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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILlPPlNES 
1 
Third Regular Session 
) 
9 *&& 26 , ,.~ :* 3 
\ 
Introduced by Senator Ramon "Bong" Revilla, Jr. 
EXPLANATORY NOTE 
The changing times of today requires a better, more comprehensive and 
stronger legislation for our country. The need to amend the Executive Order No. 
1037, Series of 1985 of the Philippine Retirement Park System is of vital 
importance to our country's economy. Since its enactment 20 years ago, it has 
not been updated to better suit the needs of our time today, and most especially 
the needs of the elderly by which it was enacted for. 
The Philippine Retirement Park System or commonly known as the 
Philippine Retirement Authority (PRA) seeks to revitalize the Philippine economy 
through the increase and creation of local jobs, increase financial investments 
from other countries through retirement plans in the Philippines by retiring 
foreigners. 
carry 
their 
The Philippine Retirement Authority as a government corporation was to 
' out the job of attracting retirees, foreigners and former Filipinos to spend 
retirement years in the Philippines. With the strengthening of the PRA 
provision, it will assist the retirement industry ,for foreign nationals and Filipino 
citizens as it will encourage the economy to generate more employment and 
income oppoitunities and facilitate the increasing foreign exchange inflow, 
investments and technology transfers. 
As such, strong incentives, such as Balkbayan privileges and permanent 
resident status, among others, will be given for foreign nationals and former 
Filipinos not just to have a vacation or reside in the Philippines but also to invest 
in businesses in the country. In addition, the amendment of the PRA provision 
will encourage and protect local and foreign investors, thus creating an 
impression of financial security in the country. Additionally, the appeal of the 
Philippines as hospitable country with a favorable weather, and its low cost of 
living will boost domestic tourism. 
The PRA statistics show that as of July 2009 there are 14,806 PRA 
program enrollees. Most of these nationalities enrolling under the PRA program 
are of Chinese, Korean, Japanese and American descent. With the number of 
enrollees, we must therefore pursue the changes in our legislation that will seek 
to help our economy, especially in times of need that will bring progress and 
security not just to our country but also to the people living in it. 
Thus the immediate approval of this bill is urgently sought. 


FOURTEENTH CONGRESS of the 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Third Regular Session 
i 
Introduced by HON. RAMON BONG REVILLA, JR. 
AN ACT 
REORGANIZING AND RENAMING THE PHILIPPINE RETIREMENT PARK 
SYSTEM, ENLARGING ITS POWERS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
CHAPTER I. GENERAL PROVISIONS 
SECTION 1. Short Title. This Act shall be known as the Philippine 
Retirement Authority Act. 
Section 2. Declaration of Policy. It is the policy of the State to 
develop and promote a Philippine Retirement Program and sustain the 
retirement industry for foreign nationals and former Filipino citizens, including 
the Filipino elderly (Executive Order No. 26, 31 August 2001), so as to 
generate for the country and people more employment and income 
opportunities, foreign exchange inflows, ,investments and technology 
transfers. 
Towards this end, the Government shall: 
a. Provide strong incentives for foreign nationals and former Filipino 
citizens to vacation, reside, retire, and invest in the country; 
b. Encourage and protect local and foreign investors, entrepreneurs 
and other stakeholders in the establishment and operation of 
retirement accommodations, facilities and services, and extend to 
them incentives and benefits: 
c. Sustain the business and growth of the said industry in the 
Philippines in collaboration with the private and public sectors; 
d. Initiate programs integral to the 
national socio-economic 
development efforts to improve the quality of life of the marginalized 
Filipino elderly who are abandoned and neglected: and 
e. Promote tourism through industry investment, employment, growth 
and national development. 
1 


Section 3. Definition of Terms: 
a. Authority - The Philippine Retirement Authority as created under 
the Executive Order No. 1037, dated July4 1985 
b. DOT - Department of Tourism 
c. DFA - Department of Foreign Affairs. 
d. DOF - Department of Finance 
e. DOH - Department of Health 
f. DTI - Department of Trade and Industry 
g. DlLG - Department of Interior and Local Government 
h. BI - Bureau of Immigration 
i. DBM - Department of Budget and Management 
j. COA - Commission on Audit 
k. OGCC - Office of Government Corporate Counsel 
I. NGUs - National Government Units 
m. LGUs - Local Government Units 
Section 4. Reorganization and Renaming. The Philippine Retirement 
Park System, as established by virtue of Executive Order No. 1037, Series of 
1985, is hereby reorganized in accordance with the provisions of this Act, and 
is renamed as the Philippine Retirement Authority, hereinafter referred to as 
the Authority, which shall have the power of succession in its name. The 
Authority shall be attached to the Department of Tourism pursuant to Republic 
Act No. 9593, otherwise known as the National Tourism Policy Act. 
Section 5. Place of Business. The Authority shall have its principal 
place of business in Metro Manila and it ma), establish other branches and 
field offices within Metro-Manila and in other places in or outside the 
Philippines as may be necessary for the efficient and effective conduct of its 
operations and business. 
Section 6. Objectives. The Authority shall have the following 
objectives: 
a. Implement, as lead agency, the national policy to promote and 
develop the Philippines as a retirement haven for foreign nationals 
and former Filipino citizens, and aim to optimize the economic and 
social benefits which would be derived therefrom by the country and 
people; 
b. Plan, carry out, undertake, support and promote incentive schemes 
and systems, property, habitat and infrastructure developments, 
establishment and operation of facilities and services, as well as 
marketing and promotion efforts to encourage foreign nationals and 
former Filipino citizens to vacation, reside, retire, and invest in the 
Philippines; 
c. Arrange for and coordinate the functional support and participation 
of other government offices and functionaries, including those in 
foreign services, in certain aspects of the Authority’s operations; 
d. Encourage 
and 
protect 
private 
investors, 
entrepreneurs, 
developers, operators, workers and other stakeholders in the 
establishment and operation of retirement habitats, complexes, 
accommodations, facilities and services, as well as marketers and 
promoters of programs and projects of the Authority; 


e. Attend to the safety, well-being, needs, enjoyment and other 
interests of participants in the programs and projects of the 
Authority; 
f. Raise, regulate, and rate the standards of quality and adequacy of 
retirement accommodations, facilities and services 
in the 
Philippines, thus, keep up and enhance the country's competitive 
edge as a retirement destination in addition to its innate assets of 
tropical climate, low dollar-costs of commodities and services, the 
Filipino hospitality, traditional resp.ect and care of elderly and 
English language proficiency; 
g. Undertake continuing studies of the problems and opportunities of 
the retirement industry, and on the incentive schemes, practices, 
facilities and services in other countries, which may be adopted or 
improved upon for the Philippines; and 
h. Foster, accelerate and promote the growth of the industry in the 
country. 
Section 7. Powers and Functions. ' The Authority shall have the 
following powers and functions: 
a. To adopt and use a corporate seal; 
b. To sue and be sued as well as to succeed in its corporate name; 
c. To adopt its by-laws, promulgate rules and regulations as it may 
deem proper and necessary in the attainment of the purposes and 
objectives of the Authority; 
d. To exercise the right of eminent domain in the name of the Republic 
of the Philippines, and in the acquisition of real properties by 
condemnation proceedings, land grant and any means allowed by law, 
the title to such real estate shall be taken in the name of the Authority; 
provided that only those real properties acquired through purchase 
may be sold; 
e. To conduct the business of handling the transfer of foreigners and 
former Filipino citizens into the country as immigrants or permanent 
residents, investors, tourists or in whatever means allowed by law and 
to handle businesses related to providing these foreigners and former 
Filipino citizens with a complete living package that includes but not 
limited to the following: accommodation, food, recreation, medical 
needs, insurance and livelihood. In the discharge of this function, the 
Authority shall exercise the following specific powers: 
1, To conduct the business of travel agency an act in their own 
right and as agent in the purchase and sale of passenger and 
freight accommodations in land, air and sea travel, enter into 
charter parties for the carriage of passenger and freight, conduct 
tours and sight-seeing trips, within and/or outside of the 
Philippines, act as agents of hotels and transportation 
companies, secure from the Philippine Government and foreign 
governments passports, visas, clearance, permits and other 
documents necessary for travel and stay in the country; 
3 


2. To acquire, by purchase, lease or otherwise, and to own, use, 
hold, sell, convey, exchange, lease, mortgage, work, improve, 
develop, divide and otherwise, handle, deal and dispose of real 
properties of every kind, nature, and description; and to 
construct or cause to be constructed on any land owned, held, 
leased, managed, operated or occupied by the Authority, any 
house, building, condominium or any other improvement as well 
as manage and operate the same; or otherwise invest in 
housing, buildings, condominiums, and all other construction 
projects of every kind and nature; and generally to do anything 
and everything necessary and proper and to the extent 
permitted by law, 
in connection with the 
ownership, 
management, operation, sale and disposition of real and 
personal properties of any and all kind; 
3. To own, lease and operate, manage and administer, alone or 
jointly with others, one or more hotels and all adjustments and 
accessories 
thereto, 
including 
restaurants, 
bar 
rooms, 
barbershops, and cigar stores, roof gardens and to furnish 
amusement therefore; to do and perform any and all things for 
the comfort, convenience, pleasure and amusement of guests in 
said hotels, hotel-apartments, motorists' hotel, motorists' court, 
condominiums and inns. 
f. To hold, purchase or otherwise acquire, and to sell, assign, pledge, 
or otherwise dispose of, shares of the capital stock, bonds or other 
evidences of debt issued or created by any corporation, whether 
foreign or domestic, and whether now or hereafter organized; and while 
the holder of any such shares of stock, to exercise all rights and 
privileges of ownership, including the right to vote thereon, to the same 
extent as a natural person might or could do; 
g. To issue pursuant to law, its capital stock, bonds, debentures or 
other evidences of obligation in payment for property purchased or 
acquired by it, for money borrowed, or for any other lawful obligation 
and to change all or any part of its properties as security therefore; 
h. To acquire, by purchase, lease or otherwise and to own, use, hold, 
sell, convey, exchange, lease, mortgage capital assets such as 
vehicles or any transportation equipments, computer equipments, 
communications equipments, machineries of any kind, spare parts, 
tools, jigs, and fixtures that are necessary in the business that the 
corporation is involved in businesses that it plans to invest in, including 
rights, softwares, patent rights, trademarks, tradenames, service 
names, service marks, brands, distinctive marks, inventions, designs, 
improvement and processes, and all privileges, rights, titles and 
interest pertaining thereto; 
i. To carry on the business of warehousing and storing, packing, 
crating, and repacking of all kinds of substance and articles of 
commerce and merchandise and to do all business necessary to and 
incidental thereto; 
j. To make and enter into all kinds of contracts, agreements, and 
obligations by or with any person or persons, corporation or 
corporations, for the purchase, acquisition, holding, manufacture, and 
sale of, or otherwise deal in, any and all kinds of goods, articles, or 
4 


personal property whatsoever, either as principal, or agent, upon 
commission or otherwise, and generally with full power to perform any 
and all acts connected therewith or arising therefrom, or incidental 
thereto, and any and all acts proper or necessary for the conduct of its 
business. 
k. To borrow funds from any source, private or public, foreign or 
domestic, and to issue promissory notes, bonds, debentures and other 
evidence of indebtedness and to charge all or any part of its properties 
as security therefore; 
I. To purchase, hold, convey, sell, lease, let, mortgage, encumber, and 
otherwise deal with such real and personal property or engage in any 
transaction as the lawful business of the Authority may reasonably and 
necessarily require; 
m. To endorse or assume the payment of principal of, and/or interest or 
dividends upon, and to undertake the performance of sinking fund or 
other obligation of, any stocks, bonds, obligations, or other securities or 
evidences or indebtedness, and to guarantee in any way permitted by 
the law the performance of any of the contracts or other undertakings 
in which the Authority may otherwise be or become interested in, of 
any corporation, association, partnership, firm, syndicate, individual, 
government, state, municipality, or other political or government 
division or subdivision, domestic or foreign, insofar as may be 
permitted by law; 
n. To act as general manager for the management of business of any 
person, corporation or other juridical entity, the management of funds, 
properties, portfolio and similar assets of such managed person, 
corporation of juridical entity; 
0. To conduct a general advertising business both as principal and 
agent, including the preparation and management of advertisements 
and the manufacture and construction and advertising devices and 
novelties; to erect, construct, purchase, lease or otherwise acquire 
fences, billboards, signboards, buildings and other structures for 
advertising purposes, to carry on the business of general advertising by 
circulation and distribution and display of cards, signs, ogers, posters, 
handbills, programs, banners, caps and all kinds of conveyance for the 
aforesaid purpose; and to make use of radio, television and any other 
media of advertisement; 
p. To secure from any governmental agencies, state, municipal and 
other authority, any rights, powers, privileges, franchises and 
concessions, and to utilize and dispose of the same in any lawful 
manner; 
q. To act as agent or representative of any and all corporation, firms or 
individuals organized, located or residing in any part of the worlds 
insofar as the same may not prohibited by law; 
r. To organize or cause to be organized under the laws of the Republic 
of the Philippines or any other state, te,rritory, nation, colony, province 
or government, a corporation or corporations, associations firms or 
entities for the purpose of accomplishing any or all of the objects which 
the Authority is organized and to dissolve, wind up, liquidate, merge, 
5 


consolidate, combine or amalgamate any such corporation or 
corporations, associations, firms or entities or to cause the same to be 
dissolved, wound up, liquidated, merged, consolidated, combined, or 
amalgamated; 
s. To make and enter into all kinds of contracts and agreements with 
any person or persons, corporation or corporations, including 
government-owned or controlled corporations, or any agency or 
agencies of the government, as may be necessary, expedient, 
advisable or in any manner pertaining to the whole or any part of its 
businesses and operations, and/or as maybe necessary or proper for 
the attainment of the purposes and objectives of the Authority; 
t. To create programs promoting corporate social responsibility (CSR) 
for Filipino elderly and foreign retirees (Executive Order No. 26, 31 
August 2001); 
u. To regulate retirement development projects for the issuance of 
accreditation and the grant of incentives by appropriate government 
agencies; 
v. Delegate to field offices, in coordination with LGUs, specific powers 
and functions in the implementation of retirement policies, plans, 
programs and projects; 
w. Collect in the exercise of its regulatory power, necessary fees and 
charges for the proper implementation of retirement policies, plans and 
projects; and 
x. Exercise such other powers and functions as are necessary for the 
implementation of this Act. 
Section 8. Board of Trustees. The business, affairs and assets of the 
Authority shall be directed, managed and safeguarded, and its powers 
exercised, unless otherwise provided in this Act, by a Board of Trustees, 
hereinafter referred to as the Board, which shall be composed of the following: 
a. The Secretary of the DOT, who shall be the Chairman, or his duly 
designated representative; 
b. The General Manager of the Authority, who shall be the Vice- 
Chairman; 
c. The Secretary of the DFA, or his duly designated representative; 
d. The Secretary of the DOF, or his duly designated representative; 
e. The Secretary of the DOH, or his duly designated representative; 
f. The Secretary of the DTI, or his duly designated representative; 
g. The Secretary of the DILG, or his duly designated representative; 
and 
h. The Commissioner of the BI, or his duly designated representative; 
6 


In the absence of the Chairman, the Board shall elect a temporary 
presiding officer among those present. The officials next in rank to the ex- 
officio Board members shall serve as alternate members. Such alternates 
shall attend board meetings and meetings of any committee assigned to their 
principals in the latter’s absence and receive the corresponding per diems. 
The Board shall meet at the principal office of the Authority regularly at 
least once a month and as often as exigencies demand. The Board may 
agree in writing to meet at another venue. The presence of at least five (5) 
members shall constitute a quorum, and the vote of a majority of the members 
present shall be necessary for the adoption of any resolution, rule, regulation, 
decision, award or any other corporate act. 
Each member of the Board shall receive a per diem of Ten Thousand 
Pesos (PlO,OOO.OO) per month; and, that no member shall receive a per diem 
of more than Ten Thousand Pesos (PlO,OOO.OO) for any one month, subject, 
however to review and reasonable adjustments by the Board. 
powers and duties: 
Section 9. Powers and Duties. The Board shall have the following 
a. Formulate policies, guidelines and programs to effectively 
implement and carry out the purposes, objectives and powers of the 
Authority; 
b. Prescribe and periodically review and revise the amount of the fees, 
charges and assessments levied and collected for the support: and 
maintenance of the operations of the Authority; 
c. Oversee the management, operation and affairs of the Authority; 
d. Promulgate such rules and regulattons as may be necessary and 
proper for the effective exercise of the powers and functions, as 
well as the discharge of the duties and responsibilities, of the 
Authority, its officers and employees; 
e. Authorize such expenditures of the Authority as may be necessary 
and proper for 
its effective management, operation and 
administration: 
f. Upon the recommendation of the General Manager, to approve the 
Authority’s organizational and administrative structures and staffing 
pattern, and to establish, fix, review, revise and adjust the 
appropriate compensation package. for the officers and employees 
of the Authority with reasonable allowance, incentives, bonuses, 
privileges and other benefits as may be necessary or proper for the 
effective management, operation and administration of the 
Authority, which shall be exempt from Republic Act No. 6750, 
otherwise known as the Salary Standardization Law, and Republic 
Act No. 7430, otherwise known as the Attrition Law; 
g. Approve the annual and supplemental budget of receipts and 
expenditures of the Authority; 
h. Appoint, promote, transfer, remove, suspend or otherwise discipline 
the officers of the Authority occupying executive and third level 
positions; and 
7 


CHAPTER II. STRUCTURE OF THE AUTHORITY 
Section I O .  Authority Proper. The Authority Proper shall consist of 
the Offices of the General Manager, Deputy General Manager, Department 
Managers, Division Chiefs, and Satellite Offices Operations In-Charge. 
The General Manager and Deputy General Manager shall be 
appointed by the Board. The Board shall determine the other officers of the 
Authority, who shall be appointed by, except as provided in this Act, the 
General Manager, subject to the conknation by the Board. 
Section 11. Office of the General Manager. The management of the 
day-to-day operations of the Authority shall be vested in the General 
Manager, who shall have the following powers and duties: 
a. Direct and supervise the management, operation and administration 
of the Authority, and for this purpose, may delegate any or some 
operational and administrative responsibilities and duties to the other 
officers of the Authority; 
b. Enter into and execute, on behalf of the Authority, all contracts and 
agreement, which the Authority may enter into, and to sign, accomplish, 
and deliver any and all documents relative to such contracts and 
agreements, subject to the approval by the Board; 
persons or entities, domestic or foreign, government or private; 
c. Represent the Authority in all dealings with other offices, agencies, 
d. Appoint, promote, transfer, remove, suspend and discipline the 
officers and employees of the Authority, except those appointed by the 
Board, and prescribe their duties and responsibilities; 
e. Cause to be prepared the agenda and materials for the meetings of 
the Board; and 
f. Exercise such other powers and perform such other duties as may 
be assigned by the Board. 
The General Manager’s power and duties shall include among others 
all the day-to-day regular operations of the Authority. All other matters shall be 
brought to the Board for approval. He shall be appointed by the Board and 
shall only be removed for cause and after due process. 
Section 12. Office of the Deputy General Manager. The Office of the 
Deputy General Manager shall consist of the Deputy General Manager and 
his immediate staff. 
Section 13. Corporate Secretary. The Authority shall have a 
Corporate Secretary who shall be appointed by the Board and under the 
administrative supervision of the Chairman. The Corporate Secretary shall 
record the deliberations and acts of the Board and shall have custody of the 
records and other papers pertaining to the Board. 
Section 14. Legal Counsel. The Authority shall have a legal staff 
headed by a Corporate Legal Counsel, who shall be a lawyer, appointed by 
the General Manager and confirmed by the Board. In appropriate cases, 
8 


however, the Authority may call upon the assistance of lhe OGCC and other 
legal services of the Government. 
Section 15. Internal Auditor. The Authority shall have an internal 
audit unit headed by an Internal Auditor, who shall be appointed by the Board. 
The Internal Auditor is responsible for strengthening internal control and for 
ensuring that efficiency of operations, reliability of reporting and compliance to 
applicable laws, regulations and internal policies are achieved. 
Section 16. Personnel and Compensation. The compensation 
package of the officers and employees of the Authority shall be exempted 
from Republic Act No. 6750, otherwise known as the Salary Standardization 
Law, and Republic Act No. 7430, otherwise known as the Attrition Law. 
The appropriate compensation package for the officers and employees 
with reasonable allowance, incentives, bonuses, privileges and other benefits 
as may be necessary or proper for the effective management, operation and 
administration of the Authority, shall be approved by the Board upon 
recommendation of the General Manager. 
CHAPTER 111. RETIREMENT PROGRAM 
Section 17. Program. Program shall refer to the retirement program 
Section 18. Coverage. The program shall cover all Retirees. 
Retiree -Any foreign national or former Filipino citizen who is at least 
thirty-five (35) years old 
former Filipino - A former Filipino citizen who has been naturalized in 
a foreign country 
Resident Retiree - A retiree who has been issued a Special Resident 
Retiree’s Visa (SRRV) 
Spouse -The legitimate spouse of the retiree based on the laws of the 
country of which the retiree is a citizen 
Dependent - A retiree’s unmarried child who is under twenty-one (21) 
years of age, whether legitimate or legally adopted 
SRRV - Under such terms as may be provided by the PRA Board, an 
endorsement made by the proper authorities on a retiree’s passport, 
classifying the retiree as a non-immigrant and allowing him multiple 
entry to and residence in the Philippines for an indefinite period 
Section 19. Special Resident Retiree Visa Issuance. The Authority 
and the Department of Justice (DOJ) through the Bureau of Immigration (El) 
shall develop a system of granting SRRVs. 
The Resident Retiree Servicing Center (RRSC) shall be created to 
expedite the application, processing and issuance of SRRVs and the 
disposition of any problems related to resident retirees. 
being implemented by the Authority. 
9 


The Authority may call upon the DFA, BI, BOC, and BSP for each of 
them to detail an officer with appropriate and sufficient authority to the RRSC 
to process the documents required and attend to the needs of the resident 
retirees. 
Section 20. Field Offices. The Authority shall establish, operate and 
maintain field offices in the country. A Field Office, headed by a Satellite 
Offices Operations In-Charge, shall have the following functions: 
a. Assist the RRSC to expedite the application, processing and 
issuance of SRRVs and the disposition of any problems related to 
resident retirees 
b. Implement laws, policies, plans, programs, rules and regulations of 
the Authority, particularly those relating to compliance therewith, 
and to the accreditation of retirement projects; 
c. Coordinate with field offices of other departments, bureaus, and 
agencies, LGUs, NGOs in the implementation of such laws, 
policies, plans, programs, and rules and regulations; 
d. Undertake research and data gathering on local retirement trends 
and other relevant retirement information; 
e. Together with LGUs, establish such tourist information and 
assistance centers in strategic locations as are necessary to 
disseminate relevant information pertaining to the retirement 
locations and products and to assist tourists and retirement 
enterprises; 
f. Conduct information campaigns, and assist in domestic promotions 
in the pertinent area on subject matters such as this Act, the 
functions of the Authority, the retirement program, among others; 
and 
g. Make recommendations to the General Manager on all matters 
relating to retirement in the area. 
Changes to the functions of the Field Offices shall be approved by the 
Section 21. Resident Retiree Incentives and Benefits. Foreign 
nationals, including former Filipino citizens, who vacation, take up permanent 
residence andlor invest in the Philippines under the program or in the projects 
of the Authority shall be entitled to the following incentives and benefits: 
General Manager. 
I 
a. 
Guaranteed repatriation and, in the event of death of the 
participant, exemption from the Philippine's estate taxes of any 
foreign exchange currency remitted to, brought in or invested in the 
Authority and/or its development projects. Profits or incomes earned 
in the Philippines out of such fund shall be taxable; 
b. 
Grant of permanent resident status subject, however, to cash 
remittance or deposit by the applicant with the Authority or duly 
accredited banking institution of a trust fund in the minimum amount 
of US$50,000.00 or its foreign currency equivalent, or any amounts 
which the Authority may require and set for special cases. Such trust 
fund shall be withdrawable only upon the participant's withdrawal 
from the program of the Authority. The Authority may increase or 
decrease the required trust fund amounts as conditions of national 
Interests may warrant; 


Permanent resident status shall also be granted to the lawful spouse 
and one (1) legitimate or legally adopted child below twenty-one (21) years of 
age of the applicant or principal participant, who are accompanying or 
thereafter joining the latter for permanent residence in the Philippines. Similar 
entitlement by any additional dependents or legitimate or legally adopted 
children below twenty-one (21) years old shall be subject to a trust fund 
deposit for each in such amount as may be required by the Authority; 
The trust fund deposits may, after a period of time set by the Authority 
from date of deposit and at option and application of the principal participant 
with the Authority, be converted into investments approved by the Board; 
In the event of death of a participant, hidher trust fund deposit shall be 
inherited by the surviving heirs in accordance with the laws of hislher country. 
Such inheritance shall not be subject to the Philippine estate taxes. The heirs 
may opt to continue the trust fund deposit for their own residency status. 
When the deposit, however, shall have been converted into investments 
approved by the Board, the conversion shall be subject to Philippine estates 
taxes; 
c. Exemption from payment of custom duties and other import 
taxes for importations in the Philippines of household appliances 
and furnishings, for one time only and up to the import valuation 
of twenty thousand US Dollars (US$ZO,OOO,OO) or its equivalent, 
or such other maximum ampunts as the Authority may 
determine and set from time to time as market conditions 
warrants; 
In case of termination from the Program, the sale or transfer of any of 
the properties referred to above to any other person or entity within the period 
of three (3) years from date of entry of the item in the Philippines, then the 
taxes due thereon which were exempted shall accordingly be payable and 
enforced. The Authority shall provide the rules which shall apply to the total 
loss of any such household items through force majeure, larceny or 
unavoidable accident; 
d. Exemption from securing prior work permit for employment in 
the Philippines; 
e. Exemption from securing Special Study Permit for children 
studying in academic institutions in the Philippines; 
f. Exemption from securing the annual registration requirements of 
the BI and all other permits issued by government agencies; 
g. Entitlement to the benefits accorded to Senior Citizens provided 
SRRV holders are 60 years old and above; 
h. Entitlement to the tax exemptions provided by P.D. No. 1217 
upon certification thereof by the Authority; 
In case of any transfer of the property referred to in paragraph (e) to 
any other person, firm, corporation or any other entity affected within three 
years following its entry into the national territory, then the taxes, due thereon 
but payment of which were exempted, must be paid. The Board may, by 
regulation, prescribed the applicable rules in case of total loss of said articles 
or household furniture. 
11 


i. Importation of one automotive vehicle for personal or family use, 
free of all importation, customs, sales, and economic 
stabilization taxes shall be allowed. Such vehicles may be sold 
or transferred to third parties, exempt from the aforementioned 
taxes, after seven years have elapsed from the date of entry of 
said vehicle into the country. The value which corresponds to 
this item shall not be taken into account computing the 
exemption established in the prekeding paragraph. 
With prior authorization from the Authority, the beneficiaries of the 
Authority's projects/programs, may substitute their vehicle abroad, at any 
time, and shall continue to enjoy the same exemptions established in the 
paragraph. 
The beneficiaries of the Authority's projects/programs may, however, at 
any time import vehicles with the same benefits herein specified, after prior 
payment of the taxes due on any vehicle has been previously imported tax- 
free. 
In case of loss of said vehicle, by theft or total destruction by fire, 
collision or accident occurring within the period of five years from date of entry 
of said vehicle into the country, the beneficiary under this law may acquire 
another vehicle free of the taxes herein before specified; 
Should the beneficiary withdraw from the programs/projects of the 
Authority within 7 years, he must pay all the programslprojects of the Authority 
taxes for which he has been exempted from paying by virtue of the provisions 
of this Section. 
The Authority is hereby authorized to promulgate and enforce such 
rules and regulations as may be deemed necessary for the proper 
implementation of the foregoing provisions pursuant to the objectives and 
mandate of the Authority; and 
The grant of the foregoing incentives and benefits shall not preclude 
the entitlement, when applicable, of the enterprises invested in by foreign 
nationals and former Filipino citizens to the incentives and benefits under the 
Omnibus Investment Code and other investment laws of the Philippines. 
Section 22. Accredited Banks. The Authority shall evolve a system of 
standards for the accreditation of banks which shall adhere, insofar as 
practicable, to those recognized internationally. 
Accredited Banks - shall refer to banks accredited to accept or maintain 
deposits for the Authority 
Section 23. Marketers. The Authority shall evolve a system of 
standards for the accreditation of marketers which shall adhere, insofar as 
practicable, to those recognized internationally. 
Marketers - shall refer to any person, natural or juridical, duly 
registered with the Authority, who renders services to the retiree to 
facilitate his enlistment in the Program 
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Section 24. Merchant Partners. The Authority shall evolve a system 
of standards for the accreditation of merchant partners which shall adhere, 
insofar as practicable, to those recognized internationally. 
Merchant Partners - shall refer to establishments accredited to provide 
services 
CHAPTER IV. INDUSTRY INVESTMENTS 
Section 25. Accredited Facilities. In order to encourage global 
competitiveness, strengthen data gathering and research on retirement, and 
facilitate the promotion of individual facilities and the industry as a whole, the 
Authority shall prescribe and regulate standards for the operation of the 
retirement industry. Accreditation shall be voluntary. 
Accredifed facility - shall refer to facilities accredited to promote the 
Program according to the accreditationstandards set by the Authority. 
The Authority shall evolve a system of standards for the accreditation 
of these facilities which shall adhere, insofar as practicable, to those 
recognized internationally. 
The Authority shall likewise have the power to impose fines, or 
downgrade, suspend or revoke accreditation, for violation of terms thereof. 
The Authority shall have the power and the duty to issue advisories pertaining 
to retirement facilities found to have violated the terms of their accreditation. 
Section 26. Value of Accreditation. The Authority shall develop a 
system to enhance the value of accreditation among retirement facilities. Only 
accredited enterprises shall be beneficiaries of promotional programs of the 
Authority. 
Accredited facilities shall, insofar as practicable, give due preference to 
other accredited facilities or merchant partners in obtaining relevant services. 
Section 27. Investor Incentives and Benefits. Retirement industry- 
related enterprises shall be endorsed by the Authority to receive the same 
incentives and benefits accorded to investments recognized by other 
government agencies upon compliance with the requirements set by the said 
agencies. 
The following agencies shall provide incentives and benefits to 
a. Board of Investments (BOI) 
b. Philippine Economic Zone Authority (PEZA) 
c. And other similar agencies 
retirement industry-related enterprises: 
CHAPTER V. CORPORATE SOCIAL RESPONSIBLITY 
Section 28. CSR Program. The Authority shall establish programs 
beneficial to both indigent and marginalized Filipino elderly pursuant to the 
memorandum from the 12'h Cabinet Meeting dated 30 May 2006, and 
Executive Order No. 26 dated 31 August 2001, and retiree participants. 
Section 29. Local Government Units Partnership. The Authority 
shall have a representative to attendlparticipate in meetings and activities of 
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the Tourism Councils of Local Government Units (LGUs) that it has identified 
to be centers for retirement, tourism and investment. 
The Authority shall collaborate with LGUs on activities which could be 
dovetailed with those of the Tourism Councils that are geared towards the 
development of a retirement and investment destination. 
Section 30. Funding for CSR. The Authority shall retain a portion of 
its revenue for its Benevolent Fund as a cushion for the financial impact of the 
hospitalization or death of retiree-members and other CSR activities. 
CHAPTER VI. MISCELLANEOUS PROVISIONS 
Section 31. Audit System. The number of personnel to be assigned 
by the COA in the Authority and the expense allocations for their services 
shall be equated with considerations of economy for the Authority, over which, 
however, the judgment of the COA shall always prevail. A special audit 
system, in line with the private orientation and nature of the bulk of the 
Authority's operations, may be arranged with the COA. 
Section 32. Capitalization. The Authority shall have an authorized 
capital stock of Two Hundred Million Pesos '(P200,000,000.00) divided into 
ten million shares with a par value of One Hundred Pesos (P100.00) per 
share which shall be fully subscribed and paid for by the Government of the 
Republic of the Philippines. 
The funds and other assets of the Authority which are existing as of the 
enactment of this Act, as certified by the Commission on Audit, shall be 
deemed and set off as a partial payment by the Government for its subscribed 
shares of stocks of the Authority. The payments for the unpaid balance of the 
Government's subscription, as well as such amounts as may be necessary to 
support the Authority's operations, maintenance and expansion, shall 
accordingly, be provided for in the General Appropriations Act. 
Section 33. Economic Aid to the Authority. The Authority is hereby 
authorized to solicit, negotiate for and receive, through any of its authorized 
representatives, grants, donations, endowments, contributions, legacies, 
devises and gifts from any source, domestic or foreign, public or private, to 
support its operation, maintenance and development projects, without the 
need of securing any permit, approval or registration from any government 
agency or office. Any provision of law to the contrary notwithstanding, all such 
grants, donations, endowments, contribution, legacies, devices and gifts shall 
be free from gift, income and all other kinds of taxes, and shall further be 
deductible from gross income of the donors under the National Internal 
Revenue Code. 
Section 34. Exemption from Taxes, Duties and Fees. The Authority 
is hereby declared exempt from all income and other internal revenue taxes, 
tariff, customs duties, as well as all other kinds of taxes, fees, charges and 
instrumentalities. 
Section 35. Annual Report. The Authority shall render to the 
President of the Philippines an Annual Report, not later than March 15'h of 
each year, on its operation and accomplishments. 
Section 36. Transitory Provisions. Upon the efficiency of this Act, the 
Board shall immediately be constituted and conveyed. All incumbent officers 
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and employees of the Philippine Retirement Authority shall continue in office 
as officers and personnel of the Authority without demotion in rank or 
diminution in pay and fringe benefits. The Board is authorized to provide for 
the granting of suspension benefits for those who may opt for early retirement. 
All funds, assets, rights, claims and interests of the Philippine 
Retirement Authority or the previous corporation shall, upon the effectivity of 
this Act, be deemed transferred to the Authority, and all liabilities and 
obligations of the former shall be assumed by the latter. 
Section 37. Applicability of the Corporation Code. The provisions of 
the Corporation Code of the Philippines which are not inconsistent with the 
provisions of this Act, shall apply in a suppletory manner to manners which 
are not provided for in this Act. 
Section 38. Repealing Clause. All laws, ordinances, executive orders, 
rules and regulations or parts thereof which are contrary to or inconsistent 
with the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
Section 39. Separability Clause. Any provisions or portions of this Act 
which shall be declared unconstitutional or invalid shall not nullify or adversely 
affect the other provisions or portions hereof which can still subsist and be 
given legal force and effect in their entirety. 
Section 40. Effectivity. This Act shall take effect fifteen (15) days after 
its publication in at least two (2) national newspapers of general circulation. 
Approved, 
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