Preamble
WHEREAS, the fixed monthly annuities or pensions being received by government pensioners under Commonwealth Act No. 186, as amended, are hardly adequate to meet the increasing costs of living; WHEREAS, the continuing erosion of the value of such fixed monthly annuities or pensions due to inflation or increase in the cost of living has aggravated the predicament of the retirees; WHEREAS, the government is cognizant of the plight of government retirees and their families and is desirous of alleviating their predicament; WHEREAS, a periodic adjustment of the fixed monthly pensions linked with the cost of living indices can protect the real value of the monthly annuities or pensions received by retirees from the erosive effects of inflation; WHEREAS, the conversion of the fixed monthly annuities or pensions to indexed monthly pensions should in no way impair, diminish or abrogate the benefits presently enjoyed by retirees under Commonwealth Act No. 186, as amended, but should rather augment the present benefits; WHEREAS, the periodic adjustments of monthly pensions must be done on a sound basis and such adjustments should conform with the financial and investment capability of the Government Service Insurance System without need of periodic increases in national government appropriations and contributions; WHEREAS, the Government Service Insurance System must be endowed with the necessary powers and exemptions to enable it to maximize the administration of the various funds established by law; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order that: