MALACANANG PALACE
PRESIDENTIAL DECREE NO 1656 AMENDING PRESIDENTIAL DECREE NO 361 THE ARMED FORCES RETIREMENT AND SEPARATION BENEFITS SYSTEM Section 1. Section 4 of Presidential Decree No 361 is hereby amended to read as follows: "SECTION 4. Officers and enlisted personnel in the active service of the AFP shall contribute monthly to the System an amount equivalent to five percent (5%) of their monthly basic pay, which contribution shall be deducted from their pay by the Armed Forces of the Philippines and paid to the System: Provided, that an officer or enlisted personnel who is separated or retired shall upon his separation or retirement be refunded in any lump sum all his contributions to the System. Provided, further, that such contribution shall be tax deductible for purposes of individual tax return." Section 2. Section 5 of Presidential Decree No 361 is hereby amended to read as follows: "SECTION 5. The funds of the System shall be allowed to grow to be able to provide perpetually the cash requirement covering retirement and separation benefit payments to military members of the Armed Forces of the Philippines on a self-sustaining basis; Provided, that prior to the time when perpetual self-sufficiency of the funds of the Systems is attained as determined by actuarial valuation, the yearly requirement for retirement and separation benefits of military personnel as provided under RA 340, as amended by, PD 1638, as amended by PD 1650, and such other similar laws as may hereafter be enacted, shall be included in and funded out of the annual appropriations for the Armed Forces of the Philippines." Section 3. This
decree shall take effect on January 1, 1980. Done in the City of Manila,
this 21st day of December, in the year of Our Lord,
nineteen hundred and seventy-nine. (SGD) FERDINAND E. MARCOS |