Marcos creates TWG to review military, uniformed personnel pension system
President Ferdinand 'Bongbong' Marcos Jr. (Mark Balmores/MANILA BULLETIN)
President Marcos has ordered the creation of an inter-agency technical working group (IATWG) to conduct a full review of the military and uniformed personnel (MUP) pension system, calling it a necessary step to ensure long-term fiscal sustainability and alignment with the administration’s reforms.
The directive, contained in Section 6 of Executive Order No. 107, mandates the IATWG to revisit existing MUP pension policies and recommend improvements “in the proposed annual National Expenditure Program to be submitted to Congress.”
The group will be chaired by the Department of Budget and Management (DBM), with senior representatives from the Department of National Defense (DND), Department of the Interior and Local Government (DILG), Bureau of Corrections (BuCor), Philippine Coast Guard (PCG), and National Mapping and Resource Information Authority (Namria).
Under the order, the IATWG must submit its report within 180 days of the EO’s effectivity.
Allowance hike, base pay schedule to proceed
While the pension review proceeds, the Palace has affirmed that the MUP compensation adjustments will continue as planned.
Section 4 of the EO, signed by Executive Secretary Ralph Recto on Dec. 3, sets the daily subsistence allowance of all MUP at P350 per day, effective Jan. 1, 2026.
The order also details a three-tranche increase in base pay, beginning Jan. 1, 2026, with additional tranches on Jan. 1, 2027, and Jan. 1, 2028, covering all uniformed services, including the Armed Forces of the Philippines (AFP), Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP), PCG, BuCor, and NAMRIA.
The EO likewise outlined new figures for each rank, from entry-level personnel to generals and flag officers.
Under the order, agencies shall source the needed funds from available appropriations for Fiscal Year 2026 and succeeding years, with additional requirements included in the annual budget proposal. They are also required to issue implementing guidelines within 90 days, including procedures for applying the updated base pay schedule and the allowance adjustment.
The DBM is authorized to determine the final amounts for implementing the adjustments.