Section 3
SEC. 3. Subsection (a) of Section five of the same Act is hereby further amended to read as follows: "SEC. 5. (a) Rates of contribution or premiums.—For the benefits described hereunder, each official or employee who is a member of the System and his employer shall pay the monthly rates of contributions or premiums specified In the following schedule: Percentage of Monthly Salary Payable By: Employee Employer I. Life Insurance 1 1 Applicable in the case of a civilian Employees insured on or after June 16, 1951, but prior to September 30, 1956, unless he chooses to change his old membership policy and be reinsured under a new one, in which case the next succeeding rate shall apply. 3 3 Applicable in the case of a civilian employee insured prior to June 16, 1951, or on or after September 30, 1956. 5 5 Applicable in the case of an officer or an enlisted man of the Armed Forces. P12.00 P12.00 Fixed annual premium rates regardless of age and salary, applicable to an employee insured under term insurance renewable yearly. II. Retirement Insurance 4.5 7.5 If employee’s monthly salary is P200.00 or less. 5.5 6.5 If employee’s monthly salary is more than P200.00 but his premium for this benefit shall not exceed P56.00 per month. "It shall be compulsory for each employer to pay its share of the premiums or contributions in accordance with the rates indicated above, unless it requests reduction of said rates and the System finds, after an examination of said employer's financial condition, that it cannot afford to pay said rates, in which case it shall pay only such rates of premiums or contributions as the System may consider within its capacity to pay. In case of such reduction, the benefits payable to the member and/or his beneficiaries shall be adjusted actuarially in accordance with such rules and regulations as the System shall adopt. "Payment of premium for retirement insurance shall begin on the last day of June, nineteen hundred and fifty-one or of the calendar month the employee entered the service or became covered by his retirement plan, whichever is the later date, and that for life insurance shall begin on the last day of the calendar month preceding the month in which one's insurance takes effect: Provided, however, That retirement premiums shall not be required of Justices of the Supreme Court and the Court of Appeals, and Judges of the Courts of First Instance, Agrarian Relations, Industrial Relations, Tax Appeals and Juvenile and Domestic Relation Courts, officers and enlisted men of the Armed Forces of the Philippines who are hereby excluded from said benefit. "Unpaid premiums or contributions shall bear such rate of interest not exceeding six per centum per annum as the Board may prescribe."