Senate approves bill seeking add'l monthly pension differential to DFA retirees

With the affirmative vote of all 23 senators present, the Senate on Tuesday, January 14, 2025, approved on third and final reading a measure which provides monthly pension differential to the Department of Foreign Affairs retirees.

Sen. Mark Villar, chairperson of the Committee on Government Corporations and Public Enterprises, and sponsor of Senate Bill No. 2863 or Foreign Affairs Pension Differential Act, said this is in appreciation of the sacrifices of foreign service personnel who endured many years away from their families.

Villar stressed that the measure is not about financial compensation but a long-overdue recognition of the "extraordinary and unique" sacrifices made by foreign service personnel.

"These brave individuals have been our first line of defense in unfamiliar territories, often risking their own lives to fulfill their duties. They have faced countless battles, both literal and figurative. Their service comes at a great personal cost," Villar said in his speech after the approval of the bill.

"The bill's approval on Third Reading takes our distinguished DFA retirees one step closer to a reality where they can bask in the fruit of the hard work and labor they have graciously offered to the Philippines. Our DFA retirees have, literally and figuratively, crossed borders and flown miles, to ensure that our country's diplomatic ties remain favorable and suitable to the needs of Filipinos here and abroad," he added.

The bill will benefit Filipino foreign service personnel who have reached the age of 65 and have served for at least 15 years, offering them a lifeline-- a chance at a dignified retirement befitting their service.

Also covered by the bill are officers and employees of the DFA who retired under Republic Act No. 1616, provided they have also reached the age of 65, served the agency for at least 15 years, and remained Filipino citizens.

"This is not a departure from the Government Service Insurance System (GSIS). The DFA will remain within the GSIS framework, and its personnel will continue to contribute thereto. Instead, the bill merely proposes a monthly pension differential, to be administered by the DFA, that will bridge the gap between the retirees' monthly pension and the existing rate for those holding the same rank and years of service, ensuring a dignified retirement for retirees," Villar explained.

To ensure its self-sustainability, there will be a regular and periodic review of the monthly pension differential. Thus the proposed bill will not pose a burden on the national government as funding will come from the fees charged for consular services collected under Executive Order No. 906, series of 2010, and not from the General Appropriations Fund.

In the event of the death of a DFA retiree, the surviving legal spouse and the qualified dependent children or those older but are unable to fully take care of themselves shall be entitled to receive survivorship benefits equivalent to a maximum of 50 percent of the pension differential that the deceased retiree was receiving or entitled to receive.

"These brave individuals have been our first line of defense in unfamiliar territories, often risking their own lives to fulfill their duties. They have faced countless battles, both literal and figurative. Their service comes at a great personal cost," Villar said.

"By passing this bill, we are not just approving a retirement benefit, we are sending a powerful message that their service, their sacrifices, and their dedication to our nation are valued and remembered. It is a statement that we stand with them as they stood for us in the international arena," he added.