DBM releases P14 billion for military pensions

MANILA, Philippines — The Department of Budget and Management (DBM) has released P14 billion for the pension requirements of military retirees.

Budget Secretary Amenah Pangandaman has approved a special allotment release order (SARO) worth P14.046 billion to the Armed Forces of the Philippines of the Department of National Defense.

The latest funding will cover the regular pension requirements of military retirees.

The SARO and its corresponding notice of cash allocation (NCA) will finance pension requirements for the third quarter of the year.

NCAs are disbursement orders by the DBM to government banks servicing the release of funds to agencies. State agencies are expected to use the NCAs to pay for the cash requirements of their programs and projects.

The budget release will benefit 139,172 pensioners covered by the monthly pension requirement for the July to September period.

The fund release is chargeable to the Pension and Gratuity Fund (PGF) under the 2024 national budget.

This year, the PGF has an allocation of P142.93 billion, almost 50 percent lower than the 2023 level of P272.94 billion.

The annual fund is meant to pay off pension and retirement gratuity and terminal leave benefits, including separation benefits and incentives.

Pangandaman said the timely release of funds for the pension requirements of military retirees is one of the government’s initiatives to recognize their critical role in the security and stability of the country.