The House of Representatives in the Philippines has taken a significant step towards enhancing the quality of life for Filipino senior citizens by approving the proposed universal social pension.
This move is seen as a reflection of the nation’s responsibility to protect the welfare of its elderly population.
According to the Commission on Human Rights (CHR), this legislation aims to ascertain that no senior citizen is left behind in terms of financial support.
Approval of House Bill No. 10423
On May 21, the House of Representatives approved House Bill (HB) No. 10423 on its third and final reading.
The CHR welcomed this decision, applauding the bill’s intention to provide financial support to all Filipino senior citizens.
Commissioner Beda Angeles Epres, the CHR focal commissioner for older persons, emphasized that this bill is a step towards improving the quality of life for seniors and reflects the nation’s commitment to their welfare.
Significance of the Bill
Addressing Poverty Among Seniors
- The universal social pension bill addresses poverty among the elderly.
- Many senior citizens in the Philippines live in poverty due to insufficient savings and lack of social security.
- The bill provides a reliable source of income, helping seniors meet their basic needs and reducing poverty levels.
Boosting Economic Security
- The bill makes sure that all senior citizens have a guaranteed monthly income.
- This financial support enhances economic security, so that seniors can afford essential goods and services.
- Stability from this income improves their quality of life, reducing financial stress and promoting better health outcomes.
Stimulating Local Economies
- Additional income provided to seniors boosts local economies.
- Seniors will likely spend their pensions on local goods and services, increasing demand and supporting local businesses.
- This economic activity can lead to job creation and stimulate economic growth at the community level.
Reducing Inequality
- The bill’s universal approach reduces inequality among the elderly.
- Financial support is provided to all senior citizens, regardless of income status.
- This inclusivity bridges the gap between different socioeconomic groups and promotes a more equitable society.
Aligning with Sustainable Development Goals
- The universal social pension aligns with United Nations Sustainable Development Goals (SDGs).
- The bill addresses goals like ending poverty, reducing inequality, and making sure healthy lives for all ages.
- Adopting this measure demonstrates the Philippines’ commitment to achieving these global targets.
Enhancing Social Stability
- Financial insecurity among senior citizens can lead to social instability.
- The universal social pension provides a stable income, enabling seniors to live independently and with dignity.
- This leads to greater social cohesion and stability within communities.
Supporting Informal Workers
- A significant portion of the Filipino workforce is employed in the informal sector with limited access to traditional pension schemes.
- The bill advocates that informal workers still receive financial support in old age.
- This inclusion recognizes the contributions of all workers, regardless of employment status.
Promoting Long-Term Economic Growth
- Improving the financial well-being of senior citizens contributes to long-term economic growth.
- Healthier and financially secure seniors require less public health and social services, reducing government resource strain.
- Better allocation of funds towards other significant areas of development fosters overall economic progress.
Provisions of the Bill
The bill seeks to amend portions of Republic Act No. 7432 by introducing a universal social pension.
This non-contributory monthly monetary grant will be at least PHP 1,000 per month.
The measure sees to it that all senior citizens will receive a monthly social pension, with indigent seniors receiving PHP 1,000 and non-indigent seniors receiving PHP 500 monthly.
Mandated Adjustments and Reviews
To maintain the adequacy of the pension, the Department of Social Welfare and Development (DSWD), the Department of Budget and Management (DBM), and other stakeholders will review and adjust the social pension every two years.
This regular adjustment is important so that the pension keeps pace with inflation and other economic factors.
Contribution to the Philippine Plan of Action for Senior Citizens
The CHR highlighted that HB No. 10423 would contribute to the State’s efforts to elevate the status of the elderly population and promote their financial security.
This bill is a positive addition to the Philippine Plan of Action for Senior Citizens 2023-2028, a comprehensive program by the National Commission of Senior Citizens aimed at fostering an inclusive and age-friendly society.
Management and Implementation
The bill proposes that the management of the social pension program be transferred from the DSWD to the National Commission of Senior Citizens within three years.
The DSWD, in consultation with the DBM and stakeholders, will review and adjust the pension amount every two years.
Additionally, senior citizens will have the right to waive benefits or opt out of the program.
Rationale and Benefits
The universal social pension bill recognizes the contributions of senior citizens throughout their lives and aims to support their health and well-being.
A universal approach has several advantages over the current means-tested pension system.
It reaches all poor seniors, provides security for informal workers, offers transparent eligibility criteria, and incurs lower administrative costs.
Funding Sources
The bill allows for augmentation from local government unit (LGU) resources, as well as grants, donations, or contributions to LGUs.
Funds will be sourced from the budgets of the DSWD and/or the National Commission of Senior Citizens, with LGUs permitted to provide additional benefits.
Eligibility Criteria
The pension will be provided to all senior citizens, regardless of their financial status or income bracket.
Senior citizens already receiving pensions from other sources like GSIS, SSS, or those with regular income may be excluded or have their benefits reduced.
Factors such as health status (frail, sickly, disabled) and economic status will be considered in determining eligibility.
Application Process
The application process will likely involve three stages:
- Submission of application forms and required documents
- Interview of potential beneficiaries
- Home visits by the Office of Senior Citizens Affairs (OSCA)
Required documents may include a birth certificate or valid ID with a photo and date of birth, and a certificate of indigency from the barangay.
Applications can be submitted in person to OSCA or the City/Municipal Social Welfare and Development Office (C/MSWDO), or through designated representatives.
Benefit Amount and Review
The initial monthly pension amount is proposed to be PHP 2,000, subject to review every two years by Congress in consultation with the DSWD and the National Commission for Senior Citizens.
Factors such as inflation and the availability of funds will be considered in the review.
Video: House approves bill granting universal social pension to senior citizens
On the day before Congress adjourns sine die, the House of Representatives votes 232-0 to pass House Bill Number 10423 on its third and final reading. This bill grants a Universal Social Pension to senior citizens, promoting financial support for the elderly population. The approval marks a significant step towards providing economic security and welfare for the elderly in the country.
Conclusion
The approval of the universal social pension bill (HB 10423) is a significant milestone in providing a safety net for all senior citizens in the Philippines.
By granting a monthly social pension of at least PHP 1,000 to all seniors, the bill aims to improve their quality of life and allow them to age with dignity.
This legislation recognizes the lifelong contributions of senior citizens and strengthens the social pension system, aligning the Philippines with international best practices in social security for the elderly.