Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

HOUSE BILLNO. 8866

Introduced by Hon. Milagros Aquino-Magsaysay

Explanatory Note

According to the Philippine Statistics Authority, the agriculture sector accounts to
10.26 million employed persons in 2017, representing 25.44 percent of the national
employment. (Philippines Statistics Authority, 2018) The PSA also noted that from
2013 to 2015, there was a steady decline of an average of .53 to 1.39 percent on the
country’s agricultural employment rate. This is alarming as the country is losing at
least one percent of its workforce in the agricultural sector every year.

Another challenge facing the agriculture sector is the aging of the Filipino farmer.
Based on an IRI Report in February 2013, the average age of the Filipino farmer is
57 which means they’re three years shy of the nationally-accepted retirement age
Quoting an agriculture department official on the same report, “assuming an average
life span of 70, we might reach a critical [shortage] of farmers in just 15 years.”

Ithas also been reported that 4 out of 10 or roughly 41% of our 9 million elderly are
continually engaged in the industry of agriculture, be it through farming or fisheries.
We credit this to the fact that our aging agricultural workers are not accorded a life
of income security upon reaching their ripe age of retirement that they see the need
to continue working. The declining workforce in agricultural sector and aging of the
farmers also means that less and less young people are pursuing careers in
agriculture.

Poverty incidence remain highest in the agricultural sector based on the government
report. Workers also in agriculture sector are least likely to be covered by social


security benefits and have a pension when they retire, mainly because of their low,
seasonal, and often volatile wages.

This proposed measure seeks to guarantee pension and social security benefits of
registered and eligible agricultural workers by subsidizing their Social Security
System (SSS) premium payments. The creation of Agricultural Workers Pension and
Social Security Benefit Scheme will not only guarantee a basic pension for our aging
farmers and fishermen who retire from food production work because of old age, but
also encourage new generations of young workers in the agriculture sector.

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



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
Third Regular Session

HOUSE BILL No. __ 8888

Introduced by Hon. Milagros Aquino-Magsaysay

AN ACT
CREATING AN AGRICULTURAL WORKERS PENSION AND SOCIAL.
SECURITY BENEFIT SCHEME TO PROVIDE PENSION AND SOCIAL,
SECURITY BENEFITS TO FARMERS AND FISHERFOLK

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

assembled:

SECTION 1. Title — This Act shall be known as the “National Farmers and Fisher Folk

Social Security and Pension Act”

SECTION 2. Declaration of Policy — The Constitution provides that the State shall, from
time to time, review to upgrade the pensions and other benefits due to retirees of both the
government and private sectors. As far as may be possible, it should provide to those who have
less in life the opportunity to earn for their living so that they may play a more active role in the
development of their families and communities, as well as in the socio-economic and political
spheres. It is the duty of the State to create conditions which are necessary to realize the right of
all citizens particularly the underprivileged the equal opportunity

SECTION 3. Creation of the Farmers and Fisher Folk Pension and Social Security Benefit

‘Scheme — The Farmers and Fisher Folk Pension and Social Security Benefit Scheme is hereby


established to provide pension and other social security benefits to agricultural workers,

specifically farmers and fisher folks (herein after referred to as “the Scheme”)

SECTION 4. Government premium subsidy. Under the Scheme, the State shall cover the
full Social Security System (SSS) premium contributions of qualified agricultural workers to
enable them to enroll and sustain their membership to SSS, and to provide pension benefits to
agricultural workers for an assured income and secured retirement in their old age. The beneficiary
shall receive the premium subsidy for a maximum of ten (10) years provided that said beneficiary

shall continuously remain an agricultural worker within the aforementioned period

SECTION 5.

for Basic Sectors in Agriculture (RSBSA) is not less than eighteen years of age and not more than

‘ligibility. Any agricultural workers registered under the Registry System

fifty-nine years of age shall be entitled to join the Scheme.

SECTION 6. Benefits under the scheme. An agricultural worker who joins the Scheme
shall be entitled to a Pension and other package of benefits under the Social Security and

Employees Compensation (EC) Programs in the event of death, disability, sickness and maternity.

SECTION 7. implementing Agency ~The Philippine Crop Insurance Corporation (PCIC),
an attached agency of the Department of Agriculture (DA) shall be the main implementing agency
of the provisions of this Act. To fulfill the goals of this Act, it shall perform the following duties

and functions:

a. Manage the registration system of eligible agricultural workers
under the Registry System for Basic Sectors in Agriculture
(RSBSA),

b. Ensure that the beneficiaries identified are registered under
RSBSA and are not covered for the same government subsidy;

c. Promulgate the implementing rules and regulations of this Act;

d. Maintain the required actuarial financial and operational reports
in respect of the Scheme;

e. Coordinate with the Social Security System (SSS) in enrolling

the eligible members to the Scheme;


£. Monitor, evaluate and review the Scheme and effect changes in
the operational rules where necessary and where it is empowered
to do so; and

g. Perform other duties and functions towards efficient and

effective implementation of this Act

SECTION 8. Implementing Rules and Regulations ~ Within ninety (90) days from the
effectivity of this Act, the PCIC Board of Directors shall, in consultation with the Secretary of
Agriculture and representatives of recognized farmers and fisher folk groups, promulgate rules and
regulations necessary for the effectivity of this Act.

SECTION 9. Appropriations ~ To carry out the provisions of this Act, such amount as
may be necessary is hereby authorized to be appropriated from the National Treasury. Thereafter,
the amount necessary for the continuous operation of the Program shall be included in the annual
appropriations of the Department of Agriculture.

SECTION 10. Seperability Clause. — If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall continue to be in full force and
effect.

SECTION 11. Repealing Clause. — All laws, decrees, executive orders or rules and
regulations contrary to or inconsistent with the provisions of this Act are hereby repealed or

modified accordingly.

SECTION 12. Effectivity Clause. This Act shall take effect fifteen (15) days from its

publication in the Official gazette or in at least two (2) newspapers of general circulation

Approved