Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bill No. 1939

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT GRANTING UNIVERSAL SOCIAL PENSION AND INTRODUCING A TIERED
SYSTEM OF SOCIAL PENSION FOR INDIGENT SENIOR CITIZENS, AMENDING FOR
‘THE PURPOSE REPUBLIC ACT NO. 7432, AS AMENDED, OTHERWISE KNOWN AS
THE “EXPANDED SENIOR CITIZENS ACT OF 2010”

EXPLANATORY NOTE

Republic Act No. 7432 was enacted in 1992 to establish a program beneficial to senior citizens. Since
then, several pieces of legislation have been enacted to expand the privileges and govemment
assistance accorded to senior citizens. One of which is the social pension for indigent senior citizens
introduced in Republic Act No. 9994, otherwise known as the "Expanded Senior Citizens Act of 2010."
Previously, Congress passed Republic Act No. 11916, which increases the monthly social pension from
five hundred pesos (PHP 500,00) to one thousand pesos (PHP 1,000.00). Furthermore, the law allows
for a review, and when necessary, an adjustment of the monthly social pension every two (2) years.
‘These measures improve on the provisions in Republic Act No. 9994, which required Congressional
approval for any adjustment to the monthly social pension. Thus, the social pension remained at five
hundred pesos (PHP 500.00) for over a decade and its value has been eroded by inflation.

In a 2020 research paper entitled “Are We Missing Out on the Demographic Dividend? Trends and
Prospects,” researchers from the Philippine Institute for Development Studies (PIDS) estimated the
age profiles of consumption and labor income in the Philippines. Using 2015 data, the paper showed
that the lifecycle deficit (i., when consumption exceeds labor income) of senior citizens increases as
the senior citizen advances in age. This is brought about by a steep decline in labor come and a
relatively flat level of consumption once an individual reaches retirement,

‘The proposed measure aims to build on the recent reforms on the social pension for indigent senior
citizens. I introduces a universal social pension for the elderly, with the aim of narrowing the pension
coverage gap. It also introduces a tiered system, granting increasing amounts to indigent senior citizens
as they age. The proposed increases are set to improving the plight of seniors among the poor and
vulnerable.

In recognition of the financial instability faced by indigent senior citizens, approval of this measure is
earnestly sought.



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bill No, 1999

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT GRANTING UNIVERSAL SOCIAL PENSION AND INTRODUCING A TIERED
SYSTEM OF SOCIAL PENSION FOR INDIGENT SENIOR CITIZENS, AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 7432, AS AMENDED, OTHERWISE KNOWN AS
‘THE “EXPANDED SENIOR CITIZENS ACT OF 2010”
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. ~ Section 2 of Republic Act No. 7432, as amended is hereby further amended to read as
follows:

“SEC. 2. Definition of Terms. For purposes of this Act, these terms are defined as follows:

(a) xxx

XXX

(i) Pension Provider refers to any government office or agency, or any private entity
which provides pensions to entitled recipients on the basis of contributions, gratuity, or as
mandated by any governing law or issuance, including the Social Security System (SSS), the
Government Service Insurance System (GSIS), and the Pension and Gratuity Management
Center (PGMC), AMONG OTHERS; and

(UNIVERSAL Social Pension refers to [the] A NON-CONTRIBUTORY MONTHLY
monetary grant from the government to support the daily subsistence and medical needs of
senior citizens [which shall not be less than One thousand pesos (P1,000.00) per month]”

Section 2. Tiered Mandatory Social Pension. — Section 5 of Republic Act No. 7432, as amended is
hereby further amended to read as follows:

“SEC. 5. Government Assistance. The government shall provide the following:
(a) Employment
XXX;

(h) Additional Government Assistance
(1) [Mandatory] UNIVERSAL Social Pension


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(A) Indigent senior citizens shall be entitled to « monthly stipend amounting
to [not less than] AT LEAST One thousand pesos (P1,000.00) to augment
the daily subsistence and other medical needs of senior citizens.

(B)SENIOR CITIZENS WHO ARE PREV!
CONSIDERED AS INDIGENTS SHALL BE E!
MONTHLY STIPEND AMOUNTING TO AT LEAST FIVE
HUNDRED PESOS (P500.00) UPON THE EFFECTIVITY OF THIS
ACT: PROVIDED, THAT WITHIN FIVE (5) YEARS ALL SENIOR
CITIZENS SHALL BE ENTITLED TO A UNIVERSAL SOCIAL,
PENSION EQUIVALENT TO A MONTHLY STIPEND OF AT
LEAST ONE THOUSAND PESOS (P1,000.00) REGARDLESS OF
ANY OTHER PENSION BENEFITS THEY MAY RECEIVE FROM
OTHER PENSION PROVIDERS: PROVIDED, FURTHER, THAT
ANY SENIOR CITIZEN MAY WAIVE THIS UNIVERSAL
SOCIAL PENSION.

(C) SENIOR CITIZENS AGED SEVENTY-FIVE (75) TO EIGHTY-
NINE (89) SHALL BE ENTITLED TO ONE HUNDRED AND TI
PERCENT (110%) OF THE APPLICABLE MONTHLY STIPEND
AND INDIGENT SENIOR CITIZENS AGED NINETY (90) AND
ABOVE SHALL BE ENTITLED TO ONE HUNDRED AND
TWENTY PERCENT (120%) OF THE APPLICABLE MONTHLY
STIPEND.”

[The DSWD shall, subject to the approval of the Department of Budget and Management (DBM), in
consultation with other stakeholders, review and, when necessary, adjust the amount of the social
pension every two (2) years after the effectivity of this Act, taking into account the present consumer
price index as published by the PSA and relevant economic indicators, as reported and published by
pertinent government agencies and authoritics.] “THE DSWD SHALL, IN CONSULTATION
WITH THE DEPARTMENT OF BUDGET AND MANAGEMENT (DBM), AS WELL AS
OTHER STAKEHOLDERS, REVIEW AND IF NECESSARY, ADJUST THE AMOUNT OF
UNIVERSAL SOCIAL PENSION EVERY TWO (2) YEARS AFTER THE FULL
IMPLEMENTATION OF THIS ACT, TAKING INTO ACCOUNT THE VARIOUS NEEDS OF
ELEVANT ECONOMIC INDICATORS, AS REPORTED AND
SENT CAVEONMENT AGENCIES AND AUTHORITIES:
PROVIDED, THAT THE SOCIAL PENSION SHALL. NOT BE LESS THAN THE AMOUNT

MANAGEMENT OF THE SACIAT PENSIAN CATT DE TRiNcrrOnen on
DSWD TO THE NATIONAL COMMISSION OF SENIOR CITIZENS (NCSC) WITHIN A
PERIOD NOT EXCEEDING THREE (3) YEARS FROM THE EFFECTIVITY OF THIS ACT.

Section 3. Appropriations. — The universal social pension for senior citizens shall be added to the
gular appropriations of the DSWD in the general appropriations act, and thereafter. to the National
Commission of Senior Citizens, upon full transfer of the implementation. distribution, and management
of the social pension.

Section 4. Implementing Rules and Regulations, ~ Within ninety (90) days from the effectivity of this
Act, the Chairperson of the National Commission of Senior Citizens shall formulate and adopt
amendments to the existing rules and regulations implementing Republic Act No. 11916 to carry out
the objectives of this Act, in consultation with other relevant agencies and stakeholders.



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Section 5, Separability Clause. — If any provision of this Act is declared unconstitutional or invalid, all
other parts or provisions hereof not affected thereby shall continue to be in full force and effect

Section 6. Repealing Clause. ~ Republic Act No. 7432, as amended by Republic Act Nos. 9257 and
9994, otherwise known as the "Expanded Senior Citizens Act of 2010." and Republic Act No. 11916
are hereby amended, All other laws, ordinances, orders, rules, regulations and other issuances or parts
thereof which are inconsistent with this Act are hereby repealed, amended or modified accordingly.

Section 7. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,