WHEREAS, an
Armed Forces Retirement and Separation Benefits System, for payment of
retirement and separation benefits provided law to military members of
the Armed Forces of the Philippines, was established pursuant to PD
361; chanroblesvirtualawlibrary
WHEREAS, the circumstances impinging on the military establishment have
drastically changed since the promulgation of PD 361 and its full
implementation if effected will cause the early collapse of the System;
and
WHEREAS, it is necessary to amend certain provisions of PD 361 in order
to perpetuate the actuarial solvency of the System, and guarantee to
every military member of the AFP all the retirement and separation
benefits due him under existing laws and such other similar laws as may
hereafter be enacted;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree the following:cralaw:red
Section 1. Section 4 of Presidential Decree No. 361
is hereby amended to read as follows: chanroblesvirtualawlibrary
"Sec. 4. Officers and enlisted personnel in the
active service of the AFP shall contribute monthly to the System an
amount equivalent to five percent (5%) of their monthly base pay, which
contribution shall be deducted from their pay by the Armed Forces of
the Philippines and paid to the System: Provided, That any officer or
enlisted personnel who is separated or retired shall upon his
separation or retirement be refunded in one lump sum all his
contributions to the System: Provided, further, That such contributions
shall be tax deductible for purposes of individual income tax return."
Section 2. Section 5 of Presidential Decree No. 361
is hereby amended to read as follows:cralaw:red
"Sec. 5. The funds of the System shall be allowed to
grow to be able to provide perpetually the cash requirement covering
the retirement and separation benefits payments to military members of
the Armed Forces of the Philippines on a self-sustaining basis:
Provided, That prior to the time when perpetual self-sufficiency of the
funds of the System is attained as determined by actuarial evaluation,
the yearly requirement for retirement and separation benefits of
military personnel as provided under RA 340, as amended, PD 1638, as
amended by PD 1650, and such other similar laws as may hereafter be
enacted, shall be included in and funded out of the annual
appropriations for the Armed Forces of the Philippines."
Section 3. This Decree shall take effect on January
1, 1980.
Done in the City of Manila,
this 21st day of December, in the year of Our Lord, nineteen hundred
and seventy-nine.
|
