Republic of the Philippines
HOUSE OF REPRESENTATIVES":
Constitution Hills, Quezon City \%

EIGHTEENTH CONGRESS
First Regular Session

1916
House Bill No.

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Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

Under our present Social Security Law, it is the policy of the
State to establish, develop, provide, and perfect a sound and viable tax
exempt social service suitable to the needs of the people throughout
the country which shall provide to cover employees and their families
Protection against the hazards of disability, sickness, old age, and
death with a view to promoting their well-being in the spirit of social
justice.

While the declared policy of the state in establishing the Social
Security System (SSS) is indeed laudable and ideal, the sad reality is
that disability or sickness by relying solely on the retirement, disability
and sickness benefits and pensions due him from the Social Security
System.

The Social Security System must therefore devise a means to
increase the benefits that should accrue to its members. The system is
in a very stable financial position and can very well afford to increase
the benefits of its members. For instance, for the year 2011, the actual


collections of SSS member contributions totaling P85.971 billion and
yet it only paid in benefits a total of P82.760 million only, In the
process it added another P314.673 million to Reserves. These figures
demonstrate that the SSS can and should increase the benefits to its
members is therefore imperative and urgent.

The ideal would be to readjust upwards the monthly pension,
retirement and disability benefits. This however, will require extensive
actuarial studies and revisions. In view, however, of the urgency of the
need to increase the benefits to SSS members, this bill proposes to
further amend the Social Security System to declare dividends in such
amounts as may be approved by the system to put the SSS members
on equal footing with those of the Government Service Insurance
System (GSIS) who have been regularly receiving dividends.

Considering the merits of this proposal, the support of my
colleagues in this chamber is earnestly requested.

aan COW,

ERIC OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1916
House Bill No.

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT REQUIRING THE SOCIAL SECURITY SYSTEM TO
DECLARE DIVIDENDS, FURTHER AMENDING REPUBLIC ACT
NO. 1161 ACCORDINGLY AND FOR OTHER PURPOSES.

Be it enacted by Congress in Session assembled:

SECTION 1.The Social Security Law (Republic Act No. 1161 as
amended) shall be further amended by including sections Sec. 14-B
which shall read as follows:

“ Sec. 14-B Dividends - An annual dividend shall be granted to all
covered members of the system whose coverage has been in force for at
least one (1) year in accordance with a dividend allocation formula
determined by the Commission,”

SECTION 2. All other provisions of republic act as amended shall
remain the same.

SECTION 3. Pertinent provisions of other laws and presidential
issuances, executive orders, rules and regulations or parts thereof
inconsistent with this act are hereby repealed or modified accordingly


SECTION 4. This act shall take effect fifteen days after its
publication in three (30 national newspaper of general circulation, The

publication shall not be later than seven (7) days after the approval of
this bill.

APPROVED.