FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
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) 
) 
S.B. No. 2010 
Introduced by SENATOREDGARDO J. ANGARA 
EXPLANATORY NOTE 
This bill seeks to amend and update the charter, Executive Order No. 1037 
Series of 1985, of the Philippine Retirement Park System, which was operationalized 
and now more known, as the Philippine Retirement Authority (PRA), the government-
owned corporation which is tasked to carry out the national program of enticing foreign 
nationals, including former Filipinos overseas, to spend their golden years in the 
Philippines. The aforesaid agency shall hereinafter be referred to, for brevity and 
convenience, as PRA or the AUTHORITY. 
The alien retirement of PRA program of the Government aims to generate for 
the country much-needed domestic employment, dollar and other foreign exchange 
inflows, capital investments and technology transfers through the following: 
(a) 
Expenses of the foreign retires in the Philippines, for their subsistence, 
shelter, care, medical and lifestyle services and activities, supported by 
their pensions and other income sources; 
(b) 
Dollar or other foreign exchange deposit required for retiree 
participation or enrollment in the PRA program; 
(c) 
Capital investments that the retirees may make, enterprises they may put 
up, as well as other productive pastime undertakings they may pursue or 
indulge in; and 
(d) 
Establishment and operation of retirement habitats, facilities and 
services. 
Employment-wise, industry studies show that one alien retiree would provide, 
on the average, gainful employment for at least three service providers. Added to this 
would be the work and livelihood opportunities retirement habitats, facilities and 
amenities; and also out of the business and industry investments, technologies, 
community and pastime activities of the retirees, especially the more affluent, 
knowledgeable and altruistic among them . 
. The Philippine initiative to get a share of the huge, affluent retirees market 
worldwide, especially from countries with cold season, capitalizes on these retiree-
friendly factors: 
(a) Warm climate and other tropical endowments of the Philippines; 
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(b) Low dollar-cost of living and services; 
(c) Well-known Filipino traits of hospitality, respect and care for the elderly 
and an English-language facility; and 
(d) Availability nationwide of adequate hospital, medical health and care 
services, which are world-class in some urban areas. 
These attractive Philippine assets are bolstered under the PRA charter and 
program with incentives and benefits granted by the Government to retiree-participants, 
consisting of: (a) permanent residence status in the Philippines, (b) exemption from 
import taxes for certain items; and (c) extension of Balikbayan privileges to former 
Filipinos. 
The Charter of PRA, E.O. No. 1037 Series of 1985, which has remained 
unamended since its enactment some 20 years ago, needs updating so as to provide the 
agency with clearer, more responsive mandate and power, as well as in promoting the 
growth of the alien retirement industry of the Philippines. The industry opens a bright 
promise of lucrative jobs and livelihood opportunities for Filipinos without going 
abroad and leaving their loved ones behind. 
Approval of this bill is strongly recommended. 
2 
2vvt /~ 
EDGARDO J. ANGARA 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 2010 
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Introduced by SENATOR EDGARDO J. ANGARA 
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: 
TITLE I -GENERAL PROVISIONS 
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SECTION 1. Short Title. This Act shall be known as the Philippine Retirement 
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Authority Act. 
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SEC. 2. Declaration of Policy. It is the policy of the State to develop and promote 
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a Philippine Retirement Program and sustain the retirement industry for foreign nationals 
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and former Filipino citizens, including the Filipino elderly (Executive Order No, 26, 31 
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August 2001), so as to generate for the country and people more employment and income 
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opportunities, foreign exchange inflows, investments and technology transfers. 
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Towards this end, the Government shall: 
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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 
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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; 
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d. lni tiate 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. 
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SEC. 3. Definitions - When Used in this Law, unless the context otherwise 
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reqUIres: 
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a. Authority- shall refer to the Philippine Retirement Authority as created under 
the Executive Order No. 1037, dated July 4 1985. 
b. Program shall refer to the retirement program being implemented by the 
,Authority. 
c .. Retiree - shall refer to any foreign national or former Filipino citizen who is at 
least thirty-five (35) years old. 
d. Former Filipino - shall refer to a former Filipino citizen who has been 
naturalized in a foreign country. 
e. Resident Retiree - shall refer to a retiree who has been issued a Special 
Resident Retiree's Visa (SRRV). 
f. 
Spouse - shall refer to the legitimate spouse of the retiree based on the laws of 
the country of which the retiree is a citizen. 
g. Dependent - shall refer to a retiree's unmarried child who is under twenty-one 
(21) years of age, whether legitimate or legally adopted. 
h. Special Resident Retiree Visa - shall refer to a visa granted 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. 
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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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Accredited Facility - shall refer to facilities accredited to promote the Program 
according to the accreditation standards set by the Authority. 
k. Accredited Banks - shall refer to banks accredited to accept or maintain 
deposits for the Authority. 
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l. .Merchant Partners - shall refer to establishments accredited to provide 
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services. 
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SEC. 4. Reorganization and Renaming. The Philippine Retirement Park System, 
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as established by virtue of Executive Order No. 1037, Series of 1985, is hereby 
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reorganized in accordance with the provisions of this Act, and is renamed as the 
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Philippine Retirement Authority, hereinafter referred to as the Authority, which shall 
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have the power of succession in its name. The Authority shall be attached to the 
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Department of Tourism pursuant to Republic Act No. 9593, otherwise known as the 
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National Tourism Policy Act. 
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SEC. 5. Place of Business. The Authority shall have its principal place of 
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business in Metro Manila and it may establish other branches and field offices within 
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Metro-Manila and in other places in or outside the Philippines as may be necessary for 
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the efficient and effective conduct of its operations and business. 
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SEC. 6. Objectives. The Authority shall have the following objectives: 
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a. Implement, as lead agency, the national policy to promote and develop the 
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Philippines as a retirement haven for foreign nationals and former Filipino 
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citizens, and aim to optimize the economic and social benefits which would be 
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derived therefrom by the country and people; 
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b. Plan, carry out, undertake, support and promote incentive schemes and 
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systems, property, habitat and infrastructure developments, establishment and 
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, operation of facilities and services, as well as marketing and promotion efforts 
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to encourage foreign nationals and former Filipino citizens to vacation, reside, 
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retire, and invest in the Philippines; 
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c. Arrange for and coordinate the functional support and participation of other 
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government offices and functionaries, including those in foreign services, in 
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certain aspects of the Authority'S operations; 
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d. Encourage and protect private investors, entrepreneurs, developers, operators, 
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workers and other stakeholders in the establishment and operation of 
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retirement habitats, complexes, accommodations, facilities and services, as 
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well as marketers and promoters of programs and projects of tile Authority; 
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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 respect 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. 
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SEC. 7. Powers and Functions. The Authority shall have the following powers 
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and functions: 
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a. To adopt and use a corporate seal; 
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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 
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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; 
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, in the Municipality of Makati and elsewhere, 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. 
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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; 
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To carryon 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; 
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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 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 
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indebtedness and to charge all or any part of its properties as security 
therefore; 
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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, andlor 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; 
o. 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 n9velties; to erect, 
construct, purchase, lease or otherwise acquire fences, billboards, signboards, 
buildings and other structures for advertising purposes, to carryon the 
business of general advertising by circulation and distribution and display of 
cards, signs, 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; 
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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, territory, 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, 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 ofretirement policies, plans and projects; and 
x. Exercise such other powers and functions as are necessary for the 
implementation of this Act. 
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SEC. 8. Board of Trustees. The business, affairs and assets of the Authority shall 
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be directed, managed and safeguarded, and its powers exercised, unless otherwise 
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provided in this Act, by a Board of Trustees, hereinafter referred to as the Board, which 
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shall be composed of the following: 
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a. The Secretary of the Department of Tourism (DOT), who shall be the 
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Chairman, or his duly designated representative; 
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b. The General Manager of the Authority, who shall be the Vice-Chairman; 
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c. The Secretary of the Department of Foreign Affairs (DFA), or his duly 
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designated representative; 
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d. The Secretary of the Department of Finance (DOF), or his duly designated 
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,representative; 
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e. The Secretary of the Department of Health (DOH), or his duly designated 
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representative; 
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The Secretary of the Department of Trade and Industry (DTI), or his duly 
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designated representative; 
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g. The Secretary of the Department of Interior and Local Gcvvernment (DILG), 
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or his duly designated representative; and 
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h. The Commissioner of the Bureau of Immigration (BI), or his duly designated 
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representative; 
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In the absence of the Chairman, the Board shall elect a temporary presiding 
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officer among those present. The officials next in rank to the ex-officio Board members 
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shall serve as alternate members. Such alternates shaH attend board meetings and 
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meetings of any committee assigned to their principals in the latter's absence and receive 
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the corresponding per diems. 
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The Board shall meet at the principal office of the Authority regularly at least 
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once a month and as often as exigencies demand. The Board may agree in writing to meet 
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at another venue. The presence of at least five (5) members shall constitute a quorum, and 
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the vole of a majority of the members present shall be necessary for the adoption of any 
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reso lutian, rule, regulation, decision, award or any other corporate act. 
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Each member of the Board shall receive a per diem of Ten Thousand Pesos 
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(P 1 0,000.00) per month; and, that no member shall receive a per diem of more than Ten 
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Thousand Pesos (PI0,000.00) for anyone month, subject, however to review and 
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reasonable adjustments by the Board. 
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SEC. 9. Powers and Duties. The Board shall have the following powers and 
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duties: 
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a. Formulate policies, guidelines and programs to effectively implement and 
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carry out the purposes, objectives and powers of the Authority; 
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b. Prescribe and periodically review and revise the amount of the fees, charges 
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and assessments levied and collected for the support and maintenance of the 
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operations of the Authority; 
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c. Oversee the management, operation and affairs of the Authority; 
d. Promulgate such rules and regulations 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, ofthe 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; 
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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; 
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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 
TITLE II - STRUCTURE OF THE AUTHORITY 
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SEC. 10. Authority Proper. The Authority Proper shall consist of the Offices of 
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the General Manager, Deputy General Manager, Department Managers: Division Chiefs, 
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and Satellite Offices Operations In-Charge. 
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The General Manager and Deputy General Manager shall be appointed by the 
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Board. The Board shall determine the other officers of the Authority, who shaH be 
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appointed by, except as provided in this Act, the General Manager, subject to the 
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confinnation by the Board. 
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SEC. 11. Office of the General Manager. The management of the day-to-day 
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operations of the Authority shall be vested in the General Manager, who shall have the 
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following powers and duties: 
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a. Direct and supervise the management, operation and administration of the 
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Authority, and for this purpose, may delegate any or some operational and 
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administrative responsibilities and duties to the other officers of the Authority; 
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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, 
subj ect to the approval by the Board; 
c. Represent the Authority in all dealings with other offices, agencies, persons or 
entities, domestic or foreign, government or private; 
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; 
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e. Cause to be prepared the agenda and materials for the meetings of the Board; 
and 
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Exercise such other powers and perfonn such other duties as may be assigned 
by the Board. 
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The General Manager's power and duties shall include among others all the day-
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to-day regular operations of the Authority. All other matters shall be brought to the Board 
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for approval. He shall be appointed by the Board and shall only be removed for cause and 
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after due process. 
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SEC. 12. Office of the Deputy General Manager. The Office of the Deputy 
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General Manager shall consist of the Deputy General Manager and his immediate staff. 
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SEC. 13. Corporate Secretary. The Authority shall have a Corporate Secretary 
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who shall be appointed by the Board and under the administrative supervision of the 
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Chairman. The Corporate Secretary shall record the deliberations and acts of the Board 
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and shall have custody of the records and other papers pertaining to the Board. 
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SEC. 14. Legal Counsel. The Authority shall have a legal staff headed by a 
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Corporate Legal Counsel, who shall be a lawyer, appointed by the General Manager and 
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confirmed by the Board. In appropriate cases, however, the Authority may call upon the 
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assistance of the Office of the Government Corporate Counsel (OGCC) and other legal 
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services of the Government. 
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SEC. 15. Internal Auditor. The Authority shall have an internal audit unit headed 
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by an Internal Auditor, who shall be appointed by the Board. The Internal Auditor is 
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responsible for strengthening internal control and for ensuring that efficiency of 
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operations, reliability of reporting and compliance to applicable laws; regulations and 
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internal policies are achieved. 
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SEC. 16. Personnel and Compensation. The compensation package of the 
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officers and employees of the Authority shall be exempted from Republic Act No. 6750, 
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otherwise known as the Salary Standardization Law, and Republic Act No. 7430, 
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otherwise known as the Attrition Law. 
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The appropriate compensation package for the officers and employees with 
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reasonable allowance, incentives, bonuses, privileges and other benefits as may be 
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necessary or proper for the effective management, operation and administration of the 
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Authority, shall be approved by the Board upon recommendation of the General 
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Manager. 
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TITLE III - RETIREMENT PROGRAM 
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SEC. 17. Coverage. The program shall cover all Retirees as defined in Section 3. 
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SEC. 18. Special Resident Retiree Visa Issuance. The Authority and the 
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Department of Justice (DOJ) through the BI shall develop a system of granting SRRVs. 
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The Resident Retiree Servicing Center (RRSC) shall be created to expedite the 
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application, processing and issuance of SRRVs 'and the disposition of any problems 
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related to resident retirees. 
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The Authority may call upon the DF A, BI, BOC, and BSP for each of them to 
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detail an officer with appropriate and sufficient authority to the RRSC to process the 
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documents required and attend to the needs of the resident retirees. 
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SEC.19. Field Offices. The Authority shall establish, operate and maintain field 
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offices in the country. A Field Office, headed by a Satellite Offices Operations In-
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Charge, shall have the following functions: 
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a. Assist the RRSC to expedite the application, processing and issuance of 
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SRRV s and the disposition of any problems related to resident retirees 
27 
b. Implement laws, policies, plans, programs, rules and regulations of the 
28 
Authority, particularly those relating to compliance therewith, and to the 
29 
accreditation of retirement projects; 
30 
c. Coordinate with field offices of other departments, bureaus, and agencies, 
31 
LGUs, NGOs in the implementation of such laws, policies, plans, programs, 
32 
and rules and regulations; 
33 
d. Undertake research and data gathering on local retirement trends and other 
34 
relevant retirement information; 
35 
.e. Together with LGUs, establish such tourist information and assistance centers 
36 
in strategic locations as are necessary to disseminate relevant information 
37 
pertaining to the retirement locations and products and to assist tourists and 
38 
retirement enterprises; 
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f. 
Conduct infonnation 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. 
7 
Changes to the functions of the Field Offices shall be approved by the General 
8 
Manager. 
9 
10 
SEC. 20. Resident Retiree Incentives and Benefits. Foreign nationals, including 
11 
fanner Filipino citizens, who vacation, take up pennanent residence and/or invest in the 
12 
Philippines under the program or in the projects of the Authority shall be entitled to the 
13 
following incentives and benefits: 
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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 pennanent 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. 
Penn anent 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. 
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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, hislher trust fund deposit shall be 
inherited by the surviving heirs in accordance with the laws ofhislher 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 Dol1ars 
(US$20,OOO,OO) or its equivalent, or such other maximum amounts 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 III the 
Philippines; 
e. 'Exemption from securing Special Study Permit for children studying III 
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 that SRRV 
holders are sixty (60) years of age and above; 
15 


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h. Entitlement to the tax exemptions provided by P.O. No. 1217 upon 
certification thereof by the Authority. 
In case of any transfer of the property referred to in paragraph (c) to any other 
person, firm, corporation or any other entity affected within three (3) 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; 
1. 
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 
preceding paragraph; 
J. 
Resident retirees may be included as full partners in community decision-
making affecting them and shall likewise be recognized for their past as well 
as their present contributions. The community, to strengthen their 
neighborhood ties and support, may include retiree residents as key 
informants, advisers, actors and beneficiaries without any form of payment in 
exchange for the retiree resident's participation; 
k. Access to priority parking bays and drop-off and pick-up points provided for 
older people and disabled people close to buildings and transport stops; 
l. 
Affordable housing for older people; 
m. Access to events and activities and local attractions that are affordable with no 
hidden or additional costs; 
n. After a period of five (5) years, resident retiree may apply for naturalization; 
o. Health insurance coverage; and 
p. Discount on utilities such as water, telephone and electricity. 
16 


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With prior authorization from the Authority, the beneficiaries of the Authority's 
3 
projects/programs, may substitute their vehicle abroad, at any time, and shall continue to 
4 
enjoy the same exemptions established in the paragraph. 
5 
6 
The beneficiaries of the Authority'S projects/programs may, however, at any time 
7 
import vehicles with the same benefits herein spec·ified, after prior payn1ent of the taxes 
8 
due on any vehicle has been previously imported tax-free. 
9 
lOIn case of loss of said vehicle, by theft or total destruction by fire, collision or 
11 
accident occurring within the period of five (5) years from date of entry of said vehicle 
12 
into the country, the beneficiary under this law may acquire another vehicle free of the 
13 
taxes herein before specified. 
14 
15 
Should the beneficiary withdraw from the programs/projects of the Authority 
16 
within seven (7) years, he must pay all the programs/projects of the Authority taxes for 
17 
which he has been exempted from paying by virtue of the provisions of this Section. 
18 
19 
The Authority is hereby authorized to promulgate and enforce such rules and 
20 
regulations as may be deemed necessary for the proper implementation of the foregoing 
21 
provisions pursuant to the objectives and mandate of the Authority. 
22 
23 
The grant of the foregoing incentives and benefits shall not preclude the 
24 
entitlement, when applicable, of the enterprises invested in by foreign nationals and 
25 
former Filipino citizens to the incentives and benefits under the Omnibus Investment 
26 
Code and qther investment laws of the Philippines. 
27 
28 
SEC. 21. Accredited Banks. The Authority shall evolve a system of standards for 
29 
the accreditation of banks which shall adhere, insofar as practicable, to those recognized 
30 
internationally. 
31 
32 
SEC. 22. Marketers. The Authority shall evolve a system of standards for the 
33 
accreditation of marketers which shall adhere, insofar as practicable, to those recognized 
34 
internationally. 
35 
36 
SEC. 23. Merchant Partners. The Authority shall evolve a system of standards 
37 
for the accreditation of merchant partners which shall adhere, insofar as practicable, to 
38 
those recognized internationally. 
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TITLE IV- INDUSTRY INVESTMENTS 
4 
5 
SEC. 24. Accredited Facilities. In order to encourage global competitiveness, 
6 
strengthen data gathering and research on retirement, and facilitate the promotion of 
7 
individual facilities and the industry as a whole, the Authority shall prescribe and regulate 
8 
standards for the operation of the retirement industry. Accreditation shaH be voluntary. 
9 
10 
The Authority shall evolve a system of standards for the accreditation of these 
II 
facilities which shall adhere, insofar as practicable, to those recognized internationally. 
12 
13 
The Authority shall likewise have the power to impose fines, or downgrade, 
14 
suspend or revoke accreditation, for violation of terms thereof. The Authority shall have 
15 
the power and the duty to issue advisories pertaining to retirement facilities found to have 
16 
violated the terms of their accreditation. 
17 
18 
SEC. 25. Value of Accreditation. The Authority shall devefop a system to 
19 
enhance the value of accreditation among retirement facilities. Only accredited 
20 
enterprises shall be beneficiaries of promotional programs ofthe Authority. 
21 
22 
Accredited facilities shall, insofar as practicable, give due preference to other 
23 
accredited facilities or merchant partners in obtaining relevant services. 
24 
25 
SEC. 26. Investor Incentives and Benefits. Retirement industry-related 
26 
enterprises shall be endorsed by the Authority to receive the same incentives and benefits 
27 
accorded to investments recognized by other government agencies upon compliance with 
28 
the requirements set by the said agencies. 
29 
30 
The following agencIes shall provide incentives and benefits to retirement 
31 
industry-related enterprises: 
32 
a. Board ofInvestments (BOI) 
33 
b. Philippine Economic Zone Authority (PEZA); and 
34 
c. Other similar agencies 
35 
36 
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38 
,TITLE V- CORPORATE SOCIAL RESPONSIBILITY (CSR) 
18 


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SEC. 27. CSR Program. The Authority shall establish programs beneficial to 
2 
both indigent and marginalized Filipino elderly pursuant to the memorandum from the 
3 
lih Cabinet Meeting dated 30 May 2006, and Executive Order No. 26 dated 31 August 
4 
200 I, and retiree participants. 
5 
6 
SEC. 28. Local Government Units Partnership. The Authority shall have a 
7 
representative to attend/participate in meetings and activities of the Tourism Councils of 
8 
Local Government Units (LGUs) that it has identified to be centers for retirement, 
9 
tourism and investment. 
10 
II 
The Authority shall collaborate with LGUs on activities which could be 
12 
dovetailed with those of the Tourism Councils that are geared towards the development 
13 
of a retirement and investment destination. 
14 
IS 
SEC. 29. Funding for CSR. The Authority shall retain a portion of its revenue for 
16 
its Benevolent Fund as a cushion for the financial impact of the hospitalization or death 
17 
of retiree-members and other CSR activities. 
18 
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21 
TITLE VI- MISCELLANEOUS PROVISIONS 
22 
SEC. 30. Audit System. The number of personnel to be assigned by the COA in 
23 
the Authority and the expense allocations for their services shall be equated with 
24 
considerations of economy for the Authority, over which, however, the judgment of the 
25 
COA shall always prevail. A special audit system, in line with the private orientation and 
26 
nature of the bulk of the Authority'S operations, maybe arranged with the COA. 
27 
28 
SEC. 31. Capitalization. The Authority shall have an authorized capital stock of 
29 
Two Hundred Million Pesos (P200,000,000.00) divided into ten million shares with a par 
30 
value of One Hundred Pesos (PIOO.OO) per share which shall be fully subscribed and paid 
31 
for by the Government of the Republic of the Philippines. 
32 
33 
The funds and other assets of the Authority which are existing as of the enactment 
34 
of this Act, as certified by the Commission on Audit, shall be deemed and set off as a 
35 
partial payment by the Government for its subscribed shares of stocks of the Authority. 
36 
The payments for the unpaid balance of the Government's subscription, as well as such 
37 
amounts as may be necessary to support the Authority's operations, maintenance and 
38 
expansion, shall accordingly, be provided for in the General Appropriations Act. 
19 


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SEC. 32. Economic Aid to the Authority. The Authority is hereby authorized to 
3 
solicit, negotiate for and receive, through any of its authorized representatives, grants, 
4 
donations, endowments, contributions, legacies, devises and gifts from any source, 
5 
domestic or foreign, public or private, to support its operation, maintenance and 
6 
development projects, without the need of securing any permit, approval or registration 
7 
from any government agency or office. Any provision of law to the contrary 
, 
8 
notwithstanding, all such grants, donations, endowments, contribution, legacies, devices 
9 
and gifts shall be free from gift, income and all other kinds of taxes, and shall further be 
10 
deductible from gross income of the donors under the National Internal Revenue Code. 
11 
12 
SEC. 33. Exemption from Taxes, Duties and Fees. The Authority is hereby 
13 
declared exempt from all income and other internal revenue taxes, tariff, customs duties, 
14 
as well as all other kinds of taxes, fees, charges and instrumentalities. 
IS 
16 
SEC. 34. An'nual Report. The Authority shall render to the President of the 
17 
Philippines an Annual Report, not later than March 15th of each year, on its operation and 
18 
accomplishments. 
19 
20 
SEC. 35. Transitory Provisions. Upon the efficiency of this Act, the Board shall 
21 
immediately be constituted and conveyed. All incumbent officers and employees of the 
22 
Philippine Retirement Authority shall continue in office as officers and personnel of the 
23 
Authority without demotion in rank or diminution in pay and fringe benefits. The Board 
24 
is authorized to provide for the granting of suspension benefits for those who may opt for 
25 
early retirement. 
26 
27 
All funds, assets, rights, claims and interests of the Philippine Retirement 
28 
Authority or the previous corporation shall, upon the effectivity of this Act, be deemed 
29 
transferred to the Authority, and all liabilities and obligations of the former shall be 
30 
assumed by the latter. 
31 
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SEC. 36. Applicability of the Corporation Code. The prOVISIOns of the 
33 
Corporation Code of the Philippines which are not inconsistent with the provisions of this 
, 
34 
Act, shall apply in a suppletory manner to manners which are not provided for in this Act. 
35 
36 
SEC. 37. Repealing Clause. All laws, ordinances, executive orders, rules and 
37 
regulations or parts thereof which are contrary to or inconsistent with the provisions of 
38 
this Act are hereby repealed, amended or modified accordingly. 
20 


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SEC. 38. Separability Clause. Any provisions or portions of this Act which shall 
3 
be declared unconstitutional or invalid shall not nullify or adversely affect the other 
4 
provisions or portions hereof which can still subsist and be given legal force and effect in 
5 
their entirety. 
6 
7 
SEC. 39. Effectivity. This Act shall take effect fifteen (15) days after its 
8 
publication in at least two (2) national newspapers of general circulation. 
9 
10 
Approved. 
21