THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First regular Session 
1 
S E N A T E  
S.B.'NO. 895 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
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EXPLANATORY NOTE 
The State is mandated by the Constitution to promote and protect quality 
education that is of high academic standards, affordable education that is financially 
reachable by all sectors of the society and education that is relevant and responsive to 
the needs of the people and the society. As provided in Article XIV, Section I of the 
Constitution: 
"The State shall protect and promote the rights of all citizens to qualify education 
at all levels and shall take appropriate steps to make education accessible to all." 
The same constitutional mandate is always in need of sound and concrete 
legislation to implement its goal of broadening opportunities particularly in higher 
education. This proposed measure is in furtherance to the enacted laws strengthening 
such mandate by providing for a College Education Trust Fund. This proposed Fund 
shall be composed of premiums paid by the Member, thus, enabling the beneficiary to 
complete a four year or five year education. 
The proposed college education insurance plan, though optional to all Members 
regardless of civil status, can only be availed of by Members who have completed their 
policy before the enrollment of the child despite the prevailing costs of such education at 
the time of the child's enrollment. The funds are guarded from being used for other 
purposed, as it is directly paid to the school where the child shall enroll. By paying for 
the child's education at today's prices, he is assured of a college education for the 
future. Incentives for scholars and enrollees of Agriculture, Fishery, Forestry, Science 
and Technology are also provided for in this proposed measure. 
* 
College education has always been regarded as the ticket to having a decent job 
and meaningful contribution to the society. It is an invaluable and priceless gift a 
parent, grandparent, or relative can give a child. The bill, if enacted, shall provide the 


5 
means for providing for the future by doing what may be done at the present. The 
passage of this bill is earnestly urged. 


“ 
THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First regular Session 
1 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR A COLLEGE EDUCATION TRUST FUND FOR CHILDREN OF 
GSIS AND SSS MEMBERS 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “College Education 
Trust Fund Act.” 
SECTION 2. College Education Trust fund. - There is hereby established in 
the Government Service Insurance System and the Social Security System a special 
trust fund called the “College Education Trust Fund” to ensure the college education of 
the children of the Members of both Systems. 
SECTION 3. Children Defined. - For purposes of this Act, the term “children” 
shall include the legitimate, legitimated, legally adopted or illegitimate child or grandchild 
of the Member. 
SECTION 4. Optional Coverage. - Subject to the rules and regulations 
prescribed by the Government Service Insurance System (GSIS) or the Social Security 
System (SSS), as the case may be, all Members, regardless of civil status, with or 
without a child shall have the option to insure under this Act. 
SECTION 5. Premium Payments. - The amount of premiums to be paid to the 
College Education Trust Fund by the Member,shall be, in accordance with the schedule 
of payments to be provided by the System concerned taking into consideration the 
following criteria: 


L 
a) 
The intervat of time between the effectivity of the cwerage and the 
estimated time of enrollment of the child in college; 
The number of monthly contributions to be made to complete the policy 
The benefits to be availed of as provided in Section 5 of this Act; 
The number of children insured under this Act; 
The amount of tuition and other standard fees charged by the school; and 
b) 
c) 
d) 
e) 
f) 
Such other factors as may be determined by the System concerned. 
SECTION 6. Educational Benefits. - Only Members who have completed the 
payment of the premium on the policy before the enrollment of the child shall be entitled 
to avail of the benefits provided for under this Act. 
The benefits shall include the payment by the System concerned of: 
a) 
Such school fees as.may be required for enrollment in and completion of 
four or five year college course which shall include tuition fees for all 
subject officially prescribed by the school and part of the regular 
curriculum as requisite for graduation and such standard fees as may be 
defined by the System concerned in coordination 
I 
with the Department of 
Education, Culture and Sports; 
Materials, books, supplies and other similar fees required by the school; 
and 
The board and lodging expenses that may be incurred in the pursuit of 
such education. 
b) 
c) 
The member may opt to insure any of the above or combinations thereof. 
The payment shall be made by the System directly to the institution except for 
item (b) which shall only be reimbursed to the member or child. The System concerned 
shall provide for safeguards to insure the prompt payment of these benefits. 
SECTION 7. Incentives. - a) Should the child earn any scholarship in College 
as to exempt the System from the payment of the benefits provided for in paragraph (a) 
of the proceeding section, in whole or in part, such payments shall be received by the 
child in lieu of the school. 
The System concerned shall provide for incentives to enrollees of the 
following courses: 
Agricultural, 
Forestry, Fishery, Science and 
Technology. 
b) 
SECTION 8. Transferability of Benefits. - The benefits provided for this act 
may be transferred or assigned to another child of the same Member. 


SECTION 9. Deafh or Disabiljfy of Members. - The death or disability of the 
member shall not preclude the child from the availment of the benefits provided for in 
this Act. 
SECTION IO. In case of insufficiency of provisions of this Act, the SSS or GSlS 
law as the case may be shall apply in a suppletory manner. 
SECTION 11. The GSlS or SSS, as the case may be, shall promulgate the 
necessary rules and regulations for the effective implementation of this Act within ninety 
(90) days following its approval. 
SECTION 12. Saving Clause. - If, for any reason, any section or provision of 
this Act shall be held to be unconstitutional or invalid, the other sections or provisions of 
this Act shall not be affected thereby. 
SECTION 13. Effecfivify Clause. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in two (2) National newspapers of general 
application, whichever comes earlier. 
Approved ,