SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

FS REPENE uu Bis

DATE:

Te; 332

HOUSE OF REPRESENTATIVES
H.B. No.

INTRODUCED BY REP. LUISA LLOREN CUARESMA
LONE DISTRICT OF NUEVA VIZCAYA

EXPLANATORY NOTE

It is the policy of the state, as stated in Section 9, Article II of the 1987
Constitution that;

“Section 9, The State shall promote.n justand dynamic social
order that will ensure the prosperity and independence of the
nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a

rising standard of living, and an improved quality of life forall.”

In furtherance thereto, the State endeavors to extend social security
protection to workers and their beneficiaries through the establishment of the
social security system - which is now embodied in Republic Act No. 1161, as

amended by Republic Act No, 8282 on May 01, 197.

Almost 20 years have passed since the passage of the Social Security Act
but no amendment thereto has been made in order to adapt to the changing times.
To have a better picture of how our country has transformed for the past 20 years,

here are some basic data for reference:


197 T Recent Data

Peso-dollar exchange rate Php 29.47 tol USD" T Php 46.31 to 1 USD?

Php 180.00-185.00 Php 444.00-481,00"

Basic Minimum wage in |
NCR
| |

Php 99,537.00 Php 193,000.00!

‘Average Annual

Expenditures per Family

Based on the foregoing, evidently, a lot has changed. Thus, it is high time
that the amendment to the subject law be made, as the factors taken into
consideration during the passage of the Social Security Act of 1997 have already

become moot.

This bill seeks to address the burden caused by the increasing cost of living,

that our “minimum monthly pensioners,” who are typically those in their senior

years or ripe old age needing more care and assistance to survive on a daily basis.

While both the Senate and the House of Representatives of the previous
congress have approved.a somewhat similar measure, it has been, unfortunately,
vetoed by the then President for the plain reason that the Social Security System
(GSS) would not have enough funds for its continuing implementation. However,
the same reason might not hold true for this proposed measure because it will only
affect those receiving the minimum monthly pension, hence lesser impact on SSS

funds.

This is a House counterpart bill to the one filed in the Senate by Senator
Vicente C, Sotto TI.

REP. fi ISA LFOREN RY

Anttp://www.bsp.gov.ph/dbank_reports/ExchangeRates_1_rpt.asp?frequency=Annual&range_from=1997
&range_to=1997 &conversion=Average

2 As of August 18, 2016

As of January 20, 2016

“As of 2012, per the report of the Philippine Statistics Authority


SEVENTEENTH CONGRESS, )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES.
1B, No4157

INTRODUCED BY REP. LUISA LLOREN CUARESMA
LONE DISTRICT OF NUEVA VIZCAYA

AN ACT
INCREASING THE MINIMUN MONTHLY PENSION UNDER THE SOCIAL
SECURITY SYSTEM, AMENDING FOR THE PURPOSE SECTION 12 OF
REPUBLIC ACT NO, 1161, AS AMENDED, OTHERWISE KNOWN AS THE
"SOCIAL SECURITY ACT OF 1997"

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

SECTION 1. Section 12 of Republic Act Number 1161, as amended by
Republic Act Number 8282, is hereby further amended to read as follows:
SEC. 12. Monthly Pension, ~

(a) The monthly pension shall be the highest of the following
amounts:

"(1) The sum of the following:
"@) Three hundred pesos (P300.00; plus

(ii) ‘Twenty percent (20%) of the average monthly
salary credit; plus

"(iii) Two percent (2%) of the average monthly salary
credit for each credited year of service in excess of ten
(10) years; or

"(2) Forth percent (40%) of the average monthly salary credit;
or


"@) One thousand pesos (P1,000.00): Provided, ‘That the
monthly pension shall in no case be paid for an aggregate
amount of less than sixty (60) months.

"(b) Notwithstanding the preceding paragraph, the minimum
MONTHLY pension shall be [One thousand two hundred pesos
(P1,200.00)] TWO THOUSAND PESOS (2,000.00) for members
with at least ten (10) credited years of service and [Two thousand
four hundred pesos (P2,400.00)] THREE THOUSAND PESOS
(P3,000.00) for those with twenty (20) credited years of service.

SECTION 2. Repealing Clause. - All laws, decrees, orders, and issuances,
or portions thereof, which are inconsistent with the provisions of this Act, are

hereby repealed, amended or modified accordingly.

SECTION 3. Effectivity.

This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general

circulation, whichever comes earlier.

Approved,