Section 5
SEC. 5. Retirement and/or separation gratuity payments in favor of persons already retired at the time of the effectivity of this Act as well as those who under the preceding Section are not required to contribute to the System shall be included in and funded out of the annual appropriations for the Armed Forces of the Philippines: Provided, however, That in case the total cash requirement covering such retirement and/or gratuity payments exceed one hundred million pesos (P100,000,000) in any year, the excess shall be borne out of the funds of the System: Provided, further, That the preceding provision shall take effect after four (4) years from the approval of this Act.