Senators question DOF proposal on military pension

MANILA, Philippines — Senators are scrutinizing the Department of Finance (DOF)’s proposal to reform the military and uniformed personnel (MUP)’s pension fund issue, saying the move should not be rushed.

President Marcos’ economic team earlier proposed that MUPs in active service should contribute five percent of their monthly pay to their retirement fund for the first three years of a plan that will reform their pension system.

New military entrants would be contributing nine percent of their basic salary and longevity pay, according to a technical working group led by the DOF on Saturday.

The government would then supplement the MUP contributions so that the monthly premium would total 21 percent – 16 percent to those in the active service and 12 percent to new entrants.

The total monthly premium is the same for other state employees.

Sen. Francis Escudero said he wants to see the fine print behind the DOF proposal, including the issue of shares of different ranks.

“How much will the 5-9 percent amount to in real terms across the different ranks in the MUP? How much is the equivalent of the government’s 12 percent share in real terms for all MUP and where will the money come from? Will it apply to all or only to certain MUPs depending on when they will retire or how many more years before they retire? And did they factor in the possibility of early retirement?” Escudero asked.

Sen. Jinggoy Estrada said the matter should be discussed and not done in haste.

“It needs to be discussed but not rushed. We need to find a system that is acceptable to all,” he said.