The Department of National Defense (DND) has expressed gratitude to the leadership of the House of Representatives for passing in the second reading a version of the Military and Uniformed Personnel (MUP) pension system reform bill that exempts active uniformed personnel from paying their contribution for their pension.
In a statement, the DND said the action of the House of Representatives shows care for soldiers and taking steps in ensuring their welfare after they leave the military service.
“This will no doubt allow them to focus totally on their mission to secure our territorial integrity and our sovereign rights while at the same time ensuring the gains against terrorism and internal security are preserved,” the statement read.
“This is not an easy task. Our soldiers, who continue to be mentored by retirees and veterans, need to exert extra efforts to accomplish an evolving mission,” it added.
The MUP system has been the subject of debate in the past months after Finance Secretary Benjamin Diokno raised the alarm over the unsustainability of the current MUP pension system.
The current MUP pension system does not require active uniformed personnel from contributing for their pension, unlike other government workers and those in the private sector whose salaries are deducted monthly for their pension via the Government Service Insurance System (GSIS) and the Social Security System (SSS).
Their pension is shouldered by the national government in full.
The bill that passed on the second reading exempts active uniformed personnel from contributing to their pension.
Instead, the contribution of nine percent of salary will be imposed on the newly-recruited uniformed personnel. The government will give the 12 percent share.