Albay 2nd district Rep. Joey Salceda (Facebook)

The proposed Military and Uniformed Personnel (MUP) Pension Reform Bill came one step closer to enactment Tuesday, Sept. 19 after the House of Representatives passed an amended version of the measure on second reading. 

The contentious measure, embodied in House Bill (HB) No.8969, was approved in plenary amid the debates on the P5.768-trillion General Appropriations Bill (GAB) or national budget for 2024. 

Deputy Speaker and Ilocos Sur 2nd district Rep. Kristine Singson declared the measure approved on second reading following a simple voice vote (ayes vs. nayes). 

This paves the way for the MUP Pension Reform Bill's possible passage on third and final reading next week, before Congress goes on recess.

Recognizing the bill's importance, House Speaker Martin Romualdez formed the Ad Hoc Committee on the MUP Pension System in early August. At stake is the fiscal viability of the MUP Pension System. 

"The House today approved a comprehensive reform of the MUP Pension System. I thank the MUP agencies for their steadfast support during the plenary deliberations and for agreeing with the committee and the economic managers on the need to move forward for fiscal improvements to the system," Albay 2nd district Rep. Joey Salceda said in a statement Tuesday. He chairs the ad hoc panel. 

"This consensus bill hurdled the House because it is fiscally, politically, and morally acceptable," he said of HB No.8969, which had been peppered with individual amendments from congressmen during session Monday and Tuesday.  

"There is no longer any debate between the MUP agencies and the economic managers that we need this reform. There is also no debate that the military and uniformed personnel deserve some degree of retirement protection from the state they protect," Salceda said. 

The key provisions, including the amendments accepted on the floor, are as follows:

1. Full indexation, with a provision for adjustment during adverse fiscal conditions

2. A guaranteed salary increase of 3 percent per annum over 10 years, which is already a sacrifice willingly made by the MUPs given the historical salary rate increase of 12 percent

3. The creation of two trust funds, one for the AFP (Armed Forces of the Philippines), which will infuse at least P44 billion in assets to the fund, and another for uniformed services

4. Uniform retirement benefits for total permanent disability,

5. Provisions for assistant for indigent military retirees

6. A mandatory contribution of 9 percent of salaries for new entrants, with a larger government counterpart of 12 percent, and retirement of new entrants at rank last held. 

Salceda said that the structure of the pension system was preserved in full for active and retired personnel, "But the great success of this reform is that we managed the risk of sudden increases in salary, as is typically the case for new Presidents." 

"We have also accommodated the request of the Secretary of National Defense [Gibo Teodoro], and he is now more or less satisfied. I trust that the AFP will be true to its word in contributing assets to the AFP Pension Trust Fund. I especially look forward to having the assets of the RSBS (Retirement and Separation Benefits System) infused right away," the Bicolano further said.