This document discusses the AFP Pension System in the Philippines, which was established in 1973 to provide retirement and separation benefits to military members of the AFP. However, due to its failure to become a self-sustaining military pension fund, it was dissolved in 2006. The number of pensioners has been increasing, with an average of 5,419 military men retiring every year from 2005 to 2010. The budget for military pension and retirement benefits has also increased from PhP9.7 billion in 2005 to PhP24.1 billion in 2011. It is projected that the budget for AFP pensioners will overtake the salary allocation for active servicemen by 2017.