Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Second Regular Session 
House Bill No. _________ 
Introduced by REP. JOEY SARTE SALCEDA 
AN ACT 
CREATING A SUSTAINABLE FISCAL FRAMEWORK FOR THE 
SEPARATION, RETIREMENT, AND PENSION BENEFITS OF THE MILITARY 
AND UNIFORMED SERVICES PERSONNEL, PROVIDING FUNDS THEREFOR, 
AND FOR OTHER PURPOSES 
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.  
Since 2018, pension funding out of the General Appropriations Act (GAA) has exceeded the 
maintenance and other operating expenses (MOOE) of the uniformed services. This means that 
we are now spending more to support retired personnel than we are spending to support the 
operations of active personnel.  
The funding requirements of the MUP pension will only increase as we continue to modernize 
our national defense unless we 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 Government Service Insurance 
System (GSIS), the MUP pension is non-contributory in nature. 
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 
updated actuarial study by the GSIS.  
April 29, 2021
10:15 am
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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 proposes the following reforms: 
(1) Impose mandatory contributions as follows:
Employee share (%) 
National Government 
share (%) 
First three (3) years 
5 
16 
Next three (3) years 
7 
14 
Years thereafter 
9 
12 
(in parity with other GSIS 
members) 
(2) Pension indexation. Discontinuation of automatic indexation but shall be reviewed
periodically and can be adjusted to a maximum of 1.5%;
(3) Adjustments in pensionable age. MUP pensionable age will be set at 56 years,
regardless of years of service;
(4) Fund administrator of MUP pension. A new entity will be established to be the
administrator of the MUP Trust Fund while the GSIS will act as its fund manager;
(5) Other sources of funding. Proceeds from the sale/lease of MUP assets, and other
identified assets, will be sources of additional funding; and,
(6) Tax treatment of the MUP Trust Fund. Its assets, revenues including all accruals
thereto, and benefits paid, shall be exempt from all taxes, assessments, fees, charges, or
duties of all kinds. The MUP Trust Fund will enjoy all other tax exemptions that apply
to the GSIS as long as the GSIS remains as its fund manager.
(7) Insurance coverage. The bill allows the MUP Trust Fund Committee to create
insurance products that specifically cater to the unique risks that uniformed personnel
take.
In view of the urgency of the matter, the approval of this bill is urgently sought. 
JOEY SARTE SALCEDA 


1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
EIGHTEENTH CONGRESS 
Second Regular Session 
House Bill No. _________ 
Introduced by REP. JOEY SARTE SALCEDA 
AN ACT 
CREATING A SUSTAINABLE FISCAL FRAMEWORK FOR THE 
SEPARATION, RETIREMENT, AND PENSION BENEFITS OF THE MILITARY 
AND UNIFORMED SERVICES PERSONNEL, PROVIDING FUNDS THEREFOR, 
AND FOR OTHER PURPOSES  
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
TITLE I 
Declaration of Policy 
SECTION 1. Short Title. – This Act shall be known as the “Saving the MUP Pension 
Act of 2021”. 
SEC. 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. 
Towards these ends, the State shall ensure that the retirement scheme of the military 
and uniformed personnel is secure and equitable by creating a sustainable fiscal framework 
that will fully support its funding requirements.  
In recognition of the role of Military and Uniformed Personnel in nation-building and 
national security, and to protect them against the unique personal risks that they take in the line 
of duty, the state shall also ensure that there shall be an adequate, robust, and well-managed 
insurance system that covers their needs and that of their dependents. 
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2 
TITLE II 
Definition of Terms 
 
SEC. 3. Definition of Terms. – As used in this Act: 
 
(a) “Military and Uniformed Personnel (MUP)” shall refer to military and uniformed 
personnel coming from any of the following services: 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 the Hydrography branch of the 
National Mapping and Resource Information Agency (NAMRIA); 
 
(b) “New Entrants” shall refer to MUP who enter the service after the effectivity of this 
Act; and 
 
(c) “Active Service” shall mean Active Service rendered by the MUP under the 
conditions in Section 3 of Presidential Decree No. 1638, as amended; Provided, 
finally, That Active Service rendered as a cadet, probationary officer, trainee or 
draftee may be credited for retirement purposes at the option of the MUP concerned, 
subject to applicable rules and regulations. 
 
TITLE III 
Applicability 
  
SEC. 4. Applicability. – This Act shall apply to all MUP; Provided, That, those 
classified as New Entrants in NAMRIA shall be covered by the Pension System of the 
Government Service Insurance System (GSIS). 
 
TITLE IV 
Fiscal Sustainability 
 
SEC. 5. Fiscal Risk Management. – To ensure that fiscal risks related to the MUP 
pension and benefits system are managed and addressed, the Secretary of Finance shall exercise 
the following functions and powers in addition to the existing mandate of the office: 
 
(a) Formulate policies, consistent with law, to ensure the fiscal sustainability of the 
MUP unified pension system; 
 
(b) Assess possible risks to the fiscal sustainability of the MUP unified pension system 
and to decide appropriate policy interventions; 
 
(c) Identify, manage, and control risks that the pension system may pose to the national 
government’s fiscal position;  
 
(d) Inform Congress of such risks through the annual Fiscal Risk Statement and 
propose reforms to address such risks; and 
 
(e) Obtain information from any officer or office of the national or local governments, 
government agencies and its instrumentalities, as it may need in the performance of 
its functions. 


 
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TITLE V 
Retirement 
  
SEC. 6. Compulsory Retirement. – The following active MUP shall be compulsorily 
retired: 
  
(a) Those who attain the age of sixty (60) or have accumulated at least twenty (20) 
years of satisfactory Active Service, whichever is later; 
 
(b) Those who suffer death in line of duty, who have accumulated at least twenty (20) 
years of satisfactory Active Service; 
 
(c) Those who incur total permanent physical disability in line of duty who have 
accumulated at least twenty (20) years of satisfactory Active Service; 
 
(d) Those who are killed in action, for purposes of survivorship benefits; 
 
(e) Those who are wounded in action and incur total permanent physical disability as a 
result thereof; or 
 
(f) Those subject to attrition, as provided in Section 8 of this Act; Provided, That the 
MUP has accumulated at least twenty (20) years of satisfactory Active Service. 
 
(g) Those separated by the appropriate Disciplinary Board under Section 15 of this Act; 
Provided, That the MUP has accumulated at least 20 years of satisfactory Active 
Service. 
 
SEC. 7. Voluntary Retirement. – Upon reaching the age of fifty-six (56) years or the 
accumulation of at least twenty (20) years of satisfactory Active Service, any MUP may be 
retired from Active Service, subject to the approval of an appropriate authority, as provided in 
the Implementing Rules and Regulations of this Act. 
 
TITLE VI 
Separation 
 
SEC. 8. Compulsory Separation. – The following MUP shall be compulsorily separated 
from the Active Service: 
  
(a) Those who attain the age of sixty (60) with less than twenty (20) years of 
satisfactory Active Service; 
 
(b) Those who suffer death in line of duty but with less than twenty (20) years of 
satisfactory Active Service; 
 
(c) Those who incur total permanent physical disability in line of duty but with less 
than twenty (20) years of satisfactory Active Service; 
 
(d) Those subject to attrition, as provided in Section 9 of this Act, with less than twenty 
(20) years of satisfactory Active Service; or 


 
4 
 
(e) Those separated by the appropriate Disciplinary Board under Section 15 of this Act 
with less than twenty (20) years of satisfactory Active Service. 
 
SEC. 9. Attrition. – The application of the attrition system under existing laws, rules, 
or regulations to the MUP unified pension system shall be prescribed in the Rules and 
Regulations to be used to implement this Act. 
 
SEC. 10. Voluntary Separation. – Any MUP, who has not accumulated at least twenty 
(20) years of satisfactory Active Service, may resign from Active Service, subject to the 
approval of appropriate authority as provided in the Rules and Regulations to be prescribed to 
implement this Act. 
 
TITLE VII 
Retirement and Separation Benefits 
  
SEC. 11. Gratuity and Retirement Pay. – Any MUP who is retired under Title V of this 
Act, is eligible to receive, and may choose from, any of the following benefits: 
  
(a) Gratuity Pay. – Equivalent to one (1) month of base and longevity pay of the 
permanent grade last held 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 percent 
(2.5%) 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, further, That upon retirement, the MUP shall be entitled to receive a lump 
sum equal to eighteen (18) months of the monthly retirement pay, and thereafter 
receive an annual retirement pay payable in equal monthly installments upon 
reaching fifty-six (56) years of age; Provided, finally, That if the MUP dies before 
the 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. 
 
Provided, That pension payments for those retired under Title V shall commence 
immediately after their retirement from the service, except for those retired due to Attrition 
under Section 6(f), Honorably Discharged under Section 6(g), and those who avail of Voluntary 
Retirement under Section 7, all of whom shall only be eligible to receive monthly retirement 
pay upon reaching the age of fifty-six (56); Provided, further, That the retirement pay of those 
that are Killed in Action under Section 6(d), and those that are Wounded in Action 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, finally, 
That nothing in this Section shall be construed as authorizing adjustment of pay, or payment 
of any differential in retirement pay, to the MUP who are already retired prior to the approval 
of this Act.  
 
SEC. 12. Separation Pay. – Except for those provided for in Section 14, when any MUP 
is separated from the service under Section 8 and Section 10 of Title VI of this Act, the MUP, 
or their survivors as defined in this Act, shall receive a separation pay equivalent to one-month 
base plus longevity pay of the permanent grade the MUP holds for every year of Active Service; 
Provided, That nothing in this Section shall be construed as authorizing adjustment of pay, or 


 
5 
payment of any differential in separation pay to the MUP 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 the 
MUP in Active Service. 
 
SEC. 13. Survivorship Benefits. – The qualified survivors, as defined in this Act, of a 
deceased Military or Uniformed Services Personnel retired under Title V, and Section 8(b) and 
8(c) of Title VI of this Act, shall be entitled to a monthly annuity equivalent to seventy-five 
percent (75%) of MUP’s monthly retirement pay which the MUP 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. 
 
SEC. 14. Benefits for Death and Total Permanent Disability in Line of Duty. – Any 
MUP separated under Section 8(b) and 8(c) of Title VI of this Act shall be entitled to a monthly 
life annuity the amount of which shall be fifty percent (50%) of the base and longevity pay 
computed on the basis of the MUP’s actual rank held at time of death or disability. 
 
SEC. 15. Benefits for Battle Casualty. – Any MUP who is killed in action (KIA) shall 
be entitled to a monthly life annuity the amount of which shall be ninety percent (90%) of the 
base and longevity pay computed on the basis of the MUP’s actual rank held at time of death 
or disability. 
 
SEC. 16. Separation by the Disciplinary Board. – Any MUP 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 or acts inconsistent with the best 
interest of the service shall be separated from the Active Service, subject to the approval of 
appropriate Disciplining Authority as provided in the Rules and Regulations to be issued to 
implement this Act; Provided, That the Disciplining Authority, based on the facts and 
circumstances of the case, shall determine whether the subject MUP shall be granted an 
Honorable Discharge and is entitled to receive benefits under Sections 11 or 12, as applicable, 
of Title VII of this Act; otherwise, all benefits under this act shall be forfeited. 
 
SEC. 17. Disability Pension. – Any MUP 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 battle 
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 25 percent (25%), the monthly disability pension 
shall be P2,500.00; 
 
(b) If and while the disability is rated 50 percent (50%), the monthly pension shall be 
P5,000.00; 
 
(c) If and while the disability is rated 60 percent (60%), the monthly pension shall be 
P6,000.00; 
 
(d) If and while the disability is rated 70 percent (70%), the monthly pension shall be 
P7,000.00; 
 


 
6 
(e) If and while the disability is rated 80 percent (80%), the monthly pension shall be 
P8,000.00; 
 
(f) If and while the disability is rated 90 percent (90%), the monthly pension shall be 
P9,000.00; or 
 
(g) If and while the disability is rated 100 percent (100%), the monthly pension shall 
be P10,000.00. 
 
SEC. 18. Manner of Increase of Pension Benefits. – The automatic indexing of Gratuity 
and Retirement Pay, and Survivorship Benefits with the salary of active MUP holding the same 
rank as the last actual rank held of the retiree is hereby terminated for existing pensioners or 
retirees, those in the active service, and new entrants. Increases or adjustments in Gratuity and 
Retirement Pay, and Survivorship Benefits, up to one and a half percent (1.5%) of the pension 
benefit being received by the pensioner at the time, will be based on the recommendation of 
the actuary and approved by the Board of Trustees of the MUP Trust Fund. 
 
The benefits provided under Sections 14, 15, and 17 may be modified and expanded at 
the direction of the MUP Trust Fund Committee created under Section 19 of this Act, upon the 
recommendation of the MUP Trust Fund Manager based on an actuarial study demonstrating 
the financial sustainability of such expansion.  
 
TITLE VIII 
Management of Military and Uniformed Personnel Trust Fund  
  
SEC. 19. Creation of the Military and Uniformed Personnel Trust Fund Committee. – 
For the purpose of carrying out and effecting the declared policy, the MUP Trust Fund 
Committee is hereby created, referred to in this Act as the “Committee''. The Committee shall 
be organized within thirty (30) days from the approval of the Rules and Regulations to be issued 
to implement this Act. The Committee shall execute its powers and functions, 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.  
 
The Committee shall: 
 
(a) Direct the manner by which assets of the MUP Trust Fund shall be managed; 
 
(b) Direct the fund administrator who shall, on the Committee’s behalf, manage the 
MUP Trust Fund in a manner it deems actuarially and financially optimal and 
sustainable; 
 
(c) Authorize such expenses as are necessary to administer the MUP Trust Fund and 
its benefits; 
 
(d) Direct the creation of an MUP insurance system to account for the unique and 
significant risks involved in MUP service; 
 
(e) Adjust the contribution scheme when deemed necessary to ensure the financial 
sustainability of the MUP Trust Fund;  
 


 
7 
(f) Implement and execute functions related to the disposition of assets identified under 
this Act; and  
 
(g) Perform other functions inherent in its role as the governing board of the MUP Trust 
Fund.  
 
SEC. 20. Composition of the MUP Trust Fund Committee. – The Committee shall be 
composed of the following:  
 
(a) The Secretary of the Department of Finance (DOF) as Chairperson; 
 
(b) The Secretary of the Department of Budget and Management (DBM); 
 
(c) The Secretary of the Department of the Interior and Local Government (DILG); 
 
(d) The Secretary of the Department of Justice (DOJ); 
 
(e) The Secretary of the Department of National Defense (DND); 
 
(f) The Executive Secretary of the Office of the President (OP); and  
 
(g) The President and General Manager of the Government Service Insurance System 
(GSIS). 
 
The Bureau of the Treasury (BTr) shall act as the Committee Secretariat and shall 
maintain 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 shall be maintained in accordance with 
existing accounting and auditing laws, rules, and regulations, and shall be audited by the 
Commission on Audit (COA).  
 
SEC. 21. MUP Trust Fund. – There is hereby created a Trust Fund to be known as the 
“Military Uniformed Personnel Trust Fund”, referred to in this Act as the “MUP Trust Fund”, 
which shall be capitalized, managed, invested, utilized, and accounted for in the manner 
provided in this Act. 
 
SEC. 22. Designation of the GSIS as MUP Trust Fund Manager. – The GSIS is hereby 
designated as Fund Manager. As Fund Manager, the GSIS shall be responsible for 
implementing investment management and benefits administration strategy set by the 
Committee and managing the portfolio of the MUP Trust Fund. 
 
In its performance of its functions, the GSIS shall have the following functions:  
 
(a) Monitor market and economic trends and track securities in order to make informed 
investment decisions; 
 
(b) Recommend its portfolio strategy to the Committee; 
 


 
8 
(c) In managing the portfolio, track financial results of companies in the portfolio and 
its various metrics, such as, but not limited to, price-to-earnings ratios, inflation-
adjusted return, sales, earnings, and dividends; and 
 
(d) Perform other acts necessary to fulfill its mandate under this Act. 
 
SEC. 23. Funding Sources. – Aside from the initial proposed capitalization, the MUP 
Trust Fund shall be funded through the following: 
 
(a) Mandatory Contributions. – It shall be mandatory for MUP New Entrants and 
Active Members to contribute a percentage of their monthly compensation as their 
personal share to the MUP Trust Fund. The National Government shall allocate its 
share in the contribution sourced from the annual General Appropriations Act, 
allocated as follows: 
 
i. For the first three years after the effectivity of this Act, MUP New Entrants and 
Active Members 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. After such, for the next three years, MUP New Entrants and Active Members 
shall contribute seven percent (7%), while the National Government shall 
provide fourteen percent (14%); and 
 
iii. For every year thereafter, MUP New Entrants and Active Members shall 
contribute nine percent (9%) and the National Government shall provide twelve 
percent (12%). 
 
(b) Additional Sources of Funding. – Additional funds for the maintenance of the MUP 
Trust Fund shall be sourced from the proceeds derived from the lease, joint 
development, auction of development rights, or disposition of:  
 
i. The assets of the Military and Uniformed Services, and 
 
ii. Other government properties identified for that purpose. 
 
SEC. 24. Disposition of MUP Assets. – For the purpose of identifying additional sources 
of funding, the Committee shall require the MUP agencies to submit a full and exhaustive list 
of all its real assets within thirty (30) days from the effectivity of this Act, and in the manner 
prescribed by the Committee. 
 
Thereafter, the Committee shall conduct a complete accounting and inventory of MUP 
Assets that can be used to support the MUP Trust Fund and submit a report to the Office of the 
President, the Congress, the Secretary of Finance, the COA, and the BTr. 
 
The Committee shall coordinate with the Office of the President, Philippine 
Reclamation Agency (PRA), and other disposition entities to be identified by the Committee 
in the execution and delivery of this mandate. 
 


 
9 
The Committee may request a competent government agency or instrumentality to 
conduct a valuation of the assets in the inventory. 
 
In general, options that allow the MUP Trust Fund to generate income from these assets 
without undertaking a sale of such assets shall be taken, except when the Committee determines 
that a sale is the most optimal financial option. In such cases, the Committee may opt to sell 
only portions of such assets, to the extent that will satisfy a predetermined financial 
requirement.  
 
SEC. 25. Termination of Other Contributions of the Same Nature. – Upon effectivity 
of this Act, other contributions by the MUP in the same nature and purpose, for their retirement 
benefits and pension, shall immediately cease and be subject to the provisions of this Act. 
 
SEC. 26. Tax Treatment of the MUP Trust Fund. – Notwithstanding any laws to the 
contrary, the MUP Trust Fund, its assets, revenues including all accruals thereto, and benefits 
paid, shall be exempt from all taxes, assessments, fees, charges or duties of all kinds.  These 
exemptions shall continue unless expressly and specifically revoked.  
 
All laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in 
derogation of this provision are hereby deemed repealed, superseded and rendered ineffective 
and without legal force and effect. 
 
Moreover, these exemptions shall not be affected by subsequent laws to the contrary 
unless this section is expressly, specifically, and categorically revoked or repealed by law and 
a provision is enacted to substitute or replace the exemption referred to herein as an essential 
factor to maintain or protect the solvency of the fund, notwithstanding the guaranty of the 
national government to secure such solvency or liability. 
 
The MUP Trust Fund and/or the properties referred to herein as well as the benefits, 
sums or monies corresponding to the benefits under this Act shall be exempt from attachment, 
garnishment, execution, levy or other processes issued by the courts, quasi-judicial agencies or 
administrative bodies including Commission on Audit (COA) disallowances 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 GSIS before or after the effectivity 
of this Act shall also apply to the MUP Trust Fund for as long as the GSIS remains its Fund 
Manager.  
 
SEC. 27. Retirement Grade. – New Entrants and Active Members of the MUP covered 
under this Act shall be retired in the actual grade they hold, irrespective of their years in Active 
Service and regardless of the circumstances of their separation or retirement. 
 
TITLE IX 
General Provisions 
  
SEC. 28. Retirement List. – Any MUP retired under Title V of this Act shall be carried 
in the retired list of the applicable Military and Uniformed Service. The name of a retiree who 


 
10 
loses Filipino citizenship shall be removed from the Retired List and said retiree shall forfeit 
the right to receive retirement benefits upon such loss. 
 
SEC. 29. Recall to Active Service. –  
 
(a) 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. The refusal of the MUP to perform such duty shall 
be a ground for court-martial under Article 97 of the Articles of War and subsequent 
termination of payments of benefits as determined by the court martial. 
 
(b) 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 the MUP remains in 
active status. 
 
SEC. 30. 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 retired or separated MUP who is entitled to any benefit under this Act has 
unsettled money or property accountabilities incurred while in the Active Service, not more 
than fifty percent (50%) of the pension gratuity or other payment due or to the MUP or their 
survivors under this Act may be withheld and be applied to settle such accountabilities. 
 
SEC. 31. Accrual of Benefits; effect of Court Martial action. – 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. 
 
SEC. 32. 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. 
 
TITLE X 
Miscellaneous Provisions 
  
SEC. 33. 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 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. 
 
SEC. 34. Rules and Regulations. – Within sixty (60) days upon the effectivity of this 
Act, the DOF, DND, DILG, DOJ, Department of Transportation (DOTr), Department of 
Environment and Natural Resources (DENR), GSIS, and DBM, in coordination with the AFP, 
PNP, PCG, BJMP, BFP, BuCor, NAMRIA, and other relevant offices shall promulgate the 
rules and regulations to implement the provisions of this Act. 


 
11 
 
SEC. 35. Repealing Clause. – Presidential Decree No. 1656, Presidential Decree No. 
1638, Republic Act No. 340, Republic Act No. 5976, Republic Act No. 6975, Republic Act 
No. 8551, Republic Act No. 9263, Republic Act No. 9993 and Republic Act No. 10575, and 
all laws, rules and regulations, and other issuances or parts thereof, which are inconsistent with 
the provisions of this Act, are hereby repealed or modified accordingly. 
 
SEC. 36. Separability Clause. – If any provision of this Act shall be declared invalid or 
unconstitutional, the remaining parts or provisions not otherwise affected shall remain in full 
force and effect. 
 
SEC. 37. Effectivity Clause. – This Act shall take effect fifteen (15) days following its 
complete publication in the Official Gazette or in two (2) national newspapers of general 
circulation. 
 
Approved,