Senate Bill No.

1169 - SSS Members' Pension Increase

An Act Increasing Pensions Under the Social Security System Amending for the Purpose Section
12 of the Social Security Act of 1997
14th Congress of the Philippines)
of the Philippines
)
Third Regular Session
)
SENATE
S. B. No. 1169

Introduced by Senator Aquilino Q. Pimentel Jr.

EXPLANATORY NOTE

Under Republic Act No. 8282, or the Social Security Act of 1997, specifically in Section 12 (b)
thereof, SSS members with at least ten credited years of service are provided a monthly pension of P1,200,
while those with 20 credited years are given P2,400.

With the spiraling cost of living, especially in the prices of medicines and essential commodities,
these amounts have been rendered woefully inadequate to meet even the barest needs of the SSS
pensioners.

Retirees prior to the effectivity of RA 8282 are even more hardpressed because their monthly
pension is governed by the old Social Security Law of June 18, 1954 (RA 1161) that pays very much less.

Thus, it becomes imperative, in light of the social justice policy enshrined in the Constitution, to
adjust the SSS pension rates to keep them fairly responsive to the basic necessities of private employment
retirees.

This measure is meant to carry out such adjustment through a two-pronged approach: (1) raising
the minimum monthly pension to P3,000, and (2) annual increase of P500 until the minimum of P5,000 a
month is reached. Additionally, the attached bill provides that the new monthly pension rates shall be
applicable to all SSS members regardless of the effectivity of their retirement.

Early passage of this bill is thus earnestly urged to provide immediate relief to the countless
distressed SSS retirees.
AQUILINO Q. PIMENTEL JR.
AN ACT INCREASING PENSIONS UNDER THE SOCIAL SECURITY SYSTEM
AMENDING FOR THE PURPOSE SECTION 12 OF THE SOCIAL SECURITY ACT
OF 1997
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 12 of Republic Act No. 1161, as amended by Republic Act No. 8282,
otherwise known, as the Social Security Act is hereby further amended to read as follows:
"SEC. 12. Monthly Pension. (a) The monthly pension shall be the sum of the following:
(i) Three hundred pesos ( eq O(P,=)300.00); 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) Forty percent (40%) of the average monthly salary credit; or
(3) One thousand pesos ( eq O(P,=)1,000.00): 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 ( eq O(P,=)1,200.00) for members with at least ten (10) credited years of
service and Two thousand four hundred pesos ( eq O(P,=)2,400.00) for those with twenty (20) credited years
of service] THREE THOUSAND PESOS ( eq O(P,=)3,000.00) IN THE SUCCEEDING YEARS STARTING
JANUARY 2005, THE THREE THOUSAND MONTHLY PENSION BENEFIT SHALL BE INCREASED
ANNUALLY BY FIVE HUNDRED PESOS ( eq O(P,=)500.00) PER MONTH UNTIL THE MINIMUM
MONTHLY PENSION SHALL REACH FIVE THOUSAND ( eq O(P,=)5,000.00) PER MONTH. THE
COMMISSION SHALL EQUITABLY ADJUST THE MONTHLY PENSIONS OF OTHER ENTITLED
MEMBERS OR BENEFICIARIES WHOSE MONTHLY PENSIONS ARE HIGHER THAN THE MINIMUM
MONTHLY PENSION TO PRESERVE THE INTEGRITY OF THE PENSION PROGRAM."

SEC. 2. THE NEW MONTHLY PENSION AND ITS ANNUAL INCREMENT PROVIDED HEREIN
SHALL APPLY TO ALL BENEFICIARIES REGARDLESS OF THE EFFECTIVITY OF THEIR RETIREMENT.

SEC. 3. This Act shall take effect fifteen (15) days after its complete publication in the Official
Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier.

Approved,

Senate Bill No. 114 - FORMER PRISONERS' EMPLOYMENT ACT OF

2007
AN ACT INSTITUTING THE FORMER PRISONERS EMPLOYMENT PROGRAM,
AND APPROPRIATING FUNDS THEREFOR
14th Congress of the Philippines)
of the Philippines
)
Third Regular Session
)
SENATE
S. B. No. 114

Introduced by Senator Aquilino Q. Pimentel Jr.

EXPLANATORY NOTE

Studies show that former prisoners have a slimmer chance of being employed after their
release. Most, if not all employers, are reluctant to hire former prisoners, because of their criminal
past. This makes it difficult for former prisoners to reform and reintegrate into the society.

This bill seeks to provide incentives to private establishments hiring inmates. It proposes an
additional deduction from the gross income, equivalent to fifteen percent (15%) of the total amount
paid as salaries and wages to former prisoners, to be given to business establishments employing
former prisoners.

It also seeks to create a Committee on Employment Opportunities for Former Prisoners

under the Department of Justice, which is tasked to draft the implementing rules and regulations for
the training and employment of former prisoners.

The immediate passage of this bill is earnestly requested.

AQUILINO Q. PIMENTEL JR.

AN ACT
INSTITUTING THE FORMER PRISONERS' EMPLOYMENT PROGRAM, AND
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Former Prisoners' Employment Act of
2007.''

SECTION 2. Declaration of Policy. It is the policy of the State to aid former prisoners
continue their reformation, and help them reintegrate into society after they have been released
from prison.

SECTION 3. Definition of Terms. For purposes of this Act, the following terms shall have the
meaning as indicated hereunder:

1.
2.

Business establishments refer to private companies that employ former prisoners.

Committee refers to the Committee on Employment Opportunities for Former
Prisoners, under the Department of Justice.
3.
Former prisoners refer to those convicted by final judgment and who have been
released on probation, parole, pardon, or after having served their sentences.

SECTION 4. Committee on Employment Opportunities for Former Prisoners. The

Committee on Employment Opportunities for Former Prisoners under the Department of Justice,
hereinafter referred to as the Committee, is hereby created with the task of drafting provisions for
the training and employment of former prisoners.

SECTION 5. Structural and Personnel Organization. The Committee shall be headed by a

Chairman and assisted by a Vice Chairman, who shall both be appointed by the President, upon
the recommendation of the Secretary of the Department of Justice.

Appointees to the positions of Chairman and Vice Chairman must be holders of a doctoral /
masteral degree in business or public administration and I or lawyers with at least one year
experience in penology management.

The Committee shall have a Technical Service Arm to assist it to carry out its duties and
functions.

SECTION 6. Tax Credit. Business establishments that will employ former prisoners upon
the effectivity of this Act, shall be entitled to an additional deduction from their gross income,
equivalent to fifteen percent (15%) of the total amount paid as salaries and wages to former
prisoners, subject to Section 4 of the National Internal Revenue Code.

SECTION 7. The Secretary of Department of Justice and the Secretary of Department of

Labor and Employment shall, within thirty (30) days from effectivity of this Act, issue such rules and
regulations necessary for the proper implementation of the provisions of this law.

SECTION 8. Appropriations. The amount necessary to carry out the provisions of this Act
shall be included in the General Appropriations Act of the year following its enactment into law and
thereafter. An initial amount of one hundred million pesos (P100,000,000), shall be allocated for the
first year of its implementation.

SECTION 9. Repealing Clause. - Any law, presidential decree, issuance, executive order,
letter of instruction, administrative order, rule and regulation contrary to or inconsistent with the
provisions of this Act is hereby repealed, modified, or amended accordingly.

SECTION 10. Separability Clause. - If any provision of this Act is held invalid or
unconstitutional, the other provisions not affected hereby shall remain valid and subsisting.

SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (1 5) days following its
complete publication in any national newspaper of general circulation or in the Official Gazette.

Approved,

Senate Bill No. 117 - REQUIREMENT FOR CITYHOOD AND CREATION

OF PROVINCE, AMENDING LOCAL GOVERNMENT
AN ACT AMENDING SECTIONS 452 AND 461 OF REPUBLIC ACT 7160,
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991
14th Congress of the Philippines)
of the Philippines
)
Third Regular Session
)

SENATE
S. B. No. 117

Introduced by Senator Aquilino Q. Pimentel Jr.

EXPLANATORY NOTE

Considering the relative proliferation of proposals to create local government units, the
proposed amendments embodied in this bill provide for strict criteria for the creation and conversion
of local government units.

Under this bill, a city seeking conversion into a highly urbanized city is required to have an
average of at least 80% real property tax collection efficiency for the three years preceding the
current calendar year, with the latest locally generated annual income of at least Two Hundred Fifty
Million Pesos (P250,000,000.00) based on 1998 constant prices, as certified by the Department of
Finance.

A province, on the other hand, may be created if it has a locally generated average annual
income, as certified by the Department of Finance, of not less than Two Hundred Million Pesos
(P200,000,000.00) based on 1998 constant prices, and an average real property tax collection
efficiency, of at least, eighty percent (80%) during the three years preceding the current calendar
year.

These requirements were purposely done as a deterrent to the wholesale conversion and
creation of local government units, thus, stricter measures must be instituted.

Approval of this bill is therefore, earnestly requested.

AQUILINO Q. PIMENTEL JR.

AN ACT
AMENDING SECTIONS 452 AND 461 OF REPUBLIC ACT 7160, OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991

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

assembled:

SECTION 1. Section 452 of RA 7160 is hereby amended and shall read as follows:

Section 452 Highly Urbanized Cities. (a) Cities with a minimum population of
two hundred thousand (200,000) inhabitants, as certified by the National Statistics Office,
and with the latest LOCALLY GENERATED annual income of at least (Fifty Million Pesos
(P50,000,000.00)) TWO HUNDRED FIFTY MILLION PESOS (P250,000,000.00) based on
(1991) 1998 constant prices, as certified by the (city treasurer) DEPARTMENT OF
FINANCE, AND AN AVERAGE REAL PROPERTY TAX COLLECTION EFFICIENCY OF,
AT LEAST, EIGHTY PERCENT (80%) FOR THE THREE YEARS PRECEDING THE
CURRENT CALENDAR YEAR, shall be classified as highly urbanized cities.

(b) x x x

(c) x x x

SECTION 2. Section 461 of RA 7160 is hereby amended and shall read as follows:

Section 461. Requisites for Creation. (a) A province may be created if it has (an)
A LOCALLY GENERATED average annual income, as certified by the Department of
Finance, of not less than (twenty million pesos (P20,000,000.00)) TWO HUNDRED
MILLION PESOS (P200,000,000.00) based on (1991) 1998 constant prices; AN
AVERAGE REAL PROPERTY TAX COLLECTION EFFICIENCY, OF AT LEAST, EIGHTY
PERCENT (80%) DURING THE THREE YEARS PRECEDING THE CURRENT
CALENDAR YEAR, and it has the following requisites:

(i) contiguous territory of at least two thousand (2,000) square kilometers, as

certified by the Lands Management Bureau; or (ii) population of not less than two hundred
fifty thousand (250,000) inhabitants as certified by the National (Census and) Statistics
Office.
Provided, That, the creation thereof shall not reduce the land area, population, and
income of the original unit or units at the time of said creation to less than the minimum
requirements prescribed herein.

SECTION 13. All laws, decrees, executive orders, proclamations, rules and regulations, or parts
thereof inconsistent herewith are hereby repealed or modified accordingly.

SECTION 14. Separability Clause. - If any provision of this Act is held invalid or unconstitutional,
the other provisions not affected hereby shall remain valid and subsisting.

SECTION 15. This Act shall take effect fifteen (15) days after its publication in at least two (2)
national newspapers of general circulation.

Approved,

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