Marcos: MUP pension reform a monumental task

MANILA, Philippines — The reform of the pension system of the military and other uniformed personnel is a “monumental task,” President Marcos admitted, as he emphasized the need to keep it functioning amid fears of a possible fiscal collapse caused by ballooning pension costs.

In a speech delivered yesterday during the 86th anniversary of the Government Service Insurance System (GSIS), Marcos described the uniformed personnel’s pension system as “important, urgent and humanitarian.”

The Marcos administration is seeking the passage of a law that would reform the pension system of soldiers and other uniformed personnel or MUP, citing the need to avert a fiscal collapse that stems from increasing pension costs.

Among the amendments being pushed by the finance department are the removal of a system where a retired uniformed personnel’s pension is automatically indexed to the salary of the active personnel of the same rank, and mandatory contributions for active personnel and new entrants.

“Hence, it is imperative that we establish the most appropriate and strategic mechanism to get it functioning or, at the very least, to start to lay the foundations for the system that will function in the long run,” he added.

Marcos said comprehensive multi-sectoral discussions on the proposed military pension reform are ongoing and thanked the GSIS for its participation.

“In our conscious and collective effort to make sure that no one gets left behind in our road to economic transformation, I take this opportunity to enlist the active and continuing support of the GSIS regarding a special matter,” he said.

At a recent Senate hearing, defense department officer-in-charge Undersecretary Carlito Galvez Jr. revealed that about 70 percent to 80 percent of enlisted military personnel might retire early because of proposed changes in their pension scheme.

According to Galvez, the enlisted personnel are concerned that the proposed reforms might affect their retirement and are therefore seeking to avail themselves of the pension under the present system.

Earlier this month, Marcos reiterated the need for a “self-regenerating” pension system for the uniformed services, warning that the pension funds would be depleted in the next five to six years if no changes were introduced in the present scheme.

On the other hand, after nearly three decades disabled veterans can now look forward to getting an average of over 400 percent higher monthly pension after the Senate ratified yesterday the reconciled bicameral conference committee report on the measure that will standardize and upgrade the benefits due to military veterans and their dependents.

Sen. Jinggoy Estrada, chairman of the Senate committee on national defense and security, said the ratification of the bill rationalizing the disability pension of veterans will correct the grave injustice and give disabled veterans the dignity, respect and care they truly deserve.

“For our veteran soldiers and their families, the increase in their monthly disability pension is a big help in their daily expenses. What they currently receive, which is only P287, is not enough to even go to a movie. What if they sell their medicine? So it is only reasonable that we give them the appropriate benefits that we owe them,” Estrada, principal author and sponsor of Senate Bill 1480, said.

The proposed measure will be submitted to the Palace for the signature of President Marcos.

Estrada said the disability base rate will be raised to P4,500 from the current P 1,000 or an increase of 350 percent. Those now receiving P1,700, which has the highest disability rating, will be receiving P10,000 or an increase of P8,300, equivalent to 488 percent. The P500 monthly pension for the spouse and each unmarried minor child will be adjusted to P1,000.

Only minor differences were made in reconciling the disagreeing provisions of Senate Bill No. 1480 and House Bill No. 7939 which will amend Republic Act 6948, as the House agreed to use the Senate version as the working draft, Estrada said.

Incidentally, both chambers proposed similar rates of increase, he added.

Also, Section 1 of the Senate version was adopted, which simplified and clarified the provision on who will be entitled to the Total Administrative Disability pension of P1,700. This will cover the veterans who have reached the age of 70 but have not been receiving any disability pension.

This is the second bill principally authored and sponsored by Estrada to be ratified by the Senate in the current 19th Congress, the first of which is the bill amending the rules on the fixed terms and tours of duty of the Armed Forces of the Philippines (AFP) chief of staff and other senior military officials.

On May 17, the President signed Republic Act 11939, or the Act Further Strengthening Professionalism and Promoting the Continuity of Policies and Modernization Initiatives in the AFP, which amended RA 11709. – Cecille Suerte Felipe