Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6038
HOUSE BILL NO. _

Introduced by HONORABLE STELLA LUZ A. QUIMBO

AN ACT GRANTING MANDATORY SOCIAL PENSION FOR ALL
SENIOR CITIZENS, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO.7432, AS AMENDED BY REPUBLIC ACT NOS. 9257 AND
9994, OTHERWISE KNOWN AS THE 'EXPANDED SENIOR
CITIZENS ACT OF 2010'

EXPLANATORY NOTE

It is incumbent upon the State to enact laws that provide substantive social
protection to our senior citizens. Article XV, Section 4 of the 1987 Philippine
Constitution mandates that: “It is the duty of the family to take care of its older
person members, while the State may design programs of social security for them.”

Senior citizens continue to play a key role in the Philippine economy. Based
on the Census of Population and Housing, there are about 7.55 million Filipinos who
are at least 60 years old as of 2015. According to the 2016 Labor Force Survey (LFS),
45 percent of senior citizens reported to be employed. Of these employed senior
citizens, 29 percent are self-employed professionals while 23 percent are self-
employed non-professionals. Hence, a sizeable number of senior citizens can
continue to engage in economic activity even beyond the age of 65. Moreover, within
Filipino families, senior citizens provide childcare, an important factor contributing
to labor force participation by younger individuals belonging to productive age
groups. Grandparents often taking on the responsibility of childcare frees up other
family members for outside work without compromising child welfare. According to
the 2016 LFS, 22 percent of households with members who are OFWs are headed by
senior citizens and have children left behind. This suggests senior citizens provide
the critically needed child care for those left behind by OFW parents.

With age also comes an increased likelihood of disease and medical expenses,
and hence, increased vulnerability to poverty. Based on the 2017 National
Demographic and Health Survey, 31 percent of senior citizens reported illness in the
last month. This is 17.5 percentage points higher than the proportion for individuals
below 60 years old. Data further suggest that senior citizens are vulnerable to
financial risks arising from illness. Only about 30 percent of senior citizens in the


country receive pensions based on their previous work history.! The bulk of these
recipients are SSS or GSIS beneficiaries.

‘There is a pressing need for our government to take further steps in securing
social protection for our senior citizens, especially considering that our population is
expected to continue aging in the coming years. A study by the Philippine Institute
for Development Studies estimates that the proportion of Filipinos aged 60 and above
will increase from 7.4 percent in 2015 to 11.4 percent by 2030 and 15.9 percent by
2045.2

Recognizing the rights and welfare of senior citizens, as well as their valuable
contributions to society, Republic Act No. 9994 or the Expanded Senior Citizens Act
was passed in 2010. This law provides senior citizens with several benefits, including
a monthly social pension in the amount of P500.00 to augment their daily
subsistence and medical needs. Only indigent senior citizens, as defined under
Section 2(i),? are currently entitled to such social pension. However, the selection of
beneficiaries is not well-targeted, due to a selection process that is incumbent upon
the recommendation of the Office of Senior Citizen Affairs (OSCA). According to the
Omnibus Guidelines of the DSWD, the DSWD identifies beneficiaries based on a
consolidated list submitted by the OSCA.* Such a system of selection of beneficiaries
is prone to leakages (e.g. inclusion and exclusion errors). Hence, many indigent
senior citizens continue to lack social protection despite the provision of Republic
Act No. 9994 on social pension.

This bill seeks to render eligibility of social pension as mandatory for all
Filipino senior citizens. Based on a total of approximately 8 million seniors in the
population, with 70 percent not yet covered by contributory pension schemes, and a
monthly pension of P500.00 per beneficiary, this measure will require a total budget
of approximately P34 billion, or an increase of P11 billion from the appropriations
for social pensions in 2020.5

In view of the foregoing, the swift passage of this bill is earnestly sought.

X¥

LUZ A. QUIMBO
epresentative
Second District, Marikina City

1 HelpAge International. (2017). The Feasibility of A Universal Social Pension in the Philippines.

2 Reyes, et. al. (2019). Silver Linings for the Eiderly in the Philippines: Policies and Programs for
‘Senior Citizens. Discussion Paper Series No. 2019-09. Philippine Institute for Development Studies.

3 Section 2(h) of Republic Act No. 9994 defines indigent senior citizens as *...any elderly who is frail,
sickly or with disability, and without pension or permanent source of income, compensation or financial
assistance from his/her relatives to support his/her basic needs, as determined by the Department of
Social Welfare and development (DSWD) in consultation with the National Coordinating and Monitoring
Board.”

4 Department of Social Welfare and Development Memorandum Circular 2019-04

5 2020 General Appropriations Act


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

6038
HOUSE BILL NO. ____

Introduced by HONORABLE STELLA LUZ A. QUIMBO

AN ACT GRANTING MANDATORY SOCIAL PENSION FOR SENIOR
CITIZENS, AMENDING FOR THIS PURPOSE REPUBLIC ACT
NO.7432, AS AMENDED BY REPUBLIC ACT NOS. 9257 AND 9994,
OTHERWISE KNOWN AS THE 'EXPANDED SENIOR CITIZENS ACT
OF 2010'

Be it enacted by the Senate and the House of Representatives of the Philippines

in Congress assembled:
SECTION 1. Definition of Social Pension and Social Pension Provider. —
Section 2 of Republic Act No. 7432, as amended by Republic Act Nos. 9257

and 9994, is hereby further amended to read as follows:

“Section 2. Definition of Terms - For the purposes of this Act, these terms are

defined as follows:

(I) SOCIAL PENSION REFERS TO A NON-CONTRIBUTORY
MONETARY GRANT FROM THE GOVERNMENT TO SUPPORT
THE DAILY SUBSISTENCE AND MEDICAL NEEDS OF SENIOR
CITIZENS WHICH SHALL AMOUNT TO NO LESS THAN ONE

THOUSAND FIVE HUNDRED (P500) PER MONTH.

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(J) PENSION PROVIDER REFERS TO ANY GOVERNMENT OFFICE OR
AGENCY OR ANY PRIVATE ENTITY WHICH PROVIDES PENSIONS
TO ENTITLED RECIPIENTS ON THE BASIS OF CONTRIBUTIONS,
GRATUITY, OR AS MANDATED BY ANY GOVERNING LAW OR
ISSUANCE, INCLUDING BUT NOT LIMITED TO THE SOCIAL
SECURITY SYSTEM (SSS), THE GOVERNMENT SERVICE
INSURANCE SYSTEM (GSIS) AND THE PENSION AND GRATUITY

MANAGEMENT CENTER (PGMC), AMONG OTHERS.

SECTION 2. Mandatory Social Pension - Section 5 of Republic Act No.

7432

, as amended by Republic Act Nos. 9257 and 9994, is hereby further

amended to read as follows:

“Section 5. Government Assistance - The government shall provide the

following:

eed

@

MANDATORY SOCIAL PENSION
[Indigent] ALL [senior citizens,] INDIVIDUALS NOT RECEIVING A
PENSION FROM ANY PENSION PROVIDER SHALL, UPON
REACHING THE AGE OF 60, BE AUTOMATICALLY ENTITLED TO

RECEIVE a monthly SOCIAL PENSION.

‘THE SOCIAL PENSION SHALL AMOUNT TO NO LESS THAN FIVE
HUNDRED PESOS (P500) to [augment] SUPPORT [the] THEIR daily
subsistence and medical needs. [of senior citizens subject to a

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review every two (2) years by Congress, in consultation with the

DSWD].

ANY SENIOR CITIZEN MAY OPT NOT TO RECEIVE THE
MONTHLY SOCIAL PENSION. ALL UNCOLLECTED PENSIONS
SHALL BE AUTOMATICALLY REMITTED TO THE OFFICE OF
THE SENIOR CITIZENS AFFAIRS. THE REMITTED AMOUNT
WILL BE USED TO PROVIDE ADDITIONAL ASSISTANCE FOR

SENIOR CITIZEN PROGRAMS.

THE DSWD SHALL ROSTER INDIVIDUALS THAT ARE ELIGIBLE
FOR THE MONTHLY SOCIAL PENSION BASED ON A CENTRAL
DATABASE WHICH INCLUDES THE CENSUS OF POPULATION
AND HOUSING AND A COMPILATION OF THE BENEFICIARIES
OF ALL PENSION PROVIDERS. THE SSS, GSIS, PGMC AND
OTHER PENSION PROVIDERS SHALL PROVIDE THE DSWD
WITH ACCESS TO THEIR ROSTER OF BENEFICIARIES EVERY
MONTH FOR THIS PURPOSE. THE PHILIPPINE STATISTICS
AUTHORITY WILL LIKEWISE PROVIDE THE DSWD WITH

TIMELY ACCESS TO PERTINENT DATA FOR THIS PURPOSE.

THE DSWD, IN CONSULTATION WITH THE DEPARTMENT OF
BUDGET AND MANAGEMENT (DBM), AS WELL AS OTHER
STAKEHOLDERS, SHALL REVIEW AND WHEN NECESSARY,

ADJUST THE AMOUNT OF SOCIAL PENSION EVERY TWO (2)


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YEARS AFTER THE EFFECTIVITY OF THIS ACT, TAKING INTO
ACCOUNT THE VARIOUS NEEDS OF SENIOR CITIZENS AND
RELEVANT ECONOMIC INDICATORS, AS REPORTED AND
PUBLISHED BY PERTINENT GOVERNMENT AGENCIES AND
AUTHORITIES: PROVIDED, THAT THE SOCIAL PENSION SHALL
NOT BE LESS THAN THE AMOUNT INITIALLY SPECIFIED IN

THIS ACT.”

SECTION 3. Appropriations. - The necessary funds for the mandatory social
pension shall be added to the appropriations of the DSWD budget in the
annual General Appropriations Act after the passage of this Act into law. One
percent (1%) of the annual incremental income tax revenues of the national
government shall be earmarked for purposes of supplementing funds for the

mandatory social pension, each year upon the effectivity of the Act.

SECTION 4. Repealing Clause - All laws, decrees, executive orders, rules
and regulations, or parts thereof which are inconsistent with this Act are

hereby repealed, amended, or modified accordingly.

SECTION 5. Separability Clause - If any provision of this Act is declared
unconstitutional or invalid, other parts or provision hereof not affected shall

continue in full force and effect.

SECTION 6. Effectivity - This Act shall take effect fifteen (15) days following

its publication in the Official Gazette or in a newspaper of general circulation.


1 Approved,