Reforming the “defects” of the army and uniformed personnel pension system will unlock extra funds for the nation’s rising bills in defending its territory, Albay Rep. Joey Salceda mentioned on Monday.
Salceda, the chairman of the House Committee on Ways and Means, issued the assertion forward of a technical working group assembly to provide you with an MUP pension reform invoice that gives for obligatory contributions, and annual wage hikes for ten years.
His remarks additionally got here greater than per week after the Chinese Coast Guard used water cannons on a Philippine resupply mission en path to the Ayungin Shoal.
The BRP Sierra Madre had been intentionally run aground within the shoal to function an outpost within the West Philippine Sea.
“We need to resolve the MUP pension system’s fiscal defects so that we can move forward with devoting more of the national budget to credibly defending the country’s territory,” Salceda said.
“We are set to discuss contributions as one of the potential areas for deliberation. Capacity to pay is critical, but parity with civilian pension contributions has moral weight,” he added.
“Our expenditures are growing for defense, even as our MUP pension liabilities also grow. That is untenable. We have [to have] a solution that inflicts the least pain possible on all stakeholders,” Salceda mentioned.
Salceda mentioned the finances for the modernization of the Armed Forces of the Philippines within the proposed P5.768-trillion 2024 nationwide finances has elevated by 81.8% in comparison with the 2023 allocations.
“You need a credible navy and air force to defend the West Philippine Sea. While land forces received a 9.7 percent increase year-on-year, the air force received a 25.7 percent increase. The navy received 17.2 percent,” Salceda said.
“So, we need to solve the MUP pension system issues so we can keep investing in a formidable national defense,” he added.
China has been asserting its claims within the West Philippine Sea even after the Permanent Court of Arbitration upheld in 2016 the Philippines’ unique financial zone.
The arbitral award invalidated China’s historic claims anchored on its nine-dash-line map.
Salceda reiterated that apart from the obligatory pension contribution amongst MUPs, the present pension construction offering for pensionable age, retirement at one rank larger, optionally available retirement shall be retained and that there shall be a assured 3% annual wage enhance to all lively personnel.
“That’s win-win because most of the time, MUP do not get salary hikes, but when they do, it’s at unpredictable rates. Our proposal makes the salary adjustment assured at a stable rate. There will be no shocks to our fiscal system,” Salceda said.
“On top of that, indexation stays, meaning pensioners will also get an assured increase in pensions for ten years. We will only limit indexation to 50% of the salary increase,” he added.
In addition, Salceda mentioned an MUP Trust Fund could be established to enhance MUP pension funding wants, and that army belongings not in use shall be infused into the MUP Trust Fund. —NB, GMA Integrated News
Source: www.gmanetwork.com
