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Manila Bulletin devider Philippines devider National devider Gibo wants new pension scheme for future soldiers

Gibo wants new pension scheme for future soldiers

Published Jun 10, 2023 09:47 am
Future soldiers should have a new pension system if the government wants to make the current military and uniformed personnel (MUP) pension scheme self-sustaining.

*Department of National Defense (DND) Secretary Gilberto Teodoro Jr. (File photo)

* This was emphasized by Department of National Defense (DND) Sec. Gilberto “Gibo” Teodoro Jr. on Saturday, June 10, as he clarified reports that he wanted to reduce the pension of entry-level officers of the Armed Forces of the Philippines (AFP) so that the funds that will be saved could be allocated to other programs. “I apologize if I failed to articulate my position clearly regarding the entry level pension scheme of those who wish to join the AFP in the future. I meant to say that for these people, a new scheme must be set in place soonest in order to reduce the annual financial outlays of the National Government,” he said. In a television interview with CNN Philippines on Friday, June 9, Teodoro said “there was no disagreement” within the military that the pension scheme for entry level officers should be changed “in order to cut the hemorrhage” caused by the current pension system. He noted that the DND should not alter the scheme for the retirees, particularly when they are already of advanced age, as it would be “inequitable and unjustifiable.” “That being said, the pension scheme for entry level officers is a side issue because the military with its pay scale, with its skills upgrading and training, with non-monetary benefits still remains a very attractive career option for a lot of our young people,” he added. However, the Defense chief’s remarks led to speculations that the pension of those who will enter the military in the future will be reduced. This prompted Teodoro to clarify his remarks: “I did not mean that the pensions that they will receive upon retirement will be reduced.” The reform of the MUP pension scheme is among the priorities of Teodoro as the new Defense Secretary. He had said that Teodoro said he would consult all the stakeholders in the DND to come up with the most appropriate solution. The Department of Finance is eyeing to reform the current MUP pension system as Secretary Benjamin Diokno earlier described it to be “fiscally unsustainable.”

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Secretary Gilberto Teodoro Jr. MUP pension DND defense
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