AFP pensioners demand retirement benefits

MANILA, Philippines - About 200 military pensioners yesterday trooped to Camp Aguinaldo in Quezon City to demand the release of their retirement benefits, coinciding with the start of the celebration of Pension Week.

The pensioners, composed of retired soldiers and wives of retired military personnel, passed through Camp Aguinaldo’s Gate 1 along Boni Serrano Ave. and converged in front of the Department of National Defense (DND) building at about 11 a.m.

Officials of the Armed Forces of the Philippines (AFP) Pension and Gratuity Management Center then asked the pensioners to proceed to the Camp Aguinaldo grandstand for a dialogue.

During the dialogue, pensioners complained that the government has not released their pension increases and urged the AFP to fast-track the release of funds.

The increases were provided under Executive Order 40, which directed the implementation of the third tranche of the modified salary schedule for state employees.

Pensioners are entitled to the increase since the retirement law states that retirees’ pension would increase every time the salaries of active soldiers are upgraded.

Pensioners said they rely on the pension benefits for their basic needs like food.

“The delay (in the release of funds) would cause us to starve,” a wife of a retired soldier said during the dialogue.

A retired lieutenant said the government should look after the welfare of retirees in the same way it provides for the needs of disaster victims.

AFP Pension and Gratuity Management Center chief Col. Rolando Jungco explained that the pension increases would only take effect next January since these were not included in this year’s budget.

He said the pension adjustment as a result of base pay increase of military personnel is being incorporated in the annual budget for pension in the following year. This means that the implementation of increases will be made effective in the succeeding year. 

Jungco said they were surprised by the actions of the pensioners.

“We were shocked. The pensioners aired their concerns during the first day of our Pension Week which will be observed until Friday,” he said.

He said they are ready to conduct more dialogues with pensioners so they would understand how the government releases funds.

He said the limited budget and the ballooning pension obligations also make it hard for the government to settle its pension obligations.

Jungco particularly cited the “indexation” provision of the current retirement law which increases the retirees’ benefits every time the salaries of active personnel are raised. He cited the need to reform the AFP retirement system to manage the government’s pension arrears.

“Our pensioners should not rely on pension alone. If they are going to rely on pension alone, this would not be enough for their needs,” Jungco said.

The DND has created a team to study possible reforms in the AFP retirement system and to reduce its pension obligations. The government has allotted some P24 billion for pension requirements this year. The government owes around P16 billion to about 112,000 military pensioners.