Election to Receive Annual Retirement Pay
- Eligible retirees can opt to receive annual retirement pay in lieu of gratuity previously paid
- Election must be made within five years from approval of the Executive Order
- Annual retirement pay based on provisions of Section Two of Republic Act No. 340 as amended
- Does not authorize payment of retirement pay accruing before January 5, 1984 (approval date of Batas Pambansa Blg. 644)
Funding and Appropriations
- Expenses for implementation charged against current and future savings in New Armed Forces of the Philippines operating expenditures
- Adjustments to rates funded from P200 million government contribution to AFP Retirement and Separation Benefits System per Presidential Decree No. 1909
- Future necessary amounts to be included in the annual General Appropriations Act
Effectivity
- The Executive Order takes effect immediately upon approval on December 13, 1986
Legal Amendments and Integration
- Further amends Section 2 of Republic Act No. 1862 as amended by Batas Pambansa Blg. 644
- Acknowledges military service of retirees excluded under prior provisions and extends similar retirement benefits
- Clarifies that option to convert gratuity to annual pay is subject to conditions and limitations provided in executing laws and regulations.