There shall be established a National Secretariat, hereafter 
referred to as the Secretariat, with the following functions: 
1. To identify and assist in negotiations with sponsors (foreign and local, 
public and private) of fellowships, scholarships and grants; 
2. To provide assistance to the Selection Panel in accomplishing its work; 
3. To provide the Pensionados continuing assistance from the time of 
selection to 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. To 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 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 represent;:ltives 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 purposes. 
SEC. 6. Number of Pensionados and Length of Grant - There shall be 
selecte(J twenty four (24) fellows annually - three (3) fellows for each priority 
discip.line/industry/field of the eight 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. 


SEC. 7. Selection Process - There shall be a Selection Panel, hereafter 
referred to as the 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 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 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 
his/her present work; 
(e) Enthusiastic in undergoing further training; and 
(f) Willing to sign a contract requiring his/her to return to his job or in 
another capacity after the scholarship. 
SEC. 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 he in an academic institution, 
research and development center (R&D) or a major industrial establishment with 
an R&D program. It mayor may not lead to an advanced degree. 
SEC. 10. Assistance to Grantees - The Pension ado is entitled to the 
following benefits: 
(a) Leave with pay, for the duration of the scholarship including 
allowances and other benefits; 
(b) One economy round trip airfare to and from the host country plus other 
travel expenses required for foreign travel; 
(c) Clothing allowance to be determined by the Secretariat; 
(d) Monthly stipend while on study abroad, of such amount to be 
determined by the Secretariat; 
(e) Books, Instructional Material/Research allowance of such amount to be 
determined by the Secretariat and 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 duration of advanced studies overseas while the National 
Government, thru the Program, shall be responsible for items letter b, c, d, e 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, host research institutions and host corporations to share at 
least 50% of the total cost of items Letter 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 a part 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 twice the period covered by the fellowship grant. In 
addition, the scholar shall 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. 
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 the 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 scientists and scholars in 
priority areas of research and development. 
The National Government may, thru 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 asto 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 can pick up part 
of the expenses of government, university, institution or corporation, the Fellow in 
pursuit of his/her Fellowship. 
SEC. 14. Appropriations - The amount necessary to carry out the initial 
implementation if 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 two-tenth percent (0.2%) from the share of the 
DOST and one percent (1 %) from the share of the Philippine Youth Commission 
in the Bases Conversion Development Authority (BCDA) proceeds. 


• 
SEC. 15. Transfer of Fellowships, Scholarship and Training Grants -
All foreign and locally sponsored fellowships, scholarships 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. 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 even 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 Clause - 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,