"" 
SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
Third Regular Session 
) 
SENATE 
Senate Bill No. 2879 
Introduced by Senator Cynthia A. Villar 
Srrmtr 
d}Ht;r t}f H(1t S,nubr, 
'15 AUG-3 All:14 
AN ACT INCREASING THE MONTHLY PENSION UNDER THE SOCIAL 
SECURITY SYSTEM, 
AMENDING FOR THIS PURPOSE SECTION 12 OF 
REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE 
SOCIAL SECURITY ACT OF 1997 
EXPLANATORY NOTE 
,The 1987 Philippine Constitution provides that "The State shall promote a just 
and 'dynamic social order that will ensure the prosperity and independence of the nation 
and free th? people from poverty through policies that provide adequate social services, 
promote'tull employment, a rising standard of living, and an improved quality of life for 
all. ,,1 
. 
It has indeed been a consistent policy of the Republic of the Philippines to 
establish and maintain a social security service that ensures the protection and 
promotion of the general welfare of the people. 
The Social Security System (SSS) was created through the enactment in 1954 of 
Republic Act No. 1161 or the Social Security Law pursuant to a policy "to establish, 
develop, promote and perfect a sound and viable tax-exempt social security service 
suitable to the needs of the people throughout the Philippines which shall provide to 
covered 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. ,,2 
In protecting and promoting the well-being of employees and their families, the 
Social Security Law provides benefits which, among others, include monthly pensions of 
retirees. Under Section 12 of Republic Act No. 1161 enacted in 1954, the minimum 
monthly pension or annuity was twenty-five pesos "if the employee has paid his 
contributions for at least ten years and has rendered to an emfloyer at least three years 
of continuous service immediately prior to his retirement: The law was amended 
several times with respect to the amount of the monthly pension, among others, in 
obvious realization that it should as much as possible be adequate for pensioners to 
face a rising cost of living. 
In the latest amendment of Section 12 of the Social Security Law, Republic Act 
No. 8282 enacted in 1997 provided that "the minimum pension shall be One thousand 
two hundred pesos (P1,200.00) for members with at least ten (10) credited years of 
service and Two thousand four hundred pesos (P2,400.00) for those with twenty (20) 
credited years of service.,,4 
J The 1987 Philippine Constitution, Article II, Section 9 
2 Republic Act 1161, Section 2 on Declaration of Policy 
3 Ibid, Section 12 
4 Republic Act 8282, Section 12 


It has thus been eighteen (18) years since the Social Security Law was amended 
and there is no doubt that since then the cost of living being faced by pensioners has 
risen such that there is a necessity to amend the law, at least with respect to the 
minimum amount of the monthly pension being received by retirees. While the Social 
Security System have provided a 5% across-the-board pension increase for its 1.9 
million retired members in 20145, it is submitted that such 5% increase may be a 
pittance and definitely not sufficient to cover the rising cost of living for the past 18 
years. 
In view of the social justice thrust of our Constitution and in order to adequately 
provide for the well-being of the country's retirees, this bill seeks to provide an increase 
by Two thousand pesos (P2,000.00) in the amount of SSS pensions that retirees may 
receive. 
I recommend the immediate passage of this bill. 
~~ b ' 
CYNTHIAA. v~ 
5 http://www.philstar.com/headlines/20 14/06/07/1331966/sss-members-get-5-pension-h i ke 


SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
Third Regular Session 
) 
SENATE 
Senate Bill No. 28'79 
Introduced by Senator Cynthia A. Villar 
~ltnatr 
(e}ff,:r llf t~r ,)of'('nbr~ 
'15 
AUG -3 All:14 
RECEIVED BY:_~_o 
1 
AN ACT INCREASING THE MONTHLY PENSION UNDER THE SOCIAL 
2 
SECURITY SYSTEM, 
AMENDING FOR THIS PURPOSE SECTION 12 OF 
3 
REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE 
4 
SOCIAL SECURITY ACT OF 1997 
5 
Be it enacted by the Senate and House of Representatives of the Philippines in 
6 
Congress assembled: 
7 
SECTION 1. The Social Security Commission is hereby mandated to implement 
8 
an across-the-board increase of Two thousand pesos (P2,000.00) in the monthly 
9 
pension under the Social Security System. 
10 
SEC. 2. Section 12 of Republic Act No. 1161, as amended, otherwise known as 
11 
the Social Security Law is hereby further amended to read as follows: 
12 
"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the 
13 
highest of the following amounts: 
14 
"(1) The sum of the following: 
15 
16 
"(i) Three hundred pesos (P300.00); plus 
17 
"(ii) Twenty percent (20%) of the average monthly salary 
18 
credit; plus 
19 
"(iii) Two percent (2%) of the average monthly salary credit 
20 
for each credited year of service in excess of ten (10) years; 
21 
or 
22 
"(2) Forty percent (40%) of the average monthly salary credit; or 
23 
"(3) One thousand pesos (P1,000.00): Provided, That the monthly 
24 
pension shall in no case be paid for an aggregate amount of less 
25 
than sixty (60) months. 
26 
"(b) 
Notwithstanding the preceding paragraph, the minimum 
27 
MONTHLY pension shall be [One thousand two hundred pesos 
28 
(P1,200.00)] THREE THOUSAND TWO HUNDRED PESOS (P3,200.00) 
29 
for members with at least ten (10) credited years of service and [Two 
30 
thousand four hundred pesos (P2,400.00)] FOUR THOUSAND FOUR 
31 
HUNDRED PESOS (P4,400.00) for those with twenty (20) credited years 
32 
of service. 
- 1 -


1 
"THE 
COMMISSION 
SHALL 
EQUITABLY 
ADJUST 
THE 
2 
MONTHLY 
PENSIONS 
OF 
OTHER 
ENTITLED 
MEMBERS 
OR 
3 
BENEFICIARIES WHOSE MONTHLY PENSIONS ARE HIGHER THAN 
4 
THE MINIMUM MONTHLY PENSION TO PRESERVE THE INTEGRITY 
5 
OF THE PENSION PROGRAM." 
6 
SEC. 3. Any law, decree, executive order, proclamation, rule and regulation, and 
7 
other issuance, or part or parts thereof, inconsistent with the provisions of this Act is 
8 
hereby repealed or modified accordingly. 
9 
SEC. 4. This Act shall take effect fifteen (15) days after its publication in the 
10 
Official Gazette or in a newspaper of general circulation. 
11 
Approved, 
-2-