PRESIDENTIAL DECREE No.

1638

ESTABLISHING A NEW SYSTEM OF RETIREMENT AND

SEPARATION FOR MILITARY PERSONNEL OF THE ARMED
FORCES OF THE PHILIPPINES AND FOR OTHER PURPOSES

WHEREAS, there is an imperative need to improve and

consolidate the various laws pertaining to the retirement of
members of the Armed Forces of the Philippines.

WHEREAS, Republic Act Numbered Three Hundred and Forty,

as amended, causes the premature compulsory retirement of
those who are purposely educated and trained by the government
to be professional military personnel;

WHEREAS, the early retirement of military personnel denies the

Armed Forces of the Philippines of the full economical utilization
of the services of well-experienced, highly trained, and mature
military executives;

WHEREAS, the present retirement system does not afford to all

officers equal opportunity for promotion to higher rank and
position;

WHEREAS, it is for the good of the services to retain for optimum

utilization of their services all military personnel with proven
leadership and professional competence;

WHEREAS, world history attests to the fact that many political,

social, economic and military leaders are men mature in
experience and age;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of

the Philippines, by virtue of the powers in me vested by the
Constitution, do hereby decree the following as part of the law of
the land:
 TITLE I
Short Title

Section 1. This Decree shall be known as the AFP Military

Personnel Retirement and Separation Decree of 1979.

TITLE II
Applicability

Section 2. This Decree shall apply to all military personnel in the

service of the Armed Forces of the Philippines.

TITLE III
Retirement

Section 3. For the purpose of this Decree active service of a

military person shall mean active service rendered by him as a
commissioned officer, enlisted man, cadet, probationary officer,
trainee or draftee in the Armed Forces of the Philippines and
service rendered by him as a civilian official or employee in the
Philippine Government prior to the date of his separation or
retirement from the Armed Forces of the Philippines, for which
military and/or civilian service he shall have received pay from the
Philippine Government and/or such others as may hereafter be
prescribed by law as active service; Provided, That for purposes
of retirement, he shall have rendered at least ten (10) years of
active service as an officer or enlisted man in the Armed Forces
of the Philippines; and Provided further, That no period of such
civilian government service longer than his active military service
shall be credited for purposes of retirement. Service rendered as
a cadet, probationary officer, trainee or draftee in the Armed
Forces of the Philippines may be credited for retirement purposes
at the option of the officer or enlisted man concerned, subject to
such rules and regulations as the Minister of National Defense
shall prescribe.
Section 4. Upon accumulation of at least twenty (20) years of
satisfactory active service, an officer or enlisted man may, at his
own request and with the approval of the President, be retired
from the active military service.

Section 5.a. Upon attaining sixty (60) years of age with at least
fifteen (15) years of active service, or upon accumulation of thirty
(30) years of satisfactory active service, whichever is earlier, a
military person shall be compulsorily retired unless his continued
service is, in the opinion of the President, required for the good of
the service: Provided, That the compulsory retirement of an officer
serving in a statutory position shall be deferred until completion of
the prescribed tour of duty.

b. Notwithstanding the provisions of Secs. 3 & 5.a. military

personnel in the active service, who otherwise will retire
compulsory under Section 1(b) of Republic Act Numbered
Three Hundred and Forty, as amended, during the first,
second, third and fourth calendar year of the effectivity of
this Decree, shall be retired compulsorily under this Decree
on the dates they shall complete an additional period of
service of one, two, three and four years, respectively.

Section 6. An officer or enlisted man with at least twenty (20)

years of accumulated satisfactory service who dies in line of duty,
shall be considered retired for survivorship benefits this Decree.

Section 7. An officer or enlisted man who, having accumulated at

least twenty (20) years of active service, incurs total permanent
physical disability in line of duty shall be compulsorily retired.

Section 8. An officer or enlisted man who, having accumulated at

least twenty (20) years of active service, incurs physical disability
in line of duty other than total permanent, may, at his option, be
retired.
Section 9. Military personnel covered under the provisions of Title
III shall be retired in the grade next higher than the permanent
grade last held except officers in the permanent grade of
Colonel/Captain (PN) or higher.

TITLE IV
Separation

Section 10. Effective six (6) years after the approval of this

Decree, officers in the permanent grades of Captain, Major and
Lieutenant Colonel, or their equivalent, shall be separated in
accordance with the provisions of existing laws upon completing
five (5), six (6) and seven (7) years of active commissioned
service-in-grade, respectively, or upon attaining thirty-three (33),
thirty-nine (39) and forty-six (46) years of age, respectively,
whichever is later: Provided, That the President may lengthen
such active service-in-grade when necessary to maintain the
desirable officer rank structure and/or enhance a progressive
professional development of the officer corps: Provided, further,
That an officer with at least twenty (20) years of active service
shall be retired in the grade next higher than the permanent grade
he holds.

Section 11. An officer referred to and found By the AFP

Efficiency and Separation Board not fit for retention in the service
because of substandard performance, low potentiality, doubtful
integrity and/or acts inconsistent with the best interest of the
service shall be separated in the permanent grade he holds
subject to the approval of the President.

Section 12. An officer in the grade of Second Lieutenant/Ensign

(PN) who is deferred once, or an officer in the grade above that of
Second Lieutenant/Ensign (PN) but below that of Colonel/Captain
(PN) who is deferred twice for promotion to the same next higher
grade shall be separated in the permanent grade he holds on the
first day of the third month later after the President shall have
approved the promotion of officers recommended by the Selection
Board which recommended the deferment of such an officer for
the first or second time, as the case may be.

Section 13. An officer or enlisted man with less than twenty years
of active service who dies in line of duty or on account of any
wound, injury or illness contracted in line of duty shall be
considered separated from the service in the next higher grade for
survivorship benefits under this Decree.

Section 14. An officer or enlisted man with less than twenty years
of active service who incurs in line of duty total in permanent
physical disability shall be separated from the service in the next
higher grade than the permanent grade he holds except as
provided Section 9.

Section 15. An officer or enlisted man who incurs in line of duty

physical disability other than total permanent before completion
twenty years of active service may, at his option, be separated
from the service in the grade next higher than the permanent
grade he holds except as provided in Section 9.

Section 16. An officer may resign his commission and shall be

separated from the service upon acceptance by the President of
such resignation.

TITLE V
Retirement and Separation Benefits

Section 17. When an officer or enlisted man is retired from the

Armed Forces of the Philippines under the provisions of this
Decree, he shall, at his option, receive a gratuity equivalent to one
(1) month of base and longevity pay of the grade next higher than
the permanent grade last held for every year of service payable in
one (1) lump sum or a monthly retirement pay equivalent to two
and one-half percent (2 1/2%) for each year of active service
rendered, but not exceeding eighty-five percent (85%) of the
monthly base and longevity pay of the grade next higher than the
permanent grade last held: ////Provided, That an officer retired
under Section 11 or 12 shall be entitled to benefits computed on
the basis of the base and longevity pay of the permanent grade
last held: Provided, further That such retirement pay shall be
subject to adjustment on the prevailing scale of base pay of
military personnel in the active service: Provided, furthermore,
That when he retires, he shall be entitled, at his option, to receive
in advance and in lump sum his annual retirement pay for the first
three (3) years and thereafter receive his annual retirement pay
payable in equal monthly installment as they accrue: Provided,
finally, That if he dies within the three-year period following his
retirement and is survived by beneficiaries as defined in his
Decree, the latter shall only receive the derivative benefits
thereunder starting the first month after the aforecited three-year
period. Nothing in this Section shall be construed as authorizing
adjustment of pay, or payment of any differential in retirement pay
to officers and enlisted men who are already retired prior to the
approval of this Decree as a result of increases in salary of those
in the active duty may have their retirement pension adjusted
based on the rank they hold and on the prevailing pay of military
personnel in the active service, at the time of the termination of
their recall to active duty.

Section 18. The survivors of an officer or enlisted man retired

under Section 4, 5, 8, or 10 or of an officer with at least twenty
(20) years of service separated under Section 11 or 12 shall be
entitled to a monthly annuity equivalent to seventy-five percent
(75%) of his monthly retirement pay which he was receiving to be
divided among them in equal shares and with the right of
accretion.

Section 19. An officer or enlisted man separated under Section

14 of this Decree shall be entitled to a monthly life annuity the
amount of which shall be fifty per centum of the base and
longevity pay computed on the basis of his separation grade:
Provided, That in the case of an officer in the grade of
Colonel/Captain (PN) and higher, the basis of computation of his
separation grade: Provided further, That such monthly annuity
shall not be less than two hundred pesos (P200.00).

Section 20. An officer with less than twenty years of accumulated

active service separated under Section 10, 11, 12 or 16 shall be
entitled to a separation pay equivalent to one month base and
longevity pay of the permanent grade he holds for every year of
active service.

Section 21. An officer or enlisted man with less than twenty (20)
years of accumulated active service separated under Section 15
shall be entitled to a separation pay equivalent to one month base
and longevity pay of his separation grade for every year of active
service: Provided, That in the case of an officer in the grade of
Colonel/Captain (PN) and higher, the basis of computation of his
separation grade shall be in the grade next higher than his
separation grade.

Section 22. The survivors of an officer or enlisted man retired

under Section 6 or 7 or separated under Section 13 or 14 shall be
entitled to a monthly annuity equivalent to fifty per centum of his
base and longevity pay based on his separation grade to be
divided among them in equal shares and with the right to
accretion: Provided, That in the case of survivors of an officer in
the grade of Colonel/Captain (PN) and higher, the basis of
computation of their annuity shall be in the grade next higher than
his separation grade.

Section 23. An officer on enlisted man retired under Section 7 or

separated under Section 14 shall receive, in addition to benefits
under Section 17 or Section 19, a monthly disability pension of
two hundred pesos (P200.00)
Section 24. An officer or enlisted man retired under Section 8 or
separated under Section 15 for disability which is the proximate
result of wounds or injuries received or sickness or disease
incurred in line of duty shall receive in addition to benefits under
Section 17 or 21, as the case may be, disability pension fixed as
follows:

(a) If and while the disability is rated 25 per centum the

monthly pension shall be P50.00.

(b) If and while the disability is rated 50 per centum the

monthly pension shall be P100.00.

(c) If and while the disability is rated 60 per centum the

monthly pension shall be P120.00.

(d) If and while the disability is rated 70 per centum the

monthly pension shall be P140.00.

(e) If and while the disability is rated 80 per centum the

monthly pension shall be P160.00.

(f) If and while the disability is rated 90 per centum the

monthly pension shall be P180.00.

(g) If and while the disability is rated 100 per centum the
monthly pension shall be P200.00.

TITLE VI
General Provisions

Section 25. For the purposes of this Decree

a. Total permanent physical disability shall means the

anatomical loss or the permanent loss of use of both hands,
of both feet, of both eyes, of both ears or any combination,
or loss of mental faculties. The degree of physical disability
shall be as determined by medical board created for the
purpose.

b. Survivors shall mean

1. Surviving spouse if married to the deceased prior to

the latter's retirement/separation and not legally
separated by judicial decree from the deceased issued
on grounds not attributable to said spouse: provided,
That entitlement to benefits shall terminate upon the re-
marriage of said spouse.

2. Surviving children of an officer or enlisted man born

of his marriage contracted prior to his
retirement/separation from the service, and children,
adopted or acknowledged, while the deceased parent
was still on active military service: Provided, That
entitlement to benefits shall terminate when such
children attain twenty-one (21) years of age or get
married.

3. In default of those mentioned in paragraph b(1) and

(2), above, surviving, legitimate, adopted or
acknowledged natural children, who have reached
twenty one years of age, or in their absence, his
surviving parent or parents, or in default thereof, his
surviving unmarried brothers and sisters.

c. Line of duty shall mean that the death, illness or injury

incurred was not due to misconduct, willful failure, the
intemperate use of drugs or alcoholic liquor or vicious or
immoral habits.

d. A year of active service shall mean twelve (12) months.

Section 26. Retired military personnel receiving monthly pension
shall to contribute to the AFP Retirement and Separation Benefit
System in the amount equivalent to four percent (4%) of the base
and longevity pay of the last permanent grade he holds before
retirement for a period equivalent to the length of service
rendered as a civilian official or employee of the Philippine
Government credited for purposes of retirement during which he
did not contribute to the AFP Retirement and Separation Benefit
System from the date Presidential Decree Three Hundred Sixty
One took effect. Such contribution shall be deducted from his
monthly retirement pay.

Section 27. Military personnel retired under Sections 4, 5, 10, 11

and 12 shall be carried in the retired list of the Armed Forces of
the Philippines. The name of a retiree who loses his Filipino
citizenship shall be removed from the retire list and his retirement
benefits terminated upon such loss.

Section 28. An officer or enlisted man carried in the retired list

shall be subject to the Articles of War and may be recalled to
active duty in the permanent grade he last held before retirement
by the President at anytime. His refusal to perform such duty shall
be a ground for court-martial action under Article 97 of the Articles
of War and subsequent termination of payments of benefits as
determined by the court.

Section 29. When called to active duty, a retiree shall receive the

pay and allowances of the permanent grade he last held and shall
continue to be carried in the retired list and shall be eligible for
promotion in the retired list as long as the remains in active
status: Provided, That such retiree shall be promoted to the next
higher grade in accordance with pertinent rules and regulations.

Section 30. Military personnel retired or separated under Section

4, 5, 6, 7, 8, 10, 11, 12, 13 or 15 and their dependents shall be
entitled to the same privileges as military personnel on active duty
and their dependents. The Minister of National Defense shall
prescribe rules and regulations necessary to implement this
Section.

Section 31. The benefits authorized under this Decree, except as

provided herein, shall not be subject to attachment, garnishment,
levy, execution or any tax whatsoever; neither shall they be
assigned, ceded, or conveyed to any third person: Provided, That
if a retired or separated officer or enlisted man who is entitled to
any benefit under this Decree has unsettled money and/or
property accountabilities incurred while in the active service, not
more than fifty per centum of the pension gratuity or other
payment due such officer or enlisted or his survivors under this
Decree may be withheld and be applied to settle such
accountabilities.

Section 32. The benefits authorized under this Decree shall

accrue to military personnel separated by court martial action
except when non-entitlement of such benefits is expressly
adjudged by the military court and approved by the approving
authority.

Section 33. Nothing in this Decree shall be construed in any

manner to reduce whatever retirement and separation pay or
gratuity or other monetary benefits which any person is heretofore
receiving or is entitled to receive under the provisions of existing
law.

Section 34. Any person found to have participated directly or

indirectly in the commission of fraud, falsification,
misrepresentation of facts, collusion or any similar anomaly in the
issuance of any certificate or document for any purpose
connected with this Decree shall upon conviction be punished by
a fine of not less than the amount defraud but not more than
threefold such amount and/or imprisonment of not less than six
(6) months and one (1) day to six (6) years and perpetual
disqualification from holding public office and from practicing any
profession or calling licensed by the government.

Section 35. Except those necessary to give effect to the

provisions of this Decree and to preserve the rights granted to
retired or separated military personnel, all laws, rules and
regulations inconsistent with the provisions of this Decree are
hereby repealed or modified accordingly.

Section 36. This Decree shall take effect upon its approval.

Done in the City of Manila, this 10th day of September, in the year
of Our Lord, Nineteen Hundred and Seventy-Nine.