FURTHER AMENDING PRESIDENTIAL DECREE NO. 361 ESTABLISHING THE ARMED FORCES OF THE PHILIPPINES RETIREMENT AND SEPARATION BENEFITS SYSTEM.

WHEREAS, pursuant to Presidential Decree No. 361, the Armed
Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS)
was established for the purpose of providing a self-reliant funding- scheme
which will guarantee continuous financial support to the AFP retirement
plan;

WHEREAS, under prevailing laws and implementing regulations,
certain groups of retired military personnel, particularly those who retired
prior to September 10, 1979,’ are classified into various categories depending
upon the respective dates of their retirement or separation from the active
service, thereby inevitably resulting in inequities in the receipt of retirement
pension;

WHEREAS, there is a necessity to upgrade the pension of the
above-mentioned retired military personnel to enable them to met the escalating
cost of living and to equalize the entitlement to retirement pension of all
military personnel and their beneficiaries;

WHEREAS, the inclusion of the group of retired military
personnel mentioned in the AFP-RSBS will facilitate the equalization of
retirement benefits previously stifled by enormous budgetary or funding
constraints;

NOW, THEREFORE, I, FERDIANND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
decree:

SECTION 1. Any provision of law, rule or regulation to the
contrary notwithstanding, all military personnel who retired from the active
service prior to September 10, 1979 and are receiving annual retirement pension
from the Armed Forces of the Philippines shall be considered as additional
members of the Armed Forces of the Philippines Retirement and Separation
Benefits System, hereinafter referred to as the System. They shall henceforth
contribute an amount equivalent to five percent (5%) of their gross monthly
pension as herein adjusted, which contribution shall be deducted from their said
pension and paid to the System: PROVIDED, That such contribution to the System
shall be refunded in one lump sum to the retired military personnel or their
beneficiaries concerned’ upon the termination of their entitlement to retirement
pension from the Government.

SEC. 2. The System shall forthwith support the payment of
the increment representing the difference between the existing pension rate and
the adjusted pension rate computed on the basis of the prevailing scale of pay
of officers and enlisted men in the active service: PROVIDED, That payment
thereof by the System and receipt of the adjusted pension shall be in accordance
with the rate of pension and schedule of payment as shall be determined and
fixed under the implementing rules and regulations promulgated by the Chief of
Staff, Armed forces of the Philippines, and approved by the Minister of National
Defense: PROVIDED, Further, That nothing herein shall be construed as
authorizing payment of back pension prior to the promulgation of this
Decree.

SEC. 3. The initial sum of Two Hundred Million Pesos
(P200,000,OOO.CO) is hereby appropriated out of any. savings of the Armed Forces
of the Philippines under the General Appropriations Act, which shall be paid in
lump sum as additional government contribution to the System: PROVIDED, That
such additional sum necessary to fully implement the objectives of this Decree
shall be provided for in the subsequent appropriation in the budget of the Armed
Forces of the Philippines.
SEC. 4. Any provision of law, decree, order, rules
and’ regulations, or part thereof, inconsistent with this Decree is hereby
repealed, amended or modified accordingly.

SEC. 5. This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of March in the year of Our Lord,
nineteen hundred and eighty-four.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.)JUAN C. TUVERA
		Presidential Executive Assistant