<p>The House of Representatives approved on the third and final reading a bill that seeks to reform the pension system of military and uniformed personnel (MUP).&nbsp;</p>
<p>In a statement on Tuesday, House Speaker Martin Romualdez said a total of 272 lawmakers approved House Bill No. 8969, or the Military and Uniformed Personnel Pension System Act, four voted against it, while one abstained.&nbsp;</p>
<p>Under HB 8969, retirement, benefits, creation of trust funds, mandatory contributions for new entrants, and annual salary increases will be covered.&nbsp;</p>
<p>According to Romualdez, the bill guarantees a 3% annual salary hike for the first 10 years from the effectivity of the planned law.</p>
<p>Personnel still in active service before the enactment of the proposed law can expect to receive a monthly retirement pay of &ldquo;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.&rdquo;</p>
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<p>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.</p>
<p>Meanwhile, for those who just entered or re-entered the service, they can receive &ldquo;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.&rdquo;</p>
<p><strong>Trust Funds</strong></p>
<p>Two trust funds will also be established &mdash; one for the Armed Forces of the Philippines (AFP) and another for uniformed personnel services.</p>
<p>In order to benefit from this, new MUP entrants will have to give a mandatory monthly contribution, which is 9% of their salary, with the national government contributing 12%.</p>
<p>Other sources for the trust funds include augmentations from unprogrammed appropriations in the annual national budget, proceeds from leases, joint development and disposition of government properties, and government savings&nbsp;</p>
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House approves reformed MUP pension bill