1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA AND HON. 
NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
The bill proposes the amendment of Section 5(a) of Presidential Decree No. 1638, entitled 
"Establishing A New System of Retirement and Separation for Military Personnel of the Armed 
Forces of the Philippines (AFP) and for Other Purposes," as amended by Presidential Decree No. 
1650 which sets the mandatory retirement age for military personnel and officers at 56 years old to 
extend the compulsory retirement age to 65 years old. 
It is recognized that the service provided by military officers and personnel is sui generis in its very 
nature. Members of the AFP are often required to live away from their families and are exposed to 
danger. They are also subject to extensive and grueling physical and mental training throughout their 
careers. Hence, the State constantly endeavors to provide them with compensation and benefits 
package in consideration of their sacrifices, and a lower compulsory retirement age so that they 
could still enjoy productive civilian lives with their families away from combat. 
However, Presidential Decrees 1638 and 1650 which set the current retirement age at 56 years old 
were issued almost four decades ago. Since then, technological advancements in medicine and 
medical equipment have prolonged life expectancies worldwide, and allowed individuals to live 
healthy lives even at an advanced age. This fact is reflected in a recent trend of increased 
compulsory retirement age among several countries including Australia, Belgium, Germany, and 
several others. These countries recently passed legislation to extend the compulsory retirement age 
to 67 years old. 
This Representation finds it worthy to revisit the aforementioned laws and amend the same to keep 
up with recent developments. A later compulsory retirement age of 65 years old would also allow the 
government to benefit from the experience and expertise of our armed officers without necessarily 
requiring them to remain on the battleground. 
In consideration of the foregoing premises, the swift passage of this Bill is sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 
July 14, 2022
5:03 pm
2015


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA 
AND HON. NICOLAS ENCISO VIII 
AN ACT 
CREATING A SUSTAINABLE FISCAL FRAMEWORK FOR THE  
PENSION SYSTEM OF THE MILITARY AND UNIFORMED PERSONNEL,  
PROVIDING MECHANISMS FOR THE DISPOSITION OF GOVERNMENT 
ASSETS FOR THE PURPOSE, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
TITLE I 
General Provisions 
SECTION 1. Short Title. – This Act shall be known as the “Military and Uniformed Personnel 
Pension Act”.  
SECTION 2. Declaration of Policy. – The State duly recognizes the vital role of the military 
and uniformed personnel in providing internal and external security, promoting peace and 
order, and ensuring public safety.  
The State also recognizes its obligation to secure the pension system for the military 
and uniformed personnel given the distinctive personal risks in their role in nation-building 
and national security.  
To protect the military and uniformed personnel against the extraordinary hazards, 
risks, and dangers that they encounter in the performance of their duties, the State shall 
ensure that there shall be an adequate, robust, and a well-managed insurance system that 
shall adequately and sustainably support their needs and that of their dependents.  
2015


 
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Towards these ends, the State shall guarantee the sustainability of the pension 
and other benefits of the military and uniformed personnel by creating a fiscal 
framework that fully supports their funding requirements.  
 
SECTION 3. Definition of Terms. – As used in this Act:  
a.  Military and Uniformed Personnel refers to all employees of the government who wear 
uniforms, with ranks, may be armed or unarmed, primarily involved in national defense, 
enforcement of laws, and in the maintenance of peace, order, and  security and who 
belong to any of the following services: Armed Forces of the Philippines,  Philippine 
National Police, Philippine Coast Guard, Bureau of Fire Protection, Bureau of Jail 
Management and Penology, Bureau of Corrections, and the employees of 
the  Hydrography Branch of the National Mapping and Resource Information Authority 
who were transferred from the Bureau of Coast and Geodetic Survey; 
 
b. Pension refers to the sum of money representing the monthly retirement pay or the 
monthly life annuity of a military and uniformed personnel; 
 
c. Survivorship Pension refers to the monthly benefit or the monthly life annuity of the 
beneficiaries of a military and uniformed personnel who is retired or separated under 
the provisions of existing laws.  
 
 
TITLE II 
Fiscal Sustainability of Pension Benefits 
 
SECTION 4. Fiscal Risk Management. – To ensure that fiscal risks related to the military 
and uniformed personnel pension system are managed and addressed, the Secretary of 
Finance, as Chairperson of the Military and Uniformed Personnel Trust Fund Committee 
created under Section 9 of this Act, shall:  
a. Formulate policies, consistent with law, to ensure the fiscal sustainability of the pension 
of military and uniformed personnel;  
b. Assess possible risks to the fiscal sustainability of the pension of military 
and uniformed personnel and propose appropriate policy interventions; 
c. Identify, manage, and control risks that the pension of military and uniformed personnel 
may pose to the national government’s fiscal position;  
d. Inform Congress of such risks through the annual Fiscal Risk Statement and propose 
legislative reforms to address such risks; and 
e. Obtain information from any officer or office of local governments and agencies and 
instrumentalities of the national government, as may be necessary. 
 
SECTION 5. Maturity Benefit from the Insurance Plan. – A military and 
uniformed  personnel who is retired or separated under the provisions of existing laws, or 
the qualified survivors in the case of death before retirement or separation, shall receive 
the maturity benefit from the life insurance plan funded by mandatory contributions paid 


 
4 
by the military and uniformed personnel under Section 14 of this Act. The Military 
and Uniformed Personnel Trust Fund Committee as created under Section 9 of this Act, 
shall provide mechanisms to allow the enjoyment of this benefit either as a lump sum or 
in annuitized payments.  
 
SECTION 6. Disability Pension. – In lieu of disability benefits provided under existing laws, 
a military and uniformed personnel who is retired by reasons of disability, which is the 
proximate result of wounds or injuries sustained or sickness or disease acquired in the line 
of duty shall receive a monthly disability pension corresponding to the disability incurred at 
the time of separation:  
a. If and while the disability is rated twenty-five percent (25%) – Five thousand pesos 
(P5,000.00);  
b. If and while the disability is rated fifty percent (50%) – Ten thousand 
pesos (P10,000.00); 
c. If and while the disability is rated seventy five percent (75%) – Fifteen thousand pesos 
(P15,000.00); and  
d. If and while the disability is rated one hundred percent (100%) – Twenty  thousand 
pesos (P20,000.00).  
 
SECTION 7. Capped Automatic Indexation to Adjustments in Active Personnel Pay. – 
The  adjustment in pension of retired or separated military and uniformed personnel 
and survivorship pension of qualified survivors shall be automatically indexed to 
adjustments in the salary of military and uniformed personnel in active service holding the 
same rank: Provided, That within ten (10) years from the effectivity of this Act, the 
adjustment in the salary of active military and uniformed personnel shall not exceed five 
percent (5%) at any given year and the adjustment in the pension and survivorship pension 
shall not  exceed five percent (5%) during the same year.  
 
The President of the Philippines is hereby authorized, upon the recommendation of 
the Military and Uniformed Personnel Trust Fund Committee as created under Section  9 of 
this Act, and subject to consultation with the President of the Senate and the Speaker of the 
House of Representatives, to increase the pension and survivorship pension at a rate lower 
than the adjustment in the salary of active military and uniformed personnel of the same 
rank if the national government incurs an unmanageable public sector deficit.  
 
TITLE III 
Military and Uniformed Personnel Trust Fund 
 
SECTION 8. Military and Uniformed Personnel Trust Fund. – The Military and Uniformed 
Personnel Trust Fund, hereinafter referred to as the MUP Trust Fund, is hereby created for 
the budgetary support of the military and uniformed services,  including the payment of 
pension and survivorship pension under existing laws and the disability pension and other 
benefits under this Act.  
 


 
5 
SECTION 9. Military and Uniformed Personnel Trust Fund Committee. – To carry 
out the declared policy of this Act, the Military and Uniformed Personnel Trust 
Fund Committee, hereinafter referred to as the Committee, is hereby created. The 
Committee shall be organized within ninety (90) days from the effectivity of this Act. The 
Committee is composed of the following members:  
a. Secretary of Finance, as Chairperson;  
b. Secretary of Budget and Management;   
c. Secretary of National Defense;  
d. Secretary of the Interior and Local Government;  
e. Secretary of Justice;  
f. Executive Secretary of the Office of the President; and 
g. President and General Manager of the Government Service Insurance System.   
 
The Bureau of the Treasury shall serve as the Secretariat of the Committee 
and maintain the records and accounts of all investments, receipts, disbursements, and 
other transactions relating to the management, administration, and utilization of the 
MUP Trust Fund: Provided, That these records and accounts are maintained in 
accordance with the existing accounting and auditing laws, rules, and regulations and 
audited by the Commission on Audit.  
 
SECTION 10. Powers and Functions of the Committee. – The Committee shall 
exercise the following powers and functions: 
a. Act as Trustee of the MUP Trust Fund and such other assets as may be assigned to 
the pension system of the military and uniformed personnel and direct how the assets 
of the MUP Trust Fund are managed;  
b. Manage the MUP Trust Fund, through the fund manager designated under Section 11 
herein, and ensure that the fund is actuarially and financially optimal and  sustainable;  
c. Authorize the necessary expenses to manage and administer the MUP Trust  Fund;  
d. Authorize and direct the creation of a life insurance system for military and  uniformed 
personnel which shall cover death and disability benefits in addition to those  provided 
under this Act, to account for the significant risks involved in military and  uniformed 
service and indemnify personnel who suffer such risks, and set reasonable mandatory 
insurance premiums therefor;  Provided, That the insurance system shall be 
administered by the Government Service Insurance System and supervised by the 
Insurance Commission: Provided,  further, That the insurance system shall be 
managed separately from the pension system: Provided, finally, That, subject to the 
authorization of the Committee, the insurance system may undertake investments in 
debt and equity securities and in the money market, real estate investments, and other 
viable investments; 
e. Authorize and direct the creation of a provident fund or a mutual fund; 
f. Implement and execute functions related to the disposition of assets identified under 
this Act;   


 
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g. Create, manage, and utilize separate trust fund accounts for the budgetary support of 
the military and uniformed services, retirement and survivorship benefits of  military 
and uniformed personnel, provident or mutual fund and insurance provisions;  
h. Cause the undertaking of a survey or consultation to assess the preferences of  military 
and uniformed personnel on the features of the pension system, including  willingness 
to pay for contributions and interest in various benefit and investment  schemes;   
i. Commission an actuarial evaluation of the fiscal sustainability of the pension scheme, 
including specific recommendations on the rates for contributions and investment 
options for the MUP Trust Fund, as applicable; and  
j. Perform other necessary functions for the effective management of the MUP Trust 
Fund. Provided, That within one (1) year from the effectivity of this Act, the 
fund  manager shall conduct the studies stated in Subsections (h) and (i) herein: 
Provided,  further, That the findings and recommendations obtained from the studies 
shall be submitted to the Committee which shall promulgate implementing rules and 
regulations  with respect to the mandatory contribution scheme, and other features of 
the pension  scheme as applicable: Provided, furthermore, That an amount not 
exceeding Thirty million pesos (P30,000,000.00) is hereby appropriated for the 
conduct of the studies:  Provided, finally, That the fund manager may engage the 
private sector, as needed, to  ensure quality and timeliness in the implementation of 
the survey, consultation, and  actuarial evaluation.  
 
SECTION 11. MUP Trust Fund Manager. – The Government Service Insurance System  is 
designated as the fund manager and benefits administrator of the MUP Trust Fund,  and 
shall:  
a. Implement an investment management and benefits administration strategy 
as directed by the Committee;  
b. Monitor market and economic trends and track securities to make informed  investment 
decisions;  
c. Recommend its portfolio strategy to the Committee;  
d. Track financial results of companies in the portfolio and its various metrics,  including 
price-to-earnings ratios, inflation-adjusted return, sales, earnings, and  dividends; and  
e. Perform other acts necessary to fulfill its mandate under this Act, or such Acts  that 
may be delegated by the Committee.  
 
SECTION 12. Structure, Staffing Pattern, and Operating Budget. – The 
organizational  structure and staffing pattern for the management of the MUP Trust Fund 
within the  Government Service Insurance System and for the creation of the MUP Trust 
Fund  Secretariat within the Bureau of the Treasury shall be approved by the Committee 
within ninety (90) days from the enactment of this Act: Provided, That appointees to 
various positions shall comply with the qualification standards approved by the Civil 
Service Commission: Provided, further, That the Government Service Insurance System 
shall be entitled to a management fee, to be charged against the MUP Trust Fund and 
its derivative incomes, including budgetary requirement commensurate to the expertise 


 
7 
and  services rendered for the salaries and benefits of officials and employees assigned to 
the  Committee.   
 
SECTION 13. Joint Responsibility. – For the purpose of ensuring that only 
qualified  military and uniformed personnel retirees and beneficiaries shall receive the 
retirement  pension or separation benefits, the respective services or mother units shall 
assist and  share, jointly or separately, the duty and obligation with the Committee in 
monitoring proof of life or life events that will affect the qualification of pensioners and 
beneficiaries to receive the pension or benefit. The initial computation of pension and 
benefits accruing to each retiree or beneficiary shall be jointly undertaken and agreed upon 
by the  concerned mother unit and the Committee.  
 
SECTION 14. Funding Sources. – The MUP Trust Fund shall be funded through 
the following:  
a. Capitalization. 
– 
The 
amount 
of 
One 
hundred 
thirty 
billion 
pesos (P130,000,000,000.00) shall be appropriated to the MUP Trust Fund to cover 
the pension  requirement of the Fiscal Year for which the fund was appropriated. Such 
sums as may  be necessary for the sustainability of the fund as determined by the 
Committee shall be  automatically appropriated and be automatically released to the 
MUP Trust Fund.  
b. Mandatory Contributions. – It shall be mandatory for military and uniformed  personnel 
to contribute a percentage of their monthly compensation as their personal  share to 
the MUP Trust Fund. There shall also be a National Government share which shall be 
automatically appropriated and used exclusively to fund pension benefits of 
the  military and uniformed personnel. The mandatory contributions shall be allocated 
as  follows:  
i. For the first three (3) years after the effectivity of this Act, military  and uniformed 
personnel shall contribute five percent (5%) of their monthly  compensation as 
personal share, while the National Government shall provide an  equivalent of 
sixteen percent (16%) as its share;  
ii. Thereafter, for the next three (3) years, military and uniformed  personnel shall 
contribute seven percent (7%), while the National Government shall provide 
fourteen percent (14%); and  
iii. For every year thereafter, military and uniformed personnel shall contribute nine 
percent (9%) and the National Government shall provide twelve percent (12%).  
 
Provided, That contribution rates may be adjusted by the fund manager, subject to 
actuarial 
validation: 
Provided, 
further, 
That 
forty-five 
percent 
(45%) 
of 
mandatory contributions of the military and uniformed personnel shall be used for the 
establishment  of a life insurance plan as authorized under this Act, with death, accident, 
and disability  benefits in addition to those mandated under this Act; forty-five percent (45%) 
shall be used to establish the Provident Fund; and ten percent (10%) shall be used for the 
payment  of disability pension granted under this Act: Provided, furthermore, That such 
allocations may be periodically adjusted by the Committee based on actual need and 


 
8 
actuarial  soundness: Provided, finally, That the life insurance plan shall include a cash 
benefit that shall be due and collectible at the plan’s maturity date, which shall be the date 
of  separation from service.   
 
c. Additional Sources of Funding. – The MUP Trust Fund may be augmented from the 
unprogrammed 
appropriations 
and 
proceeds 
derived 
from 
the 
lease, 
joint development, auction of development rights, or disposition of government 
properties identified for the purpose, investment income from the MUP Trust Fund 
identified and overseen by the fund manager subject to actuarial validation, and 
savings of the National Government.  
 
SECTION 15. Government Guarantee. – The government of the Republic of 
the Philippines hereby guarantees the fulfillment of the obligations of the MUP Trust Fund 
to its members when they fall due.  
 
SECTION. 16. Disposition of Military and Uniformed Services Assets. – Within thirty 
(30) days from the effectivity of this Act, the concerned military and uniformed services 
shall  submit a complete list of their real assets in the manner prescribed by the Committee 
to  identify additional sources of funding for budgetary support of their services, 
and  augment the financing of the separation, retirement, and pension benefits of their 
military  and uniformed personnel under existing laws and this Act.   
Thereafter, the Committee shall conduct a complete accounting and inventory of  the 
assets of military and uniformed services that may be used to support the MUP Trust  Fund, 
including the amount, value, description and nature of such funds, properties,  assets, 
records, choses in action, and other rights, claims, or causes of action pertaining  thereto, 
and submit a report to the Office of the President, Congress, and the Commission on Audit.  
Within thirty (30) days from the receipt of the inventory by the Committee, 
the  Commission on Audit shall audit the accounting and inventory of the assets of 
concerned  military and uniformed services to determine the completeness of the inventory 
and  establish the reasonableness of the asset valuation.  
Within one (1) year from the submission of the accounting and inventory of the  assets 
of concerned military and uniformed services, the Commission on Audit shall  submit to the 
Committee the audit report, including the complete list of the assets of  concerned military 
and uniformed services and their valuation, and the empirical basis  and the methodologies 
employed for the valuation. 
The Committee shall, within fifteen (15) days from the receipt of audit report,  publish 
the audit report in at least two (2) newspapers of general circulation. Nothing  herein shall 
be construed as preventing the designated disposition entity from procuring  a third-party 
appraisal of any of the assets of concerned military and uniformed services  prior to or while 
preparing the privatization or disposition plans of the assets.  
The 
Committee 
shall 
coordinate 
with 
the 
Office 
of 
the 
President, 
Philippine  Reclamation Agency, and other disposition entities to be identified by the 
Committee in  the execution and delivery of this mandate.  


 
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The Committee shall prioritize the disposition modes that may generate income  from 
these assets without undertaking the sale thereof except when the Committee determines 
that selling a specific asset is the most optimal financial option: Provided, That the 
Committee may sell only portions thereof to meet the financial requirements.  
To optimize revenues from the assets of the concerned military and 
uniformed  personnel services, the Committee may seek the services of the Privatization 
Group of the Department of Finance which shall recommend to the Committee the most 
financially  advantageous manner of disposition of the assets.  
Unless otherwise directed by the President of the Philippines as the Commander-in-
Chief and upon the recommendation of the Secretary of Finance, the proceeds from  the 
disposition of assets of the concerned military and uniformed services shall be  earmarked 
for the budgetary support of the military and uniformed services for capital outlay and 
maintenance and other operating expenditures. The Committee shall allocate  the proceeds 
from the disposition of assets based on the funding requirements of the specific purposes. 
The proceeds from the disposition of asset of the military and  uniformed services shall inure 
to the benefit of, or as budget support to, the service to  which the asset belongs if used 
towards budgetary support for capital outlays, pension fund, and maintenance and other 
operating expenses.  
Within one (1) year from the effectivity of this Act, the military and uniformed  services 
may add to the list such real assets required for identification and submission  under this 
Section and which belonged to the military and uniformed services prior to  the effectivity of 
this Act. Any real asset that is required by this Act to be included in the submitted lists and 
which are not included in actual submissions by the military and  uniformed services may 
be disposed by the MUP Trust Fund Committee in the manner  it deems appropriate.  
 
SECTION 17. Tax Treatment of the MUP Trust Fund. – Notwithstanding any law to 
the  contrary, the MUP Trust Fund, its assets, revenues, including all accruals thereto, 
and  benefits paid, are exempt from all taxes, assessments, fees, charges, or duties of all 
kinds.  These exemptions shall continue unless expressly and specifically revoked.  
Subject to Section 20 of this Act, the MUP Trust Fund, the properties of the  military 
and uniformed services identified by the Committee to be disposed and sums or  monies for 
the payment of the benefits under this Act are exempt from attachment, garnishment, 
execution, levy or other processes issued by the courts, quasi-judicial agencies or 
administrative bodies and from all financial obligations of the members,  including pecuniary 
accountability arising from or caused or occasioned by the members’ exercise or 
performance of official functions or duties, or incurred relative to or in  connection with the 
members’ position or work except when the monetary liability,  contractual or otherwise, is 
in favor of the MUP Trust Fund.  
All other applicable tax exemptions granted to the Government Service 
Insurance  System shall also apply to the MUP Trust Fund.  
 
TITLE IV 
Transitory Provisions 
 


 
10 
SECTION 18. Transfer of Power and Functions. – For purposes of administration 
of military and uniformed personnel pension and retirement benefits, the powers 
and functions of units or instrumentalities of agencies that employ military and uniformed 
personnel and administer their pension system or parts thereof are hereby transferred to the 
MUP Trust Fund Committee.   
 
SECTION 19. Period of Transfer. –There shall be a transition period of five (5) 
months  from the effectivity of this Act to implement the transfer of powers and functions, 
rights,  assets, and liabilities mentioned in this Title: Provided, That the same transition 
period  shall be provided to allow the units or instrumentalities of agencies administering 
the  military and uniformed personnel pension system to restructure: Provided, further, 
That  all civilian personnel in the units or instrumentalities administering the military 
and  uniformed personnel pension system affected by the transfer of powers and 
functions  provided in this Title shall continue in office without need of reappointment: 
Provided, finally, That civilian employees in the units or instrumentalities of agencies 
administering the military and uniformed personnel pension system who opt to retire or 
resign as a result hereof, if qualified, shall be allowed and be entitled to retirement and 
separation benefits under existing laws to officials and employees affected by an 
approved  reorganization program.  
 
TITLE V 
Final Provisions 
 
SECTION 20. Non-encumbrance of Benefits. – The benefits authorized under this 
Act,  except as provided herein, are not subject to attachment, garnishment, levy, execution 
or  any tax whatsoever, and may not be assigned, ceded, or conveyed to any third 
person:  Provided, That if a retired or separated military and uniformed personnel who is 
entitled  to any benefit under this Act has unsettled money or property accountabilities 
incurred  while in the active service, an amount not exceeding fifty percent (50%) of the 
pension  gratuity or other payment due to the military and uniformed personnel or their 
survivors  under this Act may be withheld and be applied to settle such accountabilities.  
 
SECTION 21. Financial Literacy and Career Transition Training. – The Bangko 
Sentral  ng Pilipinas, in coordination with the military and uniformed services, shall 
provide mandatory, periodic financial literacy training for active personnel. The military 
and uniformed services shall formulate skills workshops for active personnel who plan to 
transition to other careers outside of the uniformed service.  
 
SECTION 22. Penal Clause. – Any person who participates directly or indirectly in 
the commission of fraud, falsification, misrepresentation of facts, collusion or any 
similar  anomaly in the issuance of any certificate or document for any purpose connected 
with this Act shall upon conviction be punished by a fine of not less than the amount 
defrauded but not more than threefold of such amount or imprisonment of not less than six 


 
11 
(6)  months and one (1) day to six (6) years and perpetual disqualification from holding 
public  office and from practicing any profession licensed by the government.  
 
SECTION 23. Implementing Rules and Regulations. – Within sixty (60) days from 
the  effectivity of this Act, the Secretary of Finance shall, in consultation with the 
Secretaries  
of 
National 
Defense, 
Interior 
and 
Local 
Government, 
Justice, 
Transportation,  Environment and Natural Resources, Budget and Management, and the 
Head of the Government Service and Insurance System, promulgate the necessary rules 
and regulations for the effective implementation of this Act.  
Supplemental rules and regulations governing the management and  administration 
of the pension system of the military and uniformed personnel may be  issued within one (1) 
year from the effectivity of this Act.  
 
SECTION 24. Repealing Clause. – The pertinent provisions of these laws are 
hereby repealed:  
a. Presidential Decree No. 361, entitled “Providing for an Armed Forces Retirement and 
Separation Benefits System,” as amended by Presidential Decree No. 1656 and 
Presidential Decree No. 1909;  
b. Sections 23, 24, 26, and 31 of Presidential Decree No. 1638, entitled “Establishing a 
New System of Retirement and Separation for Military Personnel of the Armed Forces 
of the Philippines and for Other Purposes,” as amended by Presidential  30 Decree 
No. 1650;  
c. Section 11 of Republic Act No. 340, as amended, entitled “An Act to Establish 
a  Uniform Retirement System for the Armed Forces of the Philippines, to Provide 
for Separation Therefrom, and for Other Purposes”, as amended;  
d. Sections 16, 17, 18, 19, 20 and 22 of Republic Act No. 5976, otherwise known as the 
“Coast Survey Officers Retirement and Separation Act of 1969”;  
e. Section 77 of Republic Act No. 6975, otherwise known as the “Department of  Interior 
and Local Government Act of 1990”, as amended; and  
f. Sections 4 and 5 of Republic Act No. 9040, otherwise known as the “AFP 
Tax  Exemption for Pay and Allowances Act of 2001.”  
 
All other laws, rules and regulations, and other issuances or parts thereof, which are 
inconsistent with the provisions of this Act, are hereby repealed, amended, or modified 
accordingly.  
 
SECTION 25. Separability Clause. – If any provision or part of this Act is declared  invalid 
or unconstitutional, the remaining parts or provisions not affected shall remain in full force 
and effect.  
 
SECTION 26. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation.  
 
Approved,