Senators Ronald Dela Rosa and Senators Robin Hood Padilla (Senate Public Affairs and Information Service file photo)
MANILA (Philippines) – Two senators Monday opposed a proposal to collect monthly pension premiums from active duty military and other uniformed military personnel (MUPs), prompting Senator Ronald Dela Rosa to declare the country’s law “collapsed.” ‘, he reiterated. Enforcement and Security Department.
Former Philippine National Police Chief Dela Rosa urged the government to hold thorough consultations before considering the plan. Ministry of Finance (DOF) Requires military personnel to contribute to retirement funds.
The DOF-led Technical Working Group (TWG) has proposed that active MUPs be required to contribute 5% of their monthly salary for the first three years of the new plan.
New entrants to the armed forces, meanwhile, will be paid 9% of their base salary and longevity allowance to the restructured pension system.
The TWG said the government would cover the MUP contribution so that the monthly premium would be 21%, 16% for active workers and 12% for new entrants. This brings their total monthly premiums to the same level as all other state employees.
“The record shows that the number of soldiers, police officers and firefighters who want to retire early is increasing because of the imminent move[by the Department of Defense],” Dela Rosa told reporters. Told.
“Many of them had already indicated their intention to retire[before they retired]so this is really to be expected,” he added.
Dela Rosa said he had received text messages from soldiers and police officers saying they were already preparing to apply for early retirement.
He noted that active state troopers wanted to make sure their pension benefits were “safe” from the planned MUP retirement plan reform.
De la Rosa, chairman of the Senate Public Safety and Hazardous Drugs Committee, warned that “there will be a mass exodus (of military personnel).”
While acknowledging the government’s financial woes, de la Rosa stressed the equal importance of prioritizing the welfare of national security personnel.
“Between the financial collapse and the weakening of national security and defense, and the weakening of law enforcement due to the (MUP) mass exodus, we as lawmakers must find a balance between the two,” he said. rice field.
Other funding sources
Senator Robinhood Padilla also challenged the DOF’s plan, arguing that the government should look for other sources of funding rather than pass the burden of cash on the pension fund to the MUP.
Unlike the Civil Service Insurance Scheme (GSIS) and Social Security Scheme (SSS), where members pay part of their retirement benefits, MUP pensions are funded entirely by the state from the annual state budget.
As of 2020, the government’s outstanding debt to the MUP pension fund has already reached Ps9.6 trillion, according to National Treasury Secretary Rosalia de Leon.
“Right now, I’m really against[the DOF proposal],” Padilla said.
“Maybe the time will come when there will be no rebels in this country and we (the MUP) will not be risking our lives every minute, that is the only time we will follow (Budget Secretary Benjamin Diocno). It’s time.” ,” he added.
Diokno has been adamant about imposing contribution obligations on uniformed workers to avoid a “financial collapse” of the pension system.
When asked about President Ferdinand Marcos Jr.’s concerns that the MUP pension fund will dry up in the next six years, Padilla said it was up to economic managers to find other solutions.
“Of course, we respect the president.
Regarding Senator Francis Escudero’s view that forcing servicemen to pay pension premiums is “a bitter pill to swallow,” Dela Rosa said the government should ask lawmakers and the MUP to consider the proposal more. I insisted that I give it time.
“What Malacañan wants is an immediate solution to the problem,” he said. “But that shouldn’t happen. We should give this more time. I don’t think we’re going to be financially bankrupt any time soon.”
consultation
The TWG is holding consultation meetings with various sectors affected by the proposed pension reform.
The latest part of TWG’s roadshow, held on June 13th, attracted 10,000 in-person and online attendees from the Bureau of Prisons Management and Penalties.
Talks over the past few weeks have involved officials from the Philippine Armed Forces, Philippine Air Force, Presidential Security Forces and the PNP.
The TWG plans to hold discussions with the AFP Department of Health, Philippine Navy, Philippine Army, Visayas Command, Eastern Mindanao, West Mindanao, Western, Philippine Military Academy, Northern Luzon, and Southern Luzon.
These will be followed by meetings with officials from the Fire Department, the Philippine Coast Guard, the Department of Corrections, and the Philippine University of Public Security.
Diokuno previously said, based on 2022 data, retired MUPs receive an average monthly pension of P40,049.
By comparison, the average monthly retirement allowance is P13,000 for GSIS and P4,528 for SSS members.
Escudero previously said a review of the MUP pension system should have taken place when then-President Rodrigo Duterte nearly doubled soldiers’ monthly salaries in 2018.
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