Eligibility Criteria for Retirement
- Minimum eligibility requires 30 years of continuous satisfactory service and attaining the age of 55.
- Retirement at minimum eligibility is optional but requires presidential approval.
- Maximum eligibility is upon reaching 40 years of continuous satisfactory service or the age of 64, with at least 15 years of service.
- Retirement at maximum eligibility is compulsory unless the President exempts the individual for the good of the service.
- Officers and enlisted men with 20 years of service may voluntarily retire and receive a lump sum gratuity based on two percent of the average annual salary for each year of service.
Definition of Average Annual Salary
- Defined as the average annual base pay received during the last three years of service.
Recall to Active Service and Effect on Retirement Benefits
- Retired personnel residing in the Philippines may be recalled to active duty by the President.
- During recall, they are entitled to full pay of their rank or grade.
- Refusal to serve, when physically fit, terminates rights to retirement benefits.
- Retirement pay ceases during recalled active service or if the retiree is employed by government entities with compensation equal or exceeding retirement pay.
- If government compensation is less than retirement pay, the difference is paid from the Retirement Fund.
Computation and Conditions of Retirement Pay
- Annual retirement pay equals two percent of basic pay on retirement multiplied by years of active service.
- Maximum retirement pay is 50% of basic pay for commissioned officers and 60% for enlisted men and non-commissioned officers.
- No retirement pay for separation due to misconduct, courts martial, resignation, or classification board actions.
Options for Regular Force Personnel Regarding Benefits
- Members may choose to waive full benefits for:
- Refund of contributions to the Philippine Constabulary Pension Fund.
- Reduced retirement pay computed only for service after Dec 31, 1936.
- Alternatively, accepting full benefits entails different percentage refunds of contributions based on years until eligibility:
- 100% refund if eligible within 20 or more years from Jan 1, 1937.
- 80% refund if eligible within 15 years.
- 60% refund if eligible within 10 years.
- 40% refund if eligible within 5 years.
Funding and Appropriations
- Annual appropriations including "Purpose aPersonnel" of the Philippine Army’s budget must cover payments under this Act.
- Existing appropriations for the Philippine Army Pension Fund from 1937 apply to retirement benefits under this Act.
Effectivity
- The Act became effective upon its approval on November 14, 1936.