MUP PENSION | Lower House passes military, uniformed personnel pension reform bill

September 26, 2023 , 06:02 PM

By Clarist Zablan

(September 26, 2023) – The Lower House of Congress on Tuesday approved the proposed pension reforms for military and other uniformed personnel (MUP), addressing concerns about its sustainability.

With 272 affirmative votes against four opposition and one abstention, lawmakers passed the proposed “Military and Uniformed Personnel Pension System Act” that would require new MUP entrants to contribute nine percent of their salary to the pension fund every month.

Proponents of MUP pension reforms, including the economic managers of President Ferdinand “Bongbong” Marcos Jr., have raised concerns about the growing costs of MUP pensions, which is funded entirely by the national government.

Speaker Martin Romualdez, a principal author of the measure, said the bill seeks to provide a “robust, sustainable, and fair pension system” for the country’s MUPs.

“With this reform, we’re not only prioritizing the well-being of our MUP but also ensuring the country’s economic stability,” Romualdez said in a news release. “It is a testament to our commitment to national security and fiscal responsibility.”

The counterpart measure in the Senate is currently pending at the committee level.

Under the measure, MUPs already in active service by enactment will receive retirement pay set at 50% of their base pay and longevity pay of the grade next higher to the salary grade they previously held if they served for 20 years. This is increased by 2.5% for every year of service beyond 20 years up to a maximum of 90% for 36 years of service and above.

For MUPs who entered or re-entered the service after the measure was enacted into law, they will receive retirement pay of 50% of their base pay plus longevity pay for 20 years of service, increasing by 2.5% for every year of service beyond 20 years up to 90% for 36 years of service.

Those killed or wounded in action resulting in total disability will receive retirement pay of 90% of their base pay plus longevity pay regardless of years of service.

The retirement pensions and survivorship pensions would be automatically indexed at a rate not exceeding 100% of the increase in the base pay of active MUPs of the same rank.

One of the lawmakers who voted against the measure, Kabataan Congressman Raoul Manuel, took exception with exempting personnel already in active service once the bill becomes law.

He also questioned the proposed 3% annual salary increase for police and military personnel in the next 10 years after the measure’s enactment.

“Kung nagbababayad ang karaniwang kawani at maging guro para sa kanilang pensyon, mainam lang na ito rin ang prinsipyong ipatupad sa pagtiyak ng pension ng mga militar at pulis, at huwag ibagsak ang kabuuhang fiscal burden nito sa mamamayan,” Manuel said in explaining his vote.

(MM)

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