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Implementing Rules and Regulations. -The Department of National Defense shall formulate the rules and regulations necessary to implement the provisions of this Act within ninety (90) days from its effectivity:Provided,That such rules and regulations shall provide for a systematic, methodical, and efficient transition to the new retirement and separation system provided for under this Act based on the following principles:
(a) The fixed tour of duty provided herein shall apply to General/Flag Officers appointed by the President after the effectivity of this Act:Provided,That incumbent officers occupying key positions shall be compulsorily retired pursuant to the provisions of Presidential Decree No. 1638, as amended, unless said officer is appointed to the position of Chief of Staff;
(b) The maximum tenure-in-grade shall only apply to officers and enlisted personnel promoted after the effectivity of this Act;
(c) The transition system shall allow all officers and enlisted personnel an opportunity to compete for promotions and/or complete the requirements for retirement, as may be necessary; and
(d) The rules and regulations shall give full respect to the services of the officers and enlisted personnel and provide for adequate separation and/or retirement benefits as may be allowed by existing laws, rules, and regulations.
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