THIRTEENTH CONGRESS OF THE REPUBLI 
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OF THE PHILIPPINES 
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First Regular Session 
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S E  N A T E  
S. No. 
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Introduced by Senator S. R. Osmefia 111 
EXPLANATORY NOTE 
“Ang taong hindi marunong lumingon sa kanyang pinanggalingan ay 
hindi makakarating sa kanyang pinaroroonan.” This is the popular translation of 
George Santayana’s dictum. 
Truly we owe much of what we are as a nation today to 
the 
generations before us. The generation that immediately precedes ours is 
still with us today as retirees and veterans. We still have the opportunity to 
acknowledge our debt and show our gratitude by ensuring that after devoting 
their lives and careers towards building the present society whose benefits we 
now enjoy, these people are able to spend the twilight of their years in some 
modicum of comfort. 
This bill proposes to grant the following respective proportions of the 
salary level being received by government employees and members of the 
Armed Forces still in active service and holding the same position, rank or 
office as the retiree or veteran at the time of their separation or honorable 
d isc h a rg e : 
(a) to retirees and veterans, seventy percent (70%) ; 
(b) to disabled veterans, seventy-five percent (75%) ; and 
(c) to the surviving spouses in case of death, sixty percent (60%) 
This bill also proposes to grant additional 
privileges such as fifty 
percent (50%) 
discount on 
fares on government-owned 
transportation 
facilities; recreational facilities, housing projects, etc.; educational benefits to 
descendants, free hospitalization and medical care for kin, and funeral benefits. 
The justice and compassion with which we provide for our retirees and 
veterans today will, in the long run set the example for next generation who 
will in their turn deal with us in our own old age. 
In view of the foregoing, the immediate approval of this bill is earnestly 
requested. 
SERGIO OSMENA Ill 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
S. No. 
e 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
INCREASING THE PENSION AND SOCIO-ECONOMIC BENEFITS OF 
GOVERNMENT RETIREES AND VETERANS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the “Pension and 
Benefits Act of 2004”. 
SEC. 2. Declaration of Policy. - It is the policy of this Act to grant socio- 
economic benefits and increase the pension of government retirees and veterans 
to a substantial portion of the level of salary received by the government 
employees and members of the Armed Forces of the Philippines still in active 
service and currently holding the same position, rank or office as the government 
retirees at the time of his retirement or the veteran at the time of his retirement, 
separation or honorable discharge. 
SEC. 3. Definition of Terms. - For the purpose of and when used in this 
Act, the following definitions shall apply 
(a) 
Government retirees means employees of the government or any 
of its subdivision, agency or instrumentality including government-owned or 
controlled corporations or their subsidiaries, who have retired after reaching the 
compulsory retirement age, or who have been separated from service due to 
permanent total incapacity or disability. 


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(b) 
Veterans means Filipinos who rendered military service during the 
Philippine Revolution, Philippine-American War, World War I ,  World War II, 
Korean War, Vietnam War, the anti-insurgency campaign or any other war or 
military campaign wherein the Republic of the Philippines was involved; or who 
have rendered military service in the Armed Forces of the Philippines and had 
been honorably discharged, or separated from service due to disability arising 
from wounds, injuries, sickness or disease incurred while in active service and in 
the line of duty. 
(c) 
Pension means the monthly compensation received by government 
retirees and veterans. 
SEC. 4. lncreased Pensions. - Monthly pensions of all government 
retirees and veterans shall be increased up to seventy per cent (70%) of the level 
of salary received by government employees and members of the Armed Forces 
of the Philippine still in active service and currently holding the same position, 
rank or office as the government retiree at the time of his retirement or the 
veteran at the time of his separation or honorable discharge: Provided, however, 
That the monthly pensions of all veterans who have been honorably discharged 
or separated from service due to disability arising from wounds, injuries, sickness 
or disease incurred while in active service and in the line of duty shall be 
increased to seventy-five percent (75%) of the level of salary received by 
members of the Armed Forces of the Philippines still in active service and 
currently holding the same position, rank or office as the said veteran at the time 
of his separation or honorable discharge. 
SEC. 5. Benefits. - Government retirees and veterans shall be entitled to 
the following benefits: 
(a) 
Fifty per cent (50%) discount from all government-owned or 
controlled transportation system, whether land, sea or air. 
(b) 
Free hospitalization 
and 
health services 
including annual 
physicaVmedical check-up in all government-owned hospitals and health centers 


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and fifty percent (50%) discount from all privately-owned hospitals and health 
centers. 
(c) 
Free entrance fees to all government-owned cultural and sports 
institutions such as the Cultural Center of the Philippines, Folk Arts Theater, Film 
Center of the Philippines, Metropolitan Theater, Metropolitan Museum, Rizal 
Stadium, among others. 
(d) 
Fifty per cent (50%) for movies, stage plays, concerts, shows, 
sports events and similar forms of entertainment from privately-owned 
moviehouses, theaters, games and sports arenas and like institutions. 
(e) 
Free legal and tax counselling services from government-owned 
institutions. 
(f) 
Fifty percent (50%) discount in rent or purchase from government- 
owned housing projects, and in case of rentals, with a right to purchase for 
ownership within five (5) years. 
(9) 
Free enrollment fees for seminars, workshops and livelihood 
courses in all government-owned schools and institutions. 
SEC. 6. Educational Benefits for Descendants. - Two (2) children 'of 
each retiree and veteran shall be admitted to any government-owned school, 
college, university or institution with all school fees, including tuition, library, 
laboratory, medical, military training, physical education, diploma and graduation 
fees at the expense of the Government. 
The children who shall avail of these benefits may be chosen by the 
veteran or retiree, in consultation with his spouse. If the veteran or retiree is 
deceased, the surviving spouse alone shall choose. If both the veteran or retiree 
and his spouse are deceased, the two eldest children who have not acquired a 
college degree shall be chosen. 
Failure of the child-beneficiary to pass at least seventy-five percent (75%) 
of his units in college for more than two (2) successive semesters shall be a 
ground for the forfeiture of the benefits. 


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SEC. 7. Free Hospitalization and Medical Care for Kin. - The following 
relatives of retirees and veterans shall be entitled to free hospitalization and 
medical care in all government-owned hospitals, clinics and health centers: 
a) 
the legitimate spouse; 
b) 
the. dependent parents; 
c) 
the legitimate children below twenty-one (21) years old and 
unmarried or physically and/or mentally incompetent or incapacitated. 
SEC. 8. Funeral Benefits. - The Government shall bear fifty per cent 
(50%) of the financial expenses in the funeral of a retiree or veteran, including 
the cost of a casket, the fees charged by the memorial home and cemetery, plus 
an additional Five thousand pesos (P5,OOO.OO) for the wake. 
SEC. 9. Pension for Surviving Spouse. - The surviving spouse of a 
retiree or veteran shall receive a monthly pension of sixty per cent (60%) of the 
level of salary received by government employees and members of the Armed 
Forces of the Philippines still in active service and holding the same position, 
rank or office as the deceased retiree or veteran at the time of their retirement or 
honorable discharge. 
In cases where the retiree or veteran leaves no surviving spouse, the 
benefits shall be received by the children or guardian of the retiree or veteran. 
SEC. 10. Rules and Regulations. - The Department of Social Services 
and Welfare Development, in coordination with the Department of Transportation 
and Communications, the Department of Health, the Department of National 
Defense, the Department of Education (DepEd), the National Housing Authority 
and all other departments and government-owned or controlled corporations 
necessary for the implementation of this Act, shall promulgate the rules and 
regulations within ninety (90) days from its approval. 
SEC. 11. Penalties. - Any person who shall violate any provision of this 
Act shall, upon conviction, be punished with a fine not less than One thousand 
pesos (Pl,OOO.OO) and not more than Ten thousand pesos (P10,OOO.OO): 


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Provided, That if the violator is a juridical person, there shall be an additional 
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cancellation of franchise. 
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SEC. 12. Appropriations. - There shall be appropriated out of the General 
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Fund not otherwise appropriated, such sums as may be necessary for the 
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SEC. 13. Repealing Clause. - All laws, decrees, executive orders, letters 
payment of the increased pensions and the implementation of this Act. 
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of instructions or proclamations inconsistent with this Act shall be deemed 
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SEC. 14. Effectivity. - This Act shall take effect after fifteen (15) days 
modified, amended or repealed accordingly. 
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following its complete publication in a newspaper of general circulation. 
Approved,