REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF NATIONAL
DEFENSE
GENERAL HEADQUARTERS, ARMED
FORCES OF THE PHILIPPINES
Camp General Emilio Aguinaldo,
Quezon City
28 December 1989
AGA-L28TH
NUMBER 18
ADMINISTRATION OF THE AFP
RETIREMENT
AND SEPARATION BENEFITS SYSTEM
1.
REFERENCES:
- a.
Presidential Decree Nr. 361, dated 30 Dec. 73
b.
Circular Nr. 6, GHQ AFP dated 10 march 76
c.
Circular Nr. 5, GHQ AFP dated 5 May 86
d.
Circular Nr. 7, GHQ AFP dated 8 July 87
2.
PURPOSE:: This Circular prescribes the broad policies and
delineates the responsibilities in the administration of
the AFP Retirement and Separation Benefits System (AFP
RSBS).
3.
CONCEPTS: The AFP RSBS shall be administered by the Chief
of Staff, AFP, through a Board of Trustees and a
Management Group. All investments of the funds of
the Systems shall be subject to the approval of the
Secretary of National Defense
4.
ADMINISTRATION:
- a.
To assist the Chief of Staff, in the
administration of the AFP RSBS, a Board of
Trustees is hereby created to be composed of the
following:
- Chief of
Staff - Chairman
- DCS for
Personnel, J1 - Members
- DCS for
Comptrollership, J6 - Member
- Four other
members - To be appointed by
the Chief of Staff, AFPfrom nominees of
the Major Services, subject to
confirmation by the Secretary of National
Defense.
- The AFP
Sergeant Major - Member as AFP
enlisted personnel representative
- One member
from the retired list - To be appointed
by the Chief of Staff, AFP based on
the
recommendation of the DCS for Personnel,
J1 to be concurred in by the Board of
Trustees and subject to confirmation by
the Secretary of National Defense.
b. Tenure of the
appointed trustees shall be as follows:
- (1)
Major Service representatives - The Major
Service Commander may concurrently serve
as the major service
representative. If he nominates a
representative, the latter shall not
serve more than two (2) years
unless otherwise recommended for
replacement by the major service
commander.
(2)
Member as AFP enlisted personnel
representative shall be the AFP Sergeant
Major whose tenure shall be coterminous
with his appointment as the AFP Sergeant
Major.
(3)
Member from the retired list is not more
than two (2) years. In case of
resignation from the Board or incapacity
of any Member of the Board to perform his
duties and responsibilities, his
membership shall be terminated and a
successor shall be appointed to serve the
unexpired portion of his term.
c. The Board of
Trustees shall, among others:
- (1)
Promulgate such rues and regulations as
may be required from time to time to
implement the provisions of Presidential
Decree Nr. 361, subject to the approval
of the Secretary of national Defense.
(2) Pass
upon such investment proposal as may be
submitted to it.
(3) Make
yearly valuation of the System and submit
to the SND, within three months after the
end of each fiscal year, a report of said
valuation together with appropriate
recommendations, as may be necessary, to
ensure the perpetual solvency of the
System.
- d.
Management Group - There shall be a Management
Group, to be headed by a President, to assist the
Chief of Staff, AFP and Board of Trustees
in the administration of the funds of the
System. The President shall be appointed by
the Chief of Staff, AFP, upon recommendation of
the Board of Trustees, and subject to the
confirmation of the Minister of National
Defense. The President shall, thereafter,
with the consent of the Chief of Staff, AFP
determine the Executive Vice President/Chief
Operating Officer, Senior Vice Presidents,
Vice Presidents, Assistant Vice Presidents,
Managers and Assistant Managers. The
President shall be a non-voting member of the
Board of Trustees. The Management Group
shall, among others, be responsible for:
- (1)
Collecting the contribution from members.
(2)
Collecting and receiving income and
profits from investments of the Fund.
(3)
Paying all rightful and legal obligations
of the System.
(4)
Keeping and maintaining accurate records
of all transactions involving funds of
the System.
(5)
Undertaking studies and evaluating
investment opportunities.
(6)
Monitoring and evaluating the investment
opportunities.
(7)
Providing actuarial services to the
System.
(8)
Conducting studies and formulating
investment strategic and programs.
(9)
Undertaking corporate planning.
(10)
Undertaking investments of the funds of
the System as approved by the Secretary
of National Defense.
5.
OPERATIONS AND ACCOUNTING OF FUNDS:
- a.
The direction, management and control of the
funds of the System is the responsibility of the
Chief of Staff, AFP. The President shall
cause the immediate deposit of all funds of the
System in any PNB or authorized depository bank
in the name of “AFP Retirement and
Separation Benefits Fund”, by the Chief of
Staff, AFP, or his authorized representative as
may be designated by him upon recommendation of
the Board of Trustees.
b.
The fund or any part thereof, shall be
invested/reinvested in stocks, bonds, notes,
shares, real estate and/or other investment media
deemed suitable for investment by the Board of
Trustees, as recommended by the Management Group
and subject to the approval of the Secretary of
National Defense.
c. Though
attempts shall be made to maximize returns on
investment, safety and stability should be the
primary consideration in the selection of
investment media.
d. The President
shall submit to the Board of Trustees, an annual
investment program and a quarterly program change
request, if any.
e. The President
shall prepare a monthly report of collection,
disbursements and investments to be submitted to
the Board of Trustees on or before the 10th day
of the month following the period or report.
6.
TRANSACTION PERIOD: The incumbent major service
representative shall continue as member of the Board of
Trustees of AFPRSBS up to 30 November 1990 or the date of
their retirement which ever comes first.
Thereafter, their successors shall be appointed for a
term as prescribed in paragraph 4b on this
Circular. For the EP representative, the incumbent
shall continue up to the termination of his appointment
and shall be succeeded by the next Major Service Sergeant
Major and serve for one year as provided in the old
Circular. Thereafter, the AFP Sergeant Major shall
be the AFP enlisted personnel representative to the AFP
RSBS.
7.
RESCISSION: Circular Nr. 6, GHQ AFP dated 10 March 1976,
Circular Nr. 5 GHQ AFP dated 5 May 1986 and Circular Nr.
7, GHQ AFP dated 8 July 1987 are hereby rescinded.
8.
EFFECTIVITY: This Circular takes effect
immediately.
BY
ORDER OF THE SECRETARY OF NATIONAL DEFENSE:
OFFICIAL
RENATO S DE VILLA
General,
AFP
Chief
of Staff
JORGE P AGCAOILI
Colonel,
PAF (GSC)
The
Adjutant General
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