Gibo’s MUP proposal costly – Salceda

MANILA, Philippines — Defense Secretary Gilbert Teodoro’s proposal to bring back “full indexation” of military and uniformed personnel’s pension would cost an additional P1.2 trillion, according to Albay Rep. Joey Salceda.

“I would like to assure the Secretary that his requests are acceptable. We will adopt the Teodoro proposal of indexation for all retired and retirables and a transitioned contribution scheme,” Salceda said yesterday.

“The proposal will add some P1.2 trillion more to the actuarial reserve deficiency, from the current P2.2 trillion under the current substitute bill,” he added.

The House ad hoc committee on the MUP pension system last week agreed that indexation will only be 50 percent, which means pensioners will have the same benefits as those in active service.

“Only new entrants will contribute nine percent with government counterpart of 12 percent. And I will heed the request for full indexation for those who are retired and due for retirement,” Salceda noted.

Teodoro also proposed that there will be “no contribution from active” uniformed personnel from the Armed Forces of the Philippines, Philippine National Police, Bureau of Fire Protection and Bureau of Jail Management and Penology, among others.

“There could be some pushback from the (Department of Finance) and economic managers on the Teodoro proposal... We hope that within the executive, they will sort their position out,” Salceda said.

“I need a figure that still allows me to protect the reform’s three guarantees: guaranteed salary increase, guaranteed pension increase and guaranteed funding source. Any additional proposals should bear the costs in mind,” he added.