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THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
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OF THE PHILIPPINE 
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S E N A T E  
S. No. 39 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
This bill proposes the creation of a College Education Trust Fund in the 
Government Service ‘Insurance System (GSIS) and the Social Security System 
(SSS) to allow mempers to provide for the college education of their children. 
Under the provisions of this bill, coverage will be optional for all members, 
regardless of the civil status of the member, or whether he or she has a child or 
not. The benefits can be availed of by members only if they complete the policy 
prior to the enrollment of their child in college. 
The GSlS or the SSS, as the 
case may be, will pay the college tuition and other fees, as well as materials, 
books, supplies, board and lodging, and other expenses associated with the 
child’s college education, no matter what the cost at the time of enrollment. 
This bill also provides for incentives to scholars and enrollees for courses 
in Agriculture, Fisheries, Forestry, Science and Technology. 
Education is an investment in the future of our children, It is no wonder 
that the Constitution, in Article XIV Section I mandates the State to protect and 
promote the right of all citizens to quality education. 
This bill promotes access to quality education by providing the mechanism 
by which GSlS and SSS members can pay for the future education of their 
children at today’s prices. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA HI 
Senator 


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THIRTEENTH CONGRESS OF 
First Regular Session 
OF THE PHILIPPINES 
, .  
THE REPUBLIC 
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ad 
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‘PC 
S E N A T E  
S. No. 39 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
ESTABLISHING A COLLEGE.EDUCATION TRUST FUND FOR CHILDREN OF 
GSIS AND SSS MEMBERS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION ’l. Short Title. - This Act shall be known as the “College 
Education Trust Fund Act.” 
SEC. 2. College Education Trust Fund. - There is hereby established in 
the Government Service Insurance System and the Social Security System a 
special trust fund called the “College Education Trust Fund” to ensure the college 
education of the children of the Members of both Systems. 
SEC. 3. Children Defined. - For purposes of this Act, the term “children” 
shall include the legitimate, legitimated, legally adopted or illegitimate child or 
grandchild of the Members. 
SEC. 4. Optional Coverage. - Subject to the rules and regulations 
prescribed by the Government Service Insurance System (GSIS) or the Social 
Security System (SSS), as the case may be, all Members, regardless of civil 
status, with or without a child shall have the option to insure this Act. 
SEC. 5. Premium Payments. - The amount of premiums to be paid to the 
College Education Trust Fund by the Member shall be, in accordance with the 
schedule of payments to be provided by the System concerned taking into 
consideration the following criteria: 
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a) 
The interval of time between the effectivity of the coverage 
and the 
b) 
b) The number of monthly contributions to be made to 
complete the policy; 
The benefits to be availed of as provided in Section 5 of this 
Act; 
The number of children insured under this Act; 
The amount of tuition and other standard fees charged by 
the school; and 
Such other factors as may be determined by the System 
concerned. 
c) 
d) 
e) 
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SEC. 6. Educational Benefits. - Only members who have completed the 
payment of the premium on th.e policy before the enrollment of the child shall be 
entitled to avail of the benefits provided for under this Act. 
The benefits shall include the payment by the System concerned of: 
a) 
Such school fees as may be required for enrollment in and 
completion of four or five year college course which shall include tuition 
fees for all subject officially prescribed by the school and part of the 
regular curriculum as requisite for graduation and such standard fees as 
may be defined by the System concerned in coordination with the 
Department of Education, Culture and Sports; 
b) 
the school; and 
c) 
Materials, books, supplies and other similar fees required by 
The board and lodging expenses that may be incurred in the 
pursuit of such education. 
The member may opt to insure any of the above or combinations thereof. 
The payment shall be made by the System directly to the institution except 
for item (b) which shall only be reimbursed to the member or child. The System 
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concerned shall provide for safeguards to insure the prompt payment of these 
benefits. 
SEC. 7. Incentives. - 
a) 
Should the child earn any scholarship in College as to 
exempt the System from the payment of the benefits provided for in 
paragraph (a) of the preceding section, in whole or in part, such payments 
shall be received by the child in lieu of the school. 
b) 
The system concerned shall provide for incentives to 
enrollees of the following courses: Agricultural, Forestry, Fishery, Science 
and Technology. 
SEC. 8.Transferability of Benefits. - The benefits provided for under this 
Act may be transferred or assigned to another child of the same Member. 
SEC. 9. Death or Disability of Member. - The death or disability of the 
member shall not preclude the child from the availment of the benefits provided 
for in this Act. 
SEC. I O .  In case of insufficiency of provisions of this Act, the SSS or GSlS 
law as the case may be shall apply in a suppletory manner. 
SEC. 11. The GSlS or SSS, as the case may be, shall promulgate the 
necessary rules and regulations for the effective implementation of this Act within 
ninety (90) days following its approval. 
SEC. 12. Separability Clause. If any section or provision of this Act shall 
be declared unconstitutional or invalid, the other sections or provisions not 
affected thereby shall remain in full force and effect. 
SEC. 13. Repealing Clause. - All laws, decrees, orders, rules and 
regulations and other issuances inconsistent with the provisions of this Act are 
deemed modified, revoked or repealed accordingly. 
SEC. "1. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in two (2) leading newspapers of national circulation. 
Approved, 
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