Page | 1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
House Bill No. _________ 
Introduced by Representative JOEY SARTE SALCEDA 
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 
EXPLANATORY NOTE 
Securing the pension system for military and uniformed personnel (MUP) is an obligation of 
the State. Because of long-standing issues in the design of the system, however, the MUP 
pension is facing an imminent existential threat. The possibility that the state will be unable to 
meet the funding requirements of the MUP pension is real, and its signs are now evident given 
the government’s budget deficit is at ₱187.7 billion pesos.1 
From 2018 to 2022, MUP pension requirements have grown at an annual rate of 12% on the 
average. Such funding requirements will continue to elevate at a fiscally unsustainable rate, as 
pension payments are indexed to growing salaries of active MUP. Moreover, the ballooning 
MUP pension requirements, with no corresponding financing source cover, create significant 
fiscal risk to the government and expose the MUP pension from fiscal and economic shocks. 
Thus, it is imperative to make crucial changes to save the pension system. 
To keep the pension system alive for current and future pensioners, we must address the 
system’s most significant weaknesses. First, the pension of the MUP is indexed to the salary 
of active personnel. Second, unlike other government employees, the MUP are entitled to a 
retirement pension starting at 20 years of service before reaching retirement age. Finally, unlike 
the pension of government employees under the Government Service Insurance System 
(GSIS), the MUP pension is non-contributory. 
The urgency of the situation is shown clearly by the size of the problem. The estimated total 
funding requirement is around P9.6 trillion if the status quo is maintained, according to the 
latest actuarial study by the GSIS.2 
1 As of March 2022, reported by the Bureau of Treasury 
2 GSIS using data as of December 31, 2019 
July 1, 2022 
8:00 am
667


Page | 2 
The size of the problem will continue to expand as we recruit more MUP. The MUP pension 
is already nine times that of the average pensioner of the Social Security System (SSS) and 
three times that of the average GSIS pensioner. 
To address this staggering fiscal overhang, this bill, patterned after the Committee Report of 
the Adhoc Committee on the MUP Pension System of the 18th Congress chaired by this 
Representation, proposes the following reforms: 
(1) Monthly disability pension. Grants a monthly disability pension, in lieu of disability
benefits provided under existing laws, with the range of rates increased to between
₱5,000.00 to ₱20,000.00 a month;
(2) Mandatory contributions: (i) first three years: 5% employee share, 16% National
Government (NG) share; (ii) next three years: 7% employee share, 14% NG share; and
(iii) thereafter: 9% employee share, 12% NG share. The NG share shall be used
exclusively for pensions while the MUP’s monthly contribution shall go to the MUP
Trust Fund, 45% of which is for the establishment of a life insurance plan with death,
accident, and disability benefits; another 45% for the establishment of the Provident
Fund; while the remaining 10% is for the payment of disability pension;
(3) Fund administrator of MUP pension. The MUP Trust Fund Committee will be
established as the administrator of the MUP Trust Fund, with the Bureau of Treasury
(BTr) as the Secretariat and the GSIS as the fund manager;
(4) Pension indexation. Limits the automatic indexation of pension and survivorship
benefits to adjustments in the salary of those in the active service holding the same rank,
with a five percent (5%) annual cap on the salary increase of MUP for the next ten (10)
years following the effectivity of the measure. The bill also allows the President, upon
recommendation to the MUP Trust Fund Committee, to increase pensions at a rate
lower than the growth rate in salaries, when the national government incurs an
unmanageable public sector deficit;
(5) Other sources of funding. Earmarks proceeds from the lease, joint development,
auction of development rights, or disposition of government properties identified for
the purpose, and investment income from the Trust Fund as sources of additional
funding for the maintenance of MUP Trust Fund; and proceeds from the disposition of
certain assets of the military and uniformed services for budgetary support of the
uniformed services for capital outlay and maintenance and other operating
expenditures;
(6) Tax treatment of the MUP Trust Fund. Exempts MUP Trust Fund, its assets,
revenues, including all accruals thereto, and benefits paid, from all taxes, assessments,
fees, charges, or duties of all kinds;
In view of the urgency of the matter, the approval of this bill is urgently sought. 
JOEY SARTE SALCEDA 


Page | 1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
First Regular Session 
House Bill No. _________ 
Introduced by Representative JOEY SARTE SALCEDA 
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”. 
SEC. 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. 
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.  
SEC. 3. Definition of Terms. – As used in this Act: 
667


Page | 2  
 
  
(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 
  
SEC. 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. 
 
SEC. 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 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. 
 
SEC. 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 


Page | 3  
 
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). 
 
SEC. 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 
  
SEC. 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. 
  
SEC. 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; 


Page | 4  
 
(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. 
 
SEC. 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;  
(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; and 
(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. 


Page | 5  
 
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. 
  
SEC. 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. 
 
SEC. 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 and services rendered for the salaries and benefits 
of officials and employees assigned to the Committee. 
   
SEC. 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.  
 
 SEC. 14. Funding Sources. – The MUP Trust Fund shall be funded through the 
following: 


Page | 6  
 
  
(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 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. 
 
SEC 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. 
 
SEC. 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 


Page | 7  
 
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. 
   
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 


Page | 8  
 
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. 
  
SEC. 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 
 
 
SEC. 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.   
 
SEC. 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. 
 
 
 


Page | 9  
 
TITLE VI 
Final Provisions 
  
SEC. 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. 
 
SEC. 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. 
 
SEC. 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 (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. 
 
SEC. 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.  
  
SEC. 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 Decree No. 1650;  


Page | 10  
 
(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. 
  
SEC. 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. 
 
SEC. 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,