Amending P.D. No. 361 Re: Establishment of AFP Retirement and Separation Benefits System

March 22, 1984

PRESIDENTIAL DECREE NO. 1909

FURTHER AMENDING PRESIDENTIAL DECREE NO. 361 ESTABLISHING THE ARMED FORCES OF THE PHILIPPINES RETIREMENT AND SEPARATION BENEFITS SYSTEM

WHEREAS, pursuant to Presidential Decree No. 361, the Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS) was established for the purpose of providing a self-reliant funding scheme which will guarantee continuous financial support to the AFP retirement plan; aisa dc

WHEREAS, under prevailing laws and implementing regulations, certain groups of retired military personnel, particularly those who retired prior to September 10, 1979, are classified into various categories depending upon the respective dates of their retirement or separation from the active service, thereby inevitably resulting in inequities in the receipt of retirement pension;

WHEREAS, there is a necessity to upgrade the pension of the above-mentioned retired military personnel to enable them to meet the escalating cost of living and to equalize the entitlement to retirement pension of all military personnel and their beneficiaries;

WHEREAS, the inclusion of the group of retired military personnel mentioned in the AFP-RSBS will facilitate the equalization of retirement benefits previously stifled by enormous budgetary or funding constraints; aisa dc

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution do hereby decree:

SECTION 1. Any provision of law, rule or regulation to the contrary notwithstanding, all military personnel who retired from the active service prior to September 10, 1979 and are receiving annual retirement pension from the Armed Forces of the Philippines shall be considered as additional members of the Armed Forces of the Philippines Retirement and Separation Benefits System, hereinafter referred to as the System. They shall henceforth contribute an amount equivalent to five percent (5%) of their gross monthly pension as herein adjusted, which contribution shall be deducted from their said pension and paid to the System: Provided, That such contribution to the System shall be refunded in one lump sum to the retired military personnel or their beneficiaries concerned upon the termination of their entitlement to retirement pension from the Government.

SECTION 2. The System shall forthwith support the payment of the increment representing the difference between the existing pension rate and the adjusted pension rate computed on the basis of the prevailing scale of pay of officers and enlisted men in the active service: Provided, That payment thereof by the System and receipt of the adjusted pension shall be in accordance with the rate of pension and schedule of payment as shall be determined and fixed under the implementing rules and regulations promulgated by the Chief of Staff, Armed Forces of the Philippines, and approved by the Minister of National Defense: Provided, Further, That nothing herein shall be construed as authorizing payment of back pension prior to the promulgation of this Decree.

 The initial sum of Two Hundred Million Pesos (P200,000,000.00) is hereby appropriated out of any savings of the Armed Forces of the Philippines under the General Appropriations Act, which shall be paid in lump sum as additional government contribution to the System: Provided, That such additional sum necessary to fully implement the objectives of this Decree shall be provided for in the subsequent appropriation in the budget of the Armed Forces of the Philippines.

SECTION 4. Any provision of law, decree, order, rules and regulations, or part thereof, inconsistent with this Decree is hereby repealed, amended or modified accordingly. casia

SECTION 5. This Decree shall take effect immediately.

DONE in the City of Manila, this 22nd day of March, in the year of Our Lord, Nineteen Hundred and Eighty-Four.

Published in the Official Gazette, Vol. 80 No. 21 Page 3033 on May 21, 1984.