Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HB.No._ 449

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. 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;

¢) 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, average,
gainful employment for at least three service providers. Added to this be the work and livelihood
opportunities retirement habitats, facilites 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;

b) Low dollar-cost of living and services;

¢) Well-known Filipino traits of hospitality, respect and care for the elderly and an
English-language facility; and

) 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.0. 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.
ay
/ “ay 3
c Lo LET
BUAN E56 ARDS “SONNY W-ANGARA

Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

fi B.No,__ 449

Introduced by Honorable JUAN EDGARDO “SONNY” M. 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 House of Representatives of the Philippines in
Congress assembled:

TITLE | - GENERAL PROVISIONS

SECTION 1. Short Title. This Act shall be known as the “Philippine Retirement Authority
Act.”

SEC. 2. Declaration of Policy. It is the policy of the State to develop and promote a
Philippine Retirement Program and sustain the retirement industry for foreign nationals and
former Filipino citizens, including the Filipino elderly (Executive Order No. 26, 31 August 2001),
80 as to generate for the country and people more employment and income opportunities,
foreign exchange inflows, investments and technology transfers.

Towards this end, the Government shall:

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 in the establishment and operation of retirement accommodations,
facilities and services, and extend to them incentives and benefits:

°)

Sustain the business and growth of the said industry in the Philippines in
collaboration with the private and public sectors;

C)

Initiate 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


€) Promote tourism through industry investment, employment, growth and national
development. 7

SEC. 3. Definitions.- When Used in this Law, unless the context otherwise requires:

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.

i) 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,

j) AccreditedFacility - shall refer to facilities accredited to promote the Program
according to the accreditation standards set by the Authority.

k) Accredited Bunks - shall refer to banks accredited to accept or maintain deposits for
the Authority.

!) Merchant Partners - shall refer to establishments accredited to provide services.

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SEC. 4, Reorganization and Renaming. The Philippine Retirement Park System, as
established by virtue of Executive Order No. 1037, Series of 1985, is hereby reorganized in
accordance with the provisions of this Act, and is renamed as the Philippine Retirement
Authority, hereinafter referred to as the Authority, which shall have the power of succession in
its name. The Authority shall be attached to the Department of Tourism pursuant to Republic
Act No, 9593, otherwise known as the National Tourism Policy Act.

SEC. 5. Place of Business. The Authority shall have its principal place of business in
Metro Manila and it may establish other branches and field offices within Metro Manila and in
other places in or outside the Philippines as may be necessary for the efficient and effective
conduct of its operations and business.

SEC. 6. Objectives. The Authority shall have the following objectives:

a) Implement, as lead agency, the national policy to promote and develop the
Philippines as a retirement haven for foreign nationals and former Filipino citizens,
and aim to optimize the economic and social benefits which would be derived
therefrom by the country and people;

b) Plan, carry out, undertake, support and promote incentive schemes and systems,
property, habitat and infrastructure developments, establishment and operation of
facilities and services, as well as marketing and promotion efforts to encourage
foreign nationals and former Filipino citizens to vacation, reside, retire, and invest in
the Philippines;

©) Arrange for and coordinate the functional support and participation of other
government offices and functionaries, including those in foreign services, in certain
aspects of the Authority's operations;

d) Encourage and protect private investors, entrepreneurs, developers, operators,
workers and other stakeholders in the establishment and operation of retirement
habitats, complexes, accommodations, facilities and services, as well as marketers
and promoters of programs and projects of the Authority;

@) 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

3


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;

9) 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.

SEC. 7. Powers and Functions. The Authority shall have the following powers and
functions:

a) To adopt and use a corporate seal;
b) To sue and be sued as well as to succeed in its corporate name;

©) 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 acqui

n 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 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 sightseeing 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, deat,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.

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;

9) 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;


i) To carry on 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;

i) 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 alll 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 indebtedness and to
charge all or any part of its properties as security therefore;

1) 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, andor 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;

0) 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 novelties; to erect, construct, purchase,
lease or otherwise acquire fences, billboards, signboards, buildings and other
structures for advertising purposes, to carry on 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;


a) Formulate policies, guidelines and programs to effectively implement and carry out
the purposes, objectives and powers of the Authority;

b) Prescribe and periodically review and revise the amount of the fees, charges and
assessments levied and collected for the support and maintenance of the operations
of the Authority;

¢) 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, of the Authority, its officers and employees;

) Authorize such expenditures of the Authority as may be necessary and proper for its
effective management, operation and administration;

f) 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;

9) Approve the annual and supplemental budget of receipts and expenditures of the
Authority; and

h) Appoint, promote, transfer, remove, suspend or otherwise discipline the officers of
the Authority occupying executive and third level positions,

TITLE Il - STRUCTURE OF THE AUTHORITY,

SEC. 10. Authority Proper. The Authority Proper shall consist of the Offices of the
General Manager, Deputy General Manager, Department Managers, Division Chiefs, and
Satellite Ofices Operations In-Charge.

The General Manager and Deputy General Manager shall be appointed by the Board.
The Board shall determine the other officers of the Authority, who shall be appointed by, except
as provided in this Act, the General Manager, subject to the confirmation by the Board.


SEC. 11. Office of the General Manager. The management of the day-to-day
operations of the Authority shall be vested in the General Manager, who shall have the following
powers and duties:

a) Direct and supervise the management, operation and administration of the Authority,
and for this purpose, may delegate any or some operational and administrative
responsibilities and duties to the other officers of the Authority;

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, subject to the approval by the
Board;

¢) 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;

e) Cause to be prepared the agenda and materials for the meetings of the Board; and

f) Exercise such other powers and perform such other duties as may be assigned by
the Board,

‘The General Manager's power and duties shall include among others all the day-to-day
regular operations of the Authority. All other matters shall be brought to the Board for
approval. He shall be appointed by the Board and shall only be removed for cause and
after due process.

SEC. 12. Office of the Deputy General Manager. The Office of the Deputy General
Manager shall consist of the Deputy General Manager and his immediate staff

SEC. 13. Corporate Secretary. The Authority shall have a Corporate Secretary who
shall be appointed by the Board and under the'administrative supervision of the Chairman, The
Corporate Secretary shall record the deliberations and acts of the Board and shall have custody
of the records and other papers pertaining to the Board.

SEC. 14. Legal Counsel. The Authority shall have a legal staff headed by a Corporate
Legal Counsel, who shall be a lawyer, appointed by the General Manager and confirmed by the
Board. In appropriate cases, however, the Authority may call upon the assistance of the Office
of the Government Corporate Counsel (OGCC) and other legal services of the Government.

10


SEC. 15. Internal Auditor. The Authority shall have an internal audit unit headed by an
Internal Auditor, who shall be appointed by the Board. The Internal Auditor is responsible for
strengthening internal control and for ensuring that efficiency of operations, reliability of

reporting and compliance to applicable laws, regulations and internal policies are achieved.

SEC. 16. Personnel and Compensation. The compensation package of the officers
and employees of the Authority shall be exempted from Republic Act No. 6750,otherwise known
as the Salary Standardization Law, and Republic Act No. 7430, otherwise known as the Attrition
Law.

The appropriate compensation package for the officers and employees 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, shall be approved by
the Board upon recommendation of the General Manager.

TITLE Ill - RETIREMENT PROGRAM.
SEC. 17. Coverage. The program shall cover all Retirees as defined in Section 3.

SEC. 18. Special Resident Retiree Visa Issuance. The Authority and the Department
of Justice (DOJ) through the BI shall develop a system of granting SRRVs.

The Resident Retiree Servicing Center (RRSC) shall be created to expedite the
application, processing and issuance of SRRVs and the disposition of any problems related to
resident retirees.

The Authority may call upon the DFA, BI, BOC, and BSP for each of them to detail an
officer with appropriate and sufficient authority to the RRSC to process the documents required
and attend to the needs of the resident retirees.

SEC.19. Field Offices. The Authority shall establish, operate and maintain field offices

in the country. A Field Office, headed by a Satellite Offices Operations In-Charge, shall have the
following functions:

a) Assist the RRSC to expedite the application, processing and issuance of SRRVs and
the disposition of any problems related to resident retirees;

b) Implement laws, policies, plans, programs, rules and regulations of the Authority,
particularly those relating to compliance therewith, and to the accreditation of
retirement projects;

1

il


©) Coordinate with field offices of other departments, bureaus, and agencies, LGUs,
NGOs in the implementation of such laws, policies, plans, programs, and rules and
regulations;

d) Undertake research and data gathering on,local retirement trends and other relevant
retirement information;

e) Together with LGUs, establish such tourist information and assistance centers in
strategic locations as are necessary to disseminate relevant information pertaining to
the retirement locations and products and to assist tourists and retirement
enterprises;

f) Conduct information 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

Changes to the functions of the Field Offices shall be approved by the General Manager.

SEC. 20. Resident Retiree Incentives and Benefits. Foreign nationals, including
former Filipino citizens, who vacation, take up permanent residence and/or invest in the
Philippines under the program or in the projects of the Authority shall be entitled to the following
incentives and benefits:

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 andor its development projects. Profits or incomes
earned in the Philippines out of such fund shall be taxable;

b) Grant of permanent 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.

Permanent 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

12


°)

e)

9)

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.

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, hisher trust fund deposit shall be inherited by
the surviving heirs in accordance with the laws of hisiher 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;

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 Dollars (US$20,000,00) 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) yeas
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 throughforce majeure, larceny or unavoidable accident;

Exemption from securing prior work permit for employment in the Philippines;

Exemption from securing Special Study Permit for children studying in academic
institutions in the Philippines;

Exemption from securing the annual registration requirements of the BI and all other
permits issued by government agencies;

Entitlement to the benefits accorded to Senior Citizens, provided that SRRV holders
are sixty (60) years of age and above;

13


h) Entitlement to the tax exemptions provided by P.D. 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;

i) 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 Erom 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;

i) 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;

|) 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;
0) Health insurance coverage; and
p) Discount on utilities such as water, telephone and electricity.

With prior authorization from the Authority, the beneficiaries of the Authority's
projects/programs, may substitute their vehicle abroad, at any time, and shall continue to enjoy
the same exemptions established in the paragraph.

14


The beneficiaries of the Authority's projects/programs may, however, at any time import
vehicles with the same benefits herein specified, after prior payment of the taxes due on any
vehicle has been previously imported tax-free.

In case of loss of said vehicle, by theft or total destruction by fire,-collision or accident
‘occurring within the period of five (5) years from date of entry of said vehicle into the country,
the beneficiary under this law may acquire another vehicle free of the taxes herein before
specified.

Should the beneficiary withdraw from the programs/projects of the Authority within seven
(7) years, he must pay all the programs/projects o'i the Authority taxes for which he has been
exempted from paying by virtue of the provisions of this Section

The Authority is hereby authorized to promulgate and enforce such rules and regulations
as may be deemed necessary for the proper implementation of the foregoing provisions
pursuant to the objectives and mandate of the Authority.

The grant of the foregoing incentives and benefits shall not preclude the entitlement,
when applicable, of the enterprises invested in by foreign nationals and former Filipino citizens
to the incentives and benefits under the Omnibus Investment Code and other investment laws
of the Philippines.

SEC. 21. Accredited Banks. The Authority shall evolve a system of standards for the
accreditation of banks which shall adhere, insofar as practicable, to those recognized
internationally.

SEC. 22. Marketers. The Authority shall evolve a system of standards for the
accreditation of marketers which shall adhere, insofar as practicable, to those recognized
internationally.

SEC. 23. Merchant Partners. The Authority shall evolve a system of standards for the
accreditation of merchant partners which shall adhere, insofar as practicable, to those
recognized internationally.

TITLE IV- INDUSTRY INVESTMENTS
SEC. 24. Accredited Facilities. In order to encourage global competitiveness,
strengthen data gathering and research on retirement, and facilitate the promotion of individual

facilities and the industxy as a whole, the Authority shall prescribe and regulate standards for
the operation of the retirement industry. Accreditation shall be voluntary.

15


The Authority shall evolve a system of standards for the accreditation of these fa
which shall adhere, insofar as practicable, to those recognized internationally.

The Authority shall likewise have the power to impose fines, or downgrade, suspend or
revoke accreditation, for violation of terms thereof. The Authority shall have the power and the
duty to issue advisories pertaining to retirement facilities found to have violated the terms of
their accreditation.

SEC. 25. Value of Accreditation. The Authority shall develop a system to enhance the
value of accreditation among retirement facilities. Only accredited enterprises shall be
beneficiaries of promotional programs of the Authority.

Accredited facilities shall, insofar as practicable, give due preference to other accredited
facilities or merchant partners in obtaining relevant services.

SEC. 26. Investor Incentives and Benefits. Retirement industry-related enterprises
shall be endorsed by the Authority to receive the same incentives and benefits accorded to
investments recognized by other government agencies upon compliance with the requirements
set by the said agencies.

The following agencies shall provide incentives and benefits to retirement industry-related
enterprises:

a) Board of Investments (BOl);

b)_ Philippine Economic Zone Authority (PEZA); and

©) Other similar agencies.

TITLE V - CORPORATE SOCIAL RESPONSIBILITY (CSR)

SEC. 27. CSR Program. The Authority shall establish programs beneficial to both
indigent and marginalized Filipino elderly pursuant to the memorandum from the 12'h Cabinet
Meeting dated 30 May 2006, and Executive Order No. 26 dated 31 August 2001, and retiree
participants.

SEC. 28. Local Government Units Partnership. The Authority shall have a
Tepresentative to attendiparticipate in meetings and activities of the Tourism Councils of Local

Government Units (LGUs) that it has identified to be centers for retirement, tourism and
investment.

16


The Authority shall collaborate with LGUs on activities which could be dovetailed with
those of the Tourism Councils that are geared towards the development of a retirement and
investment destination.

SEC. 29. Funding for CSR. The Authority shall retain a portion of its revenue for
its Benevolent Fund as a cushion for the financial impact of the hospitalization or death
of retiree-members and other CSR activities.

TITLE VI - MISCELLANEOUS PROVISIONS

SEC, 30. Audit System. The number of personnel to be assigned by the COA in the
Authority and the expense allocations for their services shall be equated with considerations of
economy for the Authority, over which, however, the judgment of the COA shall always prevail
A special audit system, in line with the private orientation and nature of the bulk of the
Authority's operations, may be arranged with the COA.

SEC. 31. Capitalization. The Authority shall have an authorized capital stock of Two
Hundred Million Pesos (P200,000,000.00) divided into ten million shares with a par value of One
Hundred Pesos (P100.00) per share which shall be fully subscribed and paid for by the
Government of the Republic of the Philippines.

The funds and other assets’ of the Authority which are existing as of the enactment of
this Act, as certified by the Commission on Audit, shall be deemed and set off as a partial
payment by the Government for its subscribed shares of stocks of the Authority. The payments
for the unpaid balance of the Government's subscription, as well as such amounts as may be
necessary to support the Authority's operations, maintenance and expansion, shall accordingly,
be provided for in the General Appropriations Act.

SEC, 32. Economic Aid to the Authority. The Authority is hereby authorized to solicit,
negotiate for and receive, through any of its authorized representatives, grants, donations,
endowments, contributions, legacies, devises and gifts from any source, domestic or foreign,
public or private, to support its operation, maintenance and development projects, without the
need of securing any permit, approval or registration from any government agency or office. Any
provision of law to the contrary notwithstanding, all such grants, donations, endowments,
contribution, legacies, devices and gifts shall be free from gift, income and all other kinds of

taxes, and shall further be deductible from gross income of the donors under the National
Internal Revenue Code.

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SEC. 33. Exemption from Taxes, Duties and Fees. The Authority is hereby declared
exempt from all income and other internal revenue taxes, tariff, customs duties, as well as all
other kinds of taxes, fees, charges and instrumentalities.

SEC. 34, Annual Report. The Authority shall render to the President of the Philippines
an Annual Report, not later than March 15'h of each year, on its operation and
accomplishments.

SEC. 35. Transitory Provisions. Upon the efficiency of this Act, the Board shall
immediately be constituted and conveyed. All incumbent officers and employees of the
Philippine Retirement Authority shall continue in office as officers and personnel of the Authority
without demotion in rank or diminution in pay and fringe benefits. The Board is authorized to
provide for the granting of suspension benefits for those who may opt for early retirement.

All funds, assets, rights, claims and interests of the Philippine Retirement Authority or
the previous corporation shall, upon the effectivity of this Act, be deemed transferred to the
Authority, and all liabilities and obligations of the former shall be assumed by the latter.

SEC. 36. Applicability of the Corporation Code. The provisions of the Corporation
Code of the Philippines which are not inconsistent with the provisions of this Act, shall apply in a
suppletory manner to manners which are not provided for in this Act.

SEC. 37. Repealing Clause. All laws, ordinances, executive orders, rules and
regulations or parts thereof which are contrary to or inconsistent with the provisions of this Act
are hereby repealed, amended or modified accordingly.

SEC. 38. Separability Clause. Any provisions or portions of this Act which shall be
declared unconstitutional or invalid shall not nullify or adversely affect the other provisions or
Portions hereof which can still subsist and be given legal force and effect in

SEC. 39. Effectivity. This Act shall take effect fifteen (15) days after its publication in at
least two (2) national newspapers of general circulation.

Approved,

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