DWDD: Members of AFPRSBS will get their Separation Package/Plan--Legasapi

From DWDD AFP Civil Relations Service Radio Website (Apr 19): Members of AFPRSBS will get their Separation Package/Plan--Legasapi



Camp Aguinaldo, Quezon City, DWDD — Last April 8, 2016, the Office of the President issued Memorandum Order 90 directing the abolition of the AFP Retirement and Separation Benefits System (AFPRSBS).

The said memorandum order is in relation to Executive Order 590 and 590A dated December 15, 2006 and January 31, 2007, respectively. Memorandum Order 90 will pave way for the AFPRSBS to wind down its operations in an efficient and orderly manner, and to refund all of its members’ contributions and accrued interests as they fall due.

Based on Presidential Decree 361, the law which created AFPRSBS, members of the AFP will contribute 5% of their monthly base pay to AFPBSPS. The said contribution will then be refunded to them when they retire or separate from service. Their contributions will earn 6% interest per annum. The said memorandum order directed the AFPBSPS to stop its collection of soldiers’ contributions, and the accrual of interests on members’ contributions effective April 8, 2016. AFPRSBS has already stopped collecting last March.

In a press conference held on April 19 at the AFP RSBS building, Camp Aguinaldo, Hon. Norman Legaspi, President and CEO of AFPRSBS, said that there is no need for their soldier members to panic because they will be able to refund their contributions with its accrued interest as soon as they retire or separate from military service.
Soldiers’ pension benefits cannot be terminated since it is funded from the General Appropriations Act.

Furthermore, Legaspi said that AFPBSPS has a book value of almost 17 billion worth of assets. AFPRSBS will be returning around 15 billion pesos to its members. Thus, they can guarantee its members that they will be getting what is due to them. Whatever will be left after they pay-off all their members will then be turned over to the national government.

Minimum manpower complement will be maintained to attend to the remaining corporate affairs of AFPRSBS until its full liquidation of its assets, or turnover to a new entity.

At least 103 employees of AFPRSBS, both casual and contractual, will be affected by the said abolition. But Legaspi added that the employees who will be affected may be absorbed by other government entities since they are all civil service eligible. (Cherrymae V. Sta. Ana/LMC)

 http://dwdd.com.ph/2015/rsbs/