MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 590
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
WHEREAS, the Armed Forces of the Philippines (“AFP”) Retirement and Separation Benefits System (“RSBS” or “System”) was established under Presidential Decree No. 361 issued on 30 December 1973 (PD 361) to provide the funding scheme for the payment of retirement and separation benefits provided under existing laws to military personnel of the AFP;
WHEREAS, under Section 5 of PD 361, as amended by Presidential Decree No. 1656 issued on 21 December 1979 (PD 1656), the funds of the RSBS shall be allowed to grow to be able to provide perpetually the cash requirement covering the retirement and separation benefit payments to military personnel on a self-sustaining basis, and that prior to the time when perpetual self-sufficiency of the funds of the RSBS is attained as determined by actuarial...
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Executive Orders
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
Executive Order No. 590
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)
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)