TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
i.Offiri’ of;
25 AUG -5 P4 31
SENATE 
S. No. 968
Ri;CEr'!:0 BY.
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
CREATING AN ADVANCED STUDIES DEVELOPMENT PROGRAM FOR 
EXCEPTIONAL EMPLOYEES FROM THE GOVERNMENT AND THE PRIVATE 
SECTOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
With the constant and rapid developments in the world of work and the 
environment around which it revolves, advanced studies indeed increasingly 
becomes an important tool to enable the employees to cope with the challenges. 
Through further studies, they are able to expand their knowledge, enhance their 
skills, and elevate their quality of work. Beyond these, employees are able to 
maximize their potentials because completion of advanced studies contribute to their 
career development, increased productivity and earning potential, enforced 
confidence and motivation, and expanded network and job opportunities.
These benefits also redound to the employers and their clientele. Productive 
and motivated employees make up efficient and effective organizations. They are 
also the main instruments in meeting the expectations and satisfaction of their 
clientele.
While the benefits of advanced studies are limitless, their accessibility to 
employees, both from the private and public sector, remains limited. One of the


most common restricting factors to employees in pursuing post-graduate studies is 
the high cost of tuition and related fees.
The "Pensionado Act seeks to establish a Pensionado Program under the 
Commission on Higher Education (CHED) which shall cater to employees both in the 
public and private sector, as well as self-employed individuals. It will coordinate 
with various local and international sponsors for the availment of their fellowships, 
scholarships, and training grants for advanced studies that may be availed of by the 
employees.
The selection of scholars, who are referred to as "Pensionado", will be 
stringent to ensure that they deserve the financial and non-financial assistance that 
will be granted to them. They will also be required to render service after their 
studies to become part of a corps of specialists who will share their knowledge and 
skills to their colleagues.
The Pensionado Program is visualized to be a relevant mechanism to achieve 
a productive citizenry who contribute to the nation's economic development.
In view of the foregoing, the immediate passage of this bill is highly 
recommended.
NGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
' w!Kfifr ol li!.' r: - ;
25 AUG -5 P4 31
SENATE 
S. No.
RliCEiVEDB\.
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
CREATING AN ADVANCED STUDIES DEVELOPMENT PROGRAM FOR 
EXCEPTIONAL EMPLOYEES FROM THE GOVERNMENT AND THE PRIVATE 
SECTOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as the "Pensionado Act"
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Sec. 2. 
Declaration of Policies. - Human resources developments are
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essential for economic development and progress. In the pursuit of economic
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development and progress, the State shall give priority to the creation of a critical
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mass of elite professionals who shall take the lead in harnessing science, technology,
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and related disciplines towards accelerating the productivity of the country's human
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resources.
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Consonant with this thrust, it is hereby declared a policy of the State to devise
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a program for exceptionally able and highly motivated employees, preferably aged
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thirty (30) to forty (40) years, from the government, the private sector and/or the
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self-employed to undertake advanced studies in a branch of science, technology, or
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related fields of learning on which depends the development and progress of the
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country. As such, it shall provide for fellowships to enable them to pursue advanced
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studies or research in their field of expertise.
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The State shall develop a critical mass of first-rate specialists in various
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disciplines and areas of specializations vital to national development to form a


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collective national "think tank" who shall place continuously their knowledge and 
skills at the service of the nation, be it in industry, the academe, or the highest 
policy-making levels of government, with the government taking the lead in 
harnessing their knowledge and skills for the greatest good of the country.
Sec. 3. Definition of Terms. — For purposes of this Act, the following terms 
are hereunder defined as follows:
(a) Post-graduate refers to a formal degree course program of training / 
research requiring at least a Master's Degree for entry; a student pursuing 
such program;
(b) Advanced studies refer to a post-graduate problem-oriented program of 
studies and/or research, not necessarily leading to a degree, undertaken 
for further specialization or advanced knowledge in a specific field of 
study, or to acquire specialized knowledge and/or skills in a particular area 
of science or technology; and
(c) Pensionado refers to a Filipino citizen selected and supported by the 
Philippine government under this program to undertake advanced studies 
in selected institutions of higher learning or recognized research centers, 
in fields relevant to the officially-declared priority areas for development.
Sec. 4. Establishment of Pensionado Program. - There shall be established 
under the Commission on Higher Education (CHED), in coordination the Department 
of Science and Technology (DOST), the Department of Trade and Industry (DTI), 
the National Economic and Development Authority (NEDA), the private sector and 
non-government organizations (NGOs) a fellowship program to be called as the 
Pensionado Program for Filipinos employed in the government and the private 
sector, and those who are self-employed.
The Program shall pool together all fellowships, scholarships, training grants 
sponsored or extended by foreign government, agencies and other bodies, as well as 
by local agencies and organizations, whether public or private, intended for 
advanced studies in international centers of advanced learning, scholarship and 
research.
Sec. 5. Establishment of a National Secretariat; Functions and Composition. - 
There shall be established a National Secretariat with the following functions:


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(a) Identify and assist in negotiations with sponsors of fellowships, 
scholarships and grants;
(b) Provide assistance to the selection panel in accomplishing its work;
(c) Provide the Pensionados continuing assistance from the time of selection 
thru the time of their return to the country, including assistance for the 
productive utilization of their newly-gained expertise;
(d) Serve as the administrative arm of the government for the program; and
(e) In general, promulgate and implement the policies and guidelines 
governing the Program.
The National Secretariat shall be headed by an Executive Officer with the rank 
of Assistant Secretary, to be appointed by the President of the Republic of the 
Philippines, upon the recommendation of CHED. The members of the Secretariat 
shall consist of representatives from CHED, NEDA, DTI, and DOST. These 
representatives shall be seconded to the Secretariat for a period of one (1) year, 
subject to renewal every year. Service rendered thereat shall be considered as part 
of their performance for promotions purposes.
Sec. 6. Number of Pensionados and Length of Grant - There shall be 
selected twenty-four (24) Fellows annually - three (3) Fellows for each priority 
discipline / industry field of the eight (8) vital disciplines or areas of specializations 
identified by the CHED in consultation with the NEDA as frontiers or new areas 
essential for pushing the economic and social development thrusts of the country. 
The scholarship shall be for a period not exceeding three (3) years.
Sec. 7. Selection Process. — There shall be a Selection Panel under the 
Secretariat consisting of three (3) university presidents and two (2) eminent 
members from the academe to be appointed by the CHED. They shall serve on a 
staggered basis for the purposes of continuity and consistency, each for a term of 
three (3) years. The Selection Panel shall make the final selection of the 
Pensionados from among the nominees from the academe, industry and research 
centers. The integrity and objectives of the program are paramount considerations 
for the panel in making the selection.
Sec. 8. Qualifications. - In order to qualify for the Fellowship Program, the 
applicant must be:


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(a) a Filipino citizen;
(b) gainfully employed;
(c) a college degree graduate, with honors;
(d) with demonstrated leadership and proven exceptional performance in 
his/her present work;
(e) enthusiastic in undergoing further training; and
(f) willing to sign a contract requiring him/her to return to his/her job in 
another capacity after training.
Sec. 9. Place of Study. - The Pensionados shall be sent to a foreign country 
well-known for its advanced stage in particular discipline of area of specialization. 
Training and education may be an academic institution, research and development 
(R&D) center or a major industrial establishment with R&D program. It may or may 
not lead to an advanced academic degree.
Sec. 10. Assistance to Grantees. - The Pensionado is entitled to the following 
benefits:
(a) Up to three (3) years leave with pay, including allowances and other 
benefits;
(b) One economy round-trip air fare to and from the host country plus other 
travel expenses required for foreign travel;
(c) Clothing allowance to be determined by the Secretariat;
(d) Monthly stipend while on study abroad, of such amount to be determined 
by the Secretariat;
(e) Books / instructional materials / research allowance of such amount to be 
determined by the Secretariat; and
(f) Health, travel and insurance fees of such amount to be determined by the 
Secretariat.
Sec. 11. Program Funding. — The cost of each fellowship grant shall be 
shared by the Pensionado's employer and the National Government. The employer 
pays the salary, allowances and other benefits due the Fellow as employed for the 
whole period of the advanced studies overseas while the National Government, thru 
the Program, shall be responsible for items b, c, d, e, and f as enumerated in 
Section 10 of this Act. With the transfer of all pertinent foreign and local grants for


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coordination under the Program, the government through the Program, may 
negotiate bilateral arrangements with host governments, host universities, host 
research institutions and host corporations to share at least fifty percent (50%) of 
the total cost of items b, c, d, e, and f under Section 10 hereof.
The National Government may also negotiate bilateral agreements with host 
governments, host universities, research institutions and corporations to enable our 
scholars to stay abroad and continue their studies or training at a minimal cost to 
the National Government. A sharing program can be established where the host 
government, host-universities, research institutions and corporations can shoulder 
the expenses of the scholars while abroad.
Sec. 12. Service Obligation. — Immediately upon completion of the studies or 
training, a Fellow shall be required to return to their job or in another capacity 
approved by the Secretariat and serve on a full-time basis for a minimum period 
equivalent to twice the period covered by the fellowship grant. In addition, the 
Fellow shall be required to hold seminars or training sessions for employees from the 
government and the private sectors on topics related to the course or training that 
he/she has completed. Any recipient of the program who has not completed his 
course shall reimburse the fellowship grant in cash or through equivalent service. 
Any Pensionado who violates the service obligation imposed under this Section shall 
reimburse the sponsoring agency or company and the National Government of the 
fund assistance received under this Act in full or in part as the case may be.
Sec. 13. Mechanism for Utilization of Returned Fellows. - There shall be 
established and developed a National Network of Specialized Institutes for Advanced 
Studies in universities selected by CFIED in consultation with the DOST and other 
appropriate agencies to be determined by the Secretariat to provide returning 
scholars an office, laboratory, library and conference facilities for their continuing 
activities. The Institute shall also serve as a place for an Exchange Program and 
Collaborative Research among local and international scientists and scholars in 
priority areas of research and development.
Sec. 14. Appropriations. — The amount needed to initially implement the 
provisions of this Act shall be charged against the appropriations of the current year 
of the concerned departments and agencies. Thereafter, such sums as may be


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necessary for its continued implementation shall be included in the appropriation of 
the concerned departments and agencies in the annual General Appropriations Act.
Sec. 15. Transfer of Other Fellowship, Scholarship, and Training Grants. - All 
foreign and locally sponsored fellowship, scholarship and training grants will be 
transferred to the program for coordination. With respect to government employees 
who may be affected by the transfer, the pertinent rules and regulations of the Civil 
Service Commission (CSC) shall apply.
Sec. 16. Implementing Rules and Regulations. - Within ninety (90) days from 
the approval of this Act, CHED, in coordination with NEDA, DTI, DOST, and CSC, and 
upon consultation with the private sector stakeholders, shall promulgate the 
necessary rules and regulations for the effective implementation of the provisions 
hereof.
Sec. 17. Separability Cause. - If any provision or part hereof is held invalid 
or unconstitutional, the remainder of the law or the provision or part not otherwise 
affected shall remain valid and subsisting.
Sec. 18. Repealing Cause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule, or regulation 
contrary to or inconsistent with the provisions of this Act are hereby repealed, 
modified, or amended accordingly.
Sec. 19. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,