President Ferdinand “Bongbong” Marcos Jr. is “very concerned” about the impact of the proposed pension reform scheme on military and uniformed personnel (MUP) in the country.
Department of National Defense (DND) Officer-in-charge Carlito Galvez Jr. disclosed this matter during the hearing of the Senate Committees on National Defense and Security on the various bill that seeks to overhaul the MUP pension system.
Finance Secretary Benjamin Diokno had earlier sounded the alarm over a possible “fiscal collapse” of the MUP pension which is expected to exceed from P231-billion in 2023 to P1-trillion by 2035.
According to Galvez, the DND and the Armed Forces of the Philippines (AFP) hope that the morale and welfare of MUP “be given due weight” in consideration of the various proposals that seek to introduce a new MUP pension law.
“While we fully support the enactment of legislative measures to address the current issues hounding the pension system, the DND and the AFP respectfully appeals that the morale and welfare of our soldiers be given due weight in this deliberation,” Galvez told the Senate panel headed by Sen. Jinggoy Ejercito Estrada.
“The President gave instructions (because) he is very much concerned about the impact of this (reform) on the morale and welfare of our armed personnel and policemen… He wanted that there be continuous discussion to have common ground,” he said.
According to Galvez, the debates regarding a change in the MUP retirement benefits have already affected the morale and caused uneasiness not only from active personnel but also from veterans and retirees.
In fact, around 70 to 80 percent of enlisted MUP are considering seeking optional retirement so as not to be affected by the proposed pension reform.
“We should really look at the middle ground so that we can really see the morale and welfare of our people will be taken care of,” he said.
Also during their discussion, Galvez said almost all “unanimously agree” that the new system be given to the 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,” he said.
Sen. Christopher “Bong” Go said that while he understands the concerns of state economic managers, the DOF, including the Department of Budget and Management (DBM) should find ways to fund the MUP pension fund.
“We all want to address the ballooning pension requirement and prevent a looming budget disaster. But for me, I hope we don’t do it at the expense of the military and all uniformed personnel who gave up their life and made sacrifices,” Go said at the hearing.
“With all due respect, let’s find other sources of funds rather than tinker with the pension that our active service personnel are receiving and obliging them to pay mandatory contributions. I hope we won’t do that,” he said.
“I appeal to our Executive agencies and this committee to study and evaluate the proposals carefully,” added Go.
Sen. Ronald “Bato” Dela Rosa, a former Philippine National Police (PNP) chief, for his part, said he cannot accept the fact that the government’s fiscal managers will point to the MUP as the reason for a fiscal collapse.
“It’s difficult to accept that they are citing the MUP as the reason why we could experience a fiscal collapse. Please let’s not do misrepresentation here. Let’s not paint a very grim picture that would only put our military and uniformed personnel in a bad light,” he said.
“For all you know, we cannot be here talking about these things if not because of these people who put their lives on the line, if not for the lives of these people who are ensuring our peace and order, we could be meeting and discussing this issue in a bunker,” Dela Rosa pointed out.