QuestionsQuestions (Republic Act No. 340)
Under Sec. 1: (a) Optional retirement—after at least twenty (20) years of continuous satisfactory active service, the officer or enlisted man may request retirement with the approval of the President. (b) Compulsory retirement—after at least thirty (30) years of continuous satisfactory active service, or upon attaining sixty (60) years of age with at least fifteen (15) years of continuous active service, unless the President in his opinion requires continued service for the good of the service.
The President must approve the officer’s or enlisted man’s request for retirement (Sec. 1[a]).
Sec. 2 allows the retiree, at his option, to receive either: (1) a gratuity equivalent to one month of base and longevity pay on the date of retirement for every year of service, payable in one lump sum; or (2) annual retirement pay equal to 2.5% of the annual base and longevity pay received on the date of retirement for each year of active service, payable in equal monthly installments, but not exceeding 75% of total base and longevity pay.
Sec. 2’s proviso states that the rate is not applicable to officers or enlisted men separated through classification or efficiency boards and courts-martial, or as a result of their own misconduct, willful failure, or resignation, except as provided in Sec. 8(d).
The surviving legitimate, adopted, or acknowledged natural children and/or the widow may receive survivorship benefits (Sec. 3). They receive 50% of the annual retirement pay the deceased was receiving or would have been entitled to receive, in equal shares with the right of accretion.
Sec. 3 provides a cap: the total amount payable cannot exceed an amount equivalent to one month base and longevity pay at the time of death/retirement (whichever comes first), multiplied by the years of active service, less the total amount already received as annual retirement pay at the time of death.
Children’s payments stop after they attain age 21 or upon marriage; widow’s payments stop if she remarries. Additionally, no payment is made to the widow if her marriage to the deceased was contracted after the deceased’s retirement from service.
Sec. 8 provides: (a) <3 years active service—honorably discharged in grade then held; (b) 3 to <10 years—honorably discharged with separation pay equal to three months’ base and longevity pay computed upon such grade; (c) 10 to <20 years—honorably discharged with separation pay equal to one month base and longevity pay for each year of active service; (d) ≥20 years—retired in the grade then held, under Secs. 1 and 2.
They are placed in the retired list and receive either: (a) a gratuity payable in one lump sum equivalent to one month base and longevity pay multiplied by years of active service, but not less than three months’ base and longevity pay; or (b) annual retirement pay equal to 2.5% of annual base and longevity pay at the date of retirement for each year of active service, payable in equal monthly installments, capped at 75% of total base and longevity pay.
No. Under Sec. 4, retirees continue to be borne on the Army Register and are placed in the retired list. Under Sec. 5, those on the retired list remain subject to the rules and articles of war and can be tried by court-martial for breaches. They may also be called to active service by the President.
Refusal terminates his right to further participation in the benefits of the Act, provided he resides in the Philippines and is physically fit for service; fitness is determined by applicable regulations.
When called for active service, they receive the full pay of their rank or grade. While on inactive status, they are entitled to the same privileges as officers and enlisted men in active service, subject to rules and regulations the President may promulgate (Sec. 6).
An officer placed on the retired list is withdrawn from command and from the active promotional list. If recalled, his name remains in the retired list and he is eligible for promotion in the retired list as long as he continues active duty and is declared eligible under pertinent rules. Promotion is governed by seniority in the corresponding grade/rank, determined by length of active service rendered in each grade.
Sec. 9(a) grants full credit for active service as officer/enlisted man of specified Philippine/US/guerrilla forces and for cadet training in the PC/PM A/US academies/air flying schools. Sec. 9(b) ensures US Army or Philippine Scouts service up to July 4, 1946 is counted for determining minimum/maximum length of service. Sec. 9(c) provides counting of certain prior service (at least 10 years in AFP) for computing retirement/gratuity, but prohibits counting any period for which the person receives US retirement pay. Sec. 9(d) counts any period of six months or more as one complete year.
Sec. 10 provides that an officer entitled to benefits is retired or separated in the next higher rank to which he is eligible under applicable laws and regulations, or in a higher temporary rank he may be holding at retirement/separation. Gratuity/retirement pay (and separation pay for Sec. 8) are computed based on that higher rank.
Sec. 14 states that Secs. 2 and 3 operate retroactively with respect to officers and enlisted men who died after Dec. 8, 1941, and who did not apply for retirement under Commonwealth Act No. 190 during their lifetime but, by reason of length of service, were otherwise entitled to retire under that Act. It also provides that nothing reduces the retirement pay or gratuity of any retired officer/enlisted man receiving benefits at the Act’s effectivity.