Be it enacted by the Batasang Pambansa in session assembled:

SECTION 1. Section two of Republic Act Numbered Eighteen hundred and sixty-two, as amended, is further amended to read as follows:

 

"SEC. 2. Persons who were retired and paid gratuity under said Republic Act Numbered Three hundred forty and/or Republic Act Numbered Sixteen hundred sixteen as amended, with the effective date of retirement after June twenty-two, nineteen hundred fifty-seven but before September ten, nineteen hundred seventy-nine, and who come within the purview of clauses (a) and (b) of the preceding section may, at their option, elect to receive, in lieu of such gratuity paid to them, the annual retirement pay as provided in Section two of Republic Act Numbered Three hundred forty, as amended; and upon making such election, said persons shall, subject to the provisions and limitations hereinafter provided, be entitled to receive the annual retirement pay as provided in Section two of Republic Act Numbered Three hundred forty, as amended. The option herein granted may be exercised within five years from the date of the approval of this later amendatory Act by the widows and/or minor children of the said retirees who could not exercise the said option by reason of death. Nothing in this section shall be construed as authorizing payment of retirement pay which have accrued prior to the approval of this later amendatory Act."

SEC. 2. Any provision of law to the contrary notwithstanding, the amount necessary to implement the provisions of this Act for the current calendar year shall be charged against the savings in the programmed appropriations for the current operating expenditures of the Headquarters, Armed Forces of the Philippines net of reserve. Thereafter, the necessary amount for the same purpose shall be included in the annual General Appropriations Act.

SEC. 3. This Act shall take effect upon its approval.

Approved, January 5, 1984.