Teodoro questions new indexation, mandatory contribution in House panel’s proposed reforms for MUP pension
Defense Secretary Gilberto Teodoro Jr. explains the timeline of Edca projects during his inspection in Camp Melchor Dela Cruz in Gamu, Isabela. Photo: John Eric Mendoza/INQUIRER.net
MANILA, Philippines — Defense Secretary Gilberto Teodoro Jr. on Thursday questioned the House of Representatives’ panel proposed reforms on the pension system of military and uniformed personnel (MUP) like the new indexation and mandatory contribution.
“I respectfully express concern regarding the Substitute Bill approved by the House of Representatives – Ad Hoc Committee on Military and Uniformed Personnel Pension System,” Teodoro said in a statement.
Among the proposals of the ad hoc committee headed by Albay Rep. Joey Salceda are the contribution scheme for active personnel of uniformed services like the Armed Forces of the Philippines, the Philippine National Police, the Philippine Coast Guard, the Bureau of Jail Management and Penology, and the Bureau of Fire Protection.
READ: House ad hoc panel OKs revised bill on MUP pension
The uniformed personnel will be asked to contribute five percent for the first three years, seven percent for the next three years, and nine percent thereafter for active personnel.
New entrants will immediately contribute nine percent, but the government would still contribute a larger share to complete the 21 percent contribution.
Teodoro did not agree with this pension scheme.
“I do not subscribe to the proposed blanket mandatory contributions for military personnel, especially for those who have already completed at least twenty (20) years of active service,” Teodoro said, adding that President Ferdinand “Bongbong” Marcos Jr. is envisioning a “carefully transitioned introduction of any pension reform” to cushion its impact.
“The imposition of mandatory monthly contributions without a transition phase will definitely have an impact on our soldiers,” he stressed.
The top defense official also expostulated with the proposal on the indexation of pensions to 50 percent of adjustment in pay, from the previous 100 percent automatic indexation.
“As Secretary of National Defense, it is also incumbent upon me to look after the welfare of our military pensioners. It has been my position that their pensions and entitlements, including 100 [percent] automatic indexation, shall remain unchanged,” Teodoro said.
“Ensuring the non-diminution of their retirement benefits is the least we can do in recognition of their sacrifices to the country,” he added.
Meanwhile, the official also stressed the “substantial distinction” of the AFP from all other uniformed personnel like the police, firefighters, and the coast guard.
Also unlike other uniformed personnel, Teodoro also noted that the AFP personnel receive no additional financial support from local government units.
“Despite wearing uniforms and ranks similar to that of other uniformed personnel, there is no uniformity in terms of the nature of their duties and responsibilities,” he pointed out.
“The risks they face and the multifarious roles they play in nation-building and in times of crisis are well known.”
