{ HeeSE OF REPRESENTATIVES:
RECEIVED

Republic of the Philippinds pare, Q7 Jl! 2088
HOUSE OF REPRESENTATIVES 5). GEN Py

Constitution Hills, Quezon Pity By: i)

SEVENTEENTH CONG! RECIST®O TON UNIT
First Regular Session | BRL aN iNoe, SERVICE
132

HOUSE BILL NO.

Introduced by: Representative JOHNNY T. PIMENTEL

EXPLANATORY NOTE

The receipt of pension has become the source for the sustenance of most of
Our retirees. During their twilight years after their long service of hard work,
Provision of the pension serves as the embodiment of the government's
Promise to promote social justice and protection against the hazards of their
old age, sickness and disability.

Nevertheless, our present law on pension fails to keep abreast on the
realities of the needs of the beneficiaries. Since the amendment through
Republic Act 8282 amending the Social Security Law in 1996, endowment
for members with at least 10 credited years of service remain to be P1,200 at
the minimum. On the other hand, members with at least 20 credited years
of service receive P2,400 at the minimum, It must be noted that there is a
Significant disparity on the value of the prescribed pension considering that
the same has been based on the rates 20 years ago. This disparity needs to
be corrected.

This Bill seeks to re-establish the government's fidelity to the principle of the
Protection of social justice and the needs of retirees.

‘The approval of this Bill is earnestly sought.

“JOHNNY T. PIMENTEL



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 132 3

Introduced by: Representative JOHNNY T. PIMENTEL

AN ACT

INCREASING PENSIONS UNDER THE SOCIAL SECUIRTY SYSTEM,
AMENDING FOR THIS PURPOSE SECTION 12 OF RA 1161, AS
AMENDED

SECTION 1. Section 12 of Republic Act No. 1161, as amended, is hereby
further amended to read as follows:

“Section 12. Monthly Pension, - (a) The monthly pension shall be
the highest of the following amounts:

(1) The sum of the following:
() Three hundred pesos (P300); plus
(i) Twenty percent (20%) of the average monthly
salary credit; phus
(ii) 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 (P1,000): 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
Pension shall be [One thousand two hundred pesos (P1,200)]
THREE THOUSAND FIVE HUNDRED PESOS (P3,500,00) for
members with at least (10) credited years of service and [Two



thousand four hundred pesos (P2,400)] FIVE THOUSAND
PESOS (P5,000) for those with twenty (20) credited years of
service.”

SECTION 2. Separability Clause. - If any part of this Act shall be held
invalid, other provisions which are not affected shall continue to be in force.

SECTION 8. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with the provisions of the Act is hereby repealed,
modified or amended accordingly.

SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in at least two (2) national newspapers
of general circulation.

Approved,