Albay Representative Joey Salceda mentioned Tuesday that the invoice on navy and uniformed personnel (MUP) pension reform will now not embrace the provision on obligatory contribution, besides for brand new entrants.
Salceda, methods and means committee chairperson, made the disclosure throughout plenary deliberations on the invoice.
Under the preliminary model of the MUP pension reform invoice filed by Salceda, MUP in lively service can be contributing 5% of their base and longevity pay throughout first to 3rd yr of the measure’s implementation; 7% on the fourth to sixth yr; and 9% on the seventh yr onwards.
Government contribution, in the meantime, was pegged at 16% in the course of the first to 3rd yr; 14% on the fourth to sixth yr; and 12% on the seventh yr onwards.
“Wala na iyan. Tinanggal na,” Salceda mentioned in the course of the questioning of House Assistant Minority Leader Arlene Brosas of Gabriela.
“The contribution is for new entrants at 9%,” he added.
Salceda mentioned the pension reform invoice units an annual assured wage improve of three% p.c for all MUPs, nonetheless with full indexation of pension advantages, as a substitute of the present common of 6.8% annual wage improve.
“The only way to cap pension is to cap salary growth. Because if we remove indexation, we might have mass retirement,” he mentioned.
“We have to minimize that risk. With the bill, our fund requirement for MUP pension will be at P178 billion. Without the bill, it would be at P252 billion. Nakatipid tayo,” he added.
Brosas, nevertheless, disagreed for the reason that burden of paying the pension of the MUPs nonetheless rests on the federal government.
“P178 billion is huge. Hindi tayo nakatipid. Tayo pa ring [taumbayan] ang magbabayad [ng pension nila] ng buong buo,” Brosas mentioned.—LDF, GMA Integrated News
Source: www.gmanetwork.com
