%*8". 
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THIRTEENTH CONGRESS OF THE REPUBLIC 
} 
OF THE PHILIPPINES 
1 ' .  
F'irst Regular Session 
1 
S E N A T E  
, 
S. No. 
w 
Introduced by Senator Edgardo J. Angara 
EXPLANATORY NOTE 
Thousands of Filipino students have acquired advanced degrees 
and specialized trainings in foreign countries through various 
scholarships grants either of local or foreign funding. While these local 
and overseas scholarship programs have produced a sizeable number of 
high-level professionals for the country, these programs have also 
resulted in a significant brain drain for our country. Moreover, some of 
the returning scholars have not found the opportunity the maximum 
utilization of newly acquired knowledge and training. As a result, many 
of them leave the country in search of greener pastures abroad. 
It is imperative that the Philippines should devise a program for 
overseas education and training for the brightest and most promising 
Filipinos who are already employed (or self-employed) in a branch of 
science or technology along identified priority areas. 
Such a program 
shall affect the pooling together of all foreign and local (public or private) 
sponsorship intended for further education, enrichment and training of 
exceptionally able and highly motivated and employed Filipinos. 
The proposed legislation endeavours to provide the Philippines a 
continuing supply of highly trained leaders for industry, research and 
academe. Under the bill, the maximum utilization of returning talents 
will be coordinated under a single governing body where all scholarships 
under foreign and local sponsorship are pooled together. 
Approval of the bill is, thus earnestly requested. 
EDGARDO J. ANGARA 


THIRTEENTH CONGRESS OF THE REPUBLIC 
} 
OF THE PHILIPPINES 
First Regu lar Session 
S. No. 
Introduced by Senator Edgardo J. Angara 
AN ACT 
CREATING AN ADVANCED STUDIES DEVELOPMENT PROGRAM FOR 
EXCEPTIONAL EMPLOYEES FROM OTHE GOVERNMENT AND THE 
PRIVATE SECTOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assem bled: 
Section 1. 
Short 
1 Title. - This bill shall be known as “The 
Pensionado Act of 2004.” 
Section. 2. 
Declaration of Policies - Human resources 
developments is 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 trust, 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 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 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 
continuously their knowledge and skills at the service of the nation, be it in 
industry, the academe or the highest policy-making levels of government, 
with the government taking the lead in harnessing their knowledge and 
kills for the greatest good of the country. 
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Section 3. Definition of Terms - For purposes of this Act, the 
following terms are hereunder define accordingly: 
a. Post-graduate - a formal degree course 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 a study, or to acquire specialized knowledge 
andlor skills in a particular area of science or technology; 
c. Pensionado - a Filipino citizen selected and supported by the 
Philippines 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. 


Section 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 (Dfi), the Department of Science and Technology 
(DOST) and the Department of Education, Culture and Sports (DECS), 
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. 
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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. 
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Section 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: 
1. To identify, and assists 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 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 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 be considered as part of their performance 
for promotions purposes. 
Section 6. Number of Pensionados and Llength of Grant. - There 
shall be selected twenty-four (24) fellows annually - three (3) fellows for 
each priority disciplinelindustry field of the eight (8) vital disciplines or 
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areas of specializations identified by the CHED in consultation with the 
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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 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. 
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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 his I her present work; 
e.) Enthusiastic in undergoing further training; 
f.) Willing to sign a contract requiring him/her to return to hidher job 
or in another 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 particular discipline or 
area of specialization. Training and education may be an academic 
institution, research and development center (R&D) or a major industrial 
establishment with an R 8 D program. It may or may not lead to an 
advanced academic degree. 
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Section I O .  Assistance to Grantees - The Pensionado is entitled to 
the following benefits: 
I 
a) 
One year leave with pay, including allowances and other 
benefits; 


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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; 
Monthly stipend while on study abroad, of such amount to be 
determined by the Secretariat; 
Books/lnstructional 
Materials/Research 
allowance 
of 
such 
amount to be determined by the Secretariat; 
Health, Travel and Insurance fees of such amount to be 
determined by the Secretariat. 
Section 1 I. Program Funding. - The cost 0, 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 one year period of advanced studies 
overseas while 
the 
national Government, thru the program, shall be 
responsible for items No. b, c, d, e, and f as enumerated in Section 10 
hereof. With the transfer of all pertinent foreign and local grants for 
coordination under the Program, the government, thru 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 No. b,c,d,e and f under Section I O  hereof. 
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The National Government ma9 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 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. 
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Section 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 scientist and scholars 
in priority areas of research and development. 
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The National Government may, thru CHED and/or the National 
Secretariat, negotiate 
biJatera1' agreements 
with 
foreign 
government , 
univgrsities, research institutions and corporations, public and private, to 


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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 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 hislher 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 
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. 
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Section 16. Rules and Regufations - 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 
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repealed or modified accordingly. 
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Section 18. Separability Clause - In the event 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,