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[FILE] A Filipino military personnel in uniform on patrol during a general quarantine amidst the Covid-19 pandemic in San Pablo City, Laguna, on February 28, 2021. RENATO BORLAZA | DREAMSTIME.COM
ALL SEEMS QUIET NOW ON THE MUP FRONT
House, DND, other govt agencies resolve military pension dilemma. Next will be the Senate’s show
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By Rex Anthony Naval
OR now, all seems quiet at the ranks of the Military and Uniformed Personnel (MUP), especially those affiliated with the Armed Forces of the Philippines (AFP), as some of the proposed amendments recommended by Department of National Defense (DND) Secretary Gilberto “Gibo” C. Teodoro Jr. has been incorporated into House Bill 8969. House Bill 8969 is also known as the “Military and Uniformed Personnel Pension System Act.” Its principal author is House Speaker Ferdinand Martin G. Romualdez. The bill hurdled its third and final reading on September 26. House Bill 8969, approved with a vote of 272-4 with one abstention, also provides for a guaranteed 3-percent annual salary increase for MUP for the first 10 years from the time the proposed law takes effect. The proposed law rationalizes the system of granting monthly pension and other benefits to personnel of the uniformed services in a way that is fair to them and the national government. “This landmark legislation demonstrates our unwavering commitment to the men and women in uniform, who risk their lives daily to maintain peace and order. It provides a robust, sustainable, and fair pension system that recognizes their invaluable service to our nation,” Romualdez added. The proposed reform, the House Speaker said, highlights efforts to ensure not only the wellbeing of the MUPs but also the country’s economic stability. He added that House Bill 8969 is also the House of Representatives’ commitment to national security and fiscal responsibility.
“This landmark legislation demonstrates our unwavering commitment to the men and women in uniform, who risk their lives daily to maintain peace and order. It provides a robust, sustainable, and fair pension system that recognizes their invaluable service to our nation.”—House Speaker Ferdinand Martin G. Romualdez
“I congratulate the Ad Hoc Committee and my colleagues for their hard work and dedication towards this pressing issue,” Romualdez stressed.
Ball now in Senate’s court
AS this developed, Albay 2nd District Rep. Joey Salceda, who also chairs the House Ad Hoc Committee on the MUP Pension System, said the fate of this proposed law is now at the hands of the Senate. “As such, the work of the Ad Hoc Committee ends here. The ball is now in the Senate’s court, and
my counterpart, Senator Jinggoy [Estrada], has also insisted on the need for reform. That is a welcome shift in direction compared to the past Congress,” he said during the approval of House Bill 8969 on its second reading on September 20. Salceda also stressed that there is no longer any debate between the MUP agencies and the economic managers that this proposed law is urgently needed. “There is also no debate that the military and uniformed personnel deserve some degree of retirement protection from the state they protect. This consensus bill hurdled the House because it is fiscally, politically and morally acceptable,” he pointed out.
indigent military retirees 6. A mandatory contribution of 9 percent of salaries for new entrants, with a larger government counterpart of 12 percent, and retirement of new entrants at rank last held. “For active and retired personnel, the structure of the pension system was preserved in full. But the great success of this reform is that we managed the risk of sudden increases in salary, as is typically the case for new Presidents,” Salceda noted. He added that this proposed law will help reduce the unfunded liabilities of the MUP pension system from estimates of as high as P14 trillion to just P3.4 trillion.
DND request heeded
What went before
ALSO, Salceda said, the House of Representatives has accommodated the request of the DND chief as much as possible. “We have also accommodated the request of the Secretary of National Defense [Teodoro] and he is now more or less satisfied. I trust that the AFP will be true to its word in contributing assets to the AFP Pension Trust Fund. I especially look forward to having the assets of the RSBS (Retirement and Separation Benefits System) infused right away,” he added. Salceda said the key provisions of House Bill 8969, including the amendments accepted on the floor, are: 1. Full indexation, with a provision for adjustment, during adverse fiscal conditions 2. A guaranteed salary increase of 3 percent per annum over 10 years, which is already a sacrifice willingly made by the MUPs given the historical salary rate increase of 12 percent 3. The creation of two trust funds, one for the AFP, which will infuse at least P44 billion in assets to the Fund, and another for uniformed services 4. Uniform retirement benefits for total permanent disability 5. Provisions for assistance to
TEODORO earlier expressed his concerns on proposals calling for a blanket mandatory contribution for military personnel, especially long-serving ones. “First, I do not subscribe to the proposed blanket mandatory contributions for military personnel, especially for those who have already completed at least 20 years of active service,” the defense chief noted. Teodoro added that President Ferdinand R. Marcos Jr. envisioned a carefully transitioned introduction of any pension reform plan so that those in active service will be impacted in the least possible way. “It has been my position that their pensions and entitlements, including 100-percent automatic indexation, shall remain unchanged. Ensuring the non-diminution of their retirement benefits is the least we can do in recognition of their sacrifices to the country,” he pointed out.
Manuel Jose M. Dalipe, Ad Hoc Committee on Military and Uniformed Personnel Pension System chairperson, Congressman Joey Salceda for showing their care for our soldiers and taking steps in ensuring their welfare after they leave the military service,” it said in a statement. It said this development would allow military personnel to focus on their mission of securing the country’s territorial integrity and sovereign rights, while ensuring the gains against terrorism and internal security are preserved. “This is not an easy task. Our soldiers, who continue to be mentored by retirees and veterans, need to exert extra efforts to accomplish an evolving mission. We are once again grateful to the House of Representatives for listening to the concerns of the defense sector,” it added.
House Bill 8969 coverage
THE proposed law covers “all employees of the government who wear uniforms, with ranks, may
be armed or unarmed, primarily involved in national defense, enforcement of laws, and in the maintenance of peace, order, and security and who belong to any of the following services: AFP, Philippine National Police, Philippine Coast Guard, Bureau of Fire Protection, Bureau of Jail Management and Penology, Bureau of Corrections, and commissioned officers of the hydrography branch of the National Mapping and Resource Information Authority who were transferred from the Bureau of Coast and Geodetic Survey.” Mandatory retirement age under the bill is 57 years, or upon accumulation of 30 years of active service, whichever comes later. MUP may voluntarily retire after 20 years of service. For key officers, retirement is upon completion of a tour of duty or upon relief by the President. MUP killed in action or wounded in action resulting in total disability, as certified by their respective services, shall be considContinued on A2
DND thankful
WITH this development, the DND expressed its thanks to the House of Representatives for hearing its concerns. “The DND would like to thank House Speaker Ferdinand Martin G. Romualdez, Majority Leader
PESO EXCHANGE RATES n US 56.7430 n JAPAN 0.3789 n UK 69.1130 n HK 7.2527 n CHINA 7.7668 n SINGAPORE 41.4424 n AUSTRALIA 35.8332 n EU 59.7674 n KOREA 0.0421 n SAUDI ARABIA 15.1384 Source: BSP (October 13, 2023)