AN ACT TO AMEND CERTAIN SECTIONS OF ACT NUMBERED THREE THOUSAND AND FIFTY, ENTITLED "AN ACT TO PROVIDE ANNUAL PENSIONS FOR TEACHERS EMPLOYED IN THE PHILIPPINE PUBLIC SCHOOLS; TO APPROPRIATE MONEY AND REGULATE THE DISBURSEMENT THEREOF

• Number: Act No. 3100
• Sections: 5

Section 1

SECTION 1. Section one of Act Numbered Three thousand and fifty is hereby amended to read as follows:

"SECTION 1. Beginning on the first day of April next following the date of the approval of this Act, all teachers, principals, supervisors, inspectors, superintendents, and other persons employed in supervising and directing the school work of teachers in the public school service of municipalities, provinces, and the Insular Government of the Philippine Islands, whose positions are not classified as purely clerical, without regard as to status in the classified civil service of the Philippine Islands, who have on that day, or who shall have on any date thereafter, rendered at least twenty years of service as computed in section seven of this Act, and who have not been removed from the service for cause, shall be eligible for retirement on an annuity as provided in section two hereof: Provided, That teachers, principals, supervisors, inspectors, and superintendents detailed or serving in, the Department of Public Instruction and engaged principally in the inspection and supervision of private schools, in accordance with Act Numbered Twenty-seven hundred and six, shall also be entitled to a pension under the terms and conditions herein established: Provided, further, That lecturers and other special instructors who render provisional service shall not be eligible for pension nor shall such services be counted as teaching service in computing the length of service of a teacher: And provided, finally, That the provisions of this Act shall not include persons who are not citizens of the Philippine Islands or of the United States of America."

Section 2

SEC. 2. Section five of Act Numbered Three thousand and fifty is hereby amended to read as follows:

"SEC. 5. Upon death of an employee entitled to the provision of this Act who is rendering service at time of death or who is retired on pension, he shall have fifty per cent of the pension to which the employee would be entitled if alive, paid to surviving acknowledged children of his or her issue for a period of not to exceed ten years, or to the surviving lawful husband or wife if there are no children eligible under the provisions of this Act to receive the same, or to his or her surviving parents, father or mother, if there are no children or lawful husband or wife eligible under the provisions of this Act to receive the benefits thereof: Provided, That pension funds shall not be paid to children over eighteen years of age or to married children, or to a remarried surviving wife or husband, nor to parents under the age of sixty years."

Section 3

SEC. 3. Section eight of Act Numbered Three thousand and fifty is hereby amended to read as follows:

"SEC. 8. Beginning on the first day of the fiscal year fol- lowing the approval of this Act and annually thereafter there shall be included in the total sums appropriated for pay or compensation of employees to whom this Act applies a sum equal to three per centum of the total sum for pay or compensation made by Insular, provincial, or municipal legislation, and the said sum shall be transferred on the books of the Insular Treasurer to the credit of a special fund to be known as the 'Teachers Retirement and Disability Fund,' and said fund is hereby appropriated for the payment of annuities, allowances, and expenses as provided in this Act, and for investment by the 'Tension and Investment Board' created in section twelve of this Act. The 'Pension and Investment Board" is hereby directed to invest from time to time such portions of the 'Teachers Pension and Disability Fund' as shall not be required to meet the current payments, in the form of annuities or otherwise, and expenses, incident to the carrying on of the provisions of this Act, in any or all of the following ways and in no others:

"(a) In interest-bearing bonds or securities of the Government of the United States or of the Philippine Islands, or bonds or securities of said countries for the payment of the interest and principal of which the faith and credit of said countries is pledged.

" (b) In interest-bearing deposits, under security approved by the Board, in any bank doing business in the United States or in the Philippine Islands having an unimpaired paid-up capital and surplus equivalent to one million five hundred thousand pesos or over: Provided, That said bank shall first have been designated as a depository for this purpose by the Governor-General, upon the recommendation of the insular Treasurer.

"(c) In first liens upon improved, productive, and unencumbered real estate in the City of Manila with a title duly registered under Act Numbered Four hundred and ninety-six, as amended: Provided, That no loan shall be made upon the security of real estate in excess of fifty per centum of the fair appraised value thereof, to be determined in such manner as the Board shall prescribe, subject to the rule that the durable income from such real estate shall constitute the main factor in the determination of value: And provided, further, That no loan shall be made for a period exceeding three years, and that not more than thirty per centum of the total investments made by the Board shall be on the security of real estate.

"The Board shall have the right to foreclose any loan in the event of any material depreciation of the value of the security or if the terms of the loan contract are not complied with. It shall also make proper provision for the insurance of all property, subject to damage by fire, which shall be held by it as security. The Board shall also have the right to hold, for a period not exceeding five years, such real estate as may come into its possession on account of money loaned.

"(d) In commuting installment payments due from the Government of the Philippine Islands to individuals upon the proper assignment of the individual's claim to the Board. "(e) No loan shall be made by the Board from the 'Teachers' Pension and Disability Fund,' directly or indirectly, to any member of said Board, and any member of said Board receiving such a loan or authorizing or making any such loan shall be guilty of a felony and be punished by imprisonment for not less than five years or by a fine of not less than two thousand nor more than twenty thousand pesos, or both, in the discretion of the Court.

"(f) Whenever the current surplus of the 'Teachers' Pension and Disability Fund' shall fall below the amount of fifty thousand pesos, no new real-estate loan shall be made by the Board.

" (g) The Board is authorized, in making investments pursuant to this section, to fix the terms thereof in such a way as shall preserve the funds from any loss due to depression in the medium of payment and to take any other precautions which in its judgment are deemed necessary for the adequate conservation of said Pension Fund."

Section 4

SEC. 4. Section twelve of Act Numbered Three thousand and fifty is hereby amended to read as follows:

"SEC. 12. There is hereby constituted for the enforcement of this Act a 'Pension and Investment Board' composed of the Secretary of Public Instruction, who shall be chairman, ex-officio, the Director of Education, the Insular Treasurer, the Insular Auditor, and the Director of Civil Service, none of whom shall receive additional compensation, and of three other persons appointed by the Governor-General, with the advice and consent of the Senate. Said three persons shall not receive any compensation. The 'Pension and Investment Board' shall during the month of July of each fiscal year submit to the Governor-General a report of operations under the provisions of this Act and shall recommend to the Governor-General for including in the Insular budget for the fiscal year to follow, a sum sufficient to pay the retirement allowances and other expenses for that fiscal year whenever the funds made available by the operation of sections eight, nine, and ten of this Act are insufficient."

Section 5

SEC. 5. This Act shall take effect on its approval.

Approved, March 16, 1923.