Rationale: Statistical data reveal that a Filipino employee, in lieu of investing in fixed assets during his productive years, opts to save for the future by way of a dependable retirement plan. This includes affordable annuity products such as pension and insurance plans, which will help provide the savings facility to sustain the employee's needs upon retirement. Thus, annuities serve as a supplementary source of income for the Filipino worker after long years of hard work. With it, the retiree can look forward to living a comfortable life. However, under RA No. 8424 or the Tax Reform Act, ANNUITIES are included among "pertinent items of gross income". This obviously puts a heavy toll on the often meager amount received by the annuitantts especially without any other source to live by.