SEC. 12. Categorization of Citizen Soldiers. - There shall be three (3) categories of citizen soldiers or AFP reservists: the First Category Reserve, the Second Category Reserve, and the Third Category Reserve based on age.

(1) First Category Reserve - The First Category Reserve shall be composed of able-bodied reservists whose ages are between eighteen (18) years and thirty-five (35) years, inclusive.

(2) Second Category Reserve - The Second Category Reserve shall be composed of able-bodied reservists whose ages are between thirty-six (36) years and fifty-one (51) years, inclusive.

(3) Third Category Reserve - The Third Category Reserve shall be composed of all able-bodied reservists who are above fifty-one (51) years of age.

SEC. 13. Classification of Reserve Force Units. - Based on the categorization provided in Section 12 above, the Reserve Force units shall further be classified into the Ready Reserve, the Standby Reserve and the Retired Reserve based on their operational readiness for immediate deployment/utilization.

(1) Ready Reserve - The Ready Reserve shall be composed of citizen soldiers belonging mostly to the First Category Reserve and others as provided in this Act who shall be organized, trained and maintained as mobilizable ready reserve subject to call at any time to augment the regular armed force of the AFP not only in times of war or national emergency but also to meet local emergencies arising from calamities, disasters and threats to peace, order, security and stability in any locality, including the need to provide assistance in relief and rescue work and other civil assistance activities. Any reservist or citizen soldier belonging to the Second Category Reserve and/()r the Third Category Reserve, particularly the commissioned and noncommissioned officers, who will volunteer to serve with the Ready Reserve shall be allowed, if qualified and fit for duty, to join and actively participate as part of the Ready Reserve and shall serve with an appropriate Ready Reserve unit. Furthermore, members of the AFP Affiliated Reserve units of various government and private utilities and services considered essential for the preservation of the economic stability of the country or particular locality, such as power and electricity, water supply, transportation and communications, among others, regardless of their categorization shall be classified as Ready Reserve.

All citizen soldiers belonging to the First Category Reserve, except those exempted under this Act, shall be required to serve with Ready Reserve units and will have assignments and promotions in accordance with existing policies of the AFP until transferred to the Standby Reserve by virtue of their age.

The following citizen soldiers may be exempted from rendering service with said reserve units:

(a) Active members of the Armed Forces of the Philippines and the Philippine National Police;

(b) Those who are residing abroad but only during the duration of their absence from the Philippines;

(c) Those who are physically and mentally unfit to serve their tour of duty;

(d) Those who are convicted of crimes involving moral turpitude; and

(e) Those who may be exempted from duty for valid reasons which may be authorized on a case-to-case basis by appropriate and
competent authority. For this purpose, the AFP shall issue such appropriate guidelines, rules and regulations as may be necessary.

(2) Standby Reserve - The Standby Reserve shall be composed of citizen soldiers belonging mostly to the Second Category Reserve and the Third Category Reserve, except as provided in this Act. The members of the Standby Reserve shall be organized and assigned to specified reserve units and shall be maintained through annual assembly tests to update their records and their present addresses, among others. The Standby Reserve may be mobilized or ordered to active duty only in times of national emergency or war. The ranks of the members of the Standby Reserve may be upgraded if they voluntarily participate in training or serve with the Ready Reserve units in their areas or if their Standby Reserve units undergo retraining. They will however be encouraged to upgrade their military knowledge and skills by taking up nonresident or resident courses which shall be set up for the purpose.

(3) Retired Reserve - The Retired Reserve shall be composed of citizen soldiers who have qualified for retirement through length of service, old age or disability. For this purpose, sixty-five (65) years shall be considered as the retirement age. However, if qualified and fit for duty, a member of the Retired Reserve may be ordered to active duty in times of local or national emergencies if he volunteers for active duty and when the Secretary of National Defense determines that there are not enough qualified citizen soldiers with his special skills and qualifications in the Ready Reserve or the Standby Reserve in his particular area of residence.