‘Gibo’ raises concern on House substitute bill for MUP reforms

DEPARTMENT of National Defense

(DND) Secretary Gilberto Teodoro Jr. on Thursday expressed his concerns on proposals calling for a blanket mandatory contribution for military personnel, especially long-serving ones. This proposal is one of the items under the substitute bill approved by the House of Representatives-Ad Hoc Committee eyeing to reform the Military and Uniformed Personnel Pension (MUP) System.

“First, 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,” the DND chief stressed.

Teodoro also said President Ferdinand R. Marcos Jr. envisioned a carefully transitioned introduction of any pension reform plan so that those in active service will be impacted in the least possible way.

“The imposition of mandatory monthly contributions without a transition phase will definitely have an impact on our soldiers,” he noted.

And as DND chief, Teodoro said it is his duty to look after the welfare of military pensioners.

“It has been my position that their pensions and entitlements, including 100 percent automatic indexation, shall remain unchanged. Ensuring the non-diminution of their retirement benefits is the least we can do in recognition of their sacrifices to the country,” he pointed out.

Teodoro said that what sets the Armed Forces of the Philippines (AFP) apart from the other uniformed branches is its mandate of protecting the country’s sovereignty and territory,

“Finally, allow me to stress the substantial distinction of the AFP from all other 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 added.

And despite similarity in uniforms and ranks with other uniformed branches, Teodoro said there is no “uniformity in terms of the nature of their duties and responsibilities.”

“The risks they (AFP) face and the multifarious roles they play in nationbuilding and in times of crisis are well known. Furthermore, they receive no additional financial support from local government units, unlike some of the other services. They are governed by strict rules of military law from the moment they first train until the last day of their service,” Teodoro pointed out.

Other important provisions include guaranteed 3 percent salary increase annually of all MUP, two separate pension management systems, one for AFP and one for civilian uniformed personnel; 50 percent indexation for MUP; and creation of a window in the pension fund system for disadvantaged pensioners.

Another agreed-upon provision is the “phased in contribution” of five percent for the first three years, seven percent for the next three years, and nine percent thereafter for active personnel; while new entrants will contribute nine percent of their base and longevity pay for their pension.

There also will be a larger government counterpart contribution to complete the 21

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Continued from A3 percent contribution.

This means that the government will contribute 16 percent for the pension of those in active service during the first three years, 14 percent during the fourth to sixth year, and 12 percent for the seventh year and onwards.

Government contribution for new entrants will be at 12 percent.

“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 added.

Teodoro earlier said that efforts are now underway to create the“structure”that will handle the retirement trust funds of military personnel.

But he also admitted that creating such a system from the ground up is a difficult task.

Rex Anthony Naval