Defense Secretary Gilberto Teodoro Jr. has raised concern over a invoice not too long ago authorised by an advert hoc committee on the House of Representatives making it necessary for army and uniformed personnel (MUP) to contribute to their pension.
“I do not subscribe to the proposed blanket mandatory contributions for military personnel, especially for those who have already completed at least 20 years of active service,” Teodoro stated in a press release.
He stated the pension reform plan envisioned by the president is one which may have the least affect on army personnel in lively service.
“The imposition of mandatory monthly contributions without a transition phase will definitely have an impact on our soldiers,” he stated.
The substitute invoice authorised by the House panel on Tuesday would require these in lively service to contribute 5% of their base and longevity pay throughout the first to 3rd yr of the MUP pension reform implementation, 7% on the fourth to sixth yr, and 9% for seventh yr onwards.
The authorities contribution for pension of these in lively service will likely be at 16% throughout the first to 3rd yr, 14% on the fourth to sixth yr and 12% for seventh yr onwards.
New entrants, in the meantime, will contribute 9% of their their base and longevity pay for his or her pension with a authorities contribution of 12%.
The Defense chief additionally stood pat that the troopers’ pensions and entitlements, together with 100% automated indexation, shall stay unchanged.
“Ensuring the non-diminution of their retirement benefits is the least we can do in recognition of their sacrifices to the country,” he stated.
Teodoro identified that members of the Armed Forces of the Philippines must be distinguished from all different uniformed personnel.
“The AFP performs a sui generis mandate emanating from the 1987 Constitution: to secure the sovereignty of the Philippines and the integrity of our national territory,” he stated.
“Despite wearing uniforms and ranks similar to that of other uniformed personnel, there is no uniformity in terms of the nature of their duties and responsibilities. The risks they face and the multifarious roles they play in nation-building and in times of crisis are well known,” he added.
Teodoro stated troopers don’t obtain further monetary assist from native authorities items, in contrast to a few of the different companies.
“The AFP continues to obtain the highest approval, satisfaction, and trust ratings. Adding to their burdens will only serve to distract them from focusing on their crucial mission,” he stated.
Earlier, Finance Secretary Benjamin Diokno warned the following administration will likely be confronted with a “huge problem” ought to the proposed reforms on the pension system fail to be handed into legislation.
Diokno stated that with the pension system having no contributions from MUPs, liabilities have already been earlier estimated at P9 trillion versus the nation’s gross home product (GDP) of round P20 trillion.
Under the 2024 NEP, the federal government is proposing to allocate P164 billion for the MUP pension, reflecting a 3.5% enhance from the funding for advantages this yr. This is absolutely funded by the federal government, with none direct contributions from the MUPs themselves.
“The pension system that is for the military is not a real pension system in the following sense — there are no contributors,” Diokno stated.
“A pension system is where the beneficiaries of the pension system contribute to the system and there is a government counterpart, okay, but in this particular sense, there is no contribution in the part of the beneficiaries, and we only appropriate it annually,” he added.—LDF, GMA Integrated News
Source: www.gmanetwork.com
