MUP to be part of oversight committee on pension reform

MANILA, Philippines — Members of the military and other uniformed personnel will be part of the oversight committee to ensure that MUP pension funds will be handled properly as the government moves to reform the system, according to the Department of Finance.

The DOF and the Bureau of the Treasury recently met with members of the Philippine Navy as part of efforts to explain the proposed pension system reform.

Deputy treasurer Erwin Sta. Ana assured the public that there would be no co-mingling of funds with the resources being held by the Government Service Insurance System (GSIS), which caters to state workers.

The GSIS is being eyed to be the fund manager of the contributions of the MUP once the reform is finalized.

The DOF said that while the GSIS would manage the fund, the MUP’s pension would remain independent from the pension of government workers.

“The GSIS has a very good track record. The mission of the GSIS is to just grow the fund,” Finance Undersecretary Maria Luwalhati Dorotan-Tiuseco said.

Deputy treasurer Erwin Sta. Ana also emphasized that the MUP would have their own accounting.

“There will be an accounting standard that will be employed just to make sure that there is proper recording of all these funds,” Sta. Ana said.

As an additional feature to better manage the pension fund, representatives from the military and uniformed services will also be included in the oversight committee.

Meanwhile, Finance Secretary Benjamin Diokno welcomed the appointment of Gilbert Teodoro who is back as secretary of the Department of National Defense.

Teodoro earlier said he would prioritize the reforms in the MUP pension system.

“He (Teodoro) is supportive and I think it’s in everyone’s best interest that we address this problem. It really has a huge fiscal impact on the economy,” Diokno said.

The current MUP pension system is non-contributory and, as such, retirement pensions and benefits are fully funded by the government through annual appropriations.

The DOF will continue to hold consultations with other MUP including members of the Philippine Coast Guard, Philippine Army, Presidential Security Group, Bureau of Fire Protection, Bureau of Corrections, Bureau of Jail Management and Penology, and the National Mapping and Resource Information Authority.