AFP RETIREMENT AND SEPARATION BENEFITS SYSTEM (AFPRSBS)
Refund Of Members Contribution
Refund Of Members' Contribution Is Authorized By Section 4 Of Pd 361 Dated 30 December 1973 As Amended By Section 1 Of Pd 1656 Dated 21 December 1979.
Presidential Decree (Pd) 361
Section 4: "
Officers And Enlisted Personnel In The Active Service Shall Contribute To The System An Amount Equivalent To Four Percent (4%) Of Their Monthly Base And Longevity Pay, Which Contribution Shall Be Deducted From Their Pay From The Armed Forces Of The Philippines And Paid To The System; Provided, However, That Any Officer Or Enlisted Person Who Is Due For Compulsory Retirement Or Is Optionally Retireable And Actually Elects To Retire Within One Year From The Approval Of This Act, Shall No Longer Be Required To Contribute To The System: Provided, Further, That Any Officer Or Enlisted Person Who Is Separated Through No Fault Of His Own And Is Not Eligible For Either Retirement Or Separation Benefits Shall Upon His Separation, Be Refunded In One Lump Sum All His Actual Contributions To The System Plus Interest At The Rate Of Four Percent (4%)."
Presidential Decree (Pd) 1656
Section 1: Section 4 Of Pd No. 361 Is Hereby Amended To Read As Follows:
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Section 4. Officers And Enlisted Personnel In The Active Service Of The Afp Shall Contribute Monthly To The System The Amount Equivalent To Five Percent (5%) Of Their Monthly Base Pay, Which Contribution Shall Be Deducted From Their Pay By The Armed Forces Of The Philippines And Paid To The System: Provided, That Any Officer Or Enlisted Personnel Who Separated Or Retired Shall Upon His Separation Or Retirement Be Refunded In One Lump Sum All His Contribution To The System: Provided Further, That Such Contribution Shall Be Tax Deductible For The Purposes Of Individual Income Tax Return."
2. Pd 1909 Dated 22 March 1984
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Whereas, There Is A Necessity To Upgrade The Pension Of The Retired Military Personnel To Enable Them To Meet The Escalating Cost Of Living And Equalize The Entitlement To Retirement Pension Of All Military Personnel And Their Beneficiaries."
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Any Provision Of The Law, Rule Or Regulation To The Contrary Notwithstanding, All Military Personnel Who Retired From The Active Service Prior To September 10, 1979 And Are Receiving Annual Retirement Pension From The Armed Forces Of The Philippines Shall Be Considered As Additional Members Of The Armed Forces Of The Philippines Retirement And Separation Benefits System, Hereinafter Referred To As The System. They Shall Henceforth Contribute An Amount Equivalent To Five Percent (5%) Of Their Gross Monthly Pension As Herein Adjusted, Which Contribution To The System Shall Be Refunded In One Lump Sum To The Retired Military Personnel Or Their Beneficiaries Concerned Upon The Termination Of Their Entitlement To Retirement Pension From The Government."
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The System Shall Forthwith Support The Payment Of The Increment Representing The Difference Between The Existing Pension Rate And Adjusted Pension Rate Computed On The Basis Of The Prevailing Scale Of Pay Of Officers And Enlisted Men In The Active Service; Provided, That The Payment Thereof By The System And Receipt Of The Adjusted Pension Shall Be In Accordance With The Rate Of Pension And Schedule Of Payment As Shall Be Determined And Fixed Under The Implementing Rules And Regulations Promulgated By The Chief Of Staff, Armed Forces Of The Philippines, And Approved By The Minister Of The National Defense; Provided Further, That Nothing Herein Shall Be Construed As Authorizing Payment Of Back Pension Prior To The Promulgation Of This Decree."
* Full Equalization Was Completed On March 1987 And Total Disbursement Of The System Is Amounted To More Than P200 Million.
3. Snd Memorandum Dated 17 December 1990
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Respectfully Returned To The Chief Of Staff, Afp/Chairman, Afp Board Of Trustees, Camp Aguinaldo, Quezon City, Hereby Approving As Recommended Therein The Outright Refund, Effective Immediately, Of The Accumulated Monthly Contributions To The Afprsbs Of Retired/Separated Officers And Enlisted Personnel Of The Afp Who Are Covered By Pd No. 1909 Dated March 22, 1984 (Those Retired/Separated Prior To September 10, 1979) Upon Reaching 65 Years Of Age."
4. Payment Of Interest Is Authorized By Sop 11-92 Dated 25 February 1992 As Amended By Sop 96-05-001 Dated 22 April 1996.
The Refund Of Contributions Represents The Total Member Remittances Made To The System Since July 1975. The Rsbs Charter Pd 361 As Amended By Pd 1656 Allows Only The Refund Of These Contributions Upon Separation Or Retirement From The Active Service. The Inclusion Of An Interest Component In The Refund Amount Is Not Mandated In The Charter But Is A Gratuitous Gesture Of The Board Of Trustees Given Subject To The Performance And Review Of The Fund Versus Its Actuarial Targets. At Present, The Computation Of This Interest Components Is Very Much Limited And Stopped At That Point Of Last Remittance Of Contribution Received By Rsbs.
Sop 11-92
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This Sop Prescribes The Policies And Procedures To Cover Refund Of Members Contributions And The Payment Of Four Percent (4%) Interest Thereof."
Application Of This Policy Shall Be Prospective And Will Be Applied To The Following Members:
A. Military Personnel Who Retired/Separated From The Active Service From 01 January 1992 Onwards.
B. Pensioner-Member Who Attains The Age Of 65 Effective 10 January 1992
Sop 96-05-001
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The System Shall Give Interest On Members Contribution Which Will Be Computed Monthly And Compounded Yearly And Will Accrue Up To The Last Month Of Member Contribution Confirmed As Remitted To And Received By Rsbs."
A. Four Percent (4%) P.A. From 1 January 1992 - 31 December 1995
B. Six Percent (6%) P.A. Effective 01 January 1996 To Date
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