Section 6Sec./Art. 6

Retirement and Separation. - The enlisted personnel who attain the rank of Master Sergeant/Chief Petty Officer, Senior Master Sergeant/Senior Chief Petty Officer and of Chief Master Sergeant/Master Chief Petty Officer shall, upon retirement be entitled to the retirement pay and benefits of a Second Lieutenant/Ensign: Provided, That a Chief Master Sergeant/Master Chief Petty Officer retired from the AFP, shall receive a gratuity equivalent to that of a Second Lieutenant/ Ensign, plus one-half (1/2) of the difference between the gratuity of a Second Lieutenant /Ensign and a Master Sergeant/Chief Petty Officer, and a Senior Master Sergeant/Senior Chief Petty Officer shall receive a gratuity equivalent to that of a Second Lieutenant/ Ensign, plus one-half (1/2) of the difference between the gratuity of a Chief Master Sergeant/Master Chief Petty Officer and a Master Sergeant/Chief Petty Officer, payable in one lump sum: Provided, further, That the Chief Master Sergeant/Master Chief Petty Officer and Senior Master Sergeant/ Senior Chief Petty Officer may opt to receive a monthly retirement pay, in lieu of gratuity, the computation of which shall be based on the same scheme: Provided, furthermore, That upon his retirement, he shall be entitled, at his option, to receive in advance his lump sum annual retirement pay for the first three (3) years and thereafter receive his annual retirement pay payable in equal monthly installments as they accrue: Provided, finally, That if he dies within the three-year period following his retirement and is survived by beneficiaries as defined in Presidential Decree No. 1638, the latter shall only receive the derivative benefits there under starting the first month after the aforecited three-year period.

Nothing in this section shall be construed as authorizing adjustment of pay, or payment of any differential in retirement pay to officers and enlisted men who are already retired prior to the approval of this Act as a result of increases in salary of those in the active service: Provided, That retirees who are recalled to active duty may have their retirement pension adjusted based on the rank they hold and on the prevailing pay of military personnel in the active service, at the time of the termination of their recall to active duty.