Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15™ CONGRESS
First Regular Session

House BiLLNo. 1745

Introduced by REP. SALVADOR H. ESCUDERO IIT

EXPLANATORY NOTE

It is the moral obligation of Congress and its members to see to it that the State
policies, ordained in the Constitution are translatable into tangible pieces of worthy
legislation, especially, Constitutional injunctions which provides.

“The State shall, from time to time, review to upgrade the pension and other benefits
due to retirees of both government and private sectors (Article XVI, Section 8).”

A survey conducted of retirees who opted to retire under Republic Act No. 1616
revealed that a majority of this class of retirees has been living in abject poverty, and many of
them have to depend on dole-outs from close relatives and friends. Aged government
personnel who retired need monthly pension because at their late age their opportunities of
earning are already almost nil.

The lump sum they have received from RA 1616 was greatly eroded by economic
slump and high cost of living. Their economic difficulties were further aggravated when our
country suffers from devastating effects of natural calamities.

This Bill proposes the granting of monthly pension to government retirees who have
availed of retirement benefits under RA 1616 when they reach the age of seventy (7).

In view of the foregoing, the immediate passage of this Bill is earnestly requested.

we
SALVADOR H. ESCUDERO IIL
Representative
1* District, Sorsogon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15™ CONGRESS
First Regular Session

nous puixo, 1745

Introduced by REP. SALVADOR H. ESCUDERO III

AN ACT
TO GRANT MONTHLY PENSION TO GOVERNMENT RETIREES UNDER R.A.
1616 WHO HAVE REACHED THE AGE OF SEVENTY (70) YEARS,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Declaration of Policy. ~ The Constitution provides that the State shall,
from time to time , review to upgrade the pensions and other benefits due to retirees of both
the government and private sectors. As far as may be possible, it should provide to those who
have less in life the opportunity to earn for their living so that they may be play a more active
role in social life and especially in the economic and political spheres. It is the duty of the
State to create conditions which are necessary to realize the right of all citizens particularly
the underprivileged the equal opportunity. To this end, the State shall grant Monthly Pension
to government retirees who have availed of retirement benefits under Republic Act No. 1616.

SEC. Definition of Terms — The following terms shall be understood in this Act of
mean:

1. Government Service Insurance System (GSIS) ~ refers to the agency entrusted to
take charge of all matters pertaining to the benefits and insurance claims of all
government officials and employees, as created and established under Presidential
Decree No. 1146 and further amended by Republic Act No. 8291.

2. Retiree-refers to government officials and employees who have availed of
retirement benefits under Republic Act. No. 1616 whose annuity computed in
accordance with the mortality table and the rate of interest adopted by the system:

3. Monthly pension — refers to the monthly benefits to be granted to government
retirees under RA 1616 as embodied in this Act, to be determined by the GSIS.

SEC. Rules and Guidelines - To implement this Act, the Government Service
Insurance System shall determine the Monthly Pension of a retiree as defined herein and
formulate guidelines for said beneficiaries.


SEC. 4. Funding ~ The President of the Republic is hereby authorized to realign or
transfer any item or transfer any item appropriate within the GSIS and/or utilize any savings
therein to carry out the purpose of this Act. Whatever additional amount as may be needed
for its implementation shall be included in the overall Appropriations Act of the ensuing
Fiscal Years.

SEC. 5. Separability Clause. ~ In the event any portion or provision of this Act is
declared unconstitutional, the remainder of this Act or any provisions not affected thereby
shall remain in force and in effect.

SEC. 6. Repealing Clause.— All other laws, decrees, rules and regulations contrary or
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 7. Effectivity. — This Act shall take effect 15 days after its complete publication
in at least two (2) newspaper of national circulation.

Approved,