Secretary Carlito Galvez has appealed to the senators to consider the morale and welfare of the troops in tackling the proposed new pension system for the military and uniform personnel (MUP) retirees.
Meanwhile, Sen. Jinggoy Estrada’s bill raising the military veteran’s disability pension had a smooth sailing at the Senate.
During a public hearing by the Senate committees on national defense and security, government corporations and public enterprises, ways and means, and finance, Galvez said he was echoing the sentiment of President Ferdinand Marcos Jr. about the impact of the new pension system currently under consideration by the Senate.
“In fact, the President also gave an instruction that he is very much concerned about the impact of this on the morale and welfare of the army personnel and policemen, and he wanted that there should be a continuous discussion to have a common ground,” Galvez said.
In the proposed new MUP pension system, retirees will receive 18 months’ worth of their salaries which is only one-half of the current system that provides a lump sum of 36 months of their salaries.
Galvez asserted that 70 to 80 percent of the enlisted personnel were eyeing early retirement to avail themselves of the current pension system.
“Ang gusto nila i-avail na nila ‘yong pension ng current system, kasi ‘yong apprehension ng possible new MUP law magkakaroon ng implication sa kanilang optional retirement,” he said.
“We should really look at the middle ground so that we can see that the morale and welfare of our people will be taken care of,” Galvez.
Galvez also said in a discussion with military personnel and commanders, the group unanimously agreed that the proposed MUP pension law should only cover new entrants.
“If this system is still financially impossible, we are very amenable to modifications in the system so long as it is fair and equitable to the MUP. And also, if it is based on financial soundness or scientific actuarial science,” Galvez said.
Meanwhile, The Philippine National Police (PNP) said it supports the passage of the MUP pension reform, but stressed that it should only be applied to new members of the police force.
The PNP s created a technical working group to conduct an in-depth review of the revised pension scheme.
On the other hand, Philippine Coast Guard vice admiral Robert Patrimonio claimed that the PCG should be amenable to a mandatory contribution rate of five percent based on base pay only and not the proposed gross monthly compensation.
The PCG agreed on the removal of the automatic indexation, but regular pension reviews and adjustments based on inflation should be discussed.
The Bureau of Jail Management and Penology and the Bureau of Fire Protection presented their own recommendations and noted that the new system should be applicable to new entrants.
Back in March, Finance Secretary Benjamin Diokno warned against a possible “collapse” stemming from the MUP pension payments, with the total payouts to MUP expected to reach the P1-trillion mark by 2035 from P231 billion in 2023.
With 21 affirmative and zero negative votes, the Senate approved on third and final reading the bill proposing a 350 to 488 percent rate increase in the disability pension of veterans and their beneficiaries.
Senate Bill No. 1480 seeks upgrade the monthly entitlement of the veterans who have been rendered disabled owing to sickness, disease, wounds, or injuries sustained in the line of duty.
“I truly feel that this measure is long overdue. Our veterans who sustained disabilities and injury in the line of duty have long waited for this legislation to update their monthly disability pension rates which have remained unchanged for 29 years,” Estrada said.
Estrada, who chairs the Committee on National Defense and Security, said his proposed law “is one way of honoring our military and war veterans who served and defended the country in their prime and ensuring that in their twilight years, they and their families are accorded adequate benefits and assistance.”
Under SB 1480 or the proposed Act Rationalizing the Disability Pension of Veterans, amending for the purpose Republic Act No. 6948 titled “An Act Standardizing and Upgrading the Benefits for Military Veterans and their Beneficiaries” as amended, the disability base rate will be raised to P4,500 from the current P1,000, or an increase of 350 percent.
Those receiving a monthly disability pension of P1,200; P1,300; P1,400; P1,500; and P1,600 will be adjusted to P6,100; P6,900; P7,700; P8,500, and P9,300, respectively.
On the other hand, those currently receiving P1,700 which has the highest disability rating will be receiving P10,000 or an increase of P8,300, equivalent to 488 percent.
The P500 monthly pension for the spouse and each unmarried minor child will be adjusted to P1,000.