House panel chair eyes gov't savings to fund MUP pension

From the Philippine News Agency (Jul 26, 2023): House panel chair eyes gov't savings to fund MUP pension (By Jose Cielito Reganit)

(File photo)

MANILA – Ako Bicol Party-list Rep. Elizaldy Co, chairperson of the House of Representatives Appropriations Committee, said Wednesday he and other leaders are looking at government savings to help augment the military and uniformed personnel’s (MUP) pension fund.

“Bago pa dumating ang hearings para sa 2024 national budget, hahanapan natin ng pagkukunan ng pondo ang pension ng ating mga sundalo, pulis, at iba pang uniformed personnel (Before the hearings for the 2024 national budget, we will search for sources of funds for the pension of our soldiers, policemen, and other uniformed personnel),” he said in a statement.

Computations by the House showed that the government needs PHP3.6 trillion in the next 30 years to resolve the problems of the MUP pension due to backlogs and the growing number of retirees every year.

Earlier, Speaker Ferdinand Martin Romualdez directed members of the House committees on appropriation and ways and means to find ways to raise PHP120 billion this year for the MUP pension fund.

This was after President Ferdinand R. Marcos Jr. asked Congress to look for funds to pay the pension of the MUPs.

“Maganda ang punto ni Speaker Martin na tingnan ito bilang installment at hindi isang bagsakang gastos. Hindi na natin patatagalin ito. Sosolusyunan natin ngayong taon (Speaker Martin has a point in looking at it as an installment and not as a one-time expense. We will not prolong this any longer. We will find a solution this year)," Co said.

To stop the ballooning of the MUP pension shortfall, Co is also looking at the Government Service Insurance System (GSIS) to manage the fund.

He also agreed with the President that the MUP pension fund must self-generate to avoid depleting it, by letting it earn and grow beyond 30 years.

Since 2006, the Department of Finance has advised past presidents to resolve the pension of soldiers and police officers after the shutdown of the Retirement Savings and Benefits System (RSBS) due to corruption.

In May, Marcos pushed for “self-regenerating” pension plans for both the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) to avoid a scenario in which funds would be depleted.

“Mahalaga kay Pangulong Marcos, Speaker Martin, at sa akin na maalagaan ang kapakanan ng ating mga uniformed personnel (It's important to President Marcos, Speaker Martin, and myself that we take care of the well-being of our MUPs),” Co said.

During his second State of the Nation Address (SONA) on Monday, Marcos said his administration is “inclusive in our pursuit of social protection.”

“The pension of the military and the uniformed personnel is as important, as urgent, and as humanitarian as that of all other civilian Filipino employees. Efforts are underway to make it fully functional and financially sustainable,” he said.

“We are once again working closely with Congress to ease the transition from the old system to the new one, so as to be able to guarantee that no effects are felt by those in the uniformed services."

https://www.pna.gov.ph/articles/1206469