Defense chief wants expert fund managers handling MUP

MANILA, Philippines — The government would have to tap fund managers with good track records once members of the military and uniformed personnel (MUP) start contributing for their pension, Defense Secretary Gilbert Teodoro Jr. said yesterday.

Representatives of the economic team of the Marcos administration recently paid a courtesy visit to the newly appointed head of the Department of National Defense (DND) to discuss the MUP pension reform being pushed by the economic managers.

The current MUP pension system is non-contributory and, as such, retirement pensions and benefits are fully funded by the government through annual appropriations.

The Department of Finance (DOF), according to Teodoro, has raised the need for the government to carefully determine the governance structure of the MUP pension fund as well as for expert fund managers to help in the endeavor.

The Government Service Insurance System and an oversight committee will manage the fund, under the current proposal.

Comprising the committee as ex-officio members are Finance chief Benjamin Diokno, Budget chief Amenah Pangandaman, Executive Secretary Lucas Bersamin and GSIS president and general manager Wick Veloso as ex-officio members.

The DND chief said the MUPs’ contributions to the fund would be an engine for national growth, if prudently managed.

To ensure full understanding of the expected outcomes of the proposed reforms, the DOF said the economic team would provide computations on the net take home pay, as well as the net payout of all retirement options.

Representatives of the economic team who met with Teodoro were National Treasurer Rosalia de Leon, Finance undersecretaries Maria Cielo Magno and Maria Luwalhati Dorotan-Tiuseco, deputy treasurer Erwin Sta. Ana and GSIS senior vice president George Ongkeko.

The DOF has so far conducted 13 consultation sessions with seven MUP sectors, DOF said in a statement. — Michael Punongbayan