House of Representatives (Ellson Quismorio/ MANILA BULLETIN)

It took only one hearing for the House Ad Hoc Committee on the MUP Pension System to approve a substitute bill that could potentially fix all the fiscal issues hounding the Military and Uniformed Personnel (MUP) pension system. 

This, as members of the military and uniformed services agreed to the formulation of the proposed MUP pension reform that was presented by congressmen during a scheduled hearing Tuesday, Aug. 15. 

“We can already see the light at the end of this fiscal tunnel. The services accepted. The economic managers also see the substantial improvement this formula makes over the current system,” Ad Hoc Committee Chairman Salceda said in a statement Tuesday afternoon. 

“We have formalized a solution to the MUP pension problem. The members of the Ad Hoc Committee...have agreed in principle on an MUP Pension Reform that is amenable to both the military and uniformed services and to the economic managers,” Salceda said. 

When Salceda presided over the hearing that same morning, the task was to consolidate 12 separate House bills proposing---among other things--a sustainable fiscal framework for the pension of MUPs. These were House Bill (HB) Nos. 7, 667, 1825, 2015, 2556, 3592, 3728, 3887, 4084, 4238, 7511 and 8150. 

The representatives of the Armed Forces of the Philippines (AFP), the Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau of Corrections (BuCor), Bureau of Jail Management and Penology (BJMP), and Philippine Coast Guard (PCG), as well as their mother agencies Department of National Defense (DND) and Department of Interior and Local Government (DILG) accepted the solons' proposal during the hearing. 

The agreed-upon provisions in the unnumbered substitute bill, which were moved for approval by Committee on National Defense Chairman Iloilo 5th district Rep. Raul Tupas, were as follows: 

1. Retention of promotion to one rank higher upon retirement;

2. Uniform 90 percent of longevity pay plus base pay for lump sum benefit upon separation below 20 years in service, which will create a new benefit for the PNP which currently does not have it;

3. Uniform multiple of 1.0 x years of service for lump sum benefit;

4. Guaranteed 3 percent annual increase in salaries for 10 years;

5. indexation of pensions to 50 percent of adjustment in pay;

6. Creation of window for indigent pensioners under the trust funds;

7. Regular IFRS-compliant reports every three years for the pension system; 

There will also be a phased in contribution scheme of 5 percent of salaries for the first three years, 7 percent for the next three years, 9 percent thereafter for active personnel; 9 percent immediately for new entrants, but including a larger government counterpart to complete the 21 percent contribution. 

House Speaker Martin Romualdez commended in a separate statement Tuesday the ad hoc panel for coming up with a revised version of the reform bill that was deemed acceptable to all stakeholders including the military and police. 

"This landmark legislation demonstrates our unwavering commitment to the men and women in uniform, who risk their lives daily to maintain peace and order. It provides a robust, sustainable, and fair pension system that recognizes their invaluable service to our nation," Romualdez, leader of the 312-strong House of Representatives, said. 

"With this reform, we're not only prioritizing the well-being of our MUP but also ensuring the country's economic stability. It is a testament to our commitment to national security and fiscal responsibility. 

"I congratulate the Ad Hoc Committee for their hard work and dedication towards this pressing issue," said Romualdez, Leyte's 1st district representative. He was the one who ordered the creation of the ad hoc panel.