13u1 Congress of the Republic 
) 
of the Philippines 
1 
First Regular Session 
1 
S E N A T E  
In froduced by Senator Aquilino Q. Pimentel Jr. 
~~ 
~ 
EXPLANATORY NOTE 
Under Republic Act No. 8282, or the Social Security Act of 1997, specifically 
in Section 12 (b) thereof, SSS members with at least ten credited years of service are 
provided a monthly pension of F1,200, while those with 20 credited years are 
given F2,400. 
With the spiraling cost of living, especially in the prices of medicines and 
essential commodities, these amounts have been rendered woefully inadequate to 
meet even the barest needs of the SSS pensioners. 
Retirees prior to the effectivity of RA 8282 are even more hardpressed 
because their monthly pension is governed by the old Social Security Law of June 
18,1954 (RA 1161) that pays very much less. 
Thus, it becomes imperative, in light of the social justice policy enshrined in 
the Constitution; to adjust the SSS pension rates to keep them fairly responsive to 
the basic necessities of private employment retirees. 
This measure is meant to carry out such adjustment through a two-pronged 
approach: (1) raising the minimum monthly pension to F'3,000, and (2) annual 
increase of F500 until the minimum of F5,OOO a month is reached. Additionally, the 
attached bill provides that the new monthly pension rates shall be applicable to all 
SSS members regardless of the effectivity of their retirement. 
Early passage of this bill is thus earnestly urged to provide immediate relief 
to the countless distressed SSS retirees. 


13f11 Congress of the Republic 
) 
of the Pldippines 
1 
First Regular Session 
) 
Introduced by Senator Aquilino Q. Pimentel Jr. 
AN ACT 
INCREASING PENSIONS UNDER THE SOCIAL SECURITY 
SYSTEM AMENDING FOR THE PURPOSE SECTION 12 OF THE 
SOCIAL SECURITY ACT OF 1997 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 12 of Republic Act No. 1161, as amended by Republic 
Act No. 8282, otherwise known, as the Social Security Act is hereby further 
amended to read as follows: 
"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the sum of 
the following: 
(i) Three hundred pesos (P300.00); plus 
(ii) Twenty percent (20%) of the average monthly salary credit; plus 
(iii) Two percent (2%) of the average monthly salary credit for each credited 
year of service in excess of ten (10) years; or 
(2) Forty percent (40%) of the average monthly salary credit; or 
(3) One thousand pesos (P1,OOO.OO): Provided, That the monthly pension 
shall in no case be paid for an aggregate amount of less than sixty (60) months. 
"(b) Notwithstanding the preceding paragraph, the minimum MONTHLY 
pension shall be [One thousand two hundred pesos (f1,200.00) for members with 
at least ten (10) credited years of service and Two thousand four hundred pesos (P 


2,400.00) for those with twenty (20) credited years of service] THREE THOUSAND 
PESOS (p23,OOO.OO) IN THE SUCCEEDING YEARS STARTING JANUARY 2005, 
THE THREE THOUSAND MONTHLY PENSION BENEFIT SHALL BE 
INCREASED ANNUALLY BY FIVE HUNDRED PESOS (P500.00) PER MONTH 
UNTIL THE MINIMUM MONTHLY PENSION SHALL REACH FIVE 
THOUSAND (P5,OOO. 00) PER MONTH. THE COMMISSION SHALL EQUITABLY 
ADJUST THE MONTHCY PENSIONS OF OTHER ENTITLED MEMBERS OR 
BENEFICIARIES WHOSE MONTHLY PENSIONS ARE HIGHER THAN THE 
MINIMUM MONTHLY PENSION TO PRESERVE THE INTEGRITY OF THE 
PENSION PROGRAM." 
SEC. 2. THE NEW MONTHLY PENSION AND ITS ANNUAL 
INCREMENT PROVIDED HEREIN SHALL APPLY TO ALL BENEFICIARIES 
REGARDLESS OF THE EFFECTIVITY OF THEIR RETIREMENT. 
SEC. 3. This Act shall take effect fifteen (15) days after its complete 
publication in the Ofjcicial Gazette or in at least two (2) national newspapers of 
general circulation, whichever comes earlier. 
Approved,