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 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.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).