Metro Manila (CNN Philippines, June 19) — Officials from the Department of Finance (DOF) are making the rounds of the headquarters of the Armed Forces and Philippine National Police (PNP) to lead discussions on the proposed pension system reform for military and uniformed personnel (MUP), with the goal to file a consensus bill when Congress resumes session.
MUPs currently do not make direct contributions to their pension scheme, but the DOF is proposing that those in active service contribute 5% of their monthly salary to the retirement fund for the first three years of the proposed pension system.
The DOF also wants new entrants to the uniformed services to contribute 9% of their basic salary and longevity pay to the retirement fund.Other state workers contribute 21%, so the 12% gap will be funded by the government as subsidy. Finance Undersecretary Luwalhati Dorotan-Tiuseco has been leading the roadshow which has gone to 13 headquarters so far.The DOF’s target is to brief 18 headquarters before President Ferdinand Marcos Jr.’s State of the Nation Address on July 24.“We’re looking at the first week of July so that we can sit down and start working on the draft bill because our target is by resumption of Congress, we will have the consensus bill, the administration bill, which has the inputs of all the military and uniformed personnel,” she said, adding the department os open to rewriting the bill. Philippine Army spokesman Col. Xerxes Trinidad said the economic team met with the military brass and over 1,000 army soldiers on June 9. “It’s not yet final,” Trinidad said of the consultations. “We’re confident that the leadership will give a good revisions, or refinement, on the original plan. There are others who like this to be applied only to the new entrants.” Finance officials also held consultations with the PNP.
“Kinakausap natin yung ating mga tauhan simula sa pinakamababa na ranggo — patrolman hanggang sa third level officers at pinapaliwanag natin yung MUP pension program — gusto natin lahat ng miyembro ng kapulisan naiintindihan yung mga detalye,” said PNP-Public Information Office chief PBGen Redrico Maranan
[Translation: We are talking with personnel from the lowest ranks — patrolman until the third level officers and we explain the MUP pension program — we want all members to understand the details.]
The DOF already made revisions to the optional retirement package.
“We want to listen to them, binalik namin yung [we returned the] optional retirement, but the difference is that we now have different financial schemes on how they will get the pension,” said Dorotan-Tiuseco.
“So number one is a introduction of concept of lump sum pay a one-time lump sum pay, so you can upon retirement, optional retirement you can get your whole pension in one go. Another option is to get a five-year lump sum and then on the fifth year, after the fifth year, you’ll get the monthly pension. Another option is a direct pension — wherein upon optional retirement, you’ll have the monthly retirement already, or a monthly pension so nanganganak talaga dahil sa proposals ang suggestions na ating mga kasamahan sa kasundaluhan [it evolves because of the proposals and suggestions of those in the armed forces].”
Malacañang has yet to certify the military pension reform bill as urgent.
