Economic team continues series of consultations on MUP pension reform, meets with Philippine Navy

Erratum: With corrections on the 8th paragraph.

In an effort to gather more stakeholder perspectives on the proposed reforms to the pension system of Military and Uniformed Personnel (MUP), the government’s economic team held consultations with the Philippine Navy on Thursday, June 8, 2023, at the Social Hall of the Officer’s Clubhouse in Fort Bonifacio, Taguig.

Six hundred participants attended the event live, with online attendees coming from as far as the Kalayaan Group of Islands attending via Zoom.

The economic team was comprised of key officials from the Department of Finance (DOF) and the Bureau of the Treasury (BTr). Representatives from the Presidential Legislative Liaison Office (PLLO), Department of National Defense (DND), and the Office of Senator and Defense Committee Chairperson Jinggoy Estrada attended as well.

Consultations were held with officers from the Philippine National Police, Philippine Army, Philippine Air Force, and Philippine Navy earlier this month.

DOF Undersecretary Maria Cielo D. Magno presented the proposed reforms to the Philippine Navy. Consistent with earlier talks, she emphasized that gathering the suggestions and sentiments of all stakeholders would be of great help in creating a reform that is both inclusive and financially sound.

One of the key pieces in the reform is the proposal for the joint contribution between the MUPs and the government to sustain the pension fund. Various schemes were also put in place to take into account the different financial situations of the pensioners.

DOF Undersecretary Maria Luwalhati C. Dorotan Tiuseco said that this would help create fiscal space for additional programs for the benefit of both retired MUPs and active personnel.

“One of our goals is to make the pension fund sustainable to be able to make fiscal space for additional government support programs tulad ng housing, and better health and medical programs,” she said.

GSIS TO MANAGE FUNDS ONLY, AND ENSURE NO CO-MINGLING

The role of the Government Service Insurance System (GSIS) was also discussed. The economic team stressed that while the GSIS will manage the fund, the MUP’s pension will remain strictly independent from the pension