Republic of the Philippines y,
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session \

House Bill No. 2053 _

Introduced by Honorable Sherwin T. Gatchalian

Explanatory Note

Our Constitution provides that “The State affirms labor as a primary
social economic force. It shall protect the rights of workers and promote their
welfare.” Whereas, the Migrant Workers and Welfare Act of 1995, as amended
declares in its policies that “The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote full employment and
equality of employment opportunities for all. Towards this end, the State shall
provide adequate and timely social, economic and legal services to Filipino
Migrant Workers, in particular.” In recognition of this mandate, it is intended
that the services will be more responsive, interests amply protected and the
welfare best promoted if a comprehensive organizational structure is accorded
the Overseas Workers Welfare Administration, hence this legislative proposal.

Since its inception, through Letter of Instruction No. 537, issued in
May 1, 1997 creating the Welfare and Training Fund for Overseas Workers, an
attached agency of the Department of Labor and Employment, to Presidential
Decree No. 1694 issued in May 1, 1980 formalizing LOI 537 establishing the
organization and administration of the Welfare Fund for Overseas Workers
(Welfund), and then Presidential Decree No. 1809 which was issued in
January 16, 1981 amending PD 1694, to expand the Welfund Board of
Trustees and establishing a Secretariat to administer the Welfund until
Executive Order No. 126 was issued in January 30, 1987 which reorganized
the Ministry of Labor and Employment, renaming Welfund into the Overseas
Workers Welfare Administration—a clear, unequivocal concept of its
obligations, duties and the scope of its administrative functions have not so far


been established. Its collection and receipt of membership fees in recent years
have drawn serious concerns on fund management and lenient disbursements
without clear-cut guidelines. Thus, congressional inquiries on how the agency
judiciously keep and manage these hard-earned contributions have cropped up
time and again.

One clear realization that has emerged which is of paramount
importance from these legislative investigations is the creation of a charter that
shall govern the operation and administration of OWWA - clarify the mission of
its creation, define the membership base and coverage of benefits, identify the
programs for availment of its members, fund management and public
accountability of its administrators and officials.

This legislative initiative seeks to fulfill this crucial policy demand and
imperative. The passage of an OWWA Charter will certainly contribute to a
more effective and efficient delivery of services to accord a greater mantle of
protection for our OFW’s as well as the advancement of their rights and
welfare.

The support for the passage and approval of this landmark legislation is
earnestly prayed.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

‘SIXTEENTH (16") CONGRESS
‘4stRegular Session

House eiLLno. 2053

Introduced by
Representatives Sherwin T. Gatchalian

AN ACT
TO GOVERN THE OPERATIONS AND ADMINISTRATION OF THE
OVERSEAS WORKERS WELFARE ADMINISTRATION.

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

CHAPTER
TITLE, POLICY AND OBJECTIVES

SECTION 1, Short Title. ~ This Act shall be known as the “OWWA Act of 2012”.

SEC. 2, Declaration of Policy. ~ It is the policy of the State to afford full protection to labor, local and
‘overseas, organized and unorganized, and promote full employment opportunities for all, Towards this end,
it shall be the State's responsibility to protect the overseas Filipino workers (OFWs), The Overseas Workers
Welfare Administration (OWA) shall be one of the principal agencies of the State to serve and promote the
interest and welfare of the OFWs and their families,

SEC. 3, Objectives. ~ This Act is enacted to provide guidelines on matters concerning OWWA, its mandate,
purposes and objectives, membership, collection of contributions, and availment of benefits and services.
This Act also embodies the policies on fund management, programs and services administration.

CHAPTER II
NATURE, SCOPE AND FUNCTIONS OF OWWA.

16 SEC. 4. Nature of OWWA. - The OWWA is a national government agency vested with a special function of

17 developing and implementing welfare programs and services that respond to the needs of its member-
18 OFWs and their families. It is endowed with powers to administer a trust fund. Its officials and employees are
19 covered by the Salary Standardization Law.

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21 OWWA shall be an attached agency of the Department of Labor and Employment (DOLE).

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23 SEC. 6. Scope, ~ This Act shall apply to all OFWs who are duly registered with the Philippine Overseas
24 Employment Administration (POEA) and those who will avail of the voluntary membership program of
25 OWWA.

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27 SEC. 6. Functions. - The main functions of OWWA are:

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29 a) To protect the interest and promote the welfare of member-OFWs in all phases of overseas
30 ‘employment in recognition of their valuable contribution to the overall development effort;

32 b) To facilitate the implementation of the provisions of the Labor Code and Republic Act No. 8042,
33 as amended, concerning the responsibility of the government to promote the well-being of
34 OFWs. Pursuant thereto, and in furtherance thereof, it shall provide legal assistance to its
35 members;

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37 c) To provide social and welfare programs and services to member-OFWs, including, but not
38 limited to, social assistance, education and training, cultural services, financial management,
39 reintegration and entrepreneurial development services;

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4 4) To provide prompt and appropriate response to global emergency or crisis situations;
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e) To ensure the efficiency of collections and the viability and sustainability of the Fund through
sound, judicious and transparent investment and management policies;

f) To undertake studies and research for the enhancement of social, economic and cultural well-
being of member-OFWs; and

9) To develop, support and finance specific projects for the welfare of member-OFWs.

CHAPTER Il
DEFINITIONS.

SEC. 7. Definition of Terms. ~ For purposes of this Act, the following terms shall mean’

a) Overseas Fillpino Worker (OFW) refers to a person who is to be engaged, is engaged, or has
been engaged in a remunerated activity in a state of which in a state of which he or she is not a
citizen, or on board a vessel navigating the foreign seas other than a government ship used for
military or non-commercial purposes, or on an installation located offshore or on the high seas.

b) Dependent ~ refers to any of the following: (a) the legal spouse dependent for support upon the
member or pensioner, (b) the legitimate, legitimated, legally adopted child, including the
illegitimate child, who is unmarried, not gainfully employed, not over the age of majority, or is
‘over the age of majority but incapacitated and incapable of self-support due to a mental or
physical defect acquired prior to age of majority; and (c) the parents dependent upon the
‘member for support; .

©) Compensation ~ refers to the basic pay or salary received by an employee, pursuant to his
appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances and any other
emoluments received in addition to the basic pay which are not integrated into the basic pay

4d) Contribution or Membership Fee — refers to the amount payable to OWWA by an OFW or the
‘employer in accordance with the provisions of this Act,

e) OWWA Member — refers to an OFW with a paid contribution or membership fee;
f) Non-Active OWWA member refers to an OFW whose OWWA membership has expired;

9) Non-Member OFW ~ refers to an undocumented OFW and who has not availed of the voluntary
membership of OWWA on-site,

CHAPTER IV
MEMBERSHIP, CONTRIBUTION AND COLLECTION

SEC. 8. Registration of Membership. ~ Registration or enrolment of members shall be in accordance with
the provisions of this Act. Membership in OWWA may be obtained in two (2) ways:

a) By compulsory registration upon processing of employment contracts of OFWs at the POEA;
and

b) By voluntary registration of OFWs at job-sites overseas or at the OWWA Regional Welfare
Offices.

SEC. 9. Proof of Membership. ~ All members shall be issued Official Receipt upon payment of the required
contribution. They shall likewise be issued an OWWA E-Card, identification card or other proof of OWWA
membership. No additional or extra charges shall be levied on members.

The OWWA is mandated to maintain an updated database of member-OFWs and to update this
regularly

SEC. 10. Amount of Contribution and Effectivity of Membership. ~ Membership to the OWA, either through
the compulsory or voluntary coverage, shall be effective upon payment of membership contribution in the
amount of Twenty Five US Dollars (US $ 25.00) or its equivalent in the current foreign exchange rates. Such

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membership shall be considered active until the expiration of the OFW's existing employment contract.

In case of voluntary members who register on-site, membership coverage shall not exceed two (2)
years

Based on actuarial studies and taking into consideration the welfare and interest of the members,
the Board may adjust or modify the amount of membership contribution. .

SEC. 11, Renewal of Membership. - Membership shall be renewed upon payment of contribution on
contract renewal or issuance of a new contract of employment. In the case of voluntary membership,
coverage shall be renewed upon payment of contribution of Twenty Five US Dollars (US $25.00) or its
equivalent in the current foreign exchange rates,

SEC. 12. Separation of Sea-based and Land-based Workers Contributions. ~ To effect a more efficient fund
management between the two (2) sub-sectoral groups of Land-based and Sea-based workers, the collection
‘of membership contribution shall be accounted for in two (2) separate books of account,

SEC, 13, Authorized Collecting Officers, =

a) Membership contributions shall be collected by duly authorized OWWA Collecting Officers,
deputized collecting officers or accredited agents. The collection of membership contributions
shall be made at the POEA contract processing hub, OWWA regional and overseas offices, and
other accredited collection centers,

b) In case of voluntary members who register on-site, membership contributions shall be made
directly to the OWWA Overseas Offices located in the various diplomatic stations, embassies or
consulate offices of the Philippines.

SEC. 14, Reportorial Requirements and Handling of Collections, ~ The collecting officer, deputized
collecting officer, or the accredited collecting agent shall prepare and submit the required monthly reports to
the OWWA Central Office in the Philippines. Handling of collections and deposits by Collection Officers shall
be governed by the usual accounting and auditing rules. ig

SEC. 15. Sanctions for Erring Officers. - Corresponding administrative sanctions and other disciplinary
‘measures, including recall from pos/suspension/or separation from service, shall be Imposed upon any
officer who violates the provision of the preceding section,

SEC. 16, Prohibition Against Discrimination on Membership. - No OFW shall be denied membership to the
‘OWWA by reason of age, gender, nationality, religious belief, or political opinion or affiliation. The OWWA
shall take affirmative steps to enhance the access of OFWs to its programs and services.

SEC. 17. Payment of Contribution or OWWA Fee by Employer. ~ Contributions to the OWWA Fund must be
paid by the employers/principal, or in their default, the recruitment/manning agency in the case of new-hires,
‘The POEA shall ensure that a provision to this effect shall be made an integral part of the overseas
employment contract.

SEC. 18. Penalty for Violation by Recruitment/Manning Agency. - Violation by @ recruitmentimanning
agency of the preceding section shall constitute an offense punishable by revocation of its license and all its
officers and directors shall be perpetually disqualified from engaging in the business of
recruitment/placement of overseas workers. Such penalty is without prejudice to any other liability which
such officers and directors may have incurred under existing laws, rules and regulations.

SEC. 19. Deposit and Remittance of Collection. ~

a) OWWA Central Office and Regional Offices - The Collecting Officer shall, on a daily basis,
deposit all OWWA fee contributions to the OWWA Capital Fund Account with the Land Bank of
the Philippines. For reconciliation and record purposes bank validated deposit slips shall be
prepared in triplicate forms to be distributed to the 1) servicing bank, 2) OWWA together with the
Report of Collections, and to the, 3) Collecting Officer.

b) OWWA Overseas Officers - The Collecting Officer shall, on a daily basis, deposit all OWWA fee
contributions in the same currency received, to a separate bank account for collections in the
name of the "Office of the Labor Attaché - OWWA Collections," in the depository bank of the


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Department of Foreign Affairs (DFA), of in the accredited correspondent bank of the Land Bank
of the Philippines. Accumulated monthly collections shall be remitted to the OWWA Capital Fund
Account with the Land Bank of the Philippines not later than the Sth day of the following month.

No withdrawals, except remittances of collections, can be made from the bank accounts for
collections without prior written approval of the Administrator or his duly authorized representative, subject to
the policies approved by the Board.

Overseas Offices shall be authorized to retain the required amount for the beginning and
‘maintaining balance of the above-mentioned bank accounts for collections.

CHAPTER V
‘THE OWWA BOARD OF TRUSTEES :

SEC. 20. The OWWA Board of Trustees. ~ To carry out the purposes of this Act, OWWA shall be directed
and controlled by a Board of Trustees as its policy making body. It shall be composed of the following
members:

a) Secretary of Labor and Employment, as Chairperson;

b) OWWA Administrator, as Vice Chairperson;

©) Secretary of Foreign Affairs;

d) Secretary of Finance;

) POEA Administrator;

f) Two (2) representatives from the land-based OFWs who are nominated and appointed in
accordance with the provisions of Republic Act No. 10022;

9) One (1) representatives from the sea-based OFWs who are nominated and appointed in
accordance with the provisions of Republic Act No. 10022; and

h) One (1) representatives from the women sector who is nominated and appointed in accordance
with the provisions of Republic Act No. 10022;

i) One (1) representative from the land-based recruitment sector, who is selected from among the
various associations of registered overseas placement and recruitment agencies based in the
Philippines who shall be appointed by the President to serve a single term of three (3) years;

j) One (1) representative from the sea-based manning sector, who is selected from among the
various associations of registered overseas placement and manning agencies based in the
Philippines who shall be appointed by the President to serve a single term of three (3) years;

The Trustees holding office as members of the OWWA Board at the time of the effectivity of this Act
shall continue to serve until the expiration of their term of appointments.

In case of vacancy in any of the appointive positions in the OWWA Board, the vacancy shall be filled
by the subsequent nomination by the respective sector concerned in the same manner as the selection of
the predecessor. Such successor shall hold office for the unexpired term.

SEC. 21. Honoraria, Per Diem, and other Emoluments. - The members of the OWWA Board shall not
receive any compensation but shall be provided with honoraria, per diem, and other emoluments as may be
allowed by accounting and auditing rules and procedures.

SEC. 22, Responsibillies and Powers of the Board of Trustees. ~ The Board shall exercise the following
specific powers and duties:

a) To define the thrusts of the OWWA and adopt broad policy guidelines to ensure their
implementation;

b) To preserve the integrity of the OWWA Trust Fund;
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©) To approve programs, projects, and the organizational structure of the OWWA Secretariat;

d) To modify or adjust the membership fee and other necessary charges based on actuarial
studies;

€) To formulate rules and regulations governing financial transactions and fix the yearly
appropriations of the Secretariat; and

f) To ensure the efficiency of collection and the viability and sustainability of the fund through
sound and judicious investment and fund management policies;

g) To receive and appropriate all sums as may be provided by law for the support of the OWWA to
the ends specified by law, and all other sums in the manner it may, in its discretion, determine to
carry out the purposes and functions of the OWWA;

h) To authorize the construction or repair ofits buildings, machinery, equipment and other facilities,
and the purchase and acquisition of real and personal properties, including the necessary
supplies, materials and equipment; ;

i) To receive in trust fegacies, gifts and donations of real and personal property of all kinds and to
administer and dispose the same when necessary for the benefit of the OWWA general
membership and subject to the instructions of the donor, if any;

j) The provisions of law to the contrary notwithstanding, to authorize any of its Board member to
travel abroad for certain specific purpose relative to his/her functions: Provided, That such travel
is within the scope and functions of the mandate of OWWA, as prescribed herein:

k) To delegate any of its powers to the Chairperson of the OWWA Board or any other officials or
officers as it may deem necessary;

1) To prescribe such general policies, rules and regulations, not contrary to law, as are consistent
with the purposes of the OWWA; and

m) To exercise such powers as may be proper and necessary to carry out the objectives of this Act.

CHAPTER VI
BOARD MEETINGS, PROXIES, AND RECORDS MANAGEMENT

SEC. 23. Schedule of Meetings and Quorum of the Board. ~ The regular meetings of the Board shall be held
every last Friday of the month. if a change of date becomes necessary, the same shall be held at the most
convenient time set by the Board

Special Board meetings and executive meetings may be scheduled as the need arises. Special

Board meetings may be called upon by the Chairperson or by any five (5) members of the Board.,

The Board Secretary shall distribute to all members of the Board the notice of meeting together with

the discussion materials at least three (3) working days prior to the scheduled meeting

SEC. 24. Board Proceedings. - The Board proceedings shail be guided by the following rules:

a)

Notice of Meetings - The Board Secretary shall distribute to all Members of the Board, the Notice of
Meeting together with the discussion materials at least three (3) working days prior to the scheduled
meeting,

Quorum ~ In determining the existence of a quorum, the Board shall adopt the simple majority rule
of one half plus one of the total filed Board seats

Voting — For the approval of any policy requiring the disbursement of the OWWA Fund, an
affirmative vote of a majority of all the members shall be required. For the approval of all other
policies, an affirmative vote of a majority of the members present constituting a quorum shall be
necessary.


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4) Attendance in Board Meetings ~ Board members are responsible for attending all board meetings.
The Ex-Officio members of the Board of Trustees may designate in writing their permanent alternate
who shall have voting power. The Board shall install teleconferencing facilities in order to muster
quorum during Board Meetings.

©) Presiding Officer ~ The Chairperson shall preside over meetings of the Board. In the absence of the
Chair, the Vice-Chairperson shall preside.

f) Board Resolution ~ All decisions of the Board shall be expressed in the form of Resolutions signed
by all the members present. Resolutions may be modified or superseded by another resolution.

Resolutions shall take effect upon adoption and signing by the members present, subject to
requisite publication,

9) Records Management and Archiving of Board Documents - The Board Secretary shall ensure a
complete and thorough recording of all proceedings during a Board meeting. The minutes of the
previous meeting shall be made available for approval during the succeeding scheduled Board
Meeting,

The Minutes of the meeting shall contain the attendance, business arising from the minutes, major
agreements reached, corresponding resolutions, and other items noted or discussed, and
instructions issued by the Board.

All minutes of meetings and Board Resolutions, tape recordings, and other documents pertaining to
the business of the Board shall be kept and archived pursuant to standard records management
systems and procedures,

CHAPTER VIL
OWWA SECRETARIAT

SEC. 25. The OWWA Secretariat, - The OWWA Secretariat is the implementing arm of OWWA.

SEC. 26. Duties and Responsibilities of OWWA Secretariat. - The OWWA Secretariat shall perform and
‘assume the following duties and responsibilities:

) To manage programs and the delivery of welfare services locally and overseas to its members,
supported by advocacy and information programs;

b) To implement Board policies on investment and fund management;

©) To formulate medium term development plans responsive to the welfare, needs and demands of
member-OFWs;

4d) To submit work and financial plans for Board consideration;
) To provide policy analyses and recommendations for Board consideration;

) To conduct continuing researches and studies, including impact evaluation, in aid of policy and
program development; ft

9) Toregularly monitor and conduct assessment and evaluation of organizational performance;

h) To establish and maintain an on line management information system, to include database on
membership;

i) To establish and maintain linkages and networks with local and international social and
institutional partners;

}) To conduct annual planning, budgeting and organizational performance assessment and render
the report to the Board

k) To submit annual reports to the Board, Congress and the President;


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1) To submit written quarterly reports on the assessment, and evaluation of programs, projects and
services and such other reports as may be required by the Board;

m) To undertake the periodic review of programs, standards, thrusts and policies;
n) To perform other functions as may be instructed by the Board; and
(©) To adopt internal rules of procedure consistent with the provisions of this Act.

SEC. 27. The OWWA Administrator. - The administration of the OWWA is vested in the Administrator. As
the Chief Executive Officer of the Secretariat, the Administrator administers the overall operations of the
Secretariat. He exercises general supervision and control of all its personnel and resources, and assumes
full responsibility and accountability thereof.

The Administrator shall be appointed by the President. He must possess good leadership and
managerial skills and shall have the rank of a Department Undersecretary. The Administrator shall report to
the President through the Secretary of DOLE, and shall perform the duties and functions elsewhere stated in
this Act and all the usual, necessary and related functions of the office of the Administrator, subject to the
policies and rules prescribed by the Board. The Board shall determine the term of office and compensation
of the Administrator

SEC. 28, The Deputy Administrators. ~ Two (2) Deputy Administrators shall assist the Administrator in the
administration and supervision of operations of OWA. They shall be appointed by the Board upon the
recommendation of the Administrator. They must also possess good leadership and managerial skills and
shall have the rank of a Department Assistant Secretary. The Board shall determine their terms of office and
‘compensation. The Board may assign specific functional responsibilities to the Deputy Administrators.

SEC. 29. Regional and On-Site Welfare Officers. - OWWA shall maintain Regional Offices and on-site
Welfare Offices under the Philippine Overseas Labor Offices of the Department of Labor. The salaries and
allowances of Welfare Officers shall be determined by the Board, subject to the Salary Standardization Law

CHAPTER Vill
PERSONNEL AND STAFFING PATTERN

SEC, 30. New Structure and Staffing Pattern. ~

a) Upon effectivity of this Act, the officers and employees of the OWWA shall, in a holdover
capacity, continue to perform their respective duties and responsibilities and receive the
corresponding salaries and benefits unless in the meantime they are separated from the
service, The new structure and staffing pattern for the OWWA shall be approved and prescribed
by the OWWA Board, not later than one (1) year from the effectivity of this Act and the
authorized staff positions created thereunder shall be filled with regular appointments by the
OWWA Board.

b) Those incumbents whose positions are not included therein or who are not reappointed shall be
deemed separated from the service, Those separated from the service shall receive the
retirement benefits to which they may be entitled under existing laws, rules and regulations.
Otherwise, they shall be paid the equivalent of one-and-a-half month salary for every year of
service, or fraction thereof, computed on the basis of the highest salary received.

SEC, 31, Qualifications Upgrading Program. ~ Pursuant to the provision of paragraph (1) of the immediately
preceding section, the OWWA Board shall design and establish a qualifications upgrading program for the
staffing of the OWWVA, in coordination with the DOLE and the Civil Service Commission (CSC), within one
hundred twenty (120) days from the effectivity of this Act: Provided, That those who are already in the
service from the effectivity of this Act shall have, not later than five (5) years, to obtain the required
academic degree and/or qualification counted from the implementation of the qualifications upgrading
program: Provided, further, That those who are already in the service from the effectivity of this Act shall
have, not later than one (1) year, to obtain the necessary CSC qualification required for the position they are
currently holding.

SEC. 32. Authority of the Board to Reorganize the Administration. Notwithstanding the provisions of
existing laws, the OWWA Board shall conduct a management audit, prepare and submit to Congress a

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proposed reorganization plan of the OWWA not later than one (1) year, subject to the limitations provided
Under this Act and based on the following criteria

a) Increased OWA visibility from the head office to the various regional offices and by the
appointment and assignment of personnel to positions which are purely administrative,
technical, clerical or menial in nature and other positions which are not actually and directly
related to its operation and administration; and

b) Efficient and optimized delivery of OWWA services to the OFWs and their respective families,

SEC. 33, General Qualifications for Appointment. ~ The general qualifications for appointment of OWWA,
Personnel shall be in accordance with the minimum requirements set by the Civil Service Commission
(CSC), OWWA may hire experts in actuarial studies, information technology, finance and investment, and
such other fields as may be deemed necessary in the implementation of programs and services,

CHAPTER IX
OWWA BENEFITS AND SERVICES

SEC. 34. Guiding Principles. - Pursuant to its mandate, OWWA shall provide reintegration programs,
repatriation assistance, loan and credit assistance, workers assistance on-site, death and disability benefits,
health care benefits, education and skills training, social services, family welfare assistance, and other
appropriate programs that provide timely social and economic services.

Nothing in this Act shall be construed as a limitation or denial of the right of the OFW to avail of any
benefit plan which may be adopted in the employment contract, or offered voluntarily by employers, or by
the laws of the receiving country which are over and above those provided under this Act.

SEC. 35. Benefits and Services to OFWs. —

‘A. Reintegration of OFWs. Reintegration of OFWs shall be one of the core programs of OWWA. In
this regard, the National Reintegration Center for OFWs created under Republic Act No. 10022
shall be subsumed and integrated with the OWWA. It shall be headed by an Executive Director
and its programs and services shall be extended to all returning member-OFWs and their
families.

To be able to sustain the viability of this program, not less than ten percent (10%) of OWWA's
collection of contribution for the year immediately preceding year shall be allocated annually for
reintegration program,

B. Repatriation Assistance. Consistent with the provisions of RA No. 8042, as amended, members
shall be repatriated and provided with services necessary to facilitate repatriation,

C. Loan and Credit Assistance. OWWA shall provide low-interest loans to member-OFWs. It shall
have the authority to hire experts in finance or banking to assist in implementing the said loan
programs,

D. Workers Assistance and On-site Services. OWWA shall sustain and maintain assistance to
OFWs in all its overseas and regional offices. Services shall include information regarding the
names, occupation/job category and addresses of OFW, providing guidance, developing
materials for the Pre-Departure Orientation Seminars, conducting psycho-social counselling,
conciliation services, and outreach missions, among others. On behalf of the OFW, OWWA may
provide appropriate representation with employers, agents and host government authorities,
including, but not limited to assisting OFWs to regain unpaid wages.

E. Social Benefits. A member-OFW shall be covered with the following social benefits:
1. Death and Disability Benefits
a. Death Benefits. A member shall be covered with life insurance for the duration of his
employment contract. The coverage shall include 100,000.00 for natural death and
200,000.00 for accidental death, 5
b. Disability and Dismemberment Benefits. A member shall be entitled to

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disability/dismemberment benefits as a rider provision of his life insurance as provided
for in the impediment schedule contained in the Manual of Systems and Procedures,
‘The coverage is within the range of P2,000.00 to 50,000.00.

©. Total Disability Benefit. In case of total permanent disability, a member shall be entitled
to P100,000.00.

d. Burial Benefit, A burial benefit of P20,000.00 shall be provided in case of the member's
death,

Based on actuarial studies, the Board may increase the amount of the abovementioned
benefits

2. Health Care Benefits. Within two (2) years from the effectivity of this Act, OWWA is
mandated to develop and implement health care programs for the benefit of member-OFWs
and their families.

F, Education and Training Benefits. A member may avail for himself or his duly designated
beneficiary any of the following scholarship programs, subject to a selection process and
accreditation of participating institutions. Annual scholarship lists shall be submitted to the
Board

4. Skills-for-Employment Scholarship Program. - For technical or vocational training
scholarship.

2, Education for Development Scholarship Program. — For baccalaureate programs.

3. Seafarers’ Upgrading Program. - To ensure the competitive advantage of Filipino seafarers
in meeting International Maritime Organization (IMO) competency standards, sea-based
members shall be entitled to one upgrading program for every three (3) membership
contributions,

SEC. 36. Extension of Services to Non-members. — OWWA may also extend appropriate programs or
services to non-members, as may be determined by the Board,

OWWA shall continue to develop and implement new programs to meet new OFW needs and
requirements as they arise, and to assess the effectiveness of existing services and benefits in serving OFW
welfare.

OWWA shall also maintain an interactive website to collect OFW feedback, comments, suggestions
and complaints on existing programs and services,

CHAPTER X
‘THE OWWA TRUST FUND

SEC. 37. OWWA Fund. - The OWWA Fund is a private fund held in trust by OWWA. The OWWA Fund,
being a trust fund, is not government money. No portion thereof or any of its income, dividends or earnings
shall acorue to the general fund of the National Government, Neither shall any amount or portion thereof be
conjoined with the government money, nor revert to the national government. In the same manner, it is
‘exempted from the “one fund doctrine” of the government.

SEC. 38. Purpose of the OWWA Fund. - The OWWA Fund can only be used for the purposes for which it
was created, that is, to exclusively serve the welfare of member-OFWs and their families. The fund is to be
used exclusively to finance the core programs and services of the OWWA.

SEC. 39. Reporting of the Fund. Within fifteen (15) days after receipt of audited reports from the
Commission on Audit, the OWWA Board of Trustees shall submit to the President and Congress a report
showing the total collections of and the disbursements from, the OWWA Fund

SEC. 40, Disbursement of OWW/A Fund. - Any provision of existing law to the contrary notwithstanding, all
incomes generated by the OWWA shall, upon their collection, be retained by the OWWA and disbursed at
the discretion of the Board for the general welfare and other benefits of the OWWA general membership and
the OWWA Secretariat personnel; for the acquisition, construction, maintenance and repair of urgently

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needed auxiliary facilities, equipment, buildings and other infrastructure; and for expenses necessary for the
attainment of its purposes under its approved program of expenditures.

No fund shall be withdrawn from the OWWA Fund to respond, aid, supplement, or in any manner augment
any required expenditure by other government agencies.

SEC. 41. Source of the OWWA Fund. - The OWWA Fund is the sum total of the amounts under the
management and fiscal administration of the OWWA Board and the Secretariat, including the US$25
contributions that shall accrue to the Fund as fees, investment and interest income, and income from other
sources.

SEC. 42, Trustees of the Fund. ~ The Board is designated as the trustee of the OWWA Fund. It is bound by
a fiduciary duty to manage the fund with extra-ordinary diligence and with utmost skill, care and
judiciousness.

SEC. 43. Transparency. ~ The OWWA Fund shall be managed with full transparency and full public
disclosure. It shall make available all records of how the funds are utilized, disbursed, and invested in
accordance with existing laws

CHAPTER XI
INVESTMENT ADMINISTRATION: SAFEGUARDS.

SEC. 44, Safeguards of the OWWA Fund; Acquired Assets; Unredeemed Investments. ~

) The OWWA Trust Fund shall be managed and expended in accordance with the purpose of the
Fund and safeguarded against any possible loss and misuse,

The OWWA shall ensure an appropriate growth rate in the fund sufficient to sustain the growing
needs of OFW members. It shall ensure that all investment instruments are periodically inventoried
and properly kept at a government bank under a custodianship agreement.

‘A monthly report on all investment schedules showing the interest rates, ylelds, discount rates, and
other relevant data, shall be submitted to the Board,

b) The OWWA shall administer all properties, acquired or foreclosed. To ensure that the properties are
safeguarded and preserved, the same must be properly accounted for and documented; re-
inspected, re-appraised, and insured with taxes paid,

‘An asset development/disposal plan shall be submitted by the Administrator for the consideration of
the Board,

Foreclosed properties shall be registered as OWWA assets within one (1) month after foreclosure
©) Unredeemed investments and other receivables shall be inventoried semi-annually and

corresponding redemption plan shall be submitted to the Board, All receivables shall be supported
by documents appropriately acknowledged by the accountable party,

SEC 45, General Investment Policy. ~ Upon approval of the Board, all OWWA investments shall be placed
only in government securities and bonds which provide optimum earnings, liquidity and protection of the
Fund. Portfolio management of investible funds shall be outsourced to government financial institutions
(GFis).

SEC. 46. Examination and Valuation of the Funds. - The OWWA shall make a periodic actuarial
examination and valuation of its funds in accordance with accepted actuarial principles.

SEC. 47. Exemption from Tax, Legal Process and Lien. ~ The actuarial solvency of the OWWA Fund shall
be preserved and maintained at all times and that contribution rates necessary to sustain the benefits under
this Act shall be kept as low as possible in order not to burden existing OWWA members and prospective
members.

Notwithstanding any laws to the contrary, the OWWA's assets, membership collections, revenues
including all accruals thereto, and benefits paid, shall be exempt from all taxes, assessments, fees, charges,
or duties of all kinds. These exemptions shall continue unless expressly and specifically revoked and any

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assessment against the OWWA as of the approval of this Act is hereby considered paid.

Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this
section is expressly, specifically and categorically revoked or repealed by law and a provision is enacted to
substitute or replace the exemption referred to herein as an essential factor to maintain or protect the
solvency of the fund, notwithstanding and independently of the guaranty of the national government to
secure such solvency of liability.

The funds and/or the properties referred to herein as well as the benefits, sums or monies
corresponding to the benefits under this Act shall be exempt from attachment, garnishment, execution, levy
or other processes issued by the courts, quasi-judicial agencies or administrative bodies including
Commission on Audit (COA) disallowances and from all financial obligations of a member, including his
pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official
functions or duties, or incurred relative to or in connection with his position or work except when his
monetary liability, contractual or otherwise, is in favor of the OWWA.

All laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of
this provision are hereby deemed repealed, superseded and rendered ineffective

CHAPTER Xil
FISCAL AND BUDGET POLICY: MANAGEMENT

SEC, 48, Operative Budget. - The operative budget must be sufficient to support full protection of the OFW
welfare, The budget shall be reviewed annually with emphasis on adequate funding for services and agency
efficiency,

The Board shall approve, by a majority vote of all its members, the operating budget which shall
support the planned work programs and administrative costs to include but shall not be limited to salaries
emoluments and transportation expenses for OWWA personnel, office rentals, office supplies, equipment,
technological support, communications and utilities, requirements for personal services, and’maintenance.

‘The approved operating budget shall be drawn from the OWWA Trust Fund.

SEC. 49, Benefits and Services Budget. ~ The annual budget shall include all benefits and services to
OFWs, The budget shall prioritize protecting OFW welfare. The amount necessary to defray the cost of
these benefits and services shall be drawn from the OWWA Trust Fund.

SEC. 50. Budget Preparation and Approval. ~ In preparing the annual budget, OWA shall follow the
national government budget system, format and cycle.

SEC. 51. Automatic Appropriation. ~ In case the proposed annual budget has not been approved by the
Board at the start of the year, OWWA shall operate within the budget level of the previous year allocated on
‘a month to month basis. All savings realized within a previous year shall be deducted from a current year's
budget

SEC. 52. Work and Financial Plans. — All cost centers/offices/units of OWA shall submit their annual work
and financial plans (WFP), which should correspond to the approved budget. The Directors shall endorse
the WEP of their respective units for approval of the Administrator. The consolidated OWWA-WFP shall be
reported to the Board,

SEC. 53. Budget Realignment. ~ Realignment of funds including adjustments in targets shall be submitted to
the Board for approval. Similarly, in the event that extra ordinary circumstances may occur which require
additional funds beyond the coverage of the approved budget, the same shall be submitted for approval by
the Board

SEC. 54. Branch Accounting System; Financial Reports; Auditing Procedures; Annual Reports. ~ The
‘OWWA Regional Units shall maintain their respective books of account which shall be consolidated by the
central office.

The OWWA shall install sound internal control and monitoring systems and submit quarterly
prescribed Financial Statements to COA such as income statement, balance sheet, and cash flow as
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The OWA Secretariat is mandated to submit a monthly fund utilization report to the Board, copies
of which shall be made available to Congress upon request. It is further mandated to submit an Annual
Report on its overall performance for the previous year within the first sixty (60) days of the following year to
the Board, Congress and the President.

‘SEC. 55. Chart of Accounts. ~ The OWWA shall adopt the appropriate and standard chart of accounts as
prescribed by the Commission on Audit (COA),

SEC. 56. Appropriation from the National Government. — Nothing in this Act shall prevent the National
Government from allocating funds for the operation or implementation of any of the programs or services
stated herein, including the budget for maintenance and other operating expenses, :

CHAPTER Xill
MISCELLANEOUS PROVISIONS

SEC. 57. Rebates for Long-time Members. - In recognition of the contribution of long-time members on the
OWWA Trust Fund, OWWA is mandated to develop and implement a program for the grant of rebates or
some form of financial assistance to OFWs who have been members of OWWA for at least five (5) years
and who have not availed of any services or benefits, including their families, from OWWA,

SEC. 58, Procurement System. - The OWWA procurement system shall be governed by Republic Act No
9184, also known as "Government Procurement Reform Act’, which provides for an e-procurement system

SEC. 59. Implementing Rules and Regulations. ~ The present OWWA Board, in consultation with the
Senate Committee on Labor and Employment and the House Committee on Overseas Workers Affairs,
shall, within Sixty (60) days from the effectivity of this Act, formulate the necessary Rules and Regulations.
for its effective implementation,

SEC. 60. Separability Clause. ~ If any provision or part of this Act, or the application thereof, is held invalid,
the remainder of this Act, or the application of such provision, shall not be affected thereby.

SEC. 61. Repealing Clause. ~ All laws not adopted as part of this Act either directly or indirectly are hereby
repealed. All provisions of existing laws, orders, rules and regulations inconsistent herewith are likewise
repealed

SEC. 62. Effectivity Clause. - This Act shall take effect fifteen. fublication in two (2)

newspapers of general circulation.

‘Approved,