Proposed law: Military, other uniformed personnel to get pension at age 60

MANILA, Philippines — Active members of the Armed Forces of the Philippines (AFP) and other uniformed services of the government may only start to receive their pension when they reach the age of 60 under a proposed law on how to implement the pension system.

Part of the recommended Unified Military and Uniformed Services Personnel (MUP) Separation, Retirement and Pension Bill suggests that pension payments will only begin when the retiree/ pensioner reaches the age of 60.

“The said bill is a product of a series of consultations with the members of the Inter-Agency Technical Working Group on MUP led by the Department of Finance and the Bureau of Treasury,” Defense Secretary Delfin Lorenzana wrote in a letter to Senate President Senator Vicente Sotto III dated November 22.

The Department of National Defense confirmed the authenticity of the letter.

The proposed law also recommends the lump sum upon retirement or separation would only be at 18 months, a far cry from the current 36 months of lump sum option.

The new compulsory retirement age would also be raised to 60 years old from 56, with at least 20 years of satisfactory active service.

Those who are currently in active service who will opt to retire early would still get their pension but only when they reach the age of 60.

For those wounded or killed in action, the pension rate will be raised to 90 percent of base pay plus longevity pay regardless of years of active service, the proposal read.

“The surviving beneficiaries shall receive 75 percent of the pension. The pension or disability benefit shall begin immediately,” it said.

Other important features of the proposed law cited by Lorenzana in the letter were:

— The MUP shall earn 2.5 percent for each year of active service rendered but not to exceed 90 percent of the monthly based and longevity pay of the current salary grade.

— An annual review of the pension rates will be undertaken and periodically adjusted with a maximum rate of 1.5 percent.

— Pension benefits are to be computed based on the actual rank held at the time of retirement or separation from service.

A new government entity will also be created as the administrator of the MUP fund.

To recall, President Rodrigo Duterte earlier this year ordered the economic team to address the ballooning pension of uniformed personnel. /kga