Gibo opposes mandatory contribution, adjusted indexation in proposed MUP pension system

Department of National Defense (DND) Secretary Gilberto “Gibo” Teodoro Jr. expressed concern on the substitute bill on pension system for military and uniformed personnel (MUP) that was approved by the House of Representatives (HOR).

The HOR’s Ad Hoc Committee on Military and Uniformed Personnel Pension System proposed that the new pension system for MUP shall incorporate a “phase in” contribution among members of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP), Philippine Coast Guard (PCG), Bureau of Jail Management and Penology (BJMP), and Bureau of Fire Protection (BFP).

In a statement Thursday, Aug. 17, Teodoro expressed opposition to the proposed contribution covering all active military personnel without a transition phase as it will “definitely have an impact on our soldiers.”

“First, I do not subscribe to the proposed blanket mandatory contributions for military personnel, especially for those who have already completed at least twenty (20) years of active service,” said Teodoro, who previously suggested that only new soldiers should be covered by the possible mandatory contributions.

The revised bill on MUP pension suggested that all active personnel shall make a five percent contribution for the first three years, seven percent for the next three years, and nine percent for the succeeding years of the implementation of the would-be law.

“The President envisions a carefully transitioned introduction of any pension reform plan so that those in active service will be impacted in the least possible way,” Teodoro added.

As the defense chief, Teodoro also said it was incumbent upon him to look after the welfare of all military pensioners, hence, their pensions and entitlements “shall remain unchanged,” including the indexation of their pension at 100 percent.

The bill only provides the indexation of the military personnel’s pension, or the automatic increase at a regular interval, at 50 percent.

“Ensuring the non-diminution of their retirement benefits is the least we can do in recognition of their sacrifices to the country,” he noted.

Teodoro stressed that there is a “substantial distinction” between the AFP from all other uniformed personnel. 

“The AFP performs a sui generis mandate emanating from the 1987 Constitution: to secure the sovereignty of the Philippines and the integrity of our national territory,” he explained.

“Despite wearing uniforms and ranks similar to that of other uniformed personnel, there is no uniformity in terms of the nature of their duties and responsibilities. The risks they face and the multifarious roles they play in nation-building and in times of crisis are well known,” he said.

Teodoro pointed out that military personnel receive no additional financial support from local government units “unlike some of the other services,” as they are governed by “strict rules of military law.” 

“The AFP continues to obtain the highest approval, satisfaction, and trust ratings. Adding to their burdens will only serve to distract them from focusing on their crucial mission,” he said.