MANILA, Philippines — Attempts to reform the pension system for the military and other uniformed personnel could put the government at further risk of fiscal collapse and would impact national security, Sen. Ronald dela Rosa — chair of the Senate public order committee and a police pensioner — warned Sunday.
In an interview on Super Radyo dzBB, Dela Rosa said that attempts to collect pension contributions from active duty personnel could lead to a "mass exodus" of military, law enforcement and public safety personnel that would weaken the security sector and could cost the government trillions if many opt to retire early.
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"[Finance Secretary Benjamin] Diokno has been warning of a fiscal collapse, but we will be at greater risk of fiscal collapse if this happens," he said in Filipino.
He said that uniformed personnel may opt to leave the service if the proposal — now referred to a technical working group at the Senate — becomes law. "If all of them file for retirement, the government will need to pay trillions."
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Diokno has said that the current pension system for uniformed personnel — with no contributions collected from personnel, and with pensions indexed to current salaries — has become untenable and needs reform.
Dela Rosa said it would be better to just collect the proposed contributions from new entrants to the uniformed services instead of also taking money from active personnel, especially those who are already near retirement age.
"They have already planned their lives around the current system," he said of the active personnel.
He said that this could trigger a mass exodus that will lead to a "weak national defense and weak law enforcement" when experienced and well-trained personnel are replaced by rookies.
More consultation needed with uniformed personnel
Dela Rosa said government economic managers as well as legislators working on pension reforms should hold more consultations with soldiers, police officers, jail guards, fire fighters and the members of other uniformed services before making decisions that will affect their futures.
"We have to hear from them. We have to consult with them," he said, adding that there may be chances for the government and the uniformed services to meet halfway on the proposals. He said uniformed personnel may be convinced to "sacrifice a little to avoid fiscal collapse" if the proposals as well as the impact of the pension reforms on their take-home salaries are explained more clearly.
He added that he is ready to help with legislation that will find more money for the pension funds, including by leasing out prime land owned by the military.
He added the Philippines can also consider charging the US rent for the use of military sites covered by the Enhanced Defense Cooperation Agreement, which gives American forces access to specific Armed Forces of the Philippines facilities.
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Dela Rosa, who was Philippine National Police chief during the Duterte administration, said that past administrations had been able to shoulder the costs of the pensions of troops and cops. "If these administrations were able to survive the fiscal situation, the government should find a way (to do that too now.)"
Then President Rodrigo Duterte increased the salaries of military and uniformed personnel in 2018, with entry level positions getting monthly pay of around P29,000.