[ Act No 3173, November 24, 1924 ]

AN ACT PROVIDING FOR THE MAINTENANCE IN THE INSULAR TREASURY OF A SPECIAL FUND TO BE KNOWN AS PENSION AND RETIREMENT FUND FOR CERTAIN OFFICERS OF THE PHILIPPINE HEALTH SERVICE, AND PRESCRIBING WAYS AND MEANS FOR ITS CREATION AND APPLICATION, AND FOR OTHER PURPOSES

Be it  enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority  of the same:

SECTION  1. Pension and Retirement Fund of the Philippine Health Service.—There shall be maintained  in the Insular  Treasury a special  fund to be known as the pension and retirement fund of the  Philippine  Health  Service. Moneys accruing to this  fund shall be deposited with the Insular Treasury and shall  be used for no other purposes than those  hereinafter specified.

SEC. 2. Sources of the Pension and Retirement Fund.—To this fund  shall accrue all funds and forfeitures  resulting from  administrative investigations  and also all sums to be deducted and retained from  the monthly pay of the officers and employees of the Philippine  Health Service as specified in section three, subsection  (a)  of  this Act, including the Director, Assistant  Director and chiefs of divisions, on the basis  of three  per  centum of  their  respective monthly salaries.

All  such  fines,  forfeitures, deductions,  and  retentions shall  be noted on  the pay-roll  by the disbursing officer paying  the salary  of any officer of the Philippine Health Service, and before  making the  payment of salary of any such officer or employee  of  the  Philippine Health Service, such disbursing officer shall verify  the exact amount to be deducted in each case and shall,  upon making  payment, deduct  such  amount from  the  salary  due said  officer or employee.

All amounts so deducted shall be deposited with the Insular  Treasury by  the  disbursing  officer who makes the deductions.

SEC.  3. Application of Pension and  Retirement  Fund.— The money pertaining to the pension and retirement fund may,  upon recommendation  of the Pension and Retirement Board, appointed under section five of this Act, and with the approval of the  Department Head,  be  expended or  applied as follows:

(a) Compensation upon  retirement.—When (a)  a  medical officer  of the Philippine Health Service, including the Director of Health, Assistant Director, chiefs  of  divisions, chiefs of office and district inspectors and  any other medical officers, commissioned or non-commissioned; (&)  any pharmacist, dentist, sanitary engineer or assistant  sanitary engineer,  nurse,  sanitary  inspector or  assistant  sanitary inspector,  disinfector  or assistant disinfector with civil service appointment, belonging  to the  Philippine Health Service, shall have had twenty or more years of actual service, not having been meanwhile  separated from the service for cause, he or she may, upon making application therefor, be  retired  from active  service  by  the Department Head; and when  so  retired shall  receive until  his  or  her death from the retirement fund  above specified an  annual compensation equal to two and  one-half per  cent, for each year's  active service  heretofore  rendered by such  officer, of the salary, properly speaking, exclusive of additional pay and  other  emoluments such as commutation of quarters, subsistence, and laundry,  received by such officer  at the time he or she is retired; but in no case shall this retirement pay exceed seventy-five per cent of such total salary: Provided, That in computing the length of an officer's term  of service  the  years  served in any capacity as hereinbefore specified under the various succeeding health organizations antedating  the  Philippine  Health Service,  shall be duly credited to  such term of service: Provided, further, That whenever any person is readmitted to the Philippine  Health Service after the  approval of this  Act,  no period  of his services rendered prior to his separation therefrom shall  be credited to  him for the purposes of this Act.

(b)  Pension for lawful heirs of officers entitled to retirement pay.—Upon  the death of an officer or employee with twenty  or  more years service and thereupon  entitled  to retirement pay,  fifty per cent of such retirement pay may be transmitted or  originally granted,  as  the case may be, to his  or her lawful  heirs, the  period  of the  retirement pay so transmitted or originally granted  not to exceed ten years:  Provided, That the expression "lawful heirs" shall be made to include,  in the order and  precedence  herein given,  (1)  legitimate  or recognized children,  or in want thereof (2)  the surviving lawful wife or  husband, or  in case none of the two preceding groups of heirs  exists, (3) the surviving parents,  father or mother, if actually dependent for  support upon the deceased, and that the  application therefor shall not be  made later  than one year from the time of the officer's death: And provided, further, That  no amount of the pension funds shall be paid to children over eighteen years  of  age or to married children, or to a remarried wife or husband.

(c) Pension for invalid officers.—Any officer of the Philippine  Health Service who becomes  incapacitated to gain a livelihood by reason of accident or other cause incident to the  service and in  line of  duty may be pensioned and retired  from active service and,  when  so pensioned  and retired, shall receive until his death from the pension and retirement fund  a  compensation equal to the full retirement pay  to  which he  is entitled if of twenty  or  more years service, or to fifty per cent of his current salary if  of less than twenty years service: Provided, That upon death  of an officer under these  circumstances, or when an officer  or employee dies in consequence  of an accident or from any other cause  in  connection  with the performance  of his official  duties, his  lawful heirs may  receive the  benefits  of this  Act, under the provisions and  in the order specified in subsection (6)  of section three of this Act, for a period not to  exceed ten  years.

SEC.  4. Ten years' deduction in salary requisite for granting of pension or retirement pay.—No claim for pension  or retirement pay shall be granted to any officer or employee of the  Philippine  Health Service or his  or her  legal heirs who fails to have completed  ten full years  deduction  in salary prior to the application  therefor: Provided,  however  That in this and similar cases the pension or retirement pay otherwise legally recognized may  be granted on condition that the  officer or employee concerned or his or her legal heirs agrees upon the deduction to be made on his or her pension  or  retirement pay, in one or more such installments as to fully cover the unpaid deductions in salaries corresponding to ten  full years: And  provided, further, That in no case shall the deduction thus made be less than the monthly deduction corresponding to the officer's or employee's  salary under  the  provisions of section two of this Act.

SEC.  5. Appointment  of a Pension   and  Retirement Board.—The proper Department Secretary shall appoint a Board to be composed of the Director of Health or the Assistant Director of Health  as chairman,  of one chief of division, of one senior medical inspector of  the Philippine Health Service, as  members,  and  any commissioned  officer thereof of whatever grade as secretary, the Board to pass and  make recommendations  on all  applications for pension or retirement  pay.   The resolution adopted in .each case shall be forwarded to the proper Department Secretary for approval.

The members and secretary  of the Board shall hold office for a term of one year, and may be reappointed or replaced at the discretion of the Department Secretary: Provided, That the Director  of  Health or  the Assistant  Director of Health shall be ex-officio chairman of the board.

SEC. 6.  Tenure  of any salaried Government  position by retired or  pensioned  officer under  certain  circumstances, illegal.—Officer of  whatever rank or  designation or other persons drawing pension or retirement pay under the provisions of this Act are hereby declared ineligible and shall not qualify, except by popular election, to an Insular, provincial, or  municipal  position  carrying any  compensation, salary, pay, gratuities or per diems of whatever character, in the Insular, provincial or municipal government of the Philippine Islands,  or  in any semi-governmental institution, corporation or company, unless prior to  the qualification and induction into the  new office  of  such retired or pensioned officers, they waive and  agree to forfeit, in a written statement,  any right  or claim to the benefits  of this Act during the period of their incumbency in the new position: Provided, That in  case  of necessity, officers of the Philippine Health Service drawing  retirement  pay and  residing in the Philippine Islands may at any time,  and upon recommendation of  the  Board of Pensions and Retirement, be called by the proper Department Secretary for active emergency service,  during the period  of which service they shall be entitled to  receive the full  pay of the  rank in which they were retired:  Provided, further, That  unwarranted refusal on  the part  of any officer or employee to perform such  emergency duty shall terminate his or her right to further participation in the benefits of this Act: Provided, however, That the officer  so detailed must be declared physically fit for service: And provided, finally, That during such emergency duty,  no pay by reason of retirement or pension shall be drawn by  the officer concerned.

SEC. 7. Authority to deposit funds in Banks Depository of the Government to earn interest.—With the approval of the proper Department Secretary, the Board of Pensions and Retirement is  hereby authorized to deposit in a bank depository  of the  Government, to earn interest at current or legal rates, such part of the pension and retirement fund of the Philippine  Health Service as may not be required to pay existing or future authorized obligations.

SEC. 8. This Act shall take effect on  its approval.

Approved, November 24, 1924.