THE Armed Forces of the Philippines Retirement and Separation Benefits System on Tuesday (AFP-RSBS) said it is confident that they will have enough money to refund its soldiers their retirement contributions once the agency liquidates its assets.
“We are very confident that we will be able to raise the total amount for refund when we start liquidating our assets,” said Norman C. Legaspi, AFP-RSBS president and CEO said during ceremonies formally abolishing the RSBS.
“We have to refund the contributions and the accrued interest they earned,” he added.
The RSBS needs to refund a total of P15 billion to P16 billion, already including the interests accrued, Mr. Legaspi said, adding that the fund currently has P17 billion worth of assets in book value.
Soldiers contribute 5% of their monthly base pay to the AFP-RSBS. In turn, their fund receives 6% interest per annum.
Soldiers contribute 5% of their monthly base pay to the AFP-RSBS. In turn, their fund receives 6% interest per annum.
The refund will be given when the soldiers retire or are separated from the military, regardless of the nature of separation.
The RSBS president also said it will be difficult to accelerate the refund and it will depend on the results of its liquidation of assets..
In 2006 and 2007, two executive orders (EO) -- EO 590 and EO 590A -- were signed by then president Gloria Macapagal-Arroyo mandating the deactivation of the AFP-RSBS.
These were not fully implemented until April 8 when Memorandum Order No. 90 rationalized the effects of both EOs and ordered the agency’s abolition.
“This memorandum paves the way for the system to streamline and wind down its operations in an efficient and orderly manner with the end in view of refunding all of its members’ contributions and accrued interests as they fall due,” a statement by the AFP-RSBS said.
The RSBS president also said it will be difficult to accelerate the refund and it will depend on the results of its liquidation of assets..
In 2006 and 2007, two executive orders (EO) -- EO 590 and EO 590A -- were signed by then president Gloria Macapagal-Arroyo mandating the deactivation of the AFP-RSBS.
These were not fully implemented until April 8 when Memorandum Order No. 90 rationalized the effects of both EOs and ordered the agency’s abolition.
“This memorandum paves the way for the system to streamline and wind down its operations in an efficient and orderly manner with the end in view of refunding all of its members’ contributions and accrued interests as they fall due,” a statement by the AFP-RSBS said.
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