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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
) 
SENATE 
S.B.No. 588 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
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It is the moral obligation of Congress and its members to see to it that the State policies, 
ordained in the Constitution are translatable into Jangible pieces of worthy legislation, especially, 
Constitutional injunctions which provides: 
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"The State shall, from time to time, review to upgrade the pension and other benefits due 
to retirees of both government and private sectors (Article XVI, Section 8)." 
A survey conducted of retirees who opted to retire under Republic Act No. 1616 revealed 
that a majority of this class of retirees has been living in abject poverty, and many of them have 
to depend on dole-outs from close relatives and friends. Aged government personnel who retired 
need monthly pension because at their late age their opportunities of earning are already almost 
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The lump sum they have received from.RA 1616 was greatly eroded by econbmicslump 
and high cost of living. Their economic difficulties were further aggravated when our country 
suffers from devastating effects of natural calamities. 
This Bill proposes the granting of monthly pension to government retirees who have 
availed of retirement b~nefits under RA 1616 when ~eyreach the age of seventy (7?). 
In view ofthe foregoing, the immediate passage of this Bill is earnestly requ;ested. 
FRANCIS G. ESCUDERO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No. 588 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
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JUL -8 P 1 :11 
TO GRANT MONTHLY PENSION TO GOVERNMENT RETIREES UNDER R.A. 1616 
WHO HAVE REACHED THE AGE OF SEVENTY (70) YEARS, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
. Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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Section I. Declaration' of Policy - The Constitution provides that the State shall, from 
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time to time, review to upgrad~ the pensions and other benefits due to retirees of both the 
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govermnent and private sectors. As far as may be possible, it should provide to those who have 
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less in life the opportunity to earn for .their living so that they may playa more active role in 
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social life and especially in the economic and political spheres. It is the duty of the State to create 
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conditions which are necessary to realize the right of all citizens particularly the underprivileged 
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the equal opportunity. To this end, the State shall grant Monthly Pension to govermnent retirees 
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who have availed of retirement benefits under Republic Act No. 1616. 
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Section 2. Definition afTerms - The following terms shall be understood in this Act to 
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mean: 
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1) Government Service Insurance System (GSIS) - refers to the agency entrusted to take 
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charge of all matters pertaining to the benefits and insurance claims of all government 
',! 
" 
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officials and employees, as created and established under Presidential Decree No. 
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1146 and further amended by Republic Act No. 8291; 
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2) Retiree -
refers to government officials and employees who ha~e availed of 
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retirement benefits under Republic Act No. 1616 whose annuity I corrupted in 
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accordance with the mortality table and the rate of interest adopted by the system; 
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3) Monthly pension - refers to the monthly benefits to be granted to government retirees 
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. underRA 1616 as embodied in this Act, to be determined by the GSIS; 
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Section 3. Rules and Guidelines - To implement this Act, the Government Service 
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Insurance System shall determine the Monthly Pension of a retiree as defined herein and 
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formulate guidelines in the disbursement for said beneficiaries. 
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Section 4. Funding - The President of the Republic is hereby authorized to realign or 
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transfer any item appropriate within the GSIS and/or utilize any savings therein to carry out the 
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purpose of this Act. Whatever additional amount as may be needed for its implementation shall 
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be included in the overall Appropriations Act of the ensuing Fiscal Years. 
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Section 5. Separability Clause. - In the event of any portion of provision of this Act is 
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declared unconstitutional, the remainder otthis 'Act or any provisions not affected thereby shall 
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remain in force and thereby shall remain in force and in effect. 
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Section 6. Repe,aling Clause - All other laws, decrees, rules and regulatio~s' contrary or 
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inconsistent with the provisions of this Act are hereby repealed or modified accordi~gly. 
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Section 7. Effectivity. This Act shall take effect 15 days after its cOmplete publication in 
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at least two (2) newspapers of national circulation. 
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Approved, 
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