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House approves proposed MUP pension reform system on third and final reading

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Lyza Aquino, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Members of the various components of the Armed Forces of the Philippines and civilian security forces rehearse for the Civic and Military parade in front of the National Museum in Manila, Monday as part of the preparations for the upcoming inauguration of President-elect Ferdinand Marcos Jr. on June 30, 2022. Jonathan Cellona, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/news/02/12/20220627-marcos-inauguration-rehearsal-jc-24.jpg"/><figcaption>Members of the various components of the Armed Forces of the Philippines and civilian security forces rehearse for the Civic and Military parade in front of the National Museum in Manila, Monday as part of the preparations for the upcoming inauguration of President-elect Ferdinand Marcos Jr. on June 30, 2022. <em>Jonathan Cellona, ABS-CBN News</em></figcaption></figure></div><p>The House of Representatives on Tuesday approved on its third and final reading a consolidated bill providing for a pension system for military and other uniformed personnel (MUP), which also provides for a guaranteed three percent annual salary increase for MUP for the first 10 years from the time the proposed law takes effect.</p><p>House Bill 8969, also known as the &quot;Military and Uniformed Personnel Pension System Act&quot; received a total of 272 votes from the plenary, while 4 voted against the bill and 1 abstained. </p><div> </div><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/08/16/23/huge-problem-looms-if-military-pension-system-sustained-diokno">&#x27;Huge problem&#x27; looms if military pension system sustained: Diokno</a></li>	<li><a href="https://news.abs-cbn.com/news/05/07/23/dof-chief-calls-for-overhaul-of-military-pension-system">&#x27;Big drain to national budget&#x27;: DOF chief calls for overhaul of military pension system</a></li></ul><p>Speaker Martin Romualdez said the proposed law rationalizes the system of granting monthly pension and other benefits to personnel of the uniformed services in a way that is fair to them and the national government.</p><p>&quot;This landmark legislation demonstrates our unwavering commitment to the men and women in uniform, who risk their lives daily to maintain peace and order. It provides a robust, sustainable, and fair pension system that recognizes their invaluable service to our nation,&quot; he said.</p><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/f3PrFQVMuVk?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><p>Other key provisions of the bill which were approved included the following:</p><p>* Creation of two MUP trust funds, one for the Armed Forces of the Philippines and another for uniformed personnel services, and a MUP trust fund committee chaired by the secretary of finance to administer the funds.<br/>* Government Service Insurance System (GSIS) will be designated as manager of the trust funds.<br/>* Mandatory monthly contribution of 9% of the salaries for new entrants with the National Government providing 12% as its share<br/>* Mandatory monthly contribution of 5% of the salaries of Active MUPs for the first three years after the effectivity of the bill with the National Government providing 14% as its share, increasing to 7% monthly contribution as personal share for active MUPs on the next three years thereafter and adjusting to 9% monthly contribution as personal share for every year thereafter.<br/>* Assistance for indigent military retirees or pensioners.</p><p>Mandatory retirement age under the bill is 57 years, or upon accumulation of 30 years of active service, whichever comes later. <br/>MUP may voluntarily retire after 20 years of service.</p><p>For key officers, retirement is upon completion of tour of duty or upon relief by the President. </p><p>In the case of MUPs killed or wounded in action resulting in total permanent disability, retirement pay is computed at 90 percent of their base pay plus longevity pay, regardless of years of service.</p><p>For new entrants, or those who entered or re-entered the service after the enactment the proposed MUP pension law, retirement pay will be 50 percent of their base pay plus longevity pay in case of 20 years of service, increasing by 2.5 percent for every year of service beyond 20 years to a maximum of 90 percent for 36 years of service and over.</p><p>Kabataan Partylist Representative Raoul Manuel was one of the four lawmakers who voted against the passing of the bill. He cited the lack of lawmakers who are physically present during the passage of the bill as one of his reasons.</p><p>&quot;Una, dahil we believe na nasa 25 na lang tayo sa session hall while we vote on this Bill.&quot; Rep. Manuel explained during his speech.</p><p>He also questioned the proposed annual 3% salary increase of MUPs as well as the exemption of active MUPs from contributing to the pension funds. </p><p>&quot;Nagpantig ang tenga ng Kabataan sa minimum na 3% kada taon na itataas ng sweldo ng pulis at miilitar sa loob ng sampung taon mula sa pagkapasa ng batas. Matagal nang lumalaki ang sahod at pensyon ng pulis at militar. Dati naipasa ang House Joint Resolution No. 18 and Senate Joint Resolution No. 11 na nagdulot ng 72.19% average increase sa sahod ng mga pulis at militar, pati na din sa iba nilang emoluments. Higit pa sa sapat ang nakukuha nila lalo ng matataas na opisyal. In exempting active MUPs from contributing to the pension funds, it will become too burdensome for the government before the trust fund becomes self-sustaining. This is why this representation votes NO to House Bill 8969.&quot; Rep Manuel said in his speech.</p><p>The MUP pension bill punishes the commission of fraud, falsification, misrepresentation of facts, collusion or any similar anomaly in the issuance of any certificate or document for any purpose connected with the proposed law with a fine of not less than the amount defrauded but not more than three times such amount, or imprisonment of six months and one day to six years and perpetual disqualification from holding public office and practicing any profession licensed by the government.</p><p>The secretary of the Department of Finance (DoF) in consultation with the secretaries of national defense, interior and local government, justice, transportation, environment and natural resources, budget and management, and the GSIS president and general manager, is mandated to issue implementing rules and regulations. </p>

The House of Representatives on Tuesday approved on its third and final reading a consolidated bill providing for a pension system for military and other uniformed personnel (MUP), which also provides for a guaranteed three percent annual salary increase for MUP for the first 10 years from the time the proposed law takes effect.

House approves proposed MUP pension reform system on third and final reading

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House approves proposed MUP pension reform system on third and final reading

Lyza Aquino,

ABS-CBN News

Published September 26, 2023 09:06 AM PHT

Read More:

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MUP pension reform

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