government
RA 10801 THE OWWA CHARTER President Aquino has signed into law the Overseas Workers Welfare Administration (OWWA) Act or Republic Act 10801. This Act provides guidelines on OWWA, its mandate, purposes and objectives, membership, collection of contributions and access to benefits and services. It also embodies policies on fund management, programs and services administration. OWWA used to operate on Presidential Decree No. 1694 of May 1, 1980, amended by PD 1809 of January 16, 1981, both on the term of then President Ferdinand E. Marcos.
There are demands to separate the books of account of sea-based from land-based funds since land-based contribution is 70% and sea-based only 30%. The former should have more benefits than the lower contributor. Administrator Calzado wants funds co-mingled (joined) since a bigger total brings higher returns in the investment market. Funds must be invested so it would grow to pay for future liabilities. Benefits and Services.
Senator Joseph Victor JV Ejercito proposed the new law in 2013. A technical working group was created in 2015, substituted by Senate Bill 2955 under C.R. No. 255 which became RA 10801.
Among the mandates: •
Not less than 10% of OWWA’s collection for the immediately preceding year shall be for the reintegration program
Funding.
•
Assist DFA provide OFWs with repatriation
•
Provide low-interest loans to members
OWWA is now a national government agency attached to the Department of Labor and Employment (DOLE), its personnel covered by the Salary Standardization Law. OWWA would now receive government funding instead of relying solely from the contributions of its OFW members. However, OWWA Fund is a private fund held in trust by the OWWA. As such, no
8
MARINO WORLD
o P2,000 to P50,000 disability and dismemberment benefits
portion nor any of its income, dividends or earnings shall accrue to the general fund of the Government.
•
Maintain assistance to members in all its overseas offices.
•
Cover members with social benefits, viz: o P100,000 for natural death; P200,000 for accidental death
o P100,000 total permanent disability benefit o P20,000 burial benefit On actuarial studies, the Board may increase above benefits.Within two years from the effectivity of this Act, the OWWA shall develop and implement health care programs for the benefit of member-OFWs and their families. A member, or designated beneficiary, may avail of scholarship grants on a selection process and accreditation of participating institutions. OWWA may grant rebates or financial assistance to OFW members at least ten years, and who, along with their families, have not availed of any service or benefit from the OWWA. RA 10801 also mandates greater representation of OFWs in the Board of Trustees: •
Increasing OFW representatives to five (two land-based, two from sea-based)
•
One from the women sector)
•
Government reps reduced from seven to six.