BJMP welcomes econ team for consultations vital to crafting pension reform bill

The Bureau of Jail Management and Penology (BJMP) welcomed the economic team to conduct consultations vital to crafting the pension reform bill for military and uniformed personnel (MUP) on June 13, 2023 at the BJMP National Headquarters in Quezon City.

The event gathered 10,000 BJMP uniformed personnel, via physical and virtual attendance, composed of frontliners from every station, regional directors, and new entrants to exchange views on the economic team’s proposed reforms to the current pension system.

Representatives from the Department of Finance (DOF) and Bureau of the Treasury (BTr) answered questions and took note of concerns raised by the BJMP members.

In his presentation, Deputy Treasurer Erwin D. Sta. Ana explained the impact of the current pension system and emphasized the importance of establishing a sustainable fund to secure the future of all MUPs.

According to the economic team, the computations for the proposed contributions will be based on data from the Government Service Insurance System (GSIS)’s updated actuarial study, which will be released soon.

Under the current proposal, for the first three (3) years, a five-percent contribution of the MUPs in active service will be supplemented by the government with a 16-percent share, to fulfill the 21 percent total monthly premium for the trust fund. This sharing scheme shall be adjusted until a nine-percent to 12-percent contribution ratio is reached on the seventh year.

Meanwhile, new entrants shall contribute nine percent of their base and longevity pay, with a corresponding 12-percent contribution from the government.

The monthly premium will then be invested by the GSIS, allowing the fund to grow in order to achieve the required return of 85 to 90 percent of pension upon retirement.

Similar to previous consultations, some voiced their reservations regarding the pension fund’s management under GSIS and urged the economic team to consider the unique nature of their work in crafting the bill.

The economic team assured stakeholders of the GSIS’ capability and expertise in growing the fund. Furthermore, proper representation will be given to MUPs in the oversight committee which will help determine