Retirement Benefits
- Retirees may opt for either:
- A lump sum gratuity equal to one month's base and longevity pay for each year of service.
- An annual retirement pay equal to 2.5% of annual base and longevity pay per year of service, capped at 75% of total base and longevity pay.
- Retirement pay excludes those separated for misconduct or certain other grounds except under specific conditions.
Survivor Benefits
- Surviving legitimate, adopted, or acknowledged natural children and/or widow may receive 50% of the deceased's annual retirement pay.
- Total payable amount is limited to a maximum based on years of service and base pay.
- Payments cease when children reach 21 years or marry, or if the widow remarries.
- No benefits accrue if the widow married the retiree post-retirement.
Retired Officers and Enlisted Men Obligations and Privileges
- Retired personnel remain on the Army Register and subjected to military rules and court-martial jurisdiction.
- They may be recalled to active duty; refusal without valid reasons terminates benefits.
- While on active recall, entitled to full pay and eligibility for promotion within the retired list.
- While inactive, retain privileges akin to active personnel subject to Presidential regulations.
Separation Provisions
- Officers separated by Presidential directive based on Classification or Efficiency Boards recommendations (excluding cases involving misconduct) receive:
- Honorably discharged with separation pay based on length of service.
- Retirement for those with 20 or more years of service.
- Physical disability separation leads to retirement with gratuity or annual retirement pay similar to regular retirement.
Service Credit and Computation
- Service credit includes active duty in various recognized Philippine and allied military organizations and recognized guerrilla service.
- Military service in the US Army or Philippine Scouts before July 4, 1946, counts towards eligibility and pay computations with conditions.
- Six months or more service counts as a full year.
Rank and Pay Basis at Retirement or Separation
- Retirement or separation shall be in the next higher or temporary rank held.
- Gratuities and retirement pay computed based on the higher rank.
Funding and Appropriations
- Annual appropriations must include sufficient funds for payment of retirement benefits, pensions, and gratuities.
- The President can augment funds through unexpended balances to form a Special Fund.
Repealing Clause
- Inconsistent laws and executive orders, including certain Commonwealth Acts, are repealed.
Coverage and Applicability
- Applicable to Regular and Reserve Forces with specific provisions for Regular Forces.
- Total service in the Reserve is considered continuous for retirement purposes.
- Resignation from Regular commission after effectivity disqualifies prior service credit for retirement.
Effectivity and Retroactivity
- Law takes effect upon approval.
- Sections on retirement pay and survivor benefits have retroactive effect from December 8, 1941, under specified conditions.
- No reduction in retirement benefits already being received upon effectivity.