Albay 2nd district Rep. Joey Salceda (Rep. Salceda's office)

A quick resolution to the Military and Uniformed Personnel (MUP) pension issue will allow the Philippines to focus on "financing a credible defense posture especially in the West Philippine Sea (WPS)". 

Albay 2nd district Rep. Joey Salceda had this to say as he laid down the stakes in fixing the MUP pension system’s fiscal issues. 

Incidentally, the Ad Hoc Committee on the MUP Pension System meets for the first time Tuesday morning, Aug. 15 to discuss bills on the pension system. Salceda chairs the panel. 

“We need to resolve the MUP pension system’s fiscal defects so that we can move forward with devoting more of the national budget to credibly defending the country’s territory,” he said. 

“Our expenditures are growing for defense, even as our MUP pension liabilities also grow. That is untenable. We have a solution that inflicts the least pain possible on all stakeholders," added the Bicolano, who also chairs the Committee on Ways and Means. 

Salceda reiterated his goal of coming up with a "win-win" solution to the problem--that is, a win for the pensioners and a win for the Philippine government. 

“The pension structure will be retained in full – pensionable age, retirement at one rank higher, years before optional retirement, the benefits structure. Everything stays," he said. 

“We will also assure a 3 percent annual salary increase to all active personnel. That’s win-win because most of the time, MUP do not get salary hikes, but when they do, it’s at unpredictable rates. Our proposal makes the salary adjustment assured at a stable rate. No shocks to our fiscal system," he said. 

“On top of that, indexation stays, meaning pensioners will also get an assured increase in pensions for ten years. We will only limit indexation to 50% of the salary increase, but again, that is better the usual case, where there is no guarantee of pension hikes," Salceda further said.