Section 4
SEC. 4. When an officer or an enlisted man is retired under the provisions of section three (a) and (b) above, he shall receive until his death an annual retirement pay equal to two per centum of the basic pay received by him on the date of retirement for each year's active service rendered by him but not exceeding fifty per centum in case of commissioned officers and sixty per centum in case of enlisted men and non-commissioned officers of the total base pay received by him on the date of retirement: Provided, That this rate of retirement pay shall not be applied to officers or enlisted men separated from the service through the action of Classification Boards, Courts Martial, or as a result of his own misconduct, or resignation: Provided, further, That any officer or enlisted man of the Regular Force, Philippine Army, now in the service may elect to waive the full benefits of this Act and receive in lieu thereof the refund of the contributions mentioned in section two of the Act providing for the liquidation of the Pension and Retirement Fund of the Philippine Constabulary and a reduced retirement pay on the same rate herein provided, but only for the number of years of active service after December thirty-first, nineteen hundred and thirty-six, or to obtain the full benefits of this Act, in which case he shall be entitled to refund of the contributions above-mentioned only in the amount to be determined as follows: For those eligible for retirement under the provisions of this Act within twenty years or more from January first, nineteen hundred and thirty-seven, a refund of one hundred per centum of said contributions; for those eligible within fifteen years, eighty per centum; for those eligible for ten years, sixty per centum; and for those eligible within five years, forty per centum.