Senate panel seeks further consultation on DOF's latest proposal on MUP pension system
The Senate Committee on National Defense and Security is willing to study the Department of Finance’s (DOF) latest proposal in reforming the pension system of the military and uniformed personnel (MUP).
The Marcos administration’s economic team is now proposing that MUPs in active service contribute five (5) percent of their monthly pay to their retirement fund for the first three years, while the new entrants would be contributing nine (9) percent of their basic salary and longevity pay.
Based on the government’s proposal, the state shall supplement the MUP contributions so that the monthly premium would total 21 percent, or 16 percent to those in active service and 12 percent to new entrants.
“As chairperson of the Senate Committee on National Defense and Security and a staunch advocate for the welfare of our brave servicemen and women, I believe we must carefully consider and discuss this crucial issue,” Sen. Jinggoy Ejercito Estrada said in a statement.
“Kailangan na itong pag-usapan ngunit hindi dapat minamadali. Kailangang makahanap tayo ng isang sistema na katanggap-tanggap sa lahat (We need to talk about this but it should not be rushed. We need to create a system that would be acceptable to all),” he further said.
Estrada noted that MUPs have dedicated their lives to serving and protecting the nation.
“But we also cannot turn a blind eye to the pressing concerns surrounding their pension system which calls for immediate and comprehensive reform,” he said.
“However, we must ensure that our MUP is provided with the dignified retirement they deserve. We must consider various aspects and find sustainable ways to ensure that our pension obligations are met without compromising the stability of our economy,” he stressed.