The pension of the military and uniformed personnel will remain strictly independent from those of civilian government workers, according to the economic team.
The economic team had a consultation on the MUP pension reform with the Philippine Navy at the Social Hall of the Officer’s Clubhouse in Fort Bonifacio, Taguig City.
Key officials from the Department of Finance and the Bureau of the Treasury represented the economic team. Representatives from the Presidential Legislative Liaison Office, Department of National Defense and Senate defense committee chairperson Jinggoy Estrada also attended the event.
The role of the Government Service Insurance System was discussed during the event. The economic team said that while the GSIS would manage the fund, the MUP’s pension would remain strictly independent from the pension of civilian government workers.
Participants also asked if there would be any co-mingling of funds. Deputy Treasurer Erwin Sta. Ana assured the audience that there would be no co-mingling.
“What the economic team is saying is that MUP should have their own accounting. That there will be an accounting standard that will be employed just to make sure that there is proper recording of all these funds,” Sta. Ana said.
As an additional feature to better manage the pension fund, representatives from the military and uniformed services will also be included in the oversight committee.
Consultations were conducted with officers from the Philippine National Police, Philippine Army, Philippine Air Force and Philippine Navy earlier this month.
DOF Undersecretary Maria Cielo Magno presented the proposed reforms to the Philippine Navy. Consistent with earlier talks, she said gathering the suggestions and sentiments of all stakeholders would be of great help in creating a reform that is both inclusive and financially sound.
One of the key pieces in the reform is the proposal for the joint contribution between the MUPs and the government to sustain the pension fund. Various schemes were also put in place to take into account the different financial situations of the pensioners.
DOF Undersecretary Maria Luwalhati Dorotan Tiuseco said that this would help create fiscal space for additional programs for the benefit of both retired MUPs and active personnel.
“One of our goals is to make the pension fund sustainable to be able to make fiscal space for additional government support programs like housing, and better health and medical programs,” she said.