MUP pension bill gets final House nod

Metro Manila (CNN Philippines, September 25) — The House of Representatives approved on third and final reading the proposed measure to reform the pension system of military and uniformed personnel (MUP) that includes a “guaranteed” annual salary increase.

According to Speaker Ferdinand Martin Romualdez, a total of 272 lawmakers approved House Bill No. 8969, four voted against it, while one abstained.

The proposed bill was passed early Tuesday morning.

Romualdez said the House bill provides for a 3% annual salary hike for the first 10 years from the effectivity of the planned law.

Under the measure, personnel still in active service before the enactment of the proposed law can expect to receive a monthly retirement pay of “50% of the base pay and longevity pay of the grade next higher to the salary grade they last held, in case of 20 years of service.”

It would increase by 2.5% for every year of service beyond 20 years to a maximum of 90% for 36 years of service and over.

For those who just entered or re-entered the service, they can receive “50% of their base pay plus longevity pay in case of 20 years of service, increasing by 2.5% for every year of service beyond 20 years to a maximum of 90% for 36 years of service and over.”

Two trust funds would also be established for the Armed Forces of the Philippines and for uniformed personnel services.

Romualdez said the proposed measure hopes to deliver a “fair pension system that recognizes their invaluable service to our nation.”

The speaker said this would also ensure the government’s fiscal health.

Finance Secretary Benjamin Diokno earlier warned that if the government fails to reform the MUP pension system, the Philippines may see “a fiscal collapse.”

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