Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 1727

Introduced by Rep. ANGELO MARCOS BARBA
2™ District, Ilocos Norte

EXPLANATORY NOTE

This measure seeks to provide free legal assistance to all personnel of
the Armed Forces of the Philippines (AFP), Bureau of Fire Protection (BFP),
Bureau of Jail Management and Penology (BJMP), Philippine Coast Guard
(PCG), and the Philippine National Police (PNP).

Under the proposed legislation, all personnel of the aforementioned
agencies who are facing legal charges shall have the right to receive free legal
counsel and other legal services even after their retirement from service. This
is because this measure acknowledges the potential financial burden that legal
fees and other expenses may place on the aforesaid personnel and their
families. In the same way, it recognizes the significant contributions made by
the military and law enforcement personnel to the safety and security of the
country; therefore, it is deemed important that necessary support, such as free
legal assistance, shall be provided to them during their time of need.

In view of the foregoing, the approval of this bill is earnestly sought.

mide.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘TWENTIETH CONGRESS
First Regular Session

House Bill No. 1727

Introduced by Rep. ANGELO MARCOS BARBA
2™ District, Ilocos Norte

AN ACT
PROVIDING FOR A UNIFIED SYSTEM FOR SEPARATION,
RETIREMENT, AND PENSION OF THE MILITARY AND
UNIFORMED PERSONNEL (MUP) SERVICES OF THE REPUBLIC
OF THE PHILIPPINES, CREATING THE MILITARY AND
UNIFORMED PERSONNEL

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

CHAPTER I
GENERAL PROVISIONS, DECLARATION OF POLICY,
DEFINITION OF TERMS, AND APPLICABILITY

SECTION 1. Short Title. — This Act shall be known as the “Military and
Uniformed Personnel Services Separation, Retirement, and Pension Act.”

SECTION 2. Declaration of Policy. - The State duly recognizes the vital
role of military and uniformed personnel in providing internal and external
security, promoting peace and order, ensuring public safety, and further
strengthening local government capability, aimed towards the effective
delivery of basic services to the citizenry.

The State also recognizes the extraordinary hazards, risks, perils, and
dangers that military and uniformed personnel encounter in the performance
of their duties.

It shall therefore be the prime concern of the State to provide all military
and uniformed personnel adequate remuneration and benefits, including
retirement benefits and pension. Succinctly, the State shall ensure that the
retirement benefits and pension scheme of the military and uniformed
personnel is secured, reliable, and sustainable.

SECTION 3. Definition of Terms. — As used in this Act:
a. Military and Uniformed Services shall refer to the Armed Forces of

the Philippines (AFP), Philippine National Police (PNP), Philippine
Coast Guard (PCG), Bureau of Fire Protection (BFP), Bureau of Jail


Management and Penology (BJMP), Bureau of Corrections (BuCor),
and employees of National Mapping and Resource Information Agency
(NAMRIA) who were Philippine Navy officers and enlisted personnel
and members of the defunct Philippine Navy Coast and Geodetic
Survey that became nucleus of the NAMRIA;

. New Entrants shall refer to military and uniformed personnel from the
Military and Uniformed Services who entered the same after the
effectivity of this Act;

. Active Members shall refer to military and uniformed personnel from
the Military and Uniformed Services in the Active Service, and those
who shall enter into the Military and Uniformed Services before the
effectivity of this Act;

|. Active Service shall mean to the kind of service rendered by a Military
or Uniformed Services Personnel as a commissioned officer,
non-commissioned officer, enlisted personnel, cadet, probationary
officer, trainee, or draftee in the Military or Uniformed Services and
service rendered by him/her as a civilian official or employee in the
Philippine Government prior to the date of his/her separation or
retirement from the Military or Uniformed Services, for which armed
and/or civilian service he/she shall have received pay from the
Philippine Government and/or such others as may hereafter be
prescribed by law as Active Service; Provided, That for purposes of
retirement, he/she shall have rendered at least ten (10) years of Active
Service as an officer or enlisted man in the Military or Uniformed
Services; Provided, further, That no period of such civilian
government service longer than his/her active armed service shall be
credited for purposes of retirement; Provided, finally, That service
rendered as a cadet, probationary officer, trainee, or draftee in the
Military or Uniformed Services shall be credited for retirement
purposes with a maximum of four (4) years, subject to applicable rules
and regulations;

. Total Permanent Physical Disability shall refer to the anatomical loss
or the permanent loss of use of both hands, of both feet, of both eyes,
of both ears, or any combination, or loss of mental faculties, as
determined by the medical board created for the purpose;

Survivors shall refer to:

(1) Surviving spouse of a deceased Military or Uniformed Services
personnel not legally separated by judicial decree form the
deceased issued on grounds not attributable to said spouse, and
such marriage was contracted during the Active Service of the
deceased; Provided, That entitlement of said spouse to benefits
under this Act shall terminate upon re-marriage or co-habitation
with another, or the commission of any of the acts amounting to
“physical violence”, “sexual violence”, “psychological violence”, or
“economic abuse” as defined in Republic Act No. 9262 (R.A. No.


9262), as determined by a Board created for the purpose; Provided,
further, That the conviction of the surviving spouse of any crime,
which carries a penalty of imprisonment of more than six (6) years
and one (i) day, the conception of a child after the death of the
deceased, or loss of Philippine Citizenship shall terminate the
entitlement of such surviving spouse to benefits under this Act;

(2) Surviving legitimate, adopted, and illegitimate children of a
deceased Military or Uniformed Services Personnel conceived,
adopted, or acknowledged prior to separation or retirement of the
parent from Active Service; Provided, That entitlement of said
children to benefits under this Act shall terminate when such
children attain twenty-one (21) years of age or upon marriage,
whichever is earlier; Provided, further, That children who suffer
from total permanent disability, as defined in this Act, shall be
entitled to benefits under this Act for their lifetime; Provided,
finally, That the conviction of the surviving child of any crime
which carries a penalty of imprisonment of more than six (6) years
and one (1) day, or loss of Philippine Citizenship shall terminate the
entitlement of such child to benefits under this Act;

(3) In default of those mentioned in sub-paragraphs f(1) and (2) above,
surviving parents of a deceased Military or Uniformed Services
Personnel who are primarily dependent on the deceased for
support, or in default thereof, surviving siblings who are under
twenty-one (21) years of age and unmarried; Provided, That the
conviction of the parent or sibling of the deceased for any crime
which carries a penalty of imprisonment of more than six (6) years
and one (1) day, or loss of Philippine Citizenship shall terminate the
entitlement of such parent or sibling to benefits under this Act;

g. Death or physical disability in line of duty shall refer to death, illness,
or injury incurred while in the Active Service and not attended by
misconduct, willful failure, the use of drugs or alcoholic liquor, or
vicious or immoral habits.

SECTION 4. Applicability. — This Act shall apply only to all new entrants
of the Military and Uniformed Services unless otherwise specified in the
succeeding provisions of this Act.

CHAPTER II
RETIREMENT

SECTION 5. Compulsory Retirement. ~ The following active Military or
Uniformed Services Personnel shall be compulsorily retired:

(a) Those who attain the age of sixty-five (65); Provided, That he/she has
accumulated at least thirty (30) years of satisfactory Active Service;


(b) Those who suffer death in line of duty; Provided, That he/she has
accumulated at least thirty (30) years of satisfactory Active Service;

(©) Those who incur total permanent physical disability in line of duty;
Provided, That he/she has accumulated at least thirty (30) years of
satisfactory Active Service;

(d) Those who are killed in action;

(©) Those who are wounded in action and incur total permanent physical
disability as a result thereof;

(O Those subject to attrition, as provided in Section 8 of this Act;
Provided, That he/she has accumulated at least thirty (30) years of
satisfactory Active Service;

(g) Those separated by the appropriate Disciplinary Board under Section
14 of this Act; Provided, That he/she has accumulated at least thirty
(30) years of satisfactory Active Service.

SECTION 6. Voluntary Retirement. ~ Upon accumulation of at least
thirty (go) years of satisfactory Active Service, a Military or Uniformed
Services Personnel may, at his/her own request, be retired from Active
Service, subject to the approval of appropriate authority as provided in the
Implementing Rules and Regulations of this Act.

CHAPTER III
SEPARATION

SECTION 7. Compulsory Separation. ~ The following Military or
Uniformed Services personnel shall be compulsorily separated from the Active
Service:

(a)Those who attain the age of sixty-five (65) without having
accumulated at least thirty (30) years of satisfactory Active Service;

(b)Those who suffer death in line of duty but without having
accumulated at least thirty (30) years of satisfactory Active Service;

(©) Those who incur total permanent physical disability in line of duty
but without having accumulated at least thirty (30) years of
satisfactory Active Service;

(d) Those subject to attrition, as provided in Section 8 of this Act, without
having accumulated at least thirty (30) years of satisfactory Active
Service; or

(e) Those separated by the appropriate Disciplinary Board under Section
14 of this Act without having accumulated at least thirty (30) years of
satisfactory Active Service.


SECTION 8. Attrition. — The attrition systems of Military or Uniformed
Services shall be provided for in the Implementing Rules and Regulations of
this Act.

SECTION 9. Voluntary Separation. - A Military or Uniformed Services
Personnel, who has not accumulated at least thirty (30) years of satisfactory
Active Service, may, at his/her own request, resign from Active Service,
subject to the approval of appropriate authority as provided in the
Implementing Rules and Regulations of this Act.

CHAPTER IV
RETIREMENT AND SEPARATION BENEFITS

SECTION 10. Gratuity and Retirement Pay. — When a Military or
Uniformed Services personnel is retired under Chapter II of this Act, he/she
shall, at his/her option, receive:

(a) Gratuity Pay — equivalent to one (1) month of base and longevity pay
of the permanent grade held last year for every year of service payable
in one (1) lump sum; or

(b) Retirement Pay - a monthly retirement pay equivalent to two and
one-half (2 ¥2%) for each year of Active Service rendered, but not
exceeding ninety percent (90%) of the monthly base and longevity
pay of the permanent grade last held; Provided, That when he/she
retires, he/she shall be entitled to receive a lump sum equal to
eighteen (18) months of his monthly retirement pay and thereafter
receive his/her annual retirement pay payable in equal monthly
installments upon reaching sixty (60) years of age; Provided, further,
That if he/she dies before his/her retirement pay begins to accrue,
and is survived by beneficiaries as defined in this Act, the latter shall
receive only the derivative benefits thereunder when they accrue.

Pension payments for those retired under Chapter II shall commence
immediately after their retirement from the service, except for those retired
due to Attrition under Section 5(f). Honorably discharged under Section 5(g),
and those who avail of Voluntary Retirement under Section 6 shall be eligible
to receive monthly retirement pay only upon reaching the age of sixty (60);
Provided, That the retirement pay of those that are Killed in Action (KIA)
under Section 5(d), and those that are Wounded in Action (WIA) resulting in
Total Permanent Disability shall be computed at the rate of ninety percent
(90%) of their monthly base and longevity pay regardless of their years in
Active Service; Provided, further, That nothing in this Section shall be
construed as authorizing adjustment of pay, or payment of any differential in
retirement pay to Military or Uniformed Services personnel who are already
retired prior to the approval of this Act as a result of increases in salary of
those in the Active Service may have their retirement pension adjusted based
on the rank they hold and on the prevailing pay of military personnel in the
Active Service, at the time of the termination of their recall to Active Service.


SECTION 11. Separation Pay. — Except for those provided for in
Section 13 of this Act, when a Military or Uniformed Services personnel is
separated from the service under Section 7 and 9 of Chapter III of this Act,
he/she, or his/her survivors, as defined in this Act, shall receive a separation
pay equivalent to one-month base plus longevity pay of the permanent grade
he/she holds for every year of Active Service; Provided, That nothing in this
Section shall be construed as authorizing adjustment of pay, or payment of
any differential in separation pay to Military or Uniformed Services personnel
who are already retired or separated from the service prior to the approval of
this Act as a result of increases in salary granted to Military or Uniformed
Services personnel in Active Service.

SECTION 12. Survivorship Benefits. — The qualified survivors, as
defined in this Act, of a deceased Military or Uniformed Services personnel
retired under Chapter II, and Section 7(b) and (c) of Chapter III of this Act
shall be entitled to a monthly annuity equivalent to seventy-five percent (75%)
of his/her monthly retirement pay which he/she was receiving to be divided
among them in equal shares and with the right of accretion; Provided, That
the minimum monthly annuity to be received shall be equivalent to fifty
percent (50%) of the base and longevity pay of the permanent grade last held.

SECTION 13. Benefits for Death and Total Permanent Disability in
Line of Duty. ~ A Military or Uniformed Services personnel separated under
Section 7(b) and 7(c) of Chapter III of this Act shall be entitled to a monthly
life annuity the amount of which shall be fifty per centum (50%) of the base
and longevity pay computed on the basis of his/her actual rank held at the
time of death or disability.

SECTION 14. Separation by the Disciplinary Board. — A Military or
Uniformed Services personnel referred to and found by the appropriate
Disciplinary Board not fit for retention in the Active Service because of
substandard performance, low potentiality, doubtful integrity, and/or acts
inconsistent with the best interest of the service shall be separated from the
Active Service, subject to the approval of appropriating Disciplining Authority
as provided in the Implementing Rules and Regulations of this Act; Provided,
‘That the Disciplining Authority, based on the facts and circumstances of the
case, shall determine whether the subject Military or Uniformed Services
personnel shall be granted an Honorable Discharge and is entitled to receive
benefits under Sections 10 or 11, as applicable, of Chapter IV of this Act;
otherwise, all benefits under this Act shall be forfeited.

SECTION 15. Disability Pension. — A Military or Uniformed Services
personnel retired for disability which is the proximate result of wounds or
injuries received or sickness or disease incurred in line of duty or as a battled
casualty shall receive, in addition to the other benefits under this Act,
Disability Pension fixed as follows:

a. If and while the disability is rated twenty-five percent (25%), the
monthly pension shall be PhP 2,500.00;


b. If and while the disability is rated fifty percent (50%), the monthly
pension shall be PhP 5,000.00;

c. If and while the disability is rated sixty percent (60%), the monthly
pension shall be PhP 6,000.00;

d. If and while the disability is rated seventy percent (70%), the monthly
pension shall be PhP 7,000.00;

e. If and while the disability is rated eighty percent (80%), the monthly
pension shall be PhP 8,000.00;

f. If and while the disability is rated ninety percent (90%), the monthly
pension shall be PhP 9,000.00;

g. If and while the disability is rated one hundred percent (100%), the
monthly pension shall be PhP 10,000.00.

SECTION 16. Manner of Increase of Pension Benefits. ~ The automatic
indexing of Gratuity and Retirement Pay, and Survivorship Benefits of
pensioners with the salary increases of Active Military and Uniformed
Services personnel is hereby terminated.

Pension benefits shall be reviewed annually and increases and/or
adjustments in Gratuity and Retirement Pay, and Survivorship Benefits, will
be based on the recommendation of the actuary of the Pension Fund and
approved by the Board of Directors of the Fund Manager of the Military and
Uniformed Personnel Retirement Fund (MUPRF).

CHAPTER V
MILITARY AND UNIFORMED PERSONNEL
RETIREMENT FUND

SECTION 17. Creation of the Military and Uniformed Personnel Fund
Authority. — For the purpose of carrying out and effecting the declared policy,
as provided for in Section 2 hereof, there is hereby created a government
instrumentality with corporate powers, as defined in Section 3(n) of Republic
Act No. 10149 (R.A. No. 10149) or the GOCC Governance Act of 2011, to be
known as the Military and Uniformed Personnel Fund Authority, which shall
be organized within six (6) months from the approval of this Act. The
Authority shall execute its powers and functions through its Board of
Directors, in such a manner, as will, in its judgment, aid to the fullest possible
extent in carrying out the aims and purposes of this Act.

SECTION 18. Board of Directors, Composition. - The powers and
functions of the Authority shall be exercised by the Board of Directors
composed by the Chairman and President of the Authority, which shall be
appointed by the President of the Philippines, and ten (10) other members:
four (4) of whom shall be ex-officio Members from the Department of
National Defense (DND), Department of the Interior and Local Government
(DILG), Department of Justice (DOJ), Department of Transportation (DOT®),


Department of Finance (DOF), and Department of Budget and Management
(DBM), as designated by the concerned Department Secretary from the
undersecretaries of the concerned Departments; another three (3) shall be
appointed by the President of the Philippines from the banking, finance,
investment, and insurance sector; and one (1) shall be appointed by the
President of the Philippines from the legal profession. The Board of Directors
shall elect from among themselves a Vice-Chairman.

The Members of the Board, the Department Undersecretaries, shall hold
office for six (6) years without reappointment, or until their successors are
duly appointed and qualified. Vacancy, other than through the expiration of
the term, shall be filed for the unexpired term only: Provided, That the
Chairman and President shall be initially appointed to a six (6) year term, and
one (1) member to a five (5) year term, one (1) member to a four (4) year term,
one (1) member to a three (3) year term, and the representative from the legal
profession to an initial term of two (2) years.

SECTION 19. Funding Sources. — Aside from the initial proposed
capitalization, the MURPF shall be funded through the following:

a. Mandatory Contributions. - It shall be mandatory for New Entrants
and Active Members to contribute a percentage of their monthly
compensation as their personal share to the MURPF, the National
Government shall allocate its share in the contribution sourced from
the annual General Appropriations Act, allocated as follows:

1. For the first three (3) years after the effectivity of this Act, New
Entrants and Active Members shall contribute five percent (5%) of
their monthly base and longevity pay as personal share, while the
National Government shall provide an equivalent of twenty-two
percent (22%) as its share;

2. After such period, for the next three (3) years, New Entrants and
‘Active Members shall contribute seven percent (7%), while the
National Government shall provide twenty percent (20%);

3. For every year thereafter, New Entrants and Active Members shall
contribute nine percent (9%) and the National Government shall
provide eighteen percent (18%);

4. Additional funds to cover past service of Active Members subject
to the recommendation of the actuary of the Pension Fund and
approved by the Board of Directors of the Fund Manager of the
MURPF.

b. Additional Sources of Funding. — Additional funds for the
maintenance of the MURPF shall be sourced from the proceeds
derived from the lease, joint development, or disposition of the assets
of the Military and Uniformed Services, and other government
properties identified for that purpose.



SECTION 20. Termination of Other Contributions of the Same Nature.
— Upon the effectivity of this Act, other mandatory contributions by Military
and Uniformed Services personnel in the same nature and purpose, for their
retirement benefits and pension, shall immediately cease and be subject to the
provisions of this Act instead.

SECTION 21. Retirement Grade. — Military and Uniformed Services
members, officers, and other ranks covered under this Act shall be retired in
the grade they hold at the time of their retirement.

CHAPTER VI
GENERAL PROVISIONS,

SECTION 22. Retired List. - Military and Uniformed Service personnel
retired under Chapter IV of this Act shall be carried in the retired list of the
applicable Military and Uniformed Services. The name of a retiree who loses
his/her Filipino citizenship shall be removed from the Retired List and his/her
retirement benefits terminated upon such loss.

SECTION 23. Recall to Active Service. — (1) AFP Personnel carried in
the retired list shall be subject to the Articles of War and may be recalled at
any time by the President to Active Service in the permanent grade last held
upon retirement. His/her refusal to perform such duty shall be a ground for
court martial under Article 97 of the Articles of War and subsequent
termination of payment of benefits as determined by the court martial.

(2) When recalled to Active Service, a retiree shall receive the pay and
allowances of the permanent grade last held and shall continue to be carried
in the retired list and shall be eligible for promotion in the retired list as long
as he/she remains in active status.

SECTION 24. Non-Encumbrance of Benefits. ~ The benefits authorized
under this Act, except as provided herein, shall not be subject to attachment,
garnishment, levy, execution or any tax whatsoever; neither shall they be
assigned, ceded, or conveyed to any third person; Provided, That if a retiree of
separated Military or Uniformed Services personnel who is entitled to any
benefit under this Act has unsettled money and/or property accountabilities
incurred while in the Active Service, not more than fifty percent (50%) of the
pension gratuity or other payment due such Military or Uniformed Services
personnel or his/her survivors under this Act may be withheld and be applied
to settle such accountabilities.

SECTION 25. Accrual of Benefits to Personnel Separated by Court
Martial. - The benefits authorized under this Act shall accrue to AFP
Personnel separated by court martial action except when non-entitlement of
such benefits is expressly adjudged by the military court and approved by the
approving authority.

SECTION 26. Non-Diminution of Benefits. — Nothing in this Act shall
be construed in any manner to reduce whatever retirement and separation pay


or gratuity or other monetary benefits which any person is heretofore
receiving or is entitled to receive under the provisions of existing law.

CHAPTER VII
MISCELLANEOUS PROVISIONS

SECTION 27. Penal Clause. - Any person found to have participated
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 such amount and/or imprisonment of not less
than six (6) months and one (1) day to six (6) years and perpetual
disqualification from holding public office and from practicing any profession
or calling licensed by the government.

SECTION 28. Rules and Regulations. — Within sixty (60) days upon
the effectivity of this Act, the Department of Finance (DOF), Department of
National Defense (DND), Department of the Interior and Local Government
(DILG), Department of Justice (DOJ), Department of Transportation (DOTr),
Department of Environment and Natural Resources (DENR), Government
Service Insurance System (GSIS), and the Department of Budget and
Management (DBM), in coordination with the AFP, PNP, PCG, BJMP, BFP,
BuCor, and NAMRIA and other relevant offices shall formulate and issue the
Implementing Rules and Regulations necessary for the effective
implementation hereof.

SECTION 29. Repealing and Modifying Clause. -

SECTION 30. Separability Clause. ~ In case any provision of this Act is
declared unconstitutional, the other provisions shall remain in effect.

SECTION 31. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,