Deactivating The Armed Forces Of The Philippines Retirement And Separation Benefits System By 31 December 2006, Directing The Transfer Of Its Assets In Trust To A Government Financial Institution, And For Other Purposes

Case Overview and Summary

Summary of Executive Order No. 590

Deactivation of the Armed Forces of the Philippines Retirement and Separation Benefits System (RSBS)
- The RSBS is deactivated effective December 31, 2006. (Section 1)
- A Cabinet Oversight Committee (COC-RSBS) is created to oversee the deactivation process. (Section 2)

Guidelines for Deactivation, Liquidation, and Winding Down of RSBS
- Conduct due diligence review of RSBS and subsidiaries' financial condition as of June 30, 2006. (Section 3.1)
- Transfer current assets of RSBS and subsidiaries to a Government Financial Institution (GFI) for liquidation. (Section 3.2)
- Proceeds from asset sale and military personnel contributions to be remitted to a Trust Account managed by the GFI. (Sections 3.3, 3.4)
- Return of members' contributions plus 6% interest upon retirement to be paid from the Trust Account, guaranteed by the government. (Section 3.5)

Separation or Retirement of RSBS Personnel
- RSBS officers and employees to be retired or separated in accordance with Republic Act No. 6656 and other applicable laws. (Section 4)

Assistance by the Government Corporate Counsel
- The Office of the Government Corporate Counsel to assist the COC-RSBS or GFI Trustee. (Section 5)

New Philippine Military Retirement System
- The Department of National Defense to study and prepare draft legislation for a new military retirement and pension system with strict investment guidelines. (Section 6)