Law Summary
Exclusions from Promotion on Retirement or Separation
- Personnel whose separation was a result of punishment by general or special court martial findings are excluded from promotion.
- Those separated due to their own misconduct, willful failure, intemperate use of drugs or alcoholic liquors, or vicious or immoral habits are not eligible for the promotion.
Rank Assumption Upon Recall to Active Duty
- Officers and enlisted men who were promoted prior to retirement based on their capabilities do not revert to that prior rank when recalled to active duty.
- However, those who are automatically promoted one rank by operation of this Act upon retirement resume their ranks or grades held before retirement when recalled.
Computation of Retirement and Separation Benefits
- Retirement pay, gratuity (Section 2 of Republic Act 340), and separation pay (Section 8 of Republic Act 340) are computed based on the higher rank or grade at which the service member is retired or separated.
Appropriation of Funds
- Sixty thousand pesos plus other appropriations for Armed Forces retirement are allocated for implementation of this Act.
Effectivity of the Act
- The Act takes effect retroactively from July 26, 1948, ensuring coverage of eligible retirees from that date onward.