Department of National Defense (DND) officer-in-charge Carlito Galvez Jr. on Monday requested lawmakers to look right into a potential “middle ground” in reference to proposed new navy and uniformed personnel (MUP) pension system.
Facing a Senate listening to, Galvez mentioned a minimum of President “Bongbong” Ferdinand Marcos Jr. is “very much concerned” in regards to the impression of the proposed new pension system to the morale of troopers and policemen.
“The President also gave an instruction, that he is very much concerned on the impact of this MUP on the morale and welfare of our personnel and policemen and he wanted that there’s should be a continuous discussion to have the common ground,” Galvez mentioned at a Senate listening to on the payments searching for to reform the present pension system for uniformed personnel.
In his opening assertion, Galvez disclosed that 70 to 80% of the enlisted personnel of the Armed Forces of the Philippines (AFP) wish to avail of early retirement to precise “apprehension” to the proposals, which embody the removing of computerized indexation in pension and the imposition of necessary contributions on navy personnel.
Under the present MUP pension system, navy males who rendered 20 years of service can already avail early retirement.
“While we fully support the enactment of legislative measures to address the current issues hounding the pension system, the DND and the AFP respectfully appeals that the morale and welfare of our soldiers be given due weight in this deliberation. Considering that the near notion of modernizing our pension system, it created already some sort of apprehension,” Galvez, a retired navy normal, mentioned.
“At present, mere discussions of proposals related to retirement benefits, most especially the imposition of the pensionable age, has already affected the morale and caused uneasiness not only from within the active ranks of the Armed Forces, but even from our veterans and retirees,” he added.
“As much as possible we would want to appeal to our senators that we should really look on the possible middle ground that we can see the morale and welfare of our people will be taken care of.”
Galvez additionally disclosed some particulars from his conferences with AFP personnel and commanders, saying the navy males wished the brand new MUP pension system to cowl solely the brand new entrants. He additionally mentioned there have been opposed reactions to the proposal to cut back the quantity of lump sum that will probably be given to the pensioners upon retirement.
The present system gives a lump sum to retirees amounting to 36 months of their salaries. The navy males oppose the proposals to cut back it to 18 months, Galvez mentioned.
“If this is still financially impossible, we are very amenable and open to modifications in the system so long as these are fair and equitable to the military and the MUP and also this is based on the financial soundness and scientific actuarial science,” Galvez mentioned.
In March, Finance Secretary Benjamin Diokno mentioned that Marcos is “okay” with the proposal to reform the pension system for the MUP as he warned that failure to handle the ballooning value of pensions for retirees may result in a “fiscal collapse.”
Representing the Department of Finance on the listening to, National Treasurer Rosalia de Leon mentioned they financial crew is proposing to use the brand new MUP pension system to lively and new entrants; the adjustment of pension advantages by as much as 1.5% inside a given 12 months, topic to analysis of financial situations and actuarial lifetime of pension fund; MUPs to start out receiving their month-to-month pension at 57 years previous; and necessary contributions for lively personnel and new entrants.
The financial crew is asserting that the pension advantages and changes have been granted as “gift” below the complete discretion of the nationwide authorities with out vested possession of navy and uniformed personnel.
The dependence on full authorities funding additionally makes the pension system inclined to financial and financial downturns which creates an unstable and unpredictable profit system for MUP and their dependents, she added.
Further, De Leon mentioned the present design options pose severe threats to sustainability of the system, inserting future generations of MUP and their households in danger.
To help the problems that they raised, De Leon advised the committee that the unfunded liabilities of the MUP pension is at round P9.6 trillion or 53.4 % of the nation’s 2020 progress home product.
The financial crew warned that the pension liabilities is anticipated to balloon additional within the succeeding years. —KBK, GMA Integrated News
Source: www.gmanetwork.com
