Saturday, May 18, 2024


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of The main clause of the MUP pension reform is excluded.

On Tuesday, the House of Representatives passed a bill on second reading that aims to revamp the pension system for military and uniformed personnel (MUP) in the Philippines. However, they removed a crucial section that would have obligated active personnel to contribute to the system.

On Tuesday, legislators passed House Bill No. 8969, also known as the Military and Uniformed Personnel Pension System Act, by a voice vote.

According to the head of the ad hoc committee on the MUP pension system, Albay Representative Joey Sarte Salceda, the newest edition is deemed suitable from a financial, political, and ethical standpoint.

“The pension system remains intact for both current and former employees,” he stated.

economic managers to defer the implementation of the tax reform

According to Mr. Salceda, legislators have agreed to postpone the implementation of the tax reform at the request of economic managers. 

Gilbert C. Teodoro, the Defense Secretary, previously opposed the compulsory contributions for active personnel and the elimination of full indexation of pension to the salary raise of active personnel.

fied,” he added.

Legislators passed a modification to the legislation that mandates only newly enrolled individuals to contribute to the pension fund.

According to the legislation, fresh participants would provide 9% of their income, while the matching contribution from the National Government would be 12%.

In the plenary session, legislators also reached a consensus to reinstate the complete indexing of MUP pensions. This revision was put forth by Raul C. Tupas, Chairman of the House National Defense and Security Committee and representative of Iloilo.

Mr. Teodoro previously expressed disagreement with the stipulation in the committee’s report that limited the MUP pension’s indexation to only 50% of the salary raise for current personnel.

The legislation would also grant the President the power to modify retirement benefits in times of

Market or financial circumstances.

However, Finance Secretary Benjamin E. Diokno had previously insisted that there is a need to overhaul the MUP pension system, noting that there is a risk of “fiscal collapse.”

If indexation continues and active members do not contribute, it cannot be considered a reform. We must decrease the fi

Last month, Mr. Diokno stated that the MUP’s pension program and the involvement of current members will have a significant effect on managing the financial impact.

Currently, all MUP members do not make contributions to their pension fund. Instead, the fund is completely funded by the National Government.


The MUP voluntarily agreed to the 12% increase in salary, considering the previous rates.

The legislation also establishes the MUP trust funds, which consist of the AFP Trust Fund and the Uniformed Personnel Services Trust Fund.

volent Fund in the AFP-RSBS

Legislators have also reached a consensus to incorporate the remaining funds from the AFP-Retirement and Separation Benevolent Fund into the

The AFP Trust Fund receives funding from the RSBS.

According to Mr. Salceda, the AFP plans to contribute a minimum of P44 billion in assets to the fund.

He expressed confidence that the AFP will fulfill its promise to add assets to the AFP Pension Trust Fund. He particularly anticipates the immediate inclusion of assets from the RSBS.

MUP would have a mandatory retirement age of 57 or after serving for 30 years, whichever comes later. This applies to key military

After finishing their duty or being relieved by the President, members of CERS have the option to retire.

Any MUP member who is killed or injured in action and becomes permanently disabled will be required to retire.

According to Mr. Salceda, the reform significantly decreases the MUP pension system’s unfunded liabilities, from previous estimations of P14 trillion to only P3.4 trillion.

Hansley A. Juliano, a professor of political science at Ateneo de Manila University, expressed worry about potential misuse of MUP trust funds.

According to a message sent via Messenger, Mr. Juliano stated that the trust fund is causing the most disagreement, as the government has created many funds that are vulnerable to misuse.

The MUP pension program includes individuals from the AFP, Philippine National Police, Bureau of Jail Management and Penology, Bureau of Fire Protection, Philippine Public Safety College, Philippine Coast Guard, and Bureau of Corrections.

The Legislative-Executive Development Advisory Council has identified 20 priority measures to be approved by December, including the bill proposed by Beatriz Marie D. Cruz.