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REPUBLIC OF THE PHILIPPINES 
] 
FOURTEENTH CONGRESS 
1 
First Regular Session 
1 
S E N A T E  
BELL Bo. 
Introduced by Senator FRAacIS G. ESCUDERO 
EXF'MATORY NOTE 
This is a bill seeking to avoid the injustices inflicted upon government 
retirees who do not receive their retirement benefits within a reasonable 
period after the date of their retirement by providing for the payment of such 
monetary benefits on the date actual date of an employee's retirement. 
It has been a common grievance of retiring government employees 
that the processing of their papers takes too long, moving at snail's pace. 
Even if the have their retirement papers processed on time, on the day of 
their retirement, they 8ce yet unable to receive monetary benefits granted 
them by law pending the final completion of the process. This slow process 
has reportedly bred corruption and inefficiency in the concerned ofhces, 
particularly with additional requirements now imposed by law such as 
Ombudsman's Clearance (aside from court and Prosecutor's clearance.) 
Government employees are normally not as highly paid compared to 
those in the private sector. Most of them have no other source of income 
and are living dependents. It is thus understandable that delays in the 
receipt of retirement benefits, especially delays extending to several months 
or years, would cause serious financial hardships to them and their 
families. We can imagine untold suffering of retirees expecting to make 
practical investments out of their retirement pay or have pressing needs or 
obligations to be settled or satisfied, only to be frustrated by such delay, 
even forcing some to borrow from usurers. And when finally these monies 
are received, the retirees are already deeply in debt or the sum received 
could no longer be profitably invested, If this measure is implemented, such 
delays with all its deplorable consequences would be avoided, and at the 
same time, opportunities for &raft and corruption in government are further 


curtailed by making it mandatory for the government agencies concerned to 
release the retirement pay on the day of the employees* retirement. Such 
mandatory provision would merely r&rm 
the underlying philosophy 
behind the retirement laws, i.e. that Gnancial benefits granted to 
government employees are but a way of compensating and recognizing the 
long years of dedicated service to the public and as added incentive to 
attract the best minds and the most capable people into the government 
workforce. 
Our jurisprudence reflects a most liberal interpretation of 
retirement laws to give full effect to their beneficial aspects. kt this 
proposed measure then, further reinforce that liberal policy towads a most 
effective implementation of its vital retirement provisions. 
In view of the foregoing reasons, the immediate approval of this Bill is 
strongly requested. 
A 


REPUBLIC OF THE PHILIPPINES 
1 
FOURTEENTHCONGRESS 
1 
First Regular Session 
f 
S E N A T E  
Introduced by Senator FRANCIS 0. ESCUDERO 
AK ACT 
MANDATING THE PAYMENT OF -T 
BENEFIT8 TO 
GOVERNMENT RETIREES ON T9XE DATB OF THEIR RETKREXWSIUT 
Be it enacted by SENATE and HOUSE OF ~
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of the 
Philippines in Congress assembled: 
SECTION 1. The heads of all government agencies bureaus and 
corporations shall see to it that the processing of the papers of all their 
employees under com,pulsory and optional retirement, shall be completed 
three (3) months before the date of their retirement, and for this purpose, 
immediately after the filing of application of retirement, shall notify or 
inform the retirees of the required papers and documents, and for them to 
submit the same within six (6) months before their date of retirement. 
SECTION 2. No clearance from the Provincial or City Prosecutor nor 
from Ombudsman shall required; a Court Clearance shall be sufEicient €or 
the retirement of government employees: Provided, further: That any 
administrative case against a government employee shall be terminated at 
least three (3) months before the date of his retirement; and Provided, 
firther: That any administrative case filtsd against a compulsory retiree 


within three (3) months before his date of retirement shall be considered a 
harassment suit unless otherwise found meritorious by the head of office or 
agency concerned. 
SECTION 3. 
The government offices, bureaus and agencies or 
corporations concerned shall see to it that the funds shall be made available 
to the Government Service Insurance System (GSIS) for the payment of 
benefits and gratuities of their retiring employees at least three (3) months 
before the date of their retirement. 
SECTION 4. The GSIS shall expedite the processing of the retirement 
papers of all government retirees to ensure that the latter shd receive their 
retirement benefits and gratuities on the day of their actual retirement. 
SECTION 5. Penal clause. Any head of office, and/or the General 
Manager of the GSIS who fails to comply with the provisions of this Act shall 
be punished with imprisonment of six (6) 
years and one (1) days of prison 
mayor and shall suffer perpetual disqualification to hold public o&ce. 
SECTION 6. Repealing clause. All laws decrees, orders, issuances or 
regulations inconsistent with the provision of this Act are hereby repealed 
or amended accordingly. 
SECTION 7. Effectivity clause. This Act shall take effect after @-teen 
(15) days following its publication in two (2) newspapers of general 
circulation. 
Approved,