GMA infuses P200 M in AFP pension fund

President Arroyo ordered yesterday the Armed Forces Retirement and Separation Benefits System (RSBS) to pay the monthly pension of retired soldiers as she announced an infusion of funds to it.

Speaking at the AFP’s 66th anniversary celebration at Camp Aguinaldo in Quezon City, Mrs. Arroyo said she had infused a P200 million "one-time contribution" to the RSBS to help it "recover financially" and assume the payment of pensions for retired soldiers.

"But I would like to urge the RSBS not to put (the money) in real estate but rather to put it in liquid assets like the blue chips in the stock market because the stock market is quite low today compared to good times," she said, adding it would only be a matter of time before the market recovers.

"And therefore the investments to be made now will be good investments that will multiply in value and hopefully will be able to answer for the needs of our retirees and therefore free the money to increase the salary of our soldiers."

Mrs. Arroyo said the Armed Forces can use the money from its P3 billion budget to give salary increases to servicemen and women instead of paying pensions.

"I was quite surprised to find out that pensions of retired soldiers came from the General Appropriations Act. That should not be (as) that is not the way it is with other government employees," she said.

"Pensions should be funded by the RSBS. I feel it is unwise to spend P3 billion for pension from the GAA when that could be provided by the RSBS. If we can find a way to make the RSBS capable of providing for the pensions, we could release the P3 billion to upgrade the salaries of our soldiers."

During the parade and review for Mrs. Arroyo, Navy Capt. Nicario Nicolas, 50, fainted then stood up before collapsing again.

An ambulance took Nicolas to the Camp Aguinaldo station hospital, where doctors said his blood failed to "circulate effectively" because of "lack of bodily movement."

Meanwhile, the Armed Forces of the Philippines (AFP) will receive at least P5 billion next year for its long-delayed modernization program.

The House-Senate conference committee on the proposed P781 billion 2002 budget has decided to restore half of the P10-billion fund for the program.

The House contingent in the bicameral panel led by Rep. Rolando Andaya Jr. (Lakas, Camarines Sur), appropriations committee chairman, batted for the restoration.

The Senate had scrapped the entire P10 billion for the AFP modernization program, realigning part of it to other projects.

Andaya told reporters yesterday that the balance of the modernization fund will be realigned.

He said part of it will also go to the AFP in terms of funds for the recruitment of additional soldiers and members of Citizens Armed Force Geographical Units (CAFGU).

"We will discuss how many additional soldiers and CAFGU members the military will be authorized to recruit and how much funds we will allocate for such purpose," he said.

He said the Philippine National Police will get more funds for the hiring of new policemen.– Marichu Villanueva, Paolo Romero, Jess Diaz