Malacañang said the Marcos administration wants faster action on the reform of the military and uniformed personnel (MUP) pension system, but stressed that the review must still be thorough before recommendations are submitted to the President.

Presidential Communications Office (PCO) Undersecretary Claire Castro said this as the review of the pension system continues.

In a press briefing on Thursday, Aug. 27, Castro said the group was still conducting its study, with the government seeking to balance the need for speed with the need for a comprehensive assessment.

“Since ito naman po din ang nais ng Pangulo, kailangan po ito na mas mabilisang pag-aksiyon pero kailangan din po ng masinsinang pag-aaral (Since this is also what the President wants, action needs to be taken more quickly, but a thorough study is also necessary),” she said.

Castro said the government had sought an update from the Department of Budget and Management (DBM), but the Palace had yet to receive a definite timeline for the submission of the group's recommendations to President Marcos.

She said the inter-agency technical working group comprised representatives from the DBM, Department of Finance (DOF), Bureau of the Treasury, and Government Service Insurance System (GSIS), and was tasked with conducting a comprehensive review to ensure that the pension system would be balanced, equitable, and fiscally sustainable.

The group is also expected to recommend appropriate measures or legislation for the pension reform, with MUP agencies directed to provide technical and administrative support for the study.

The review was ordered under Executive Order No. 107, which Marcos signed on Dec. 3, 2025, primarily to update the MUP base pay schedule and increase their subsistence allowance while also directing a comprehensive review of the pension system.

The order required the inter-agency technical working group to submit a status report on the review process within 180 days of its effectivity, putting the deadline at around the first week of June 2026, based on the order's Dec. 3 issuance and immediate implementation timeline.

The deadline has therefore already passed, although Castro said the review remains ongoing and the Palace has yet to determine what caused the delay.

Castro said the Palace would have to check with the DBM on what documents had been submitted to the agency, suggesting that the completeness of the documents could have contributed to the prolonged review.

“Malamang, sa ating pagsusuri, ito (incomplete documents) ay isa sa mga naging dahilan kung bakit medyo natagalan (Based on our assessment, incomplete documents may have been one of the reasons why the process took somewhat longer),” she said.

“So, kinakailangan po ng kumpletong pag-aaral at dokumento (So, a complete study and documentation are necessary),” she added.

She added that the DBM had not provided the Palace with details on the documents it had received or a target date for completing its conclusions and recommendations.

Castro also clarified that President Marcos has not issued a new position on the MUP pension reform because the inter-agency group has yet to submit its recommendations.

“Wala pa po kasing naibibigay sa kaniyang rekomendasyon. So, alam naman natin na ito din po ay nais ng Pangulo (No recommendation has yet been given to him. So, we know that this is also something the President wants),” she said.

Section 4 of EO 107 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 the National Mapping and Resource Information Authority (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.