SEC. 9. For the purposes of this Act, the periods of service of an officer or enlisted man shall be credited as follows:
(a) Active service rendered by him as a commissioned officer or enlisted man of the Philippine Constabulary, of the Regular or Reserve Force, Army or Armed Forces of the Philippines, of the Philippine National Guard, and as a cadet in the Philippine Constabulary or Philippine Military Academy, in the United States Military or Naval Academy, or in a Philippine or American Air Forces Flying School, or as a recognized guerrilla, shall be given full credit: Provided, That any officer who was not immediately commissioned upon graduation from the Philippine Constabulary or Philippine Military Academy or from the United States Military or Naval Academy or Philippine or American Air Forces Flying School prior to nineteen hundred thirty-six for reasons not due to his own act or omission shall be deemed to have been in the active service for all purposes of this Act from the date of his graduation.
(b) Active service rendered by him as a commissioned officer or enlisted man of the Army of the United States or Philippine Scouts up to July fourth, nineteen hundred and forty-six, shall in any case be counted in determining whether he has completed the minimum or maximum length of service for retirement under section one of this Act.
(c) If he has rendered at least ten years of active service in the Army or Armed Forces of the Philippines, service rendered by him as in (b) above shall be counted in computing the amount of his retirement pay or gratuity under section two, or the amount of gratuity incident to his separation for physical disability under the proviso contained in section eight, of this Act: Provided, That in no case shall any period of service for which an officer or enlisted man has received or is receiving retirement pay from the United States Government be counted in computing the amount of retirement pay or gratuity which he shall be entitled to receive from the Philippine Government. If he has rendered less than ten years of service in the Army or Armed Forces of the Philippines, then only the number of years actually served therein shall be counted in computing the amount of retirement pay or gratuity payable to him under this Act.
(d) Any period of service amounting to six months or more shall be counted as a complete year.
SEC. 10. An officer who is entitled to the benefits of this Act shall be retired or separated from the service in the next higher rank to which, under applicable laws and regulations, he is eligible for promotion, or in such higher temporary rank which he may be holding at the time of his retirement or separation. The gratuity or retirement pay provided in section two, and the separation pay provided in section eight of this Act shall be computed upon the basis of such higher rank in which the officer may be retired or separated.
SEC. 11. There shall be annually included under "Purpose I—Personnel" of the annual appropriations for the Armed Forces of the Philippines, sufficient amounts to cover payments under sections two, three and eight of this Act, payment of pensions to officers and enlisted men heretofore retired under the provisions of Commonwealth Act Numbered One hundred and ninety, and the payment of gratuities to officers heretofore separated under the provisions of section twenty-two (g) of Commonwealth Act Numbered One: Provided, however, That if the funds so appropriated are inadequate, any provision of existing law to the contrary notwithstanding, the President of the Philippines is authorized to set aside any unexpended balance of appropriation for the Armed Forces of the Philippines at the end of every fiscal year to augment the original appropriation for the year and the two sums together-will form a continuing Special Fund for the purpose of carrying out the provisions of this Act.
SEC. 12. Commonwealth Acts Numbered One hundred and fifty, as amended, and One hundred and ninety, section twenty-two (g) of Commonwealth Act Numbered One, as amended, and all other laws and Executive Orders or portions thereof, inconsistent with the provisions of this Act, are hereby repealed.
SEC. 13. This Act shall be known as the "Armed Forces Retirement Act." It shall be applicable to members of the Regular Force and Reserve Force, except where a specific-provision is made expressly applicable to members of the Regular Force: Provided, That for purposes of retirement under subsections (a) or (b) of section one of this Act, the sum total of the several tours of active duty performed by an officer or enlisted man of the Reserve Force or the sum total of the several enlistments of an enlisted man in the Regular Force, shall be deemed as "continuous" active service: Provided, further, That when a reserve officer is integrated into the Regular Force, his tours of active duty as a reserve officer shall be included in the computation of his continuous service as a regular officer: Provided, finally, That from and after the effectivity of this Act when a regular officer resigns his commission, his past services as a regular officer shall not be given credit for purpose of retirement.
SEC. 14. This Act shall take effect upon its approval, but the provisions of sections two and three hereof shall be given retroactive effect with respect to officers and enlisted men who died after December eight, nineteen hundred and forty-one and who did not apply for retirement under Commonwealth Act One hundred and ninety during their lifetime but were, at the time of their death and by reason of length of service, otherwise entitled to retire under said Act: Provided, That no provision of this Act shall operate to reduce the retirement pay or gratuity which any retired officer or enlisted man is receiving at the time this Act takes effect.
Approved, July 26, 1948.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
