GSIS actuarial study on military pension out after Holy Week

From the Philippine News Agency (Mar 28): GSIS actuarial study on military pension out after Holy Week

The actuarial study for a proposed military pension that will be handled by the Government Service Insurance System (GSIS) has been completed but its results are still being assessed by the Bureau of the Treasury (BTr).

The Department of Budget and Management (DBM) tapped the GSIS for the study and Budget Secretary Benjamin Diokno said the pension fund submitted the results of their study last February.

Asked when he would announce the findings for the proposed military pension, Diokno said “after the Holy Week”.

The proposed pension fund will be separate from the fund for non-uniformed government personnel.

Initial cost for the pension fund was pegged at about PHP7 trillion to PHP9 trillion but Diokno said he is considering one that is “slightly less”, citing also the need for active members to contribute to the pension fund to ensure its sustainability.

The pension system will be funded by the proceeds of the sale of some military assets.

Diokno said the government will infuse capital for the pension fund based on initial discussions with GSIS because “we have to take a long-term view”.

“It is our plan to finish the problem and find a solution before the end of the year,” he added.

The DBM is considering three types of pensioners under this system -- existing pensioners who receive pensions that are indexed to the salary of incumbent personnel, those who are in active service who will be asked to pay a contribution to make the system sustainable but will receive the benefits of the old system, and new entrants who will be covered by a new set of pension rules that has yet to be developed.

Diokno said there is a need to set up a formal pension system for uniformed personnel because the military’s pension is currently shouldered by the taxpayers.

He said this issue has been swept under the rug for years, that is why “it has not gone to such magnitude that we really need to address it”.

http://www.pna.gov.ph/articles/1030365