Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUSTAVO S. TAMBUNTING 
AN ACT ESTABLISHING A SUSTAINABLE RETIREMENT AND PENSION SYSTEM BY 
AMENDING PERTINENT LAWS ON THE RETIREMENT BENEFITS AND PENSION OF 
THE UNIFORMED PERSONNEL OF THE UNIFORMED SERVICES AND PROVIDING 
FUNDS THEREFOR 
EXPLANATORY NOTE 
Uniformed personnel plays a critical role in the maintenance of national security, peace and 
order, and public safety in the country. They encounter various risks in the performance of 
their duties and responsibilities, and oftentimes their lives are placed in jeopardy.  
Article XVI, Section 7 of the 1987 Constitution mandates the State to “provide immediate and 
adequate care, benefits, and other forms of assistance to war veterans and veterans of military 
campaigns, their surviving spouses and orphans”.  
The current state of the benefit and pension system in the uniformed service is anchored on 
existing retirement laws which means that the retirement pension is automatically adjusted 
based on the prevailing scale of similarly ranked active personnel. Development Budget and 
Coordination Committee has expressed its concern over the ballooning costs for the pension 
of retired soldiers. It is projected that in 2022, pension costs for retired personnel of the 
Armed Forces of the Philippines will exceed the compensation of those in active service. As a 
result, the government will not be able to sustain the provision of pension benefits to retired 
uniformed personnel. 
It is in this light that we introduce this proposed measure which seeks to reform the benefit 
and pension system in the uniformed service. This bill proposes to create a Uniformed 
Personnel Retirement Fund which shall be primarily financed through mandatory contributions 
from active members of uniformed service. It shall also provide for a rationalized adjustment 
of retirement benefits and pension and an automatic review of pension and benefits two years 
after retirement and every two years thereafter.  
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUSTAVO S. TAMBUNTING 
2nd District, Parañaque City 
August 24, 2022
1:15 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUSTAVO S. TAMBUNTING 
AN ACT ESTABLISHING A SUSTAINABLE RETIREMENT AND PENSION SYSTEM BY 
AMENDING PERTINENT LAWS ON THE RETIREMENT BENEFITS AND PENSION OF 
THE UNIFORMED PERSONNEL OF THE UNIFORMED SERVICES AND PROVIDING 
FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:  
SECTION 1. Title. - This Act shall be known as the "Unified Uniformed Personnel Retirement 
Benefits and Pension Reform Act of 2022.” 
SEC. 2. Declaration of State Policy. - The State duly recognizes the vital role of the 
uniformed services in providing internal and external security, promoting peace and order, 
ensuring public safety, and further strengthening local government capability aimed toward 
the effective delivery of basic services to the citizenry. The State also recognizes the 
extraordinary hazards, risks, perils, and dangers that the uniformed personnel of the 
uniformed services encounters in the performance of their duties.  
It shall therefore be the prime concern of the State to provide all uniformed personnel with 
adequate remuneration and benefits, including retirement benefits and pension. To this end, 
the State shall ensure that the retirement benefits and pension scheme of the uniformed 
personnel are secure, reliable, and sustainable.  
SEC. 3. Definition of Terms. - As used in this Act, the following terms shall have the 
corresponding meanings hereinafter set forth: 
a) AFP-RSBS shall refer to the Armed Forces of the Philippines Retirement and Separation
Benefits System established by Presidential Decree (PD) 361, as amended by PD 1656;
b) Existing Retirees shall refer to retired uniformed personnel who are currently receiving
or entitled to receive retirement benefits and pension under existing Jaws applicable
to the uniformed services at the time of the effectivity of this Act;
c) Future Retirees shall refer to uniformed personnel active at the time of the effectivity
of this Act, and new entrants, all of whom, at the time of their actual retirement from
the uniformed services, are eligible to receive retirement benefits and pension under
existing laws applicable to the uniformed services;
d) GSIS shall refer to the Government Service Insurance System;
e) New Entrants shall refer to uniformed personnel who enter the uniformed services
upon the effectivity of this Act, excluding those who entered the uniformed services
through lateral entry from another uniformed service;
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f) Uniformed Personnel shall refer to the officers and enlisted personnel of the uniformed 
services; and, 
g) 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 
National Mapping and Resource Information Authority (NAMRIA). 
 
SEC. 4. Standardizing the Uniformed Services Monthly Retirement Pay. - New 
entrants and those in the active service of the uniformed services, upon their retirement, shall 
be entitled to receive a monthly retirement pay equivalent to two and one-half percent (2 
1/2%) for each year of active service rendered, but not exceeding ninety percent (90%) of 
the monthly base and longevity pay of the grade next higher than the permanent grade last 
held.  
 
SEC. 5. Rationalized Adjustment of Retirement Benefits and Pension. - The 
retirement benefits and pension of all new entrants shall not be subject to automatic 
adjustments based on the prevailing scale of the base pay of active uniformed personnel. 
Provided, however, That the existing and future retirees shall continue to receive retirement 
benefits and pension and their corresponding automatic adjustments. Provided, further, That, 
the existing and future retirees of the Philippine Coast Guard shall likewise be subject to 
adjustments based on the prevailing scale of the base pay of the PCG uniformed personnel in 
the active service. The funding of which shall still be sourced from the annual General 
Appropriations Act (GAA).  
 
SEC. 6. Receipt of Retirement Benefits and Pension. - All new entrants who, at the time 
of their actual retirement, are eligible to receive retirement benefits and pension under existing 
laws applicable to the uniformed services, shall be entitled to receive their lump sum benefit 
equivalent to three (3) years of payment within one (1) month of their effective date of 
retirement.  
 
SEC. 7. Automatic Review. - The retirement benefits and pension of the new entrants shall 
be reviewed commencing two (2) years after the year of retirement of the first new entrant 
retirees and every two (2) years thereafter, by the Department of National Defense (DND), 
Department of Interior and Local Government (DILG), Department of Justice (DOJ), 
Department of Transportation (DOTr), Department of Budget and Management (DBM), the 
Department of Finance (DOF), and the GSIS to recommend to the President, for his approval, 
appropriate adjustments thereto, by rules and regulations to be jointly promulgated by the 
DOF and the DBM under Section 12 of this Act.  
 
SEC. 8. Disability Pension. - All uniformed personnel who are disabled in the line of duty 
shall be eligible to receive a monthly pension, the rates of which shall be determined by the 
respective department concerned.  
 
SEC. 9. Creation of a Uniformed Personnel Retirement Fund and Sources of 
Funding. - A Uniformed Personnel Retirement Fund (UPRF), to be managed by the GSIS, 
shall be established for the sustainability of the retirement benefits and pension of uniformed 
personnel.  
 
The GSIS shall create a new department that shall exclusively administer the UPRF for the 
payment of retirement benefits and pensions to new entrants. 
 
The UPRF shall be financed through the following: 


 
a) Mandatory Contributions. Upon the effectivity of this Act, it shall be mandatory for new 
entrants to contribute a percentage of their monthly compensation as a personal share 
and for the National Government to contribute a corresponding share sourced from 
the annual general appropriations for the maintenance of the UPRF, as provided 
hereunder: 
i. 
New entrants shall contribute nine percent (9%) of their monthly compensation 
as a personal share and for the National Government, a corresponding share 
of eighteen percent (18%); and,  
ii. 
The National Government, representing the active uniformed personnel's 
contribution, shall contribute twenty-seven percent (27%) of the monthly base 
pay of the aforementioned uniformed personnel. 
 
b) Additional Sources of Funding. Additional funds for the maintenance of the UPRF shall 
be sourced from: 
i. 
The proceeds derived from the sale or disposition of public lands, as may be 
authorized by the President for this purpose;  
ii. 
The proceeds derived from the lease or joint development of public lands, as 
may be authorized by the President for this purpose, under the provisions of 
existing laws and regulations governing lease or joint development of public 
lands, including such immovables and other facilities as may be found therein; 
and,  
iii. 
The proceeds derived from reclamation projects are to be approved by the 
President for this purpose. 
 
SEC. 10. Deactivation of the AFP-RSBS. - The AFP-RSBS shall be deactivated upon the 
effectivity of this Act. 
 
For purposes of this Section, the AFP-RSBS Board, at the option of the Secretary of National 
Defense, shall constitute the Board of Liquidators (BOL), which is mandated to supervise 
collecting and realizing the assets of the AFP-RSBS, and settle the obligations of the AFP-RSBS 
to third persons. The BOL is hereby authorized to perform such other functions as may be 
necessary for winding up the affairs of the AFP-RSBS, which may include, but are not limited 
to, the payment of obligations, set-offs, write-offs, condonations, collections, reappraisals, 
prosecution, and defense of suits, disposal and conveyance of properties, and distribution of 
assets: Provided, That the BOL shall continue to perform its mandated duties and authorized 
functions until all the obligations of the AFP-RSBS have been settled, for a period not to exceed 
three (3) years from the time the BOL is constituted: Provided, further, That the remaining 
assets and obligations of the AFP- RSBS, if any, shall be transferred to the UPRF after the said 
three-year period. 
 
SEC. 11. Termination of Contributions to the AFP-RSBS. - Upon the effectivity of this 
Act, the active AFP personnel shall immediately cease to pay to the AFP-RSBS the contributions 
required under Section 4 of PD 361, as amended by PD 1656.  
 
SEC. 12. Return of Contributions made to the AFP-RSBS. - All contributions previously 
paid by the active uniformed personnel of the AFP shall be refunded within a period not to 
exceed three (3) years from the effectivity of this Act.  
 
SEC. 13. Implementing Rules and Regulations. - Within sixty (60) days from the 
effectivity of this Act, the DBM and the DOF, in consultation with the GSIS, shall promulgate 
the necessary rules and regulations for the effective implementation of this Act.  


 
SEC. 14. Separability Clause. - If any provision of this Act is declared invalid by a 
competent court, the other provisions not affected by such declaration of invalidity shall 
continue to be in force and effect.  
 
SEC. 15. Repealing Clause. - The pertinent portions of the following legal provisions, 
insofar as they dispose of the net income of the Philippine Reclamation Authority, are hereby 
repealed and/or modified accordingly: a) Section 112, RA 8435, as amended by RA 9281; b) 
Section 42(a), RA 7279; and, c) Section 10(d), RA 7835.  
 
RA 9993, RA 8551, PD 1638, PD 361, PD 1656, and all other laws, decrees, orders, rules, and 
regulations, or parts thereof, specifically inconsistent with any provision of this Act shall be 
deemed repealed, amended, or modified accordingly.  
 
SEC. 16. Effectivity. - This act shall take effect fifteen (15) days after the date of its 
publication in the Official Gazette or at least two (2) newspapers of general circulation. 
 
Approved,