SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
) 
SENATE 
"15 JUl 21 
110':16 
RE(,EI~'Ef) .~Y:,,:,~,~ 
Introduced by SENATOR LOREN LEGARDA 
S. B. NO. 
2861 
AN ACT 
ESTABLISHING A LEGACY FUND TO SUPPORT, IMPROVE AND SUSTAIN 
HIGHER 
EDUCATION 
INSTITUTIONS 
DURING 
THE 
TRANSITION 
PERIOD OF THE ENHANCED BASIC EDUCATION ACT OF 2013, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Republic Act 10533 or the Enhanced Basic Education Act of 2013 is a 
landmark law reforming the country's basic education sector, aligning the 
country's previous 10-year basic education cycle to the global standards set 
by European Union under the Bologna Process and the Washington Accord 
set by the United States which both call for 12-year pre-university cycle. 
However, the law's implementation has raised fears that there will be 
massive displacement of educators and higher education institutions (HEIs) 
once the first batch of students enter grade 11 in 2016 and grade 12 for 
2017. Based on the data provided by the Commission on Higher Education, 
around 38,071 teaching staff and 14,351 non-teaching staff will be 
displaced over the next five years beginning 2016. 
Instead of postponing the implementation of this important education 
reform which will have long-term impact on developing the country's human 
capital, there is a clear need for government to manage this transition period 
and minimize its impact on both the teaching and non-teaching staff and 
the HEIs concerned which this proposed measure seeks to address thru a 
Legacy Fund. 
With an initial capital of P12 billion, the Legacy Fund will be managed by 
the CHED in close coordination with the DepEd and the Technical 
Education and Skills Development Authority and shall be used to provide 
financial assistance to academic and non-academic personnel and HEIs that 
will be affected by the adoption of RA 10533. Moreover, it also provides for 
income support to the affected teaching and non-teaching staff. 
Given the importance of this measure in managing the impact of the RA 
10533's implementation, passage of the foregoing is earnestly requested. 
LOREN LEGARDA~ 
Senator 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Third Regular Session 
) 
SENATE 
S. B. NO. 
2861 
Introduced by SENATOR LOREN LEGARDA 
AN ACT 
'15 JIl. 21 
Al0:16 
ESTABLISHING A LEGACY FUND TO SUPPORT, IMPROVE AND SUSTAIN 
HIGHER EDUCATION INSTITUTIONS DURING THE TRANSITION PERIOD 
OF THE ENHANCED BASIC EDUCATION ACT OF 2013, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
1 
SECTION 1. Short Title - This Act shall be known as the "Legacy Fund 
2 
Actof2015." 
3 
SEC. 2. Declaration of Policy. - The state policy of enhancing the 
4 
country's basic education in order to align it with current modern global 
5 
standards has been promulgated in 2013 through Republic Act 10533. Such 
6 
national mandate is in full accord with the constitutional provision that the 
7 
State shall establish, maintain and support a complete, adequate and 
8 
integrated system of the education relevant to the needs of the people and 
9 
society. 
10 
This Act intends to advance the constitutional objective by easing and 
11 
smoothly facilitating the transition period to the full and ultimate 
12 
implementation of RA 10533. 
By doing so, the Philippines is enabled to 
13 
ensure its competitiveness and to respond to the increasing demand for 
14 
skilled and professional manpower of our fast growing economy 
15 
SEC. 3. Definition of Terms - The terms used in this Act are defined as 
16 
follows: 
1 


1 
(a) Transition period refers to the period starting September 2013 to the end 
2 
of School Year 2021-2022, as provided in the Implementing Rules and 
3 
Regulations of RA 10533 or the Enhanced Basic Education Act of 2013. 
4 
(b) Personnel refers to a person, singly or collectively, working in a higher 
5 
education institution, as defined in the Manual of Regulations for Private 
6 
Higher Education (MORPHE) or in technical-vocational schools as defined 
7 
under existing rules and regulations of the Technical Skills and 
8 
Development Authority (TESDA): 
9 
a. Academic Personnel - refers to those who are formally engaged in 
10 
teaching or in research, either on full-time or part-time basis. 
11 
i. Full-time faculty or academic personnel - refers to one who 
12 
meets all the following requirements: 
13 
1. Possesses at least the minimum academic qualifications 
14 
prescribed under the MORPHE for all academic personnel 
15 
without prejudice to the full-time status acquired prior to the 
16 
issuance of the DOLE-DECS-CHED-TESDA Order No.1, dated 
17 
February 7, 1996; 
18 
2. Paid monthly or hourly, based on the regular teaching loads as 
19 
provided for in the policies, rules and standards of the 
20 
Commission on Higher Education (CHED) and the HEI; 
21 
3. Devotes not less than eight (8) hours of work a day to the HEI; 
22 
4. Has no other remunerative occupation elsewhere requiring 
23 
regular hours of work, except when permitted by the HEI; and 
24 
5. Is not teaching full-time in any HEI 
25 
ii. Part time faculty or academic personnel - refers to faculty or 
26 
academic personnel who do not meet the qualifications for full-
27 
time faculty or academic personnel. 
2 


1 
b. Academic Support Personnel - refers to those who perform certain 
2 
prescribed academic functions directly supportive of teaching, such 
3 
as registrars, librarians, guidance counselors, researchers, and other 
4 
persons performing similar functions, including institution officials 
5 
responsible for academic matters and affairs. 
6 
c. Non-Academic Personnel refers to the rank-and-file employees of 
7 
the institution engaged in administrative functions and maintenance. 
8 
(c) Displacement refers to the laying off of employees due to retrenchment, 
9 
end of probationary period, or expiration of the contract of employment; 
10 
(d) Enhanced Basic Education Program refers to at least one (1) year of 
11 
kindergarten schooling, six (6) years of primary and six (6) years of 
12 
secondary education in that sequence. Secondary education refers to four 
13 
(4) years of junior high school and two (2) years of senior high school (SHS) 
14 
education; 
15 
(e) Higher 
education 
refers 
to 
post 
secondary 
education 
offering 
16 
baccalaureate, graduate or post-graduate programs; 
17 
(f) Higher education degree programs refer to specific courses of study 
18 
leading to a bachelor's, master's, or doctoral degree; 
19 
(g) Higher education institutions (HEI) refers to an educational institution, 
20 
private or public, offering higher education programs with an organized 
21 
group of students, receiving instructions from several faculties, located in a 
22 
building or complex of buildings in a particular site, specifically intended 
23 
for educational purposes. 
24 
(hJ Post-secondary school refers to an institution that offers non-degree 
25 
technical-vocational programs, which require the possession of a high 
26 
school diploma for admission, and which are accredited by TESDA; 
27 
(il Technical-vocational programs refers to post-secondary certificate 
28 
courses, officially recognized as non-degree programs aimed at preparing 
3 


1 
technicians paraprofessionals and other categories of middle-level workers 
2 
by providing them with a broad range of general education, theoretical, 
3 
scientific and technological studies and related job skills training; and 
4 
UJ Tertiary education refers to post secondary technical/vocational 
5 
education and training, as well as higher education programs. 
6 
SEC. 4. Legacy Fund - The Legacy Fund is hereby established to 
7 
provide, during the transition period, financial assistance to academic, 
8 
academic support, and non-academic personnel, as well as tertiary education 
9 
institutions, directly and adversely affected as a consequence of the 
10 
mandatory adoption and implementation of Enhanced Basic Education Act. 
11 
It shall be used for the following specific purposes: 
12 
(1) To 
provide 
academic, 
academic 
support, 
and non-academic 
13 
personnel 
with 
grants 
and 
scholarships 
to 
upgrade 
their 
14 
qualifications through masteral, doctoral or post-doctoral studies, 
15 
research, or further practical training. This includes similar grants of 
16 
scholarship to attract new teachers and researchers from among 
17 
their ranks to the higher education sector; 
18 
(2) To invest in the development of innovative and relevant curricula, 
19 
learning and teaching systems, and new processes and equipment 
20 
related to the Enhanced Basic Education Program and such best 
21 
practices at the tertiary education level; 
22 
(3) To provide income support to academic, academic support and non-
23 
academic personnel who will be displaced from employment due to 
24 
the mUlti-year low enrolment during said transition; and 
25 
(4) To provide financial augmentation to academic, academic support 
26 
and non-academic personnel who may not have been displaced from 
27 
employment, but whose salary or wage is reduced due to the multi-
28 
year low enrolment during said transition. 
4 


1 
The above package shall be made available every school year beginning 
2 
June 2016, the commencement of full scale implementation of SHS in the 
3 
country, until School Year 2021-2022, the completion of the transition period 
4 
of RA10533. 
5 
SEC. 5. Grants for Academic Personnel. - A portion of the Legacy 
6 
Fund shall be set apart for current and incoming academic and academic 
7 
support personnel, for, but not limited to: 
8 
(a) Scholarship for Graduate Studies 
9 
(b) Research Grants 
10 
(c) Practice Fellowships 
11 
Recipients of said grants shall execute a return service contract in 
12 
which they: 
13 
(a) Agree to teach as their return of service (ROS); and 
14 
(b) Agree to any of the approved ROS conditions to be formulated 
15 
by CHED. 
16 
Failure to comply with the terms of the service contract will result in the full 
17 
repayment (plus interest and penalties, if applicable) of all award monies 
18 
received. 
19 
SEC. 6. Grants for Non-Academic Personnel. - A portion of the Legacy 
20 
Fund shall also be set apart for the development of non-academic personnel 
21 
through graduate studies or further training relevant to their work. Availment 
22 
of said grant shall similarly be accompanied by a service contract that 
23 
includes a provision for return of service (ROS). 
24 
SEC. 7. 
Development of Innovative Curricula, Training and 
25 
Systems. - A portion of the Legacy Fund shall also be set aside for tertiary 
26 
education institutions, public and private, to enable them to introduce 
27 
innovations in curricular, learning and teaching systems, and digital 
5 


1 
processes. Said fund should be used for the following, in accordance with 
2 
guidelines to be formulated by the CHED: 
3 
(a) Initiatives for twinning between a local program or institution with a 
4 
proven track record of competence and a foreign program or 
5 
institution recognized for its expertise in the relevant discipline/s, and 
6 
other internationalization initiatives for students and faculty; 
7 
(b) Benchmarking and articulation activities among locally organized 
8 
universities and colleges, whether for academic or non-academic 
9 
purposes; 
10 
(c) Review and reform of existing policies and procedures concerning 
11 
faculty load, tuition, faculty development, research and extension in 
12 
order to raise the quality and efficiency of education services and 
13 
modernize their physical plants; 
14 
(d) Enhancement of program courses and training for faculty, aligning 
15 
them to competency-based standards, as well as the K12 and the 
16 
revised General Education (GE) curriculum; 
17 
(e) Development of new and relevant graduate education programs as well 
18 
as niche programs within the context of the Association of Southeast 
19 
Asian Nations (ASEAN); 
20 
(I) Facilitation of academe-industry linkages; and 
21 
(g) Establishment of continuing education programs, targeted towards 
22 
solving 
job-skills 
mismatch, 
leading 
to 
unemployment 
and 
23 
underemployment. 
24 
SEC. 8. Income Support to Academic, Academic Support, Non-
25 
Academic Personnel and Tertiary Education Institutions. 
26 
(a) Personnel who are displaced during the transition period of RA 
27 
10533 shall be provided with income support for a maximum period 
28 
of 12 months in an amount not more than their monthly net wage at 
6 


1 
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4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
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16 
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18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
the time of ~he displacement, in accordance with the following 
minimum 9riteria and such other conditions as the DOLE may 
require for its availment: 
I 
1. The nersonnel must be registered with the Public Employment 
servibe Office (PESO) as displaced by reason of the 
imPl1mentation of K-12 during the Transition Period; 
2. He 01 she must be able to work, be ready for suitable work, 
and willing to have job training; 
3. He or she must be both physically and mentally competent, 
ready to take on any suitable and available employment; 
4. He or she must be actively looking for work; and 
5. He or she must not be involved in any income-generating or 
profit-generating activity from the day of displacement. 
The income support shall be graduated. Further, said support shall 
be discontinued if the displaced personnel gets another employment. 
Finally, said support shall be separate and distinct from the 
separation pay provided under the Labor Code, as amended, 
company policy, or collective bargaining agreement. 
(b) Private Tertiary Education Institutions, which incur costs as a result 
of foregone enrollments during the transition period, as well as 
displacement of affected personnel, may avail of financial support, as 
necessary to ensure sustainability of their institution. 
Provided, That they meet the criteria to be set by the CHED and 
TESDA. 
Provided Further, That no amount of the Fund shall be used to pay 
any HEI which has an outstanding obligation to the Government 
without said obligation being settled or offset first, subject to the 
requirements provided for by law. 
7 


1 
Provided Finally, That the affected HEr has no other adequate source 
2 
of funds. 
3 
(c) State Universities and Colleges (SUCs) shall receive, through their 
4 
annual allocation in the General Appropriations Act (GAA) the 
5 
necessary funding required to fulfill financial obligations to 
6 
personnel and to continue operations. 
7 
However, the CHED and the Department of Budget and Management 
8 
(DBM), shall deVelop a separate financing policy framework to govern 
9 
funding and operations of SUCs during said period of transition. 
10 
SUCs nonetheless shall have equal access to the services and 
11 
support provided for in this Act. 
12 
SEC. 9. Other Forms of Support. 
13 
(a) Assistance to Affected Tertiary Education Institutions - Further 
14 
assistance should be provided to all tertiary education institutions 
15 
through E-GASTPE, as well as facilitation of special loan assistance 
16 
from the Development Bank of the Philippines (DBP), the Land Bank 
17 
of the Philippines (LBP), Veterans Bank and the United Coconut 
18 
Planters Bank. 
19 
(b) Assistance to Academic, Academic Support and Non-Academic 
20 
Personnel- The DOLE shall provide other assistance such as wage 
21 
employment, retraining and retooling, livelihood or entrepreneurship 
22 
programs, as well as welfare assistance. 
23 
SEC. 10. Fund Application and Dispensation. - Application of the 
24 
Fund shall be subject to guidelines, rules and regulations, which shall be 
25 
formulated and promulgated by DBM, upon consultation with CHED, DOLE, 
26 
DepEd and TESDA, to carry out provisions of this Act. 
27 
SEC. 11. Implementing Arrangements and Operational Structures. 
28 
- The CHED shall be the main implementing agency and shall coordinate 
8 


1 
closely with the DepEd, DOLE and TESDA, from June 2016 to the end of 
2 
School Year 2021-2022. The respective duties and responsibilities of the 
3 
agencies include, but are not limited to the following: 
4 
(a) CHED - As the main implementing agency, the CHED is hereby tasked 
5 
to form and lead the Interagency Secretariat, with personnel seconded 
6 
from relevant offices within the Commission, as well as from DepEd, 
7 
DOLE and TESDA, in order to coordinate, streamline, and monitor, the 
8 
various support and other services that shall be made available to 
9 
academic, academic support and non- academic personnel and tertiary 
10 
education institutions, during the transition. 
11 
(b) DepEd - The DepEd is hereby tasked to facilitate the hiring of displaced 
12 
faculty and staff from affected higher education institutions, Provided 
13 
that they meet the criteria set by the Department, consistent with the 
14 
provisions of RA 10533, RA 4670, and RA 10612. 
15 
The CHED and DepEd shall likewise work closely m 
finding 
16 
complementary activities between private and higher education 
17 
institutions and basic education schools. This may include, but is not 
18 
limited to, the employment and utilization of human and physical 
19 
resources of HEIs, consistent with Sec. 12 of RA 10533. 
20 
(c) DOLE - The DOLE is hereby tasked to coordinate and facilitate smooth 
21 
displacement procedure of HEI, awareness building initiatives for 
22 
employers and employees affected by the transition, the redeployment of 
23 
faculty and staff, as well as the conduct of livelihood training for the 
24 
displaced personnel, in cooperation with TESDA. 
25 
The Interagency Secretariat is hereby tasked to ensure the timely 
26 
delivery as well as the quick provision of information and rendering of services 
27 
to stakeholders concerned, locally and online. Further, said Secretariat shall, 
9 


1 
at the end of each calendar year, submit an annual report to Congress, giving 
2 
a detailed account of its proceedings and accomplishments. 
3 
SEC. 12. Funding of the Legacy Fund. - The initial amount of 12 
4 
Billion Pesos is hereby appropriated for this purpose, 50% of which shall 
5 
come from the proceeds of RA 10351 (Sin Taxes Act); 40% from contributions 
6 
of PAGCOR and Philippine Charity Sweepstakes Office and the balance of 10% 
7 
from the amount appropriating Outlay of CHED, TESDA and DepEd. 
8 
Private Donations through the HEDF may also be sourced and used to 
9 
support the Legacy Fund. Thereafter the balance of 17 Billion Pesos, as well 
10 
as corresponding annual budgetary requirements needed to attain the 
11 
purposes of this Act, shall be included in the annual GAA, for a period of four 
12 
(4) years, from 2017 to 2021. Said fund shall only be utilized during the 
13 
transition period of RA 10533. Any such amount not fully utilized shall revert 
14 
back to the National Treasury. 
15 
SEC. 13. Implementing Rules and Regulations. - Within sixty (60) 
16 
days after the effectivity of this Act, the CHED Chair, DepEd Secretary, DOLE 
17 
Secretary and TESDA Director-General, shall promulgate the rules and 
18 
regulations needed for the implementation of this Act. 
19 
SEC. 14. Separability Clause. - If any provision of this Act is held 
20 
invalid or unconstitutional, the same shall not affect the validity and 
21 
effectivity of the other provisions hereof. 
22 
SEC. 15. 
Repealing Clause. -
All other laws, decrees, executive 
23 
orders and rules and regulations contrary to or inconsistent with the 
24 
provisions of this Act are hereby repealed or modified accordingly. 
25 
SEC. 16. Effectivity Clause. - This Act shall take effect fifteen (15) 
26 
days after its publication in at least two (2) newspapers of general circulation. 
27 
Approved, 
10