Republic of the Philippines
HOUSE OF REPRESENTATIV.

RECEIVED
07 JUL 2016

Quezon City DATE:
TTME:
By:
SEVENTEENTH CONGRESS

REGISTRATION UNIT
BILLS AND INDEX SERVICE

First Regular Session

House Bill No,_ 1261

Introduced by HON. ROZZANO RUFINO B. BIAZON

EXPLANATORY NOTE

It is the avowed policy of the State not only to strengthen professionalism in the
Armed Forces of the Philippines ( AFP ) but to provide, as, well, for adequate remuneration
and benefits to its members in line with the mandate of the’ 1987 Philippine Constitution, as
provided in Section 5 (3), Article XVI thereof.

In furtherance of this Constitutional mandate and in view of current economic
demands on the meager remuneration of our men in uniform, there is a need to upgrade some
of their benefits in order to afford them a modicum of comfort, especially after their
retirement from military service. *

Furthermore, the bill provides an opportunity’ to interested individuals who have
previously rendered civilian service prior to their joining the AFP to further serve the military
establishment by giving them the option to include or exclude said civilian service to their
military service for the purpose of retirement. This will remedy the vague provision in
military retirement laws on whether or not a prospective retiree has the option to tack his
civilian service to his military service prior to his retirement

In view thereof, the passage of this bill is earnestly sought,

OZ: woh Mba

Representative
Lone District, Muntinlupa City

HOUSE \F REPRESENTATIVES:



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City «
SEVENTEENTH CONGRESS
First Regular Session

House BillNo,__1261

Introduced by HON, ROZZANO RUFINO B, BIAZON

AN ACT.

FURTHER AMENDING SECTIONS 3 AND 17 OF PRESIDENTIAL DECREE NO.

1638 ENTITLED “AN ACT ESTABLISHING A NEW SYSTEM OF RETIREMENT

AND SEPARATION FOR MILITARY PERSONNEL OF THE ARMED FORCES OF

* THE PHILIPPINES”, AS AMENDED BY PRESIDENTIAL DECREE NO. 1650, AND
FOR OTHER PURPOSES.

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

SECTION 1. Section 3 of Presidential Decree no. 1638, as amended by Presidential
Decree 1650, is hereby amended to read as follows:

“Section 3. For the purpose of this Decree, active service of a mili
person shall mean active service rendered as a commissioned officer, en
PERSON, cadet, probationary officer, trainee or draftee in the Armed Forces
of the Philippines and service rendered as a civilian official or employee in the
Philippine Government prior to the date of separation or retirement from the
Armed Forces of the Philippines, for which military and/or civilian service
said person shall have received AN APPOINTMENT AND/OR
MONETARY REMUNERATION OR PAY from the Philippine
Government, and/or such other SERVICE as may hereafter be prescribed by
law as active service; Provided, That, for purposes of retirement, said person
shall have rendered at least ten (10) years of active service as an officer or
enlisted PERSON in the Armed Forces of the Philippines; Provided, further,
That, no period of such civilian government service longer than his active
service shall be credited for retirement[.]: PROVIDED, FINALLY, THAT,
THE PERSON CONCERNED SHALL HAVE THE OPTION TO
INCLUDE OR EXCLUDE SUCH CIVILIAN SERVICE TO HIS
MILITARY SERVICE FOR THE PURPOSE OF RETIREMENT.”



Sec. 2, Section 17 of the same Act is hereby amended to read as follows:

“Section 17, When an officer or enlisted PERSON is retired from the
‘Armed Forces of the Philippines under the provisions of this"Decree, he shall,
at his option, receive a gratuity equivalent to one (1) month of base pay and
longevity pay of the grade next higher than the permanent grade last held for
every year of service payable in one (1) lump sum or a monthly retirement pay
equivalent 10 two and one-half percent (2 1/2%)'for each year of active service
rendered, but not exceeding [eighty-five percent (85%] EIGHTY SEVEN
AND A HALF PERCENT (87.5%) of the monthly base and longevity pay of
the grade next higher than the permanent grade last held BUT NOT MORE
THAN THIRTY FIVE (35) YEARS OF ACTIVE SERVICE: Provided,
That an officer retired under Section 11 or 12 shall be entitled to benefits
computed on the basis of the base and longevity pay of the permanent grade
last held: Provided, further, That, such retirement pay shall be subject to
adjustment on the prevailing scale of.base pay of military personnel in the
active service: Provided, furthermore, That, [when he retires, he] UPON
RETIREMENT, SAID MILITARY PERSON shall be entitled at his
option, to receive in advance and in lump sum his annual retirement pay for
the first three (3) years and thereafter receive his retirement pay payable in
equal monthly installment as they accrue: Provided, finally, ‘That, if said
person dies within the three-year period following his retirement and is
survived by beneficiaries as defined in this Decree, the latter shall only
receive the derivative benefits thereunder starting the first month after the
aforecited three-year period. Nothing in this Section shall be construed as
authorizing adjustment of pay, or payment of any differential in retirement
pay to officers and enlisted personnel who are already retired prior to the
approval of this Decree as a result of increases in salary of those in the active
duty: Provided, That, retirees who are recalled to active duty 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 recalll to active duty.”

Sec, 3. Rules and Regulations. ~ The Secretary of National Defense is hereby
authorized to promulgate rules and regulations as maybe necessary to implement the
provisions of this Act. Nothing in this Act shall diminish the retirement and separation
benefits to which military personnel are already entitled under existing laws and other related
issuances.

Sec. 4, Separability Clause. ~ If any provision of this Act or any part hereof is held
invalid or unconstitutional, the remainder of the law or the provision not otherwise affected
shall remain valid and subsisting,

Sec. 5. Repealing Clause. - This Act repeals all laws, executive orders, letters of
instruction, issuances, circulars, administrative orders, rules. or regulations that are
inconsistent herewith.

Sec, 6, ffctivin, — This Act shall ake effect Sten (5) days afer its publiention in
a newspaper of nationwide circulation. ‘

Approved,