House probe sought of nonpayment of vets’ benefits

The House of Representatives will look into the government’s finances following its failure to pay some P16 billion in pensions and benefits to the country’s 12,000 retired soldiers.

House Resolution 1158, authored by Cagayan de Oro Representative Rufus Rodriguez and his brother, Abante Mindanao party-list Representative Maximo Rodriguez Jr., asked the House committee on veterans affairs to conduct an inquiry into the matter and come up with options to address the problem.

“There is a need to look into the finances of the government and find possible sources of additional funding to pay for the retirement and pension benefits of retired soldiers in the country,” Rufus Rodriguez said. He noted that the funding problem for the pensioners had deteriorated since 2006 when the Armed Forces Philippine-Retirement and Separation Benefits System (AFP-RSBS) was deactivated due to irregularities.

Citing a report from Colonel Rolando Jungco, chief of the Armed Forces of the Philippines’ Pension and Gratuity Management Center, Rodriguez said the funding requirement for the retirement benefits of the soldiers had ballooned. Some 4,000 to 5,000 soldiers retire from the service every year.

Presidential Decree No. 361 that created the AFP-RSBS requires all military officers and enlisted personnel to contribute to the system an amount equivalent to 4 percent of their monthly base and longevity pay. It is to be deducted from their pay.

Rodriguez said the law provided that any officer or enlisted person who is separated from the service through no fault of their own and is not eligible for either retirement or separation benefits shall, upon their separation, be refunded in one lump sum all their actual contributions to the AFP-RSBS, plus interest at the rate of 4 percent.

Rodriguez said the irregularities under the AFP-RSBS started when its funds were invested in low-return real estate projects and loans.

“These soldiers have sacrificed the prime of their lives to fight and defend the country but up to this time they have yet to receive their pensions and benefits,” Rodriguez said.

Rodriguez said the congressional inquiry will invite all concerned, including the Department of National Defense, the AFP and other entities and corporations, to help shed light on the matter and suggest solutions.