SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill 6, 158 ns

Introduced by Representative Susan A. Yap

EXPLANATORY NOTE

The OFWs are considered as among the top economic drivers of the country, bringing some
US$ 20 million in remittances each year. The promotion of the welfare of Filipinos abroad is one of
the pillars of the country's foreign policy

This proposed measure is part of much needed reforms to effectively respond to the
growing number of OFWs. There is a need to focus on the issues and challenges that hardworking
Filipinos encounter in foreign countries where their resources and avenues for protection are
limited.

‘There is a need to establish clear-cut guidelines for the procedure for OWWA membership
registration and renewal, ensure sufficiency of the agency's operative budget to support full
protection of OFW welfare, and create the OWWA Fund as a private fund held in trust.

The bill aims to better promote the welfare of Overseas Filipino Workers (OFWs) through a
new charter for the Overseas Workers Welfare Administration (OWWA). It seeks to redefine the
functions of OWWA as. a national government agency vested with the special function of
developing and implementing welfare programs that respond to the needs of member-OFWs and
their families.

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

SUSAN

Representative, 2 t Tarlac


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SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bil No! 158

Introduced by Representative Susan A. Yap

AN ACT
TO GOVERN THE OPERATIONS AND ADMINISTRATION OF
‘THE OVERSEAS WORKERS WELFARE ADMINISTRATION

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
CHAPTER 1
‘TITLE, POLICY AND OBJECTIVES

SECTION 1. Short Title. - This Act shall be known as the "OWWA Act of 2013".

SECTION 2. Declaration of Policy. - It is the policy of the State to afford full protection
to labor, local and overseas, organized and unorganized, and promote full employment
opportunities for all. Towards this end, it shall be the State's responsibility to protect the
overseas Filipino workers (OFWs). The Overseas Workers Welfare Administration (OWWA)
shall be one of the principal agencies of the State to serve and promote the interest and welfare
of the OFWs and their families.

SECTION 3. Objectives. - This Act is enacted to provide guidelines on matters
concerning the OWWA, its mandate, purposes and objectives, membership, collection
of contributions, and availment of benefits and services. This Act also embodies the policies
on fund management, programs and services administration.

CHAPTER II
NATURE, SCOPE AND FUNCTIONS OF THE OWWA

SECTION 4. Nature of the OWWA. - The OWWA is a national government
agency vested with a special function of developing and implementing welfare programs and
services that respond to the needs of its member-OFWs and their families. It shall have the powers
to administer a trust fund. Being a national government agency, the OWWA shall not fall under the
category of any of the following: (a) government instrumentalities with corporate powers; (b)
government corporate entities, (c) government financial institutions; and/or (d) government-owned
or -controlled corporations.

The OWWA shall be an attached agency of the Department of Labor and Employment
(DOLE). Its officials and employees are covered by the Salary Standardization Law.

SECTION 5. Scope. - This Act shall apply to all OFWs who are duly registered with
the Philippine Overseas Employment Administration (POEA) and those who will avail of the
voluntary membership program of the OWWA.

SEC. 6. Functions, - The main functions of the OWWA are:

(a) To protect the interest and promote the welfare of member-OFWs in all phases of
overseas employment in recognition of their valuable contribution to the overall development
effort;

(b) To facilitate the implementation of the provisions of the Labor Code and Republic


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‘Act No. 8042, as amended, concerning the responsibility of the government to promote the well-
being of OFWs. Pursuant thereto, and in furtherance thereof, it shall provide legal assistance to its
members;

(c) To provide social and welfare programs and services to member-OFWs
including, but not limited to, social assistance, education and training, cultural services,
financial management, reintegration and entrepreneurial development services;

(d) To provide prompt and appropriate response to global emergency or crisis situations;
(e) To ensure the efficiency of collections and the viability and sustainability of the
fund through sound, judicious and transparent investment and management policies;
(© To undertake studies and research for the enhancement of social, economic and
cultural well-being of member-OFWs; and
(@ To develop, support and finance specific projects for the welfare of member-OFWs.
CHAPTER II
DEFINITIONS
SECTION 7. Definition of Terms. - For purposes of this Act, the following terms shall mean:
(a) Overseas Filipino worker (OFW) refers to a person who is to be engaged, is engaged or
has been engaged in a remunerated activity in a state of which he or she is not a citizen, or on

board a vessel navigating the foreign seas other than a government ship used for military or
noncommercial purposes, or on an installation located offshore or on the high seas.

(b) Dependent refers to any of the following: (1) the legal spouse dependent for
support upon the member or pensioner; (2) the legitimate, legitimated, legally adopted child,
including the illegitimate child, who is unmarried, not gainfully employed, not over the age of
majority, or is over the age of majority but incapacitated and incapable of self-support due to a
mental or physical defect acquired prior to age of majority; and (3) the parents dependent
upon the member for support.

(©) Compensation refers to the basic pay or salary received by an employee, pursuant
to his ot her appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances
and any other emoluments received in addition to the basic pay which are not integrated into the
basic pay under existing laws.

(@ Contribution or membership fee refers to the amount payable to the OWWA by an OFW or
the employer in accordance with the provisions of this Act.

(c) OWWA member refers to an OFW with a paid contribution or membership fee.

(Q Non-active OWWA member refers to an OFW whose OWWA membership has
expired.

(@) Non-member OFW refers to an undocumented OFW and who has not availed of the
voluntary membership of the OWWA on-site.

CHAPTER IV
MEMBERSHIP, CONTRIBUTION, AND COLLECTION

SECTION 8. Registration of Membership. - Registration or enrolment of members shall be
in accordance with the provisions of this Act. Membership in the OWWA may be obtained in two
Q ways:

(a) By compulsory registration upon processing of employment contracts of OFWs at
the POEA; and

(b) By voluntary registration of OFWs at job-sites overseas or at the OWWA Regional
Welfare Offices.

SECTION 9. Proof of Membership. - All members shall be issued official receipt upon
payment of the required contribution. They shall likewise be issued an OWWA E-Card,


identification card or other proof of OWWA membership. No additional or extra charges shall
be levied on members. The OWWA is mandated to maintain an updated database of
member-OFWs and to update this regularly.

SECTION 10. Amount of Contribution and Exfectivity of Membership. - Membership to the
OWWA, either through the compulsory or voluntary coverage, shall be effective upon payment
of membership contribution in the amount of Twenty-five U.S. dollars (US$25.00) or its equivalent
jin the current foreign exchange rates. Such membership shall be considered active until the
expiration of the OFW's existing employment contract.

In case of voluntary members who register on-site, membership coverage shall not
exceed two (2) years.

Based on actuarial studies and taking into consideration the welfare and interest of the
members, the Board may adjust or modify the amount of membership contribution.

SECTION 11. Renewal of Membership. - Membership shall be renewed upon payment of
contribution on contract renewal or issuance of a new contract of employment. In the case of
voluntary membership, coverage shall be renewed upon payment of contribution of Twenty-
five U.S. dollars (US$25.00) of its equivalent in the current foreign exchange rates.

‘There shall be a grace period of two (2) months in both instances.

SECTION 12. Separation of Sea-based and Land-based Workers’ Contributions. - To
effect a more efficient fund management between the two (2) subsectoral groups of land-based and
sea-based workers, the collection of membership contributions shall be accounted for in two (2)
separate books of account.

SECTION 13. Authorized Collecting Officers. - (a) Membership contributions shall
be collected by duly authorized OWWA collecting officers, deputized collecting officers or
accredited collecting agents. The collection of membership contributions shall be made at the
POEA contract processing hub, the OWWA regional and overseas offices and other accredited
collection centers.

(b) In case of voluntary’ members who register on-site, membership contributions shall
be made directly to the OWWA overseas offices located in the varioxs diplomatic stations,
embassies or consulate offices of the Philippines.

SECTION 14. Reportorial Requirements and Handling of Collections. - The collecting officer,
deputized collecting officer or the accredited collecting agent shall prepare and submit the
required monthly reports to the OWWA Central Office in the Philippines. Handling of
collections and deposits by collection officers shall be governed by the usual accounting and
auditing rules.

SECTION 15. Sanctions for Erring Officers. - Corresponding administrative sanctions and
other disciplinary measures, including recall from post/suspension or separation from
service, shall be imposed upon any officer who violates the provision of the preceding section.

SECTION 16. Probibition Against Discrimination on Membership. - No OFW shall be denied
membership to the OWWA by reason of age, gender, nationality, religious belief, ot political
opinion or affiliation. The OWWA shall take affirmative steps to enhance the access of OFWs to
its programs and services.

SECTION 17. Payment of Contribution or OWW.A Fee by Employer. - Contributions to the
OWWA Fund must be paid by the employers/principal, or in “heir default, the recruitment/manning
agency in the case of new-hires. The POEA shall ensute that a provision to this effect shall be made
an integral part of the overseas employment contract.

SECTION 18. Penalty for Violation by Recruitment/Manning Agency. - Violation by a
recruitment/manning agency of the preceding section shall constitute an offense punishable by
revocation of its license and all its officers and directors shall be perpetually disqualified from
engaging in the business of recruitment/placement of overseas workers. Such penalty is without
prejudice to any other liability which such officers and directors may have incurred under
existing laws, rules and regulations.


SECTION 19. Deposit and Remittance of Collection. - (a) OWWA Central Office and Regional
Offices — The collecting officer shall, on a daily basis, deposit all OWWA fee contributions to
the OWWA Capital Fund Account with the Land Bank of the Philippines. For reconciliation and
record purposes, bank validated deposit slips shall be prepared in triplicate forms to be
distributed to the (1) servicing bank; (2) OWWA, together with the Report of Collections; and (3)
collecting officer.

(2) OWWA Overseas Officers - The collecting officer shall, on a daily basis, deposit all
OWWA fee contributions in the same currency received to a separate bank account for collections
in the name of the "Office of the Labor Attache - OWWA Collections", in the depository bank of
the Department of Foreign Affairs (DFA), or in the accredited correspondent bank of the Land
Bank of the Philippines. Accumulated monthly collections shall be remitted to the OWWA Capital
Fund Account with the Land Bank of the Philippines not later than the fifth (5") day of the
following month.

No withdrawals, except remittances of collections, can be made from the bank accounts
for collections without prior written approval of the Administrator or his or her duly
authorized representative, subject to the policies approved by the Board.

Overseas offices shall be authorized to retain the required amount for the beginning and
maintaining balance of the abovementioned bank accounts for collections.
CHAPTER V
THE OWWA BOARD OF TRUSTEES

SECTION 20. The OWWA Board of Trustees. - To carry out the purposes of this Act, the
OWWA shall be directed and cointrolled by a Board of Trustees as its policy-making body. It shall be
composed of the following members:

(@) Secretary of the DOLE, as Chairperson;

(b) OWWA Administrator, as Vice Chairperson;

(© Secretary of the DFA;

(@ Secretary of the Department of Finance;

(© Secretary of the Department of Budget and Management;
(© POBA Administrator,

(@ Two (2) representatives of land-based OFWs who are nominated and appointed in
accordance with the provisions of Republic Act No. 10022, which amended Republic Act No.
8042 or the Migrant Workers and Overseas Filipinos Act of 1995;

(h) One (1) representative of the sea-based OFWs who are nominated and appointed in
accordance with the provisions of Republic Act No. 10022;

() One (1) representative of the women sector who is nominated and appointed in
accordance with the provisions of Republic Act No. 10022;

() One (1) representative of the land-based recruitment sector who is selected from
among the various associations of registered overseas placement and recruitment agencies based in
the Philippines who shall be appointed by the President to serve a single term of three (3) years;
and

() One (1) representative of the sea-based manning sector who is selected from among
the various associations of registered overseas placement and manning agencies based in the
Philippines who shall be appointed by the President to serve a single term of three (3) years.

‘The Trustees holding office as members of the OWWA Board at the time of the
effectivity of this Act shall continue to serve until the expiration of their term of appointments.

In case of vacancy in any of the appointive positions in the OWWA Board, the vacancy
shall be filled by the subsequent nomination by the respective sector concerned in the same
manner as the selection of the predecessor. Such successor shall hold office for the unexpired
term only.



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SECTION 21..Per Diem. - The members of the OWWA Board shall not receive any
compensation but shall be provided with per diem at rates allowed under existing rules and
regulations.

SECTION 22. Responsibilities and Powers of the Board of Trustes. - The OWWA Board shall
exercise the following specific powers and duties:

(a) To define the thrusts of the OWWA and adopt broad policy guidelines to ensure
their implementation;

(b) To preserve the integrity of the OWWA Trust Fund;

(©) To approve programs, projects and the organizational structure of the OWWA
Secretariat;

(a) To modify or adjust the membership fee and other necessary charges based on
actuarial studies;

(© To formulate rules and regulations governing financial transactions and fix the yearly
appropriations of the Secretariat;

(®) To ensure the efficiency of collection and the viability and sustainability of the
fund through sound and judicious investment and fund management policies;

(@) To receive and appropriate all sums as may be provided by law for the support of the
OWWA to the ends specified by law, and all other sums in the manner it may, in its discretion,
determine to carry out the purposes and functions of the OWWA;

(h) To authorize the construction or repair of its buildings, machinery, equipment and
other facilities, and the purchase and acquisition of real and personal properties, including the
necessary supplies, materials and equipment,

@ To receive in trust legacies, gifts and donations of real and personal property of all
kinds and to administer and dispose the same when necessary for the benefit of the OWWA
general membership and subject to the instructions of the donor, if any;

(j) To delegate any of its powers to the Chairperson of the OWWA Board or any other
officials or officers as it may deem necessary;

(k) To presctibe such general policies, rules and regulations not contrary to law, as are
consistent with the purposes of the OWWA; and

() To exercise such powers as may be proper and necessary to carry out the objectives of
this Act.

CHAPTER VI
BOARD MEETINGS, PROXIES AND RECORDS MANAGEMENT

SECTION 23. Schedule of Meetings and Quorum of the Board. - The tegular meetings of
the OWWA Board shall be held every last Friday of the month. If a change of date becomes
necessary, the same shall be held at the most convenient time set by the Board.

Special Board meetings and executive meetings may be scheduled as the need arises Special
Board meetings may be called upon by the Chairperson ot by five (5) members of the Board.

‘The Board Secretary shall distribute to all members of the Board the notice of meeting,
together with the discussion materials, at least three (3) working days prior to the scheduled
meeting.

SECTION 24. Board Proceedings. - The Board proceedings shall be guided by the
following rules:

(a) Notice of Meetings - The Board Secretary shall distribute to all members of the
Board the notice of meeting, together with the discussion materials at least three (3) working
days prior to the scheduled meeting,

(b) Quorum - In determining the existence of a quorum, the Board shall adopt the
simple majority rule of one-half plus one of the total filled Board seats.


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(© Voting - For the approval of any policy requiring the disbursement of the OWWA Fund,
an affirmative vote of a majotity of all the members shall be required. For the approval of all other
policies, an affirmative vote of amajority of the members present constituting a quorum shall be
necessary.

(@ Attendance in Board Meetings - Board members are responsible for attending all
Board meetings. The ex officio members of the Board of Trustees may designate in writing their
permanent alternate who ‘shall have voting power. The Board shall install teleconferencing
facilities in order to muster quorum during Board meetings.

(© Presiding Officer - The Chairperson shall preside over meetings of the Board. In the
absence of the Chair, the Vice Chairperson shall preside.

() Board Resolution - All decisions of the Board shall be expressed in the form of
Resolutions signed by all the members present.

Resolutions may be modified or superseded by another resolution. Resolutions shall take
effect upon adoption and signing by the members present, subject to requisite publication.

(@ Records Management and Archiving of Board Documents - The Board Secretary
shall ensure a complete and thorough recording of all proceedings during a Board meeting.
‘The minutes of the previous meeting shall be made available for approval during the succeeding
scheduled Board meeting.

The minutes of the meeting shall contain the attendance, business arising from the
minutes, major agreements reached, corresponding resolutions and other items noted or discussed,
and instructions issued by the Board.

[All minutes of meetings and Board resolutions, tape recordings and other documents
pertaining to the business of the Board shall be kept and archived pursuant to standard records
management systems and procedures.

CHAPTER VII
OWWA SECRETARIAT

SECTION 25. The OWWA Secretariat, -The OWWA Secretariat is the implementing
arm of the OWWA.

SECTION 26. Duties and Responsibilities of the OWWA Secretariat. - The OWWA
Secretariat shall perform and assume the following duties and responsibilities:

(a) To manage programs and the delivery of welfare services locally and overseas to its
members, supported by advocacy and information programs;

To implement Board policies on investment and fund management;
ip! Ps

(©) To formulate medium-term development plans responsive to the welfare, needs and
demands of member-OFWs;

(@ To submit work and financial plans for Board consideration;

(e) To provide policy analyses and recommendations for Board consideration;

(8 To conduct continuing researches and studies, including impact evaluation, in aid of
policy and program development;

(@ To regularly monitor and conduct assessment and evaluation of organizational
performance;

(h) To establish and maintain an on-line management information system, to include
database on membership;

( To establish and maintain linkages and networks with local and international social
and institutional partners;

() To conduct annual planning, budgeting and organizational performance
assessment and render the report to the Board

(& To submit annual reports to the Board, Congress and the President;


() To submit written quarterly reports on the assessment and evaluation of
programs, projects and services and such other reports as may be required by the Bo:

(m) To undertake the periodic review of programs, standards, thrusts and policies;
(0) To perform other furictions as may be instructed by the Board; and
(0) To adopt internal rules of procedure consistent with the provisions of this Act.

SECTION 27. The OWWA Administrator. - The administration of the OWWA is
vested in the Administrator. As the chief executive officer of the Secretariat, the Administrator
shall exercise general supervision and control of all OWWA personnel and resources, and
assume full responsibility and accountability thereof.

‘The Administrator must possess good leadership and managerial skills. The Administrator
shall be appointed by the President. The Administrator shall report to the President through
the Secretary of the DOLE, and shall perform the duties and functions elsewhere stated in this
‘Act and all the usual, necessary and related functions of the Office of the Administrator, subject to
the policies and rules prescribed by the OWWA Board.

SECTION 28. The Deputy Administrators, -Two (2) Deputy Administrators shall assist the
‘Administrator in the administration and supervision of operations of the OWWA. They
shall be appointed by the Board upon the recommendation of the Administrator. They must also
possess good leadership and managerial skills. The Board may assign specific functional
responsibilities to the Deputy Administrators.

SECTION 29. Regional and On-site Welfare Officers. - The OWWA shall maintain regional
offices and on-site welfare offices under the Philippine Overseas Labor Offices of the DOLE.

CHAPTER VIII
PERSONNEL AND STAFFING PATTERN

SECTION 30. New Structure and Staffing Pattern. - (a) Upon the effectivity of this
‘Act, the officers and employees of the OWWA shall, in a holdover capacity, continue to
perform their respective duties and responsibilities and receive the corresponding salaries
and benefits unless in the meantime they are separated from the service. The new structure
and staffing pattern for the OWWA shall be prescribed by the OWWA Board and approved by
the President of the Philippines. The salaries and benefits of all personnel shall be in accordance
with existing compensation laws.

(b) Those incumbents whose positions are not included therein or who are not
reappointed shall be deemed separated from the service. Those separated from the service
shall receive the retirement benefits to which they may be entitled under existing laws, rules and

regulations.

SECTION 31. Qualifications Upgrading Program. - Pursuant to the provision of
paragraph (1) of the immediately preceding section, the OWWA Board shall design and establish
a qualifications upgrading program for the staffing of the OWWA, in coordination with the
DOLE and the Civil Service Commission (CSC), within one hundred twenty (120) days from the
effectivity of this Act: Provided, That those who are already in the service from the effectivity of
this Act shall have, not later than five (5) years, to obtain the required academic degree
and/or qualification counted from the implementation of the qualifications upgrading
program: Provided, further, That those who are already in the service from the effectivity of this Act
shall have, not later than one (1) year, to obtain the necessary CSC qualification required for the
position they are currently holding.

SECTION 32. Authority of the Board to Reorganize the Administration. - Notwithstanding the
provisions of existing laws, the OWWA Board shall conduct a management audit, prepare and
submit to Congress a proposed reorganization plan of the OWWA not later than one (1) year,
subject to the limitations provided under this Act and based on the following criteria:

(a) Increased OWWA visibility from the head office to the various regional offices
and by the appointment and assignment of personnel to positions which are purely
administrative, technical, clerical or menial in nature and other positions which are not directly
related to its operation and administration; and


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(b) Efficient and optimized delivery of OWWA services to the OPWs and their respective
families.

SECTION 33. General Qualifications for Appointment, - The general qualifications for
appointment of OWWA personnel shall be in accordance with the minimum requirements set by
the CSC, The OWWA may hire experts in actuarial studies, information technology, finance and
investment, and such other fields as may be deemed necessary in the implementation of programs
and services.

CHAPTER IX
OWWA BENEFITS AND SERVICES

SECTION 34. Guiding Principles. - Pursuant to its mandate, the OWWA shall provide
reintegration programs, repatriation assistance, loan and credit assistance, workers assistance on-
site, death and disability benefits, health care benefits, education and skills training, social
services, family welfare assistance, and other appropriate programs that provide timely social
and economic services.

Nothing in this Act shall be construed as a limitation or denial of the right of the OFW
to avail of any benefit plan which may be adopted in the employment contract, or offered
voluntarily by employers, or by the laws of the receiving country which are over and above those
provided under this Act.

SECTION 35. Benefits and Services to OFWs. -

@) Reintegration of OFWs - Reintegration of OFWs shall be one of the core programs of
the OWWA. To be able to sustain the viability of this program, not less than ten percent (10%)
of the OWWA's collection of contribution for the immediately preceding year shall be allocated
annually for reintegration program.

(b) Repatriation Assistance - Consistent with the provisions of Republic Act No.
8042, as amended, members shall be provided with all the services necessary for tepatriation.

(©) Loan and Credit Assistance - The OWWA shall provide low-interest loans to
member-OFWs. It shall have the authority to hire experts in finance or banking to assist in
implementing the said loan programs.

(@) Workers Assistance and On-site Services - The OWWA shall sustain and maintain
assistance to OFWs in all its overseas and regional offices. Services shall include information
regarding the names, occupation/job category and addresses of OFWs, providing guidance,
developing materials for the Pre-departure Orientation Seminars, conducting psycho-social
counseling, conciliation services and outreach missions, among others. On behalf of the OFWs,
the OWWA may provide appropriate representation with employers, agents and host government
authorities including, but not limited to, assisting OFWs to regain unpaid wages.

(©) Social Benefits - A member-OFW shall be covered with the following social
benefits:
(1) Death and Disability Benefits:

() Death Benefits. - A member shall be covered with life insurance for the duration of one's
employment contract. The coverage shall include One hundred thousand pesos (P100,000.00)
for natural death and Two hundred thousand pesos (P200,000.00) for accidental death;

(i) Disability and Dismemberment Benefits. - A member shall be entitled to
disability /dismemberment benefits as a rider provision of one's life insurance as provided for in
the impediment schedule contained in the Manual of Systems and Procedures. The coverage is
within the range of Two thousand pesos (P2,000.00) to Fifty thousand pesos (P50,000.00);

(ii) Total Disability Benefit. - In case of total permanent disability, a member shall be
entitled to One hundred thousand pesos (P100,000.00); and

(iv) Burial Benefit. - A burial benefit of Twenty thousand pesos (P20,000.00) shall be
provided in case of the member's death. Based on actuarial studies, the Board may increase the
amount of the abovementioned benefits.


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(2) Health Care Benefits. - Within two (2) years from the effectivity of this Act, the
OWWA js mandated to develop and implement health care programs for the benefit of
member-OFWs and theit families.

(© Education and Training Benefits. - A member ot a designated beneficiary may avail
of the following scholarship programs, subject to a selection process and accreditation of
participating institutions. Annual scholarship lists shall be submitted to the Board.

(1) Skills-for-Employment Scholarship Program. - For technical or vocational training
scholarship.

(2) Education for Development Scholarship Program. - For baccalaureate
programs.

(1) Seafarers’ Upgrading Program. - To ensure the competitive advantage of Filipino
seafarers in meeting International Maritime Organization (IMO) competency standards, sea-based
members shall be entitled to one (1) upgrading program for every three (3) membership
contributions.

SECTION 36. Extension of Services to Non-members. - The OWWA may also extend
appropriate programs or services to non-members, as may be determined by the Board.

‘The OWWA shall continue to develop and implement new programs to meet new OFW
needs and requirements as they arise, and to assess the effectiveness of existing services and
benefits in serving OFW welfare.

The OWWA shall also maintain an interactive website to collect OFW feedbacks,
comments, suggestions and complaints on existing programs and services.

CHAPTER X
‘THE OWWA TRUST FUND

SECTION 37. The OWWA Fund, - The OWWA Fund is a private fund held in trust
by the OWWA. The OWWA Fund, being a trust fund, is not government money. No portion
thereof or any of its income, dividends or earnings shall accrue to the general fund of the
national government. Neither shall any amount ot portion thereof be conjoined with the
government money nor revert to the national government. In the same manner, it is exempted from
the "one fund doctrine" of the government.

SECTION 38. Purpose of the OWW-A Fund. -The OWWA Fund can only be used for the
purposes for which it was created that is, to exclusively serve the welfare of member-OFWs and
their families. The fund is to be used exclusively to finance the core programs and services of the
owwa.

SECTION 39. Reporting of the Fund. - Within fifteen (15) days after receipt of audited
reports from the Commission on Audit (COA), the OWWA Board of Trustees shall submit to the
President and Congress a report showing the total collections of, and the disbursements from, the
OWWA Fund.

SECTION 40. Disbursement of the OWWA Fund. - Any provision of existing law to
the contrary notwithstanding, all incomes generated by the OWWA shall, upon their collection,
be retained by the OWWA and disbursed at the discretion of the Board for the general welfare
and other benefits of the OWWA general membership and the OWWA Secretariat personnel;
for the acquisition, construction, maintenance and repair of urgently needed auxiliary facilities,
equipment, buildings and other infrastructure; and for expenses necessary for the attainment
of its purposes under its approved program of expenditures.

No fund shall be withdrawn from the OWWA Fund to respond, aid, supplement or in
any manner augment any required expenditure by other government agencies.

SECTION 41. Sounce of the OWWA Fund. - The OWWA Fund is the sum total of the
amounts under the management and fiscal administration of the OWWA Board and the

Secretariat, including the Twenty-five U.S. dollar (US$25) contributions that shall accrue to the
Fund as fees, investment and interest income, and income from other sources.



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SECTION 42. Trustees of the Fund, - The OWWA Board is designated as the trustee of
the OWWA Fund. It shall be bound by a fiduciary duty to manage the fund with extraordinary
diligence and with utmost skill, care and judiciousness.

SECTION 43. Transparency. - The OWWA Fund shall be managed with full transparency
and fall public disclosure. It shall make available all records of how the funds are utilized,
disbursed and invested in accordance with existing laws.

CHAPTER XI
INVESTMENT ADMINISIRATION: SAFEGUARDS

SECTION 44. Safeguards of the OWWA Fund; Acquired Assets; Unredeemed
Investments, - (a) The OWWA Trust Fund shall be managed and expended in accordance with the
purpose of the Fund and safeguarded against any possible loss and misuse.

‘The OWWA shall ensure an appropriate growth rate in the fund sufficient to sustain
the growing needs of OFW members. It shall ensure that all investment instruments are periodically
inventoried and properly kept at a government bank under a custodianship agreement.

‘A monthly report on all investment schedules showing the interest rates, yields, discount
rates and other relevant data shall be submitted to the Board.

(b) The OWWA shall administer all properties, acquired or foreclosed. To ensure that the
properties are safeguarded and preserved, the same must be properly accounted for and
documented; re-inspected, re-appraised and insured with taxes paid.

‘An asset development/disposal plan shall be submitted by the Administrator for
the consideration of the Board.

Foreclosed properties shall be registered as OWWA assets within one (1) month after
foreclosure.

(©) Unredeemed investments and other receivables shall be inventoried semi-annually and
corresponding redemption plan shall be submitted to the Board. All receivables shall be
supported by documents appropriately acknowledged by the accountable party.

SECTION 45. General Investment Policy. - Upon approval of the Board, all OWWA
investments shall be placed only in government securities and bonds which provide optimum
earnings, liquidity and protection of the Fund. Portfolio management of investible funds shall be
outsourced to government financial institutions (GFIs).

SECTION 46. Examination and Valuation of the Funds. - The OWWA shall make a
periodic actuarial examination and valuation of its funds in accordance with accepted actuarial
principles.

CHAPTER XII
FISCAL AND BUDGET POLICY: MANAGEMENT

SECTION 47. Operative Budget. - The operative budget must be sufficient to support full
protection of the OFWs welfare, The budget shall be reviewed annually by the Board with
emphasis on adequate funding for services and agency efficiency.

‘The Board shall approve, by a majority vote of all its members, the operating budget
which shall support the planned work programs and administrative costs to include, but shall
not be limited to, salaties, emoluments and transportation expenses for OWWA personnel,
office rentals, office supplies, equipment, technological support, communications and utilities,
requirements for personal services and maintenance: Provided, That appropriations for
personal services (PS) and its regular maintenance and other operating expenses (MODE) shall not
exceed twenty percent (20%) of the total member contributions realized in the immediately

preceding year.
‘The approved operating budget shall be drawn from the OWWA Trust Fund.

SECTION 48. Benefits and Services Budget. - ‘The annual budget shall include all
benefits and services to OFWs. The budget shall prioritize protecting the OFW welfare. The

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amount necessary to defray the cost of these benefits and services shall be drawn from the OWWA
‘Trust Fund.

SECTION 49. Budget Preparation and Approval. - In preparing the annual budget, the
OWWA shall follow the national government budget system, format and cycle.

SECTION 50. Re-enacted Budget. - In case the proposed annual budget has not been
approved by the Board at the start of the year, the OWWA shall operate within the budget
level of the previous year allocated on a month-to-month basis. All savings realized within a
previous year shall be deducted from a current year's budget.

SECTION 51. Work and Financial Plans. - All cost centers/offices/units of the OWWA
shall submit their annual work and financial plans (WFP), which should cortespond to the
approved budget. The Board of Trustees shall endorse the WEP of their respective units for
approval of the Administrator. The consolidated OWWA-WEP shall be reported to the Board.

SECTION 52. Budget Realignment. - Realignment of funds including adjustments in
targets shall be submitted to the Board for approval. Similarly, in the event that extra ordinary
circumstances may occur which require additional funds beyond the coverage of the approved
budget, the same shall be submitted for approval by the Board.

SECTION 53. Branch Accounting System; Financial Reports; Auditing Procedures; Annual
Reports. The OWWA regional units shall maintain their respective books of account which shall
be consolidated by the central office.

‘The OWWA shall install sound internal control and monitoring systems and submit
quartetly prescribed financial statements to the COA such as income statement, balance sheet
and cash flow, as prescribed in post auditing reports by the COA.

The OWWA Secretariat is mandated to submit a monthly fund utilization report to
the Board, copies of which shall be made available to Congress. It is further mandated to
submit an Annual Report on its overall performance for the previous year within the first
sixty (60) days of the following year to the OWWA Board, Congress and the President, through
the Department of Budget and Management (DBM).

SECTION 54. Chart of Accounts. - The OWWA shall adopt the appropriate and
standard chart of accounts as prescribed by the COA.

SECTION 55. Appropriation from the National Government. - Nothing in this Act shall
prevent the national government from allocating funds for the operation ot implementation of
any of the programs or services stated herein, including the budget for MOOE.

CHAPTER XIII
MISCELLANEOUS PROVISIONS

SECTION 56. Rebates for Long-time Members. - In recognition of the contribution of
long-time members on the OWWA Trust Fund, the OWWA is mandated to develop and
implement a progtam for the grant of rebates or some form of financial assistance to OFWs who
have been members of the OWWA for at least five (5) years and who have not availed of any
services or benefits, including their families, from the OWWA.

SECTION 57. Procurement System. - The OWWA procurement system shall be governed
by Republic Act No. 9184, also known as the "Government Procurement Reform Act":

SECTION 58. Implementing Rules and Regulations, - The present OWWA Board, in
consultation with the Senate Committee on Labor and Employment and the House Committee
‘on Overseas Workers Affairs, shall, within sixty (60) days from the effectivity of this Act,
formulate the necessary rules and regulations for its effective implementation.

SECTION 59. Separability Clause. - If any provision or part of this Act, ot the application
theteof, is held invalid, the remainder of this Act, or the application of such provision, shall not
be affected thereby.

SECTION 60. Repealing Clause. - All laws not adopted as part of this Act, either directly
or indirectly, are hereby repealed. All provisions of existing laws, orders, rules and regulations

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inconsistent herewith are likewise repealed.

SECTION 61. Effetivity Clause. - This Act shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation.

Approved,

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