Republic of the Philippines
HOUSE OF REPRESENTATIVES 22UAN 2013

Quezon City fs. PH
FIFTEENTH CONGRESS : :
‘Third Regular Session

COMMITTEE REPORT NO.

2605

Submitted by the Committee on Overseas Workers Affairs and Committee on

Appropriations on __2.2 JAN 2013
RE nouse aii xo,__6841

Recommending its approval in substitution of House Bill Nos. 2422 and 3562

Sponsors: Representatives Walden F. Bello and Jocelyn S. Limkaichong

Mr. Speaker:

The Committee on Overseas Workers Affairs and the Committe: on
Appropriations to which were referred House Bill No. 2422 introduced by Rep. Rex
T. Gatchalian, entitled:

AN ACT TO CREATE THE OVERSEAS WORKERS WELFARI
ADMINISTRATION CHARTER,

and House Bill No, 3562 introduced by Rep. Joseph F. Violago, entitled:

AN ACT TO PROVIDE FOR A CHARTER TO GOVERN THE
OPERATIONS AND ADMINISTRATION OF THE OVERSEAS
WORKERS WELFARE ADMINISTRATION (OWWA} AND FOR
OTHER PURPOSES
6841
have considered the same and recommend that the attached House Bill No. :
entitled:

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

be approved in substitution of House Bill Nos. 2422 and 3562 with Reps, Rex 1
Gatchalian, Joseph F. Violago, Walden F. Bello, Jocelyn S. Limkaichong. Maria
Carmen Zamora, Magtanggo! T, Gunigundo I!, Raymond DC. Mendoza, Cresente C.
Paez. Isidro Q. Lico, Al Francis DC. Bichara, Carlos M. Padifla, Hermilando L.
Mandans, George P. Arnaiz and Arnulfo F. Go as authors thercof.



JOCELYN S. Alt WALDEN F. BI
Chairman ‘Chairman
Committee on Appropriations Committee on Overseas Workers Atfairs

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES,
QUEZON CITY


ONO

Repubiic of the Philippines
HOUSE OF REPRESENTATIVES |:

‘Quezon City
FIFTEENTH (15")} CONGRESS:
‘3 Regular Session

HOUSE BILL NO. _” 6841-
{in substitution of House Bill Nos. 2422 and 3562)

Introduced by

Representatives Rex.T. Gatchaiian, Joseph F. Viblego, Wakien F. Bello, Jocelyn.S. Limkaichong, Maria
Carmen Zamora, Magtanggol T. Gunigundo it, Raymer Oo. Mendaza, Gtesente C. Paez, Isidro Q. Lico, Al
Francis DC. Bichars, Carlee M. Padi, Hermiando |. Mandanes Georje R Amaiz and Amulto f. Go

AN ACT”
TO GOVERN ‘THE OPERATIONS AND ADMINISTRATION OF THE
ERSEAS WORKERS WELFARE ADMINISTRATION

Be i enacted by the Sonate and the House of Representatives of the Philppines in Congress assembled

SECTION 1. Short Tite. - This Act shall be known as the “OWWA Act of 2013"

SEC. 2. Declarotion’of Policy. - It is the policy of the State to afford full protection to labor, locat and
overseas, organized and unorganized, and pfomate full employment opportunities for all. Towards this end,
it shall be tha State’s responsibilty to protect the overseas Filipina workens. (OFWs): The Overseas Workers
Welfare Administration (WWVA) shall be ofe of the principal agencies of the State tp serve and promote the
interest and welfare of the OFWs and their temniias,

sec 3. Objectives: — This Act is enacted to provide quideines on rietters concerting OWWA, its mandate,
poses and: objectives, membership, collection of contributions, ahd avsilment of benefits and services.
Trib Act also embocies he policies on func management, programs and wervices administration.

CHAPTER I :
NATURE, SCOPE AND FUNCTIONS OF OWWA

SEC. 4, Neture of OYYWA. - Te OWWA is a national government agenéy vested with @ special function of
developing and implementing welfare programs and services that. respond to the needs of its member-
OFWs and thelr families. it shall have the powers-to admunister a trust fund. Being a natenal government
agency, the OVWNA ehall:not fall under the category of aay of the following: Govamment Instrumentalities
with Corporate Powers, Government Corporate Entites, Goverment Financial iastitujons and/or
Govemment-Ouned or -Controlied Corporations. -

‘The OWWA shail be an attached agency of the Department of Labor and Employment (DOLE). Its
officials and emplayaes are covered by the Satary Standardization Law.

SEC. 5. Scope. This Act shall apply to al OFW who are duly registered with jhe Philippine Overseas
Empoyment Adeninigtration (POEA) and thove who willavail of the Satuntary membership program of
‘SEC. 6. Functions. ~ The main functions of OWWA are:

a) To protect the. interest and promote the welfare of membér-OFWs in ali phases of overseas
employment ia recognition oftheir valuable contribution to the overall development effort,

b) To facilitéte the implementation of the provisions of the Labor Code and Republic Act No. 8042,
88 amerided, conceming the responsibilty of the goverment to promote the weiltbeing of
OFWs Pursuant thereto, end.in furtherance theres! shall provide legal ass etance to its
members;


lined to, social assistance, educaton ar training, cultural services, financial management,
reintegration and entrepreneunal development services:

3) Te provide prompt anc appropriate response to globat emergency oF crisis situations:

&) To ensure the efficiency of colsctions anc the viability and Sustainability of the Fund through
S0und, judicious and transparent investment and management policies;

‘) To undenake studies ang research for the enhancement of ‘Social, @conomic and cultural welk
being of member-OFWs, and

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

CHAPTER i
DEFINITIONS:

SEC. 7. Jefiniton of Terms, - For purposes of this Act. the following “arms shall mean:
@) Overseas Filipino Worker (OFW) — reters to a person who is to be ‘engaged, is engaged, or has
been engaged in @ remunerated activity in > state cf which he or she is nat a citizen, or on board

a vessel navigating the foreign seas other than a ,overnment ship used for miltary ot non-
‘commercial purposes, or on an installation located offshore or on the high seas

over the age of majority but incapacitated and incapable of self-support due ta a merital of
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 tis
appointment, excluding per diems, bonuses, overtime pay. honoraria, allowances and any other
emoluments received in addition to the basic pay wh'sh are not integrated into the basic pay
under existing jaws,

d+ Contribution or Membership Fee — c2fers to the amcunt Payable to OWWA by an OFW cr the

employer in accordance with the provisions of this Act.
© OWWA Member ~ refers to an OFW with a paid contribution or membership fee;
fi Mon-Active OWWA member~ refers to an OPW whose OWWA membership has expired:

8; 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
‘he provisions of this Act. Membership in OWWA may be abtained in two (2) ways:

ai By compulsory registration upon processing of empiovment contracts of OFWs at the POEA,
and

bs By voluntary registration of OFWs at job-sites overseas or at the OWWA Regione! Welfare
Offices.

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

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

2


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BBLSSRYRSLYSLYSSARSLSSSSSLY RA RYSLSSRYRARESLSSeIAAeUH oS omrsysun—

regularly.

‘SEC. 10. Amount of Contribution and Effectivity of Membership. - Membership to the OWWA, either through
the compulsory of voluntary coverage. shall be effective upon payment of membership contribution in the
amount of Twenty Five US Dollars (US $ 25.00) or ity equivalent in the current foreign exchange rates. Such
‘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 shail 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 contibution on
contract renewal or issuance of a new contract of employment. In the case of voluntary membership,
coverage shalt be renewed upon payment of contribution of Twenty Five US Dollars (US $25.00} oF its
‘equivalent in the current foreign exchange rates.

‘There shall be a grace period of two (2) months in both instances.

SEC. 12. Separation of Sea-based and Land-basad Workers Contributions. - To effect a more efficient fund
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) n case of voluntary members wha register on-site, membership contibutions shall be made
directly to the OWWA Gverseas Offices located in the various diplomatic stations, embassies or
consulate offices of the Philippines.

SEC. 14. Reportoris! Requirements and Handling of Collections. - The collecting officer, deputized

officer, or the acoredited collecting agent shall prepare and submit the required monthly reports to
the OWWA Central Office in the Philippines. Handling of cofections and deposits by Collection Officers shail
‘be govemed by the usual accounting and auditing rules.

SEC. 15. Sanctions for Erring Officers. - Corresponding administrative sanctions and other disciplinary
measures, including recall from post'suspensionior 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
OWA by reason of age, gender, nationality, religious belief, or politicat opinion or affiliation. The OWWA
‘shall take affirmative steps to enhance the access of OFWs to its programs and services.

‘SEC. 17. Payment of Contnbution or OWWA Fee by Employer. — Contributions to the OWWA Fund must be
aid by the employers/principal, or in their defauit, the recruifment/manning agency in the case of new-hires.
The POEA shall ensure that @ 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 a fecruitmentimanning
‘agency of the preceding section shall constitute an offense punishable by revocation of its license and all 3
officers and directors shall be perpetually disqualified from engaging in the business of
recruiimentiplacement 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 Contra! 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

3



COU A RUN

the Philippines. For reconciliation and record purposes bank validated deposit sips 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 fea
contributions in the same currency received, to a separate bank account for colectons in the
name of the “Office of the Labor Attaché - OWWA Collections,” in the depository bank of the
Deparment of Foreign Affairs (DFA), or in the accredited correspondent bank of the Land Bank
of the Philippines. Accumulated monthly collections shai 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 reprasentative, subject to
the policies approved by the Board

‘Overseas Offices shall be authorized to retain the req
‘maintaining batance of the above-mentioned bank accounts for collections.

amount for the beginning and
CHAPTER V
THE OWWA BOARD OF TRUSTEES
SEC. 20. The OWWA Board of Trustees. - To carry out the purposes of this Act, the OWWA shail be directed
and controlled by @ Board of Trustees as its policy making body. It shall be composed of the following
members:
8) Secretary of the Department of Labor and Employment, as Chairperson;
b) OWWA Administrator, as Vice Chairperson;
©) Secretary of the Department of Foreign Affairs;
d) Secretary of the Department of Finance;
) Secretary of the Department of Budgat and Management;
f) POEA Administrator,
9) Two (2) representatives of land-based OFWs who are nominated and appointed in accordance
with the provisions of Republic Act No. 10022, which amended Republic Act No, 8042 or the
‘Migrant Workers and Overseas Filipinos Act of 1995;

fh) One (1) representative of the sea-based OFWs who are nominated and appointed in
accordance with the provisions of Republic Act No, 10022;

i) One (1) representative of the women sector who is nominated and appointed in accordance with
the provisions of Reyublic Act No. 10022;

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

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

‘The Trustees holding office as members of the OWWA Board at the time of the effectivity of this Act
shail continue to serve unt 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 concemed in the same manner as the selection of
the predecessor. Such successor shail hold office for the unexpired term only.


|

OOIAWE WS

‘SEC. 21. Per Diem. — The members of the OWWA Board shal! not receive any compensation tut shall be
provided with per diem at rates allowed under existing rules and regulations.

SEC. 22. Responsibilities and Powers of the Board of Trustees. - The OWWA Board shail exercise the
following specific powers and duties:

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

b) To preserve the integrity of the OWWA Trust Fund;
¢) 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 cn actuarial
studies;

e) To formulate rules and regulations governing financial transactions and fix the yearty
appropriations of the Secretaria

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

9) To receive and appropriate alt sums as mary be provided by jaw for the suppart of the OWWA to
the ends specified by taw, and all other sums in the manner it may, in its discration, determine to
carry out the purposes and functions af the OWWA:

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

i} To receive in trust legacies, 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 conor, if any,

3) To delegate any of its powers to the Chairperson of the OWWA Board or any othe” officials or
officers as it may deem nevessary,

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

i) Te exercise such powers as may be proper and necessary to carry aut the objectives of this Act.

CHAPTER Vi
BOARD MEETINGS, PROXIES, AND RECORDS MANAGEMENT

SEC. 23. Schedule of Meetings and Quorum of the Board. ~ The reguiar meetings of the OWWA Board shall
be held every last Friday of the month, fa change of date becomes necessary, the same shai 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 calied upon by the Chairperson or by five (5) members of the Board _

The Board Secretary shalt distribute to at members of the Board the notice of mesting together with
the discussion materiais 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:

@) 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 tre: scheduled
meeting.

») Quorum — In determining the existence of a quorum, the Board shall adopt the simpie ~ajonty rule
of one hatf plus one of the total filed Board seats.

5


©) 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 ait other
policies, an affirmative vote of a majority of the members present constituting a quorum shall be
necessary.

d) 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 atternate
who shail have voting power. The Board shall install teleconferencing facilities in order to muster

10 quorum during Board Meetings

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2 e} Presiding Officer— The Chairperson shall preside over meetings of the Board. In the attsence of the
B Chair, the Vice-Chairperson shall preside.

1

1s 1) Board Resolution — AR decisions of the Board shall be expressed in the form of Resolutions signed
1s by all the members present. Resolutions may be modified o” superseded by another resolution

18 Resolutions shall take effect upon adoption end signing by the members present. subject to
is requisite publication.

23 9) Records Management and Archiving of Board Documents - The Board Secretary shali ensure a
2 complete and thorough recording of all proceedings during @ Board meeting. The minutes of the
2B previous meeting shall ba made available for approval during the succeeding scheduled Board
24 Meeting.

25

26 “The Minutes of the meeting shall contain the attendance, business arising from the minutes, major
2? agreements reached, corresponding resolutions, and other tems neted or discussed, and
28 instructions issued by the Board.

29

30 |All minutes of meetings and Board Resolutions, tape recordings, and other documents pertaining to
31 the business of the Board shalt be kept and archived pursuant to standard records management
2 systems and procedures.

34 CHAPTER Vi

35 OWWA SECRETARIAT

36

37 SEC. 28. The OWWA Secretariat. — The OWWA Secretariat is the implementing arm of OWWA.

39 SEC 28. Duties and Responsibilties of OWWA Secrefanat - The OWA Secretariat shall perform and
40 assume the following duties and responsibilities:

41
(2 a) To manage programs and the detivery of welfare services iocally and overseas to its members,
3 supported by advocacy and information programs;
45 b) To implement Goard policies on investment and fund management:
46
47 ¢} To formulate medium term development plans responsive to the welfare, needs and demands of
48 member-OFWs;
50 4) To submit work and financiat plans for Board consideration;

2) To provide policy analyaes and recommendations for Board consideration:

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

4g) To regularly monitor and conduct assessment and evaluation of organizational performance;

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

i) To establish and mm
institutional partners;

in linkages and natworks with local and intemational socia' and



RRRVRSLBSSIRGEGS Ho Soma susan

}) 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,

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

m) To undertake the periodic review of p:ograms, standards, thrusts and policies,
1) To perform other functions as may be iastructed by the Board; and
0} To adopt internal rules of precedure consistent with th> provisions of this Act

SEC, 27, The OWWA Administrator. - The administration of the OWWA js vested in the Administrator, As
the Chief Executive Officer of the Secretariat, the Administrator shall exercise general supervision and
control of all OWWA personnel and resources, and assume ful responsibility and accountability thereof.

The Administrator must possess good leadership and managerial skills. The Administrator shall be
appointed by the President, The Administrator shall report to the President through the Secretary of DOLE,
‘and shall perform the duties and functions elsewhere stated in thia Act and a the usual, necessary and
related functions of the office of the Administrator, subject to the policies and niles prescribed by the OWWA,
Board.

SEC, 28. The Deputy Administrators, - Two (2) Deputy Administretors shall assist the Administrator in the
‘administration and supervision of operations of OMA. They shail be appointed by the Board upon the
recommendation of the Administrator, They must a!¢o possess good leadership and managerial skits. The
Board may assign specific functional responsibilities to the Deputy Administrators,

SEC. 29. Regional and On-Site Welfare Officers. - OMA shall maintain Regional Officas and on-site
‘Welfare Offices under the Philippine Overseas Labor Offices of the Department of Labor and Employment.

CHAPTER Vill
PERSONNEL AND STAFFING PATTERN

SEC, 30. New Structure and Staffing Patten. ~

8) Upon effectivity of this Act, the officers and employees of the OWWA shall, in a hoklover
capacity, continue to perform theit 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 pattem for the OWWA shall be prescribed by the OWWA
Board and approved by the President of the Philippines. The salaries and benefits of all
personnel shall be in accordance with existing compensation laws,

b) Those incumbents whose positions are not inckided 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, rulea and regulations.

SEC. 31. Qualifications Upgrading Program. - Pursuant to the provision of paragraph (1) of the immediately
preceding section, the OWWA Board shalt design and establish a qualifications upgrading program for the
staffing of the OWWA, 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 neceasary CSC qualificatian required for the position they are
‘currently holding.

SEC. 32. Authority of the Board fo Reorganize the Administration. - Notwithstanding the provisions of
existing laws, the OWWA Board shall conduct a management audit, prepare and submit to Congress a
proposed reorganization plan of tha OWWA not later than one (1) year, subject to the limitations provided
under this Act and based on the following criteria


an Hee BE pe ww wREN DON UNNR seme e
BESSSASSLSSLSSEYRSRABASVRBNRRRORNBSRIRDEOH IS om sue

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

b) Efficient and optimized delivary 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 Civi 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 shail provide reintegration programs,
repatriation assistance, joan and credit assistance, workers assistance on-site, death and disabilty 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 of denial of the right of the OFW to avait of any
benefit plan which may be adoptad 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 CWA.

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

8. Repatriation Assistance. Consistent with the provisions of RA No. 6042, as amended, members
shall be provided with all the services necessary for repatriation,

C. Loan and Credit Assistance. OWWA shall provide low-interest loans to member-OFWs. It shall
have the suthority 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 ali its overseas ard regional offices. Services shall include information regarding the
names, occupationjob category and addresses of OFW, providing guidance, developing
materials for the Pre-Departure Orientation Seminars, conducting psycho-social counsefiing,
‘conciliation services, and outreach missions, among athers. 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 mamber-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 one’s
employment contract. The coverage shall inchide One Hundred Thousand Pesos
(P100,000.00) for natural death and Two Hundred Thousand Pesos (P200,000.00) for
accidental death

b. Disablity and Dismemberment Benefits. A member shall be entided to disabiltyidismemberment
benefits as a rider provision of one’s life insurance as provided for in the impediment schedule
contained in the Manual of Systems and Procedures. The coverage is within the range of Two
‘Thousand Pesos (P2,000.00} to Fity Thousand Pesos (P50,000.00).

cc, Total Disability Benefit, In case of total permanent disablity, a member shall be entitled to
(One Hundred Thousand Pesos (100,000.00).

&


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4 Burial Benefit. A burial benefit of Twenty Thousand Pesos (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 abovercentioned
benefits.

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

F, Education and Training Benefits. A member or @ designated beneficiary may avail of me
folowing scholarship programs, subject to a selection process and accreditation of pavticipating
institutions. Annual scholarship ists shall be submitted to the Board

1. Skilts-for-Employment Scholarship Program. — For technical or vocational training
scholarship.

2. Education for Development Scholarship Program. - For baccalaureate programs

3. Seafarers’ Upgrading Program. — Ta ensure the competitive advantage of F.lipino seaferers
in meeting International Maritime Organization (IMO) competency standards, sea-based
members shall be entitied to one upgrading program for every three (3) membership
‘contributions.

SEC. 36. Extension of Services to Non-members. ~ OWA may also extend appropriale programs or
Services to non-members, as may be determined by the Board.

OWWA shail continue to develop and implement new programs to meat new OFW needs and
Fequirements as they arise, and to assess the effectiveness of existing services and benefits in servng OFW
welfare.

‘OWWA shail aiso maintain an interactive website to collect OFW feedback, comments, suggestions
and complaints on existing programs an+ services,

CHAPTER X
‘THE OWWA TRUST FUND

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

SEC 36. Purpose of the OWWA Fund. - The OWWA Fund can only be used for the purposes fer which it
was created, that is, to exclusively serve the welfare of member-OFWs and their famities The funs is to be
used exclusively to finance the core programs and services of the OWANA.

SEC. 39. Reporting of the Fund. within fifteen (15) days after receipt_pf audited reports from the
Commission on Audit, the OWWA Board of Trustees shail submit <. the President and Congress @ report
showing the total collections of and the disbursements from, the OWWA Fund,

SEC. 40. Disbursement of OWWA Fund. ~ Any provision of existing law to the contrary notwithstanding, aft
incomes generated by tha OWWA shall, upon their collection, be retained by the OWWA and disursed at
the diacretion of the Board for the general welfare and other benafits of the OWWA general membership aod
the OWWA Secretariat parsonnel: for the acquisition, constuction, maintenance and repair of urgently
needed auxiliary facilites, equipment, buiidirgs and other infrastructure; and for expenses necessery for the
attainment of its purposes under its approved program of expenditures,

No fund shall be withdrawn from the OWWVA Fund to respond,
any required expenditure by other government agencies.

|, supplement, oF in any manner augment

SEC. 41. Source of the OWWA Fund. - The OWWA Fund is the sum total of the amounts under the
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manazement and fiscal administration of the OWWA Board and the Secretariat, including the USS25
contritutions that shalt accrue to the Fund as fees, investment and interest income, and income from other
souro2s.

SEC. 42. Trustees of the Fund. - The OWWA Bosrd is designated as the trustee of the CWWA Fund. It
shall De bound by a fiduciary duty to manage the fund with extraordinary diligence and with utmost skit,
care and judiciousness.

SEC. 43. Transparency. - The OWWA Fund shall be managed with full transparency and full public
disclosure. It shall make available ali records of how the funds are utifized, disbursed, and invested in
accorsance with existing laws.

CHAPTER XI
INVESTMENT ADMINISTRATION: SAFEGUARDS:

SEC. 44. Safeguards of the OWWA Fund: Acquired Assets; Unredeemed investments.

ai The OVAVA Trust Fund shail be managed and expended in accordance with the purpose of the
Fund and safequarded against any possibie loss and misuse

‘The OWWA shail 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 inventoned
and property kept at a goverment bank under a custodianship agreement.

‘A monthly repart on all investment scheduses showing the interest rates, yields, discount rates, and
other retevant data, shall be submitted to the Board.

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

An asset developmentdisposal pian shall be submitted by the Administrator for the consideration of
the Board,

Foreclosed properties shail be registered as OWWA assets within one (1) month aRer foreclosure,

c} Unredeemed investments and other receivables shall be inventoried semi-annually and
corresponding redemption plan shall be submitted to the Bord, Alt receivables shall be supported
by documents appropriately acknowledged by the accountable party.

SEC 45. General tnvestmeni Policy. - Upon approval of the Board, aii OWWA investments shail be placed
‘only in government securities and bonds which provide optimum earings, liquidity and protection of the
Func. Portfolio management of investible funds shall be outsourced to government financial institutions
(GFis).

SEC 46 Examination and Valuation of the Funds. - The CWWA shall make @ penodic actuarial
examination and valuation of its funds in accordance with accepted actuarial principles,

CHAPTER Xi
FISCAL AND BUDGET POLICY: MANAGEMENT

SEC. 47. Operative Budget. — The operative budget must be sufficient to support full protection of the OF W
welfare. The budget shail be reviewed annually by the Baard with emphasis on adequate funding for
services and agency efficiency.

‘The Board shall approve, by & 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 Imited to salaries,
emcluments and transportation expenses for OWWA personnel, office rentals, office supplies, equipment,
technological support, communications and utities, requirements for personal gervices, and maintenance:
Provided, That appropriations for personal services (PS) and its regular maintenance and other operating
expenses (MOOE) shall not exceed Twanty Percent (20%) of the total member contributions realized in the

immediately preceding year
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‘The approved operating budget shal! be drawn from the OWWA Trust Fund.

SEC. 48. Bonefits and Services Budget. - The annual budget shai! 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. 49. Budget Preparation and Approval. - In preparing the annual budget, CWWA shall follow the
national goverment budget system, format and cycle.

SEC. 50. Re-enacted Budget. ~ In case the proposed annual budget has not been approved by the Board at
the start of the year, OWWA shall operate within the budgat 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. 51. Work and Financia! Plans. ~ Ali cost centers/offices/units of OWWA shall submit their annual work
and financial plans (WFP), which should correspond to the apptoved 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. 52. 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. 53. Branch Accounting System; Financial Reports; Auditing Procedures; Annual Reports. - The
OWWA Regional Units shali maintain their respective books of account which shall be consoliated by the
central office

‘The OWWA shall install sound intemal control and monitoring systems and submit quarterty
prescribed Financial Statements to COA such as income statement, balance sheet, and cash flow as
Prescribed in post auditing reports by the COA,

‘The OWWA Secretariat is mandated to submit a monthly fund utilization report to the Board, copies
‘of which shall be made available to Congress. It is further mandated to submit an Annual Report on its
overall performance for the previous yezr within the first sixty (60) days of the following year to the OWWA
Board, Congress and the President, through the Department of Budget and Management (DBM).

SEC. 64. Chart of Accounts. - The OWWA shall adopt the appropriate and standard chart of accounts as
prescribed by the COA,

SEC. §5. Appropriation from the National Government. - Nothing in this Act shall prevent the National
Government from allocating funds for the operation of implementation of any of the programs or services
stated herein, including the budget for maintenance and ather operating expenses,

CHAPTER Xill
MISCELLANEOUS PROVISIONS

SEC. 6. 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 tor at least five (5) years
‘and who have not availed of any services or benefits, including thair ‘amilies, from OWWA.

SEC. 57. Procurement System. - The OWWA procurement system shall be governed by Republic Act No.
9184, also known as “Government Procurement Reform Act".

SEC. 58. implementing Rules and Regulations. — The present OWWA Board, in consultation with the
‘Senate Commitee on Labor and Employment and the House Committee on Gverseas Workers Affairs,
hall, within Sixty (60) days from the effectivity of this Act, formulate the necessary Rules and Regulations
for its effective implementation.

‘SEC. 59. Separabilty Clause. - if any provision or part of this Act, or the application thereof, is heid invalid,
the remainder of this Act, or the application of such provision, shall not be affected theraby.

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SEC. 60. Repealing Clause. ~ All aws not adopted as part of this Act either directly or indirectly are hereby
repealed. All provisions of existing laws, orders, rules and ragulations inconsistent herewith are likewise
repealed

SEC. 61. Effectivity Clause. - This Act shall take effect fifteen (15) days after publication in two (2)
newspapers of general circulation.

Approved.


FACT SHEET

House Bil No.__6841
in substitution of House Bil! Nos. 2422 & 3562

AN ACT TO GOVERN THE OPERATION AND
ADMINISTRATION OF OWWA

introduced by. REPRESENTATIVES REX T, GATCHALIAN, JOSEPH F.
VIOLAGO AND WALDEN F. BELLO

Committee Referral: COMMITTEE ON OVERSEAS WORKERS AFFAIRS
Committee Chaitperson: REPRESENTATIVE WALDEN F, BELLO

OBJECTIVE:

* To provide for an Act or a Charter which will govem the operation and
administration of the Oversaas Workers Welfare Administration (OWWA)

KEY PROVISIONS:

* Defines the nature and functions of OWWA as a national government agency
vested with a special function of developing and implementing welfare programs
that respond to the needs of member-OFWs and their families.

* Provides for a procedure for membership registration and its renewal, and imposes
upon the employer and/or recruitment agency the duty to pay for the OWWA
membership fee with respact to those OFWs who are newly-hired.

* Creates the OWWA Board of Trustees as the policy-making body of OWWA,
composed of 12 members and chaired by the Secretary of Labor and Employment.
The members of the OWWA Board shall not receive any compensation except with
per diem at rates allowed under existing rules and regulations.

* Establishes the OWWA Secretaviat to be headed by the OWWA Administrator who
shall act as the Chief Executive Officer of the OWWA Secretariat and shall be
appointed by the President.

* Two (2) Deputy Administrators shail assist the OWWA Administrator in the
administration and supervision of operations of OWWA. They shall be appointed by
the Board upon the recommendation of the Administrator.

¢ The operative budget of the OWWA must be sufficient to support full protection of
the OFW welfare and shail be reviewed annually by the OWWA Board with
emphasis on adequate funding for services and agency efficiency. Appropriations
for Personal Services (PS) and its regular maintenance and other operating
expenses (MOCE) shail not exceed twenty percent (20%) of the tota' member
contributions realized in the immediately preceding year.

* Grants the following benefits and services to member-OFWs: (1) Reintegration of
OFWs; (2) Repatriation Assistance; (3) Loan and Credit Assistance, (4: Workers
Assistance and On-Site Services; (4) Social Benefits - Death and Disability as well
as Health Care Benefits; (5) Educational and Training Benefits.


*. Creates the OWWA Fund as a private fund held in trust by OWWA and sourced
from the sum total of the amounts under the management and fiscal administration
of the Board, including the US$25 contributions and other amounts that shail
accrue to the Fund as fees, investment and interest income,

RELATED LAWS:

+ Presidential Decree 442 or the "Labor Code of the Philippines”

+ Republic Act No. 8042, as amended by Republic Act No. 10022

+ Letter of Instructions No. 537 which created the “Welfare and Training Fund for
Overseas Workers”

+ Presidential Decree 1694 which created the “Welfare Fund for Overseas Workers
(WELFUND)”

+ Presidential Decree 1809 which amended P.D. 1694

« Executive Order No. 126 (1987), “Reorganizing the Ministry of Labor and
Employment and for other purposes”

+ Civil Code of the Philippines