RA No 340, as amended
(July 26,1948) 1979), as amended by PD
 Compulsory Retirement:
Age 60 w/ min of 15 yrs of
continuous active svc or at
least 30 yrs of continuous
svc
PD No 1638 (September 10,
1650 (November 8, 1979)
 Compulsory Retirement:
 Age 56 or 30 yrs of active
svc whichever comes later
(Age 60 w/ min of 15 yrs of
active svc or 30 yrs of active
mil svc whichever is earlier)
 Death in line of duty; w/ 20
yrs of satisfactory Svc
 Total permanent physical
disability in line of duty w/ 20
yrs of satisfactory Svc
PROPOSED BILL
 Compulsory Retirement:
Age 60 w/ min of 20 yrs
satisfactory active svc
 Death in line of duty; w/ 20
yrs of satisfactory Svc
 Total permanent physical
disability in line of duty w/ 20
yrs of satisfactory Svc
 Those attrited (rank attrition)
w/ 20 yrs of satisfactory Svc;
 WIA w/ total permanent
PROPOSED REVISION OF
OTJAG
 Compulsory Retirement:
Age 56 w/ 30 yrs satisfactory
active mil svc whichever is
later;
 Death in line of duty; w/ 20 yrs
of satisfactory Sv (in line of
duty shall refer to death,
illness or injury incurred, other
than KIA or WIA, while in the
Active Service and not
attended by misconduct, willful
failure to perform duties,
intemperate use of drugs or
alcoholic liquor or vicious or
immoral habits
 Total permanent physical
disability in line of duty

 Optional Retirement:
 Optional Retirement:
physical disability
 KIA
 Separated by Disciplinary
Board w/ 20 yrs of Svc.
 Voluntary Retirement:
 WIA w/ total permanent
physical disability (WIA shall
refer to AFP, PNP and PCG
personnel wounded during
combat and/or law
enforcement operations.)
 KIA (KIA shall refer to AFP,
PNP and PCG personnel who
died during combat and/or law
enforcement operations.)
 Voluntary Retirement:

20 yrs of continuous 20 yrs of continuous satisfactory 20 yrs of satisfactory svc. 20 yrs of satisfactory svc.
satisfactory svc. svc.
Those 56 yrs of age w/ at least
16 yrs of active svc are allowed
to complete the 20 yrs but not
beyond 60th birthday.

(To align with PD 1908, s-84

which prescribes the
commissionship of JAGS,
Medical Corps and Chaplain
Service at the age of 25- 40)
 Compulsory Separation:  Compulsory Separation: Compulsory Separation:  Compulsory Separation:

 ESB (not due to his  ESB (substandard  Disciplinary Board,  Disciplinary Board,
misconduct, willful performance, low potentiality, (substandard performance, low (substandard performance, low
failure to perform doubtful integrity, acts potentiality, doubtful integrity, potentiality, doubtful integrity,
duties, intemperate use inconsistent with the best acts inconsistent with the best acts inconsistent with the best
of drugs or alcoholic interest of the svc) interest of the svc) interest of the svc)
 liquor, or vicious or
immoral habits)  Twice deferment - entitled
to separation or retirement
benefits based permanent grade
last held for 2nd Lt to Maj and next
higher grade from LTC up
 Attrition (CPT-5/33, MAJ-
6/39, LTC-7/49) - entitled to
separation or retirement benefits
based on the permanent grade
last held
 Retirement Benefits:  Retirement Benefits:
Compulsory Compulsory
75% of the total b/lp received Not exceeding 85% of the
by him on the date of monthly b/lp of the grade next
retirement higher than the permanent
grade last held
Optional Optional
2.5% for every yr of svc 2.5% for every yr of svc
 RETIREMENT GRADE:  RETIREMENT GRADE:
w/ 1 rank higher w/ 1 rank higher except ESB
disposition
 INDEXATION  INDEXATION
None Automatic
 Attrition system to be
provided in the IRR - entitled to
separation or retirement benefits
based on the permanent grade
last held
 Retirement Benefits:
Compulsory
Not exceeding 90% of the
monthly b/lp of the permanent
grade last held
Voluntary
2.5% for every yr of svc
 RETIREMENT GRADE:
No 1 rank higher
 INDEXATION
Not automatic but maybe
recommended up to 1.5 % by
the MUPRF Board
 The existing laws/rules on
attrition of respective service shall
be applied - entitled to receive
separation or retirement benefits
based on the permanent grade last
held.
 Retirement Benefits:
Compulsory
Not exceeding 90% of the
monthly b/lp of the permanent
grade last held
Voluntary
2.5% for every yr of svc
 RETIREMENT GRADE:
w/ 1 rank higher (56/30, KIA,
TPD, WIA w/ TPD), except New
Entrants, Attrition, and
disposition of Disciplinary Board
 INDEXATION
 Not automatic but maybe
allowed up to 1.5 % by the
MUPRF Board
  Composition of the MUPRF
Board with DBM as Chairman

 Annual review on the

sustainability of funds and to
approve the adjustment pension
benefits up 1.5% of the benefits
being received by the pensioner
at the time.
 MONTHLY PENSION  MONTHLY PENSION  MONTHLY PENSION ACCRUE  MONTHLY PENSION ACCRUE
ACCRUE ACCRUE

 Compulsory  Compulsory  Compulsory  Compulsory

Immediately after Immediately after retirement Immediately after retirement Immediately after retirement
retirement

 Optional, Separated by  Optional, Separated by  Optional, Separated by  Optional, Separated by

ESB ESB, Attrition ESB, Attrition ESB, Attrition
Immediately after Immediately after retirement. Upon reaching the age of sixty Upon reaching the age of fifty-six
retirement. (60). (56).
 LUMP SUM  LUMP SUM  LUMP SUM  LUMP SUM
None/Direct pension 36 months 18 months 36 months

 RESUMPTION OF  RESUMPTION OF PENSION  RESUMPTION OF PENSION  RESUMPTION OF PENSION

PENSION AFTER AFTER LUMPSUM AFTER LUMPSUM AFTER LUMPSUM
LUMPSUM After 36 months At the age of 60 After 36 months
NA
 MANDATORY  MANDATORY  MANDATORY  MANDATORY
CONTRIBUTION CONTRIBUTION CONTRIBUTION CONTRIBUTION
None None  Pers Share (based on  Pers Share (based on Base
 compensation): Pay):
5% 1st 3 yrs 5% 1st 3 yrs
7% for the nxt 3 yrs 7% for the nxt 3 yrs
9% thereafter 9% thereafter

Govt Share: Govt Share:

22% 1st 3yrs 22% 1st 3yrs
20% for the nxt 3 yrs 20% for the nxt 3 yrs
18% thereafter 18% thereafter
 SOURCE OF FUNDS  SOURCE OF FUNDS  SOURCE OF FUNDS  SOURCE OF FUNDS
GAA GAA  Pers Share + GAA + MUP  Pers Share + GAA + MUP
Real Estates and other sources Real Estates and other sources

 Lease, joint development or  Lease or joint development of

disposition of the assets of the the assets of the MUP
MUP
 Lease or joint development of
military camps and reservations
shall not exceed 10 yrs.

 AFP may pre-terminate the

term of lease or joint
development agreement of
military camps and reservations
in the exigency of the service.

 After ten (10) years, all military

camps and reservations shall no
longer be subject to lease or joint
development agreements, for
purposes of this Act.
 FUND MANAGER  FUND MANAGER  FUND MANAGER  FUND MANAGER
NA NA GSIS GSIS
 TERMINATION/  TERMINATION/  TERMINATION/  TERMINATION/
DISQUALIFICATION DISQUALIFICATION FROM DISQUALIFICATION FROM DISQUALIFICATION FROM
FROM DERIVATIVE DERIVATIVE PENSION DERIVATIVE PENSION DERIVATIVE PENSION
PENSION  Spouse:  Spouse:  Spouse:
Spouse: Remarriage, Loss of Remarriage, Loss of Remarriage, Loss of Citizenship,
Remarriage, Death, Marriage Citizenship, Death, Marriage Citizenship, Death, Marriage Death, Marriage after
after retirement after retirement after retirement, Cohabitation, retirement, Cohabitation, Acts of
Viol against biological & Infidelity, Viol against biological
Children:  Children: adopted children (RA 9262), & adopted children (RA 9262),
Attainment of legal age Attainment of legal age (21), Conception of a child after Conception of a child after
(21), Marriage, Death Loss of Citizenship, Marriage, death, Conviction of a crime w/ death, Conviction of a crime w/
Death imprisonment of > 6 yrs imprisonment of > 6 yrs

 Children:
 Children: Attainment of legal age (21),
Attainment of legal age (21), Loss of Citizenship, Marriage,
Loss of Citizenship, Marriage, Death
Death
 ACCRUAL OF BENEFITS  ACCRUAL OF BENEFITS  ACCRUAL OF BENEFITS  ACCRUAL OF BENEFITS
AFP retirees separated by court AFP retirees separated by MUP separated by
martial except when non- court martial except when administrative or court martial
entitlement is adjudged non-entitlement is adjudged action except when non-
entitlement is adjudged
 SURVIVORSHIP  SURVIVORSHIP  SURVIVORSHIP  SURVIVORSHIP BENEFITS
BENEFITS BENEFITS BENEFITS
50% 75% 75% 75%

 RECALL TO ACTIVE SVC  RECALL TO ACTIVE SVC  RECALL TO ACTIVE SVC  RECALL TO ACTIVE SVC
No provision  AFP Retirees are subj  AFP Retirees are subj to  MUPs (“all armed
forces”) may be recalled
 to Articles of War
 May be recalled
 Refusal is viol of AW
97
 P/A of permanent
grade last held
 Eligible for Promotion
in Retired List as long as he
remains in Active Svc
PENAL CLAUSE PENAL CLAUSE
 None
 Fine of not less the amount
defrauded but not more than 3
folds and/or
 6 months & 1 day to 6 yrs
 Perpetual disqualification
from holding public office
Articles of War
 May be recalled
 Refusal is viol of AW 97
 P/A of permanent grade last
held
 Eligible for Promotion in
Retired List
PENAL CLAUSE
 Fine of not less the amount
defrauded but not more than 3
folds and/or
 6 months & 1 day to 6 yrs
 Perpetual disqualification
from holding public office
 Perpetual disqualification
from practice of profession or
calling
based on grounds under
1987 Constitution
 AFP subj to Articles of
War
 UP subj to their
respective disciplinary
procedure
 P/A of permanent
grade last held
 Eligible for Promotion
 PENAL CLAUSE
 Fine of not less the amount
defrauded but not more than 3
folds and/or
 6 yrs & 1 day to 12 yrs
 Perpetual disqualification
from holding public office
 Perpetual disqualification
from practice of profession or
calling