Law Summary

SECTION 1: Amendment of Section Two of Republic Act No. 1862

• Legal Principle/Provision: This section amends the existing provisions of Republic Act No. 1862, allowing certain retirees to opt for a different retirement compensation.

• Key Definitions Introduced:

  • Retirees: Individuals who have retired and received a gratuity under Republic Act No. 340 and/or Republic Act No. 1616, as amended.
  • Gratuity: A one-time payment received by retirees under specified laws.

• Important Requirements or Procedures Outlined:

  • Eligible retirees who retired after June 22, 1957, but before September 10, 1979, may choose to receive annual retirement pay instead of the gratuity.
  • The election to opt for annual retirement pay must be made within five years following the approval of this amendatory Act.
  • Widows and minor children of deceased retirees are also granted the option to elect for annual retirement pay if the retiree did not make the election before death.

• Relevant Timeframes, Deadlines, or Expiration Details:

  • The option to elect for annual retirement pay must be exercised within five years from the date of the Act's approval (January 5, 1984).

• Penalties, Liabilities, or Consequences Mentioned:

  • No retroactive payment of retirement pay for periods prior to the approval of this Act is permitted.

• Eligible retirees must have retired within specified dates. • Election for annual retirement pay is optional and must be done within five years. • Widows/minor children can exercise the option if the retiree has passed away. • Retroactive claims prior to the Act's approval are disallowed.

SECTION 2: Funding for Implementation

• Legal Principle/Provision: This section outlines the funding mechanism for implementing the provisions of the Act.

• Key Definitions Introduced:

  • Savings in Programmed Appropriations: Budget surplus from the current operating expenditures of the Headquarters, Armed Forces of the Philippines.

• Important Requirements or Procedures Outlined:

  • The necessary funds for the current calendar year to implement this Act shall be charged against the savings from the appropriations.
  • Future funding for the same purpose will be included in the annual General Appropriations Act.

• Relevant Timeframes, Deadlines, or Expiration Details:

  • Immediate funding is provided for the current calendar year, with subsequent funding to be included in future appropriations.

• Funds for implementation are drawn from current operating expenditures. • Future appropriations will encompass necessary amounts for ongoing implementation.

SECTION 3: Effectivity

• Legal Principle/Provision: This section states the effectivity of the Act.

• Key Definitions Introduced:

  • Approval Date: The date when the Act is officially approved, which is January 5, 1984.

• Important Requirements or Procedures Outlined:

  • The Act will take effect immediately upon its approval.

• The Act is effective from January 5, 1984.

Key Takeaways

• The Act allows certain retirees to choose annual retirement pay instead of a one-time gratuity within a specified timeframe.
• This option is extended to widows and minor children of retirees who have passed away.
• Funding for the implementation of the Act is sourced from current budget savings, with future allocations to be included in the General Appropriations Act.
• The Act takes immediate effect upon approval, but it does not allow retroactive claims for retirement pay.