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'Big drain to national budget': DOF chief calls for overhaul of military pension system

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ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Finance Secretary Benjamin Diokno sits down for an interview with ANC in March 2019 in this file photo. George Calvelo, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/business/05/27/20190312_bsp-ben-diokno-gc_000_0874.jpg"/><figcaption>Finance Secretary Benjamin Diokno sits down for an interview with ANC in March 2019 in this file photo. <em>George Calvelo, ABS-CBN News</em></figcaption></figure></div><p>MANILA (<strong>UPDATE</strong>) — Finance Secretary Benjamin Diokno has called for a separate retirement and pension fund for military uniformed personnel (MUP), as he described the current military pension system as a &quot;big drain to the national budget.&quot;<br/> <br/>At a media briefing, Diokno said the government was estimated to spend P848.39 billion annually for the next 20 years to finance the current pension system. </p><p>He added that the accumulating pension liabilities will likely increase public debt by as much as 25 percent by 2030.</p><p>&quot;We can no longer afford to keep this around,&quot; said Diokno.</p><p>He said soldiers at present were getting pension but were not contributing at all.</p><p>&quot;Wala sila contribution, tapos napakalaki ng nakukuha nila. I think this really has to be discussed openly.&quot;</p><p>(They don&#x27;t have any contributions, and they enjoy large payouts.)</p><p>As an example, Diokno said a retired general would receive a monthly pension of P131,000, tax-free. </p><p>The finance secretary added that the current pension system may also be affecting other government projects like education and health.</p><p>The Department of Finance (DOF) is scheduled to discuss the matter with other government agencies as well as the military, according to Diokno.</p><p>Diokno also said no military official has talked to him to reject the proposal, which would initially require soldiers to contribute 1-3 percent of their monthly salary.</p><p>Armed Forces of the Philippines (AFP) spokesperson Col. Medel Aguilar said the military will prepare for the consultation.</p><p>Meanwhile, former AFP chief of staff Ret. Gen. Alexander Yano said they will be waiting for the outcome of the meetings between the concerned agencies.</p><p>&quot;Let&#x27;s wait and see the outcome of the meeting of all concerned agencies. I&#x27;m sure all factors and the welfare of all concerned sectors will be duly considered,&quot; he said.</p><p>Ret. Gen. Wilben Mayor, former Philippine National Police (PNP) spokesperson and currently presidential assistant 1 at the Office of the Presidential Adviser on Peace, Reconciliation and Unity (OPAPRU), also said it is better to wait for the outcome of discussions on the issue.</p><p>&quot;There will be a discussion on this... I don&#x27;t want to preempt,&quot; he said. &quot;I am confident that our superiors will ensure that existing rights will be protected.&quot;</p><div><strong>—Report from Jekki Pascual, ABS-CBN News</strong></div><div><strong>FROM THE ARCHIVES: </strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/EjsbY7AFS84?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The finance secretary said the government is estimated to spend P848.39 billion annually for the next 20 years to finance the current pension system. 