Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NOS.70 7

Introduced by Rep. Winston “Winnie”Castelo

EXPLANATORY NOTE
This proposal aims to serve as a social assistance measure.

It shall allow retirees under Republic Act No. 1616, also known as the ‘Government
Service Insurance Act! to cope with their social and economic plight.

Apparently, said republic act no longer fully satisfies the true objectives of social
security especially so that gratuity benefits are being phased out. In fact, under this law,
government retirees have to confront the high cost of living after retirement to the extent
that they have to live at the mercy of their relatives if not loan sharks.

When receiving lump sums is not synonymous with pensions, they become vulnerable
victims of loan sharks such that this close prospect of receiving any other fina

1616 would have been exhausted, we see how wrong choices may hav
well as wrong scheme may have set them up.


Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
First Regular Session

ane
HOUSE BILL No.8 757

Introduced by Rep. Winston “Winnie”Castelo

AN ACT
GRANTING OLD-AGE PENSION BENEFIT TO RETIREES UNDER REPUBLIC ACT NO.
1616, AS AMENDED, FOR AGED 70 YEARS OR OVER, AND PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOSES

Be it enacted in the Senate and the House of Representatives of the Republic of the
Philippines in Congress assembled’

SECTION 1. Short Title. - This Act shall be known as the ‘Special Retirement
Act of 2016."

SEC. 2. Declaration of Policy. - It is the declared policy of State to provide social
security benefits to the Elderly Members of society. Pursuant to this, the State shall
grant old-age pension benefit to senior citizens who retired under Republic Act No.
1616, as amended, otherwise known as the "Government Service Insurance Act” as
well as survivorship benefit to their survivors to promote decent standard of living.

SEC. 3. Coverage. — This Act shall apply to government personnel who retired
under Republic Act No. 1616, as amended, and who have reached the age of seventy
(70) years or over at the time of the effectivity hereof.

SEC. 4. Old-Age Pension. - A government employee who retired under RA
1616, as amended, and who is seventy (70) years old or above, shall receive an old-
age pension benefit equivalent to fifty percent (50%) of their average monthly
compensation as defined under RA 8291, otherwise known as the “Revised
Government Service Insurance Act of 1977": Provided, That the retiree shall not be
required to reimburse to the Government Service Insurance System the retirement
gratuity previously received by him from his last employer as well as the refunds from
the GSIS of the person and the employer's premiums as the case may be but shall be
considered as partial payment by the GSIS to the retiree: Provided, further, That when
the reitree dies, his beneficiaries shall be entitled to survivorship benefits provided for
under RA 8291.

SEC. 5. Funding. - Such sums as may be necessary for the payment of the
retirement and survivorship benefits shall be charged against the GSIS Insurance Fund
provided for under RA 8291. Whatever additional amount as may be needed for its


implementation shall be included in the General Appropriations Act of the ensuring fiscal
years.

SEC. 6. Implementing Guidelines. - The Government Service Insurance System
(GSIS), in coordination with the Department of Budget and Management, shall issue the
necessary rules and regulations for the effective implementation of this Act.

SEC. 7. Separability Clause. - Should any part or provision of this Act or any part
hereof be declared invalid, or unconstitutional, the other provisions so far as they are
separable from the invalid ones, shall remain in force and effect.

SEC. 8. Repealing Clause. - All laws, executive orders, decrees, letters of
instruction, rules and regulations, or parts thereof, inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

SEC. 9. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) national newspapers.

Approved,