Retirement and Pension Benefits
- Eligible uniformed personnel with twenty or more years of service may retire upon Presidential approval.
- Retirees receive a monthly pension for life based on a prescribed schedule.
- Upon death, surviving spouse and minor children share the pension benefits as follows:
- Minor children (legitimate, acknowledged, or illegitimate) and surviving spouse receive full benefits.
- If no minor children, surviving spouse receives fifty percent of the pension.
- Pension payments cease to children upon reaching age 21 or upon marriage; surviving spouse’s pension ceases if remarried.
Pension Computation and Special Cases
- Pension equals 2.5% of the highest monthly basic pay multiplied by years of active service.
- Fractions of half a year or more count as a full year for computation purposes.
- Disability or death in line of duty results in special pension rates:
- Death in line of duty: survivor(s) receive 50% of highest basic annual salary.
- Total incapacity from loss of limbs or insanity: 50% of highest basic annual salary.
- Loss of one arm or leg: 25% of highest basic annual salary.
- Benefits exclude disabilities or death from immoral or vicious habits.
Pension Board Composition and Authority
- Each Chartered City establishes a Pension Board comprising:
- City Mayor (Chairman)
- A member of the Municipal Board appointed by that body
- City Treasurer
- City Auditor
- Chief of Police
- Chief of Fire Department
- Board requires a quorum of majority members and at least three affirmative votes to decide.
- Decisions are final unless appealed to the Secretary of the Interior within three months.
- The Department of the Interior promulgates mandatory rules, regulations, and forms for uniformity.
Appropriations and Funding
- Annual minimum appropriations in each Chartered City:
- At least ₱5,000 added to Police and Fire Departments’ appropriations for pensions.
- In Manila, at least ₱100,000 added for Police and Fire pension fund.
- Appropriated funds dedicated exclusively for pensions under this Act.
Pension Payment and Employment Restrictions
- Monthly pension paid by government warrant or secure means without deductions for delivery.
- Pension discontinued during re-employment in government service if salary equals or exceeds 50% of pension.
Mandatory Retirement Age and Exceptions
- Retirement compulsory at age 60 with at least 20 years of service.
- Exceptions allowed if the retiree requests to continue and the Chief of Police or Fire Department recommends favorably based on physical capacity.
Insurance and Exclusive Applicability
- Existing Government Service Insurance System members may continue insurance at their own premium cost.
- Contribution to the pension fund under this Act is compulsory and deducted from monthly salary.
- Benefits under this Act are exclusive; beneficiaries cannot claim pensions under other laws.
Effectivity
- The Act takes effect immediately upon approval (June 17, 1950).