Establishing A New System Of Retirement And Separation For Military Personnel Of The Armed Forces Of The Philippines And For Other Purposes

Case Overview and Summary

Summary of Presidential Decree No. 1638 (AFP Military Personnel Retirement and Separation Decree of 1979)

Purpose and Applicability
- Establishes a new system of retirement and separation for military personnel of the Armed Forces of the Philippines. (Section 1)
- Applies to all military personnel in the service of the Armed Forces of the Philippines. (Section 2)

Retirement
- Defines active service for the purpose of retirement, including military and civilian service. (Section 3)
- An officer or enlisted man may request retirement after 20 years of active service with the President's approval. (Section 4)
- Compulsory retirement at age 60 with at least 15 years of service, or after 30 years of service, whichever is earlier, unless continued service is required. (Section 5)
- An officer or enlisted man with at least 20 years of service who dies in line of duty shall be considered retired for survivorship benefits. (Section 6)
- An officer or enlisted man with at least 20 years of service who incurs total permanent physical disability in line of duty shall be compulsorily retired. (Section 7)
- An officer or enlisted man with at least 20 years of service who incurs partial disability in line of duty may opt for retirement. (Section 8)
- Retired personnel shall be promoted to the next higher grade, except for Colonels/Captains (PN) or higher. (Section 9)

Separation
- Officers in certain grades shall be separated after a specified number of years in grade or upon reaching a certain age, whichever is later. (Section 10)
- Officers found unfit for retention due to substandard performance, low potential, doubtful integrity, or acts against the service's interest shall be separated. (Section 11)
- Officers deferred for promotion twice shall be separated. (Section 12)
- An officer or enlisted man with less than 20 years of service who dies in line of duty shall be considered separated in the next higher grade for survivorship benefits. (Section 13)
- An officer or enlisted man with less than 20 years of service who incurs total permanent disability in line of duty shall be separated in the next higher grade. (Section 14)
- An officer or enlisted man with less than 20 years of service who incurs partial disability in line of duty may opt for separation in the next higher grade. (Section 15)
- An officer may resign and be separated from service upon acceptance by the President. (Section 16)

Retirement and Separation Benefits
- Retired personnel may opt for a lump sum gratuity of 1 month's pay per year of service or a monthly retirement pay of 2.5% per year of service, up to 85% of the next higher grade's pay. (Section 17)
- Survivors of retired personnel shall receive 75% of the monthly retirement pay. (Section 18)
- Separated personnel with disabilities shall receive a monthly life annuity of 50% of the separation grade's pay, with a minimum of ₱200. (Section 19)
- Separated personnel with less than 20 years of service shall receive 1 month's pay per year of service. (Sections 20, 21)
- Survivors of personnel who died or were disabled in line of duty shall receive 50% of the separation grade's pay as a monthly annuity. (Section 22)
- Disabled personnel shall receive additional monthly disability pensions ranging from ₱50 to ₱200 based on the disability rating. (Sections 23, 24)

General Provisions
- Defines total permanent physical disability, survivors, line of duty, and a year of active service. (Section 25)
- Retired personnel shall contribute 4% of their pay for civilian service credited for retirement. (Section 26)
- Retired personnel shall be carried in the retired list and may be recalled to active duty. (Sections 27, 28)
- Recalled retirees shall receive active duty pay and be eligible for promotion. (Section 29)
- Retired and separated personnel and their dependents shall have the same privileges as active duty personnel. (Section 30)
- Benefits shall not be subject to attachment, garnishment, levy, execution, or tax, except for unsettled accountabilities. (Section 31)
- Benefits shall accrue to personnel separated by court martial, unless expressly adjudged otherwise. (Section 32)
- Benefits shall not be reduced from existing laws. (Section 33)
- Penalties for fraud, falsification, misrepresentation, collusion, or similar anomalies related to the decree. (Section 34)
- Repeals or modifies inconsistent laws, rules, and regulations. (Section 35)
- Effective date of the decree. (Section 36)