Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Ctiy

FIFTEENTH CONGRESS
First Regular Session

2909

HOUSE BILL NO.

Introduced by Hon. Winston “Winnie” T. Castelo

EXPLANATORY NOTE
These are hard times.

The cost of living is rising and the prices of basic commodities are
skyrocketing.

Thus, there ought to be a scheme in the Social Security System whereby
private employees could avail of two things, namely — shelter and cash — as a
form of “safety net’.

Certainly, the welfare and benefit of employees in the private sector have
equal weights with those in the public sector since the funds that go into these
insurance systems do come from them.

It is only fitting and proper that the funds~Get back to fem, one way or
other in the form of institutionalizing a systery where Reserve Finds could be
increased in order to satisfy members sgeking loans for houging, salary,
calamity, emergency and educational loans ir the case of the SSS.

Henceforth, passage of this humble measure is most earnestly prayed.

[STON “WINNIE” T. CASTELO
2%° District, Quezon City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Ctiy

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _ 290 3

Introduced by Hon. Winston “Winnie” T. Castelo

AN ACT
AMENDING SECTION 26 OF REPUBLIC ACT NO. 8282 OTHERWISE
KNOWN AS THE SOCIAL SECURITY ACT OF 1997 INCREASING THE
INVESTMENT FOR HOUSING PURPOSES AND SHORT AND MEDIUM TERM
LOANS FROM THE INVESTMENT RESERVE FUNDS OF THE SYSTEM

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

SECTION 1. Section 26 of Republic Act No. 8282 is hereby amended to
read as follows:

“SEC. 26. Investment of Reserve Funds. ~ All revenues of the SSS
that are not needed to meet the current administrative and
operational expenses incidental to the carrying out of this Act shall
be accumulated in a fund to be known as the “Reserve Fund”.
Such portions of the Reserve Fund as are not needed to meet the
current benefit obligations thereof shall be known as the Investment
Reserve Fund which the Commission shall manage and invest with
the skill, care, prudence and diligence necessary under the
circumstances then prevailing that a prudent man acting in like
capacity and familiar with such matter would exercise in the
conduct of an enterprise of a like character and with similar aims.
Pursuant thereto, and in line with the basic principles of safety,
good yield and liquidity, the Commission shall invest the funds to
eam an annual income not less than the average rates of treasury
bills or any other acceptable market yield indicator in any or all of
the following:

“(a) 00x XXX XXX

“(©) 2000 OOK HOOK;


*(c) Ox 000K 0G,

“(d) xxx OOK OG,

“(e) In bonds, securities, promissory notes or other evidence
of indebtedness of shelter agencies of the National Government or
financial intermediaries to finance housing loans of members, and
in long-term direct or individual or group housing loans giving
priority to the low-income groups, up to a maximum of ninety
percent (90%) of the appraised value of the properties to be
mortgaged by the borrowers; and

“In short and medium term loans to members such as salary,
educational, livelihood, marital, calamity and emergency loans;
Provided, That not less than fifteen percent (15%) nor more than
forty five percent (45%) of the Investment Reserve Fund at any
time shall be invested for housing purposes: Provided, further,
That not more than fifteen percent (15%) of the Investment
Reserve Fund shall be invested in short and medium term loans;

“(f) ox 000K OXXX)/
“(g) xxx KK XXX
"(h) x0xx XXX XXX;
“(i) xx XXX OK
"G) x00 XXXK XXX,
"(K) x0 XXX XXX}
“(xxx KKK XXXx; and
“(m) xx XXXX XXXX

“No portion of the Investment Reserve Fund or income
thereof shall accrue to the general fund of the National Government
or to any of its agencies or instrumentalities, including government-
‘owned or controlled corporations, except as may be allowed under
this Act: Provided, that no portion of the Investment Reserve Fund
shall be invested for any purpose or in any instrument, institution or
industry over and above the prescribed cumulative ceilings as
follows:

40% in private securities
45% in housing

30% in real estate related investments

15% in short and medium-term members’ loans

30% in government financial institutions and corporation
30% in infrastructure projects

15% in any particular industry

7.5% in foreign-currency denominated investments;


SEC. Separability Clause. — If any provision of this Act is declared invalid,
the other provisions not affected thereby shall remain valid.

SEC. Repealing Clause. — All laws, proclamations, executive orders, rules
and regulations or parts thereof inconsistent with this Act are hereby repealed,
modified or amended accordingly.

SEC. 4, Effectivity Clause. — This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or in at least two (2) national
newspapers of general circulation whichever comes earlier.

Approved,