EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE PHILIPPINES TO SECURE SOCIAL SECURITY BENEFITS FOR PHILIPPINE CITIZEN CIVILIAN EM-PLOYEE…

No. 699

The Embassy of the United States of America presents its compliments to the Department of Foreign Affairs of the Republic of the Philippines and has the honor to refer to the Embassy’s Note No. 355, dated November 12, 1964,^[2] in which it proposes that the United States participate on a voluntary basis in the Social Security System of the Government of the Philippines insofar as the System provides for old age retirement, permanent disability, sickness and death benefits, in order to secure social security benefits for Philippine citizen civilain employees of the Agency for International Development Mission to the Philip-pines (USAID). The Embassy now wishes to propose that the United States likewise participate on a voluntary basis in the Social Security System of the Government of the Philippines under the same conditions for Philippine citizen civilian employees of the Peace Corps and the Joint U. S. Military Advisory Group (JUSMAG), also presently without a retirement pension program.

Sections 11 through 21, inclusive, and Sections 22 (a), 23 and 24 (a) of the System and of the rules, regulations and procedures of the System which describe the duties of the employer participating in the programs enumerated above shall be applicable to the Peace Corps and JUSMAG. The employees covered into the System shall have the same benefits and protections and be subject to the same obligations and penalties under the System as if they were in private employment. If the foregoing proposal and the Annex attached hereto are acceptable to the Government of the Philippines, this note and the Government of the Philip-pines’ reply thereto indicating such acceptance shall be considered to constitute the agreement of the Governments of the United States of America and the Republic of the Philippines concerning this matter. The Embassy avails itself of this opportunity to renew to the Department of Foreign Affairs the assurances of its highest consideration.

Enclosure:
As stated.

American Embassy
Manila, April 5, 1965

ANNEX
The United States Government proposes to the Philippine Government the following understandings between them to implement participation in the Philippine Social Security System by the Peace Corps and U.S. Joint Military Advisory Group (JUSMAG) for the benefit of their Philippine citizen civilian employees.

Peace Corps and JUSMAG shall make deductions from covered employees’ wages of the employee contributions required by the System and shall remit them to the System together with the corresponding employer contributions.

In carrying out the provisions of the Philippine Social Security Act which authorize the System to reimburse the employer for over-payments or other amounts which become due to the employer from the System (for example, reimbursing the employer for payment of sickness benefits under the System) the Peace Corps and JUSMAG will accept such reimbursement in the form of credit offsets to their current remittances to the System.

All fiscal transactions between Peace Corps and JUSMAG and the System and with covered employees shall be in terms of the Philippine peso.

The United States Government will provide appropriate self-audit and self-inspection in lieu of external audit or inspection except as may be otherwise agreed as an administrative arrangement. Nothing in this agreement is to be construed as altering the privileges and immunities provided under generally accepted principles of international law or in the treaties and agreements between the two Governments, nor construed to subject the United States or its agencies, solely because of participation in the System, to any civil, administrative or penal action provided for by the System of by any other law.

All Philippine citizen employees of Peace Corps and JUSMAG who would otherwise be eligible for coverage under the System and who are not eligible for participation in

the U.S. Civil Service Retirement program, will be considered to be included within the terms of this Annex.

Administrative arrangements for the further implementation of this agreement, including the date for commencing participation in the System, shall be concluded be-tween the Philippine Social Security Commission and the Deputy Director Management for Peace Corps and Rear Admiral J.P. Monroe, USN, for JUSMAG.

No. 35420

The Department of Foreign Affairs presents its compliments to the Embassy of the United States of America and has the honor to refer further to the Embassy’s note No. 699 dated April 5, 1965, and the annex attached thereto, the text of which are quoted as follows :

The Department has the honor to inform the Embassy that the proposals set forth in the aforequoted note No. 699 dated 5 April 1965, and the Annex attached thereto, are acceptable to the Government of the Republic of the Philip-pines, and that it is the understanding of the Department that the Embassy’s note under reference, together with its Annex, and this reply thereto shall constitute the Agreement of the Governments of the Republic of the Philippines and the United States of America concerning the matter.

The Deputy Director/Management for the U. S. Peace Corps and Rear Admiral J.P. Monroe, USN, for JUSMAG, may deal directly with the Philippine Social Security Commission on the administrative arrangements to be concluded for the further implementation of this Agreement, including the date for commencing participation in the System.

The Department avails itself of this opportunity to renew to the Embassy the assurances of its highest consideration.

Manila, July 15, 1965