SEC. 3. For the proper administration of this Act, there shall be a Board of Pensions for Veterans to be composed of the Commissioner of the Budget, the Commissioner of Civil Service, the Auditor General, and two veterans of the past Philippine revolution or wars, appointed by the President of the Philippines with the consent of the Commission on Appointments. The Commissioner of the Budget shall be chairman of the Board. The members who are at the same time public officers shall serve without any additional compensation, but the other members shall receive a per diem of ten pesos for every session actually attended by them. The Board shall have a secretary, who shall be designated by the President of the Philippines upon the recommendation of the Board. The Board shall formulate its own rules of procedure, determine the persons who are entitled to a pension under this Act, classify them according to their ranks in the past revolutions or wars, and fix, with the approval of the President of the Philippines, the pension to be assigned to each rank. Such rules shall determine, among other things, the manner the pensions shall be paid, in order to protect the Government as much as possible against possible falsifications, and assure that the pensions reach the hands of the pensioners.