NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
SENATE
S.B. No.
24 NOV-4 P3 -06
i:.
(In substitution of Senate Bill Nos. 829, 1293, 1404, 1510, 1529 and 1706 taking into
consideration House Bill no. 10466)
Prepared and submitted jointly by the Committees on Government Corporations and 
Public Enterprises; Foreign Relations; Ways and Means; and Finance with Senators 
Legarda, Ejercito Estrada, Revilla, Hontiveros, Villar (M.) and Go as authors thereof
AN ACT
PROVIDING FOR A PENSION DIFFERENTIAL TO THE DEPARTMENT OF FOREIGN
AFFAIRS RETIREES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembied:
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Section 1. Short Title. - This Act shall be known as the "Foreign Affairs Pension
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Differential Act."
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Sec. 2. Coverage. - This Act shall apply to retired officers and employees of the
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Department of Foreign Affairs (DFA) who are receiving a monthly pension from the
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Government Service Insurance System (GSIS) and those who opted to retire under
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Republic Act No. 1616: Provided, That they reached sixty-five (65) years of age and
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served the DFA for at least fifteen (15) years at the time of their retirement: Provided,
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further, that the retirees under Republic Act No. 1616, shall be Filipino citizens.


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All other DFA officers and employees who have retired but have not met all the above-
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mentioned requirements shall be covered by applicable benefits under existing laws and
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regulations.
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Sec. 3. Monthly Pension Differential. - The DFA shall formulate the guidelines on
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the computation of the monthly pension differential of qualified DFA retirees for each
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salary grade level, requisites for its release, and other administrative requirements:
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Provided, That the grant of pension differential shall be given without prejudice to the
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existing pension benefits received by the retirees and shall be applied prospectively:
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Provided, further, That the DFA shall conduct periodic reviews of the guidelines on the
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grant of the monthly pension differential to ensure program sustainability.
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The following shall be the basis for the determination of the amount of the monthly
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pension differential per salary grade:
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a. The basic monthly pension that is currently being received by the DFA retirees,
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provided under Republic Act No. 8291 or the "Government Service Insurance
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System Act"; and
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b. The basic monthly pension7 provided under Republic Act No. 8291, to be granted
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to DFA personnel holding the same salary grade last held by the retirees and are
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retiring within the year of the effectivity of this Act.
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The monthly pension differential of DFA retirees who received their retirement benefits
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under Republic Act No. 1616 shall receive an amount equivalent to not more than fifty
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percent (50%) of the pension differential received by other DFA retirees who retired in
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the same year and held the same rank.
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Sec. 4. Adjustment of Pension Differential. - Five (5) years after the effectivity of
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this Act, and every five (5) years thereafter, the monthly pension differential shall be
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adjusted: Provided, That the funds collected by the DFA under Executive Order No. 906,
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series of 2010 are sufficient to finance the said increase: Provided, further. That the
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pension differential of DFA retirees shall not be automatically increased whenever there


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is an annual increase in the salary of the active DFA personnel holding the same
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position last held by the retirees.
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Sec. 5. Exemption of Pension from Income Tax, Attachment, Levy,
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Garnishment. - Any pension differential or gratuity benefits granted under this Act
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shall not, in whole or in part, 
be subject to income tax, attachment, execution,
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forfeiture, or retention under any legal or equitable proceedings, nor shall any lien of
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any kind or under any consideration be imposed thereon.
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Sec. 6. Survivorship Benefits. - In the event of the death of a DFA retiree who has
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met the requirements provided in Section 2, the surviving legal spouse and the qualified
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dependent children or those older but are unable to fully take care of themselves shall
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be entitled to receive survivorship benefits equivalent to a maximum of fifty percent
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(50%) of the pension differential that the deceased retiree was receiving or entitled to
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receive subject to the survivorship pension guidelines under Republic Act No. 8291.
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The DFA shall formulate guidelines on the distribution and release of survivor pension
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benefits to qualified dependents of DFA retirees.
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Sec. 7. Funding. - The funding requirements for the effective implementation of this
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Act shall be charged to the applicable fees collected under Executive Order No. 906,
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series of 2010. The national government shall not be responsible for any deficit that
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may arise due to the insufficiency of its funding source.
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Sec. 8. Impiementing Ruies and Reguiations. - Within ninety (90) days after the
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effectivity of this Act, the DFA shall issue the necessary rules and regulations for the
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effective implementation of this Act.
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Sec. 9. Separabiiity Ciause. - If any provision of this Act is declared
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unconstitutional, the remainder thereof not otherwise affected shall remain in full force
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and effect.


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Sec. 10. Repealing Clause. - All laws, presidential decrees, executive orders, letters
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of instruction, proclamations, or administrative regulations that are inconsistent with
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this Act are hereby repealed, amended or modified accordingly.
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Sec. 11. Effectivity Clause. — This Act shall take effect after fifteen (15) days
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following its publication in the Official Gazette or in a newspaper of general circulation.
6 Approved,