Metro Manila (CNN Philippines, June 7) — New Defense Secretary Gilbert Teodoro on Wednesday said the president’s first marching order is for him to help address the contentious issue of reforming the military and uniformed personnel (MUP) pension system.
In his first media briefing after joining President Ferdinand Marcos Jr.’s Cabinet, Teodoro said the chief executive instructed him to work with lawmakers, economic managers, and military personnel \”to find a sustainable MUP (pension) scheme.\”
\”The initial job actually is to minimize as much as possible the (fiscal) hemorrhage immediately, because a self-sustaining pension scheme needs time,\” he said.
The hefty pension for the MUP sector is fully funded by the government, with over ₱100 billion earmarked for such benefits this year alone.
Finance Secretary Benjamin Diokno earlier said a \”fiscal collapse\” is bound to happen if no change is implemented.
However, former Defense officer-in-charge Carlito Galvez Jr. has warned that implementing the proposed reforms could trigger a mass retirement among uniformed personnel. Galvez said up to 80% of enlisted personnel may retire early to enjoy the current scheme’s more generous pension package.
READ: Biting the bullet: The Marcos administration’s push for MUP pension reform
Teodoro said he will consult with stakeholders, but he expressed optimism that all parties will be able to reach an agreement on the matter.
“I think that everybody, as long as they’re contributing to the future…and they see perhaps that their money is going to something that will benefit them in the future, I don’t think there will be much objections,” he said.
According to Diokno, the MUP pension system covers retirees from the Armed Forces of the Philippines (AFP), the Philippine National Police, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, the Bureau of Corrections, the Philippine Coast Guard, and the Philippine Public Safety College.
Budget increase pushed
Meanwhile, Teodoro also committed to lobby Congress for a bigger budget for the Department of National Defense (DND).
He stressed the need to purchase more capital assets to boost military capabilities and national defense, and to improve the DND’s capacity to manage its attached agencies, including the AFP.
\”As a manager, my first job is to manage the home institution itself. I want to help, to lay the foundations for a Department of National Defense for our future – to develop expertise in program management, analytics, predictions, other capabilities, contracting, international relations, and to build up the career track of our own employees,\” the defense chief told reporters.
\”In the modernization, the AFP has set the horizons,\” Teodoro added. \”What we will do is to make sure that they get the best at the most affordable cost, with the most sustainability possible.\”
