Metro Manila (CNN Philippines, August 16) — The House of Representatives on Tuesday approved a revised version of a bill seeking to change the military and uniformed personnel (MUP) pension to address rising pension costs.
In a statement, House Speaker Martin Romualdez said the MUP reform bill is now acceptable to all stakeholders, including the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP).
“Salamat sa House Ad Hoc Committee, makakatulog na ng mahimbing ang mga military at uniformed personnel natin gayundin ang kanilang mga pamilya. Sigurado nang mababayaran ang lahat ng pensyon nila, may dagdag pa silang sweldo taon-taon,” he said.
[Translation: Thanks to the House Ad Hoc Committee, our military and uniformed personnel as well as their families can now sleep soundly. All their pensions are guaranteed to be paid; they will also have extra salary every year.]
There will be two separate pension management systems under the revised bill – one for the AFP and one for civilian uniformed personnel. At least 11 bills have been filed in the House pushing for a “sustainable fiscal framework” for the MUP pension system.
Earlier this month, the lower chamber created a new committee to focus on proposals to reform the MUP pension system. It is chaired by Rep. Joey Salceda, who heads the House ways and means committee.
The revised pension reform for MUP is one of President Ferdinand Marcos Jr.’s legislative priorities. Finance chief Benjamin Diokno earlier said the bill is expected to be passed by year-end.
READ: Biting the bullet: The Marcos administration’s push for MUP pension reform
According to Romualdez, the legislation is a testament to the government’s commitment to national security and fiscal responsibility.
“This demonstrates our unwavering commitment to the men and women in uniform, who risk their lives daily to maintain peace and order,” he said. “With this reform, we’re not only prioritizing the well-being of our MUP but also ensuring the country’s economic stability.”
Other approved provisions of the revised MUP pension reform include:
– 90% maximum retirement package based on base pay, raising by 5% the previous package for AFP personnel
– PNP personnel who served below 20 years are now included in list of eligible for separation lump sum
– Age of retirement for all personnel will be fixed to 57
– Guaranteed 3% salary increase for 10 years
– Indexation of pensions to 50% of adjustment in pay
– Creation of window for indigent pensioners under the trust funds
– Retention of promotion to one rank higher upon retirement
– Phased in contribution (5% for the first three years, 7% for the next three years, 9% thereafter for active personnel; 9% immediately for new entrants – but larger government counterpart to complete 21% contribution)
