SECTION 25. For the purposes of this Decree-
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 a medical board created for the purpose.
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 (l) 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.
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.
A year of active service shall mean twelve (12) months.
SECTION 26. Retired military personnel receiving monthly pension shall continue 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 he 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 enlistedman 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 enlistedman 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 expressedly 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 defrauded 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 practising 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.
(Sgd.) FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.) JUAN C. TUVERA
Presidential Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).