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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).
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.
Under HB 8969, retirement, benefits, creation of trust funds, mandatory contributions for new entrants, and annual salary increases will be covered.
According to Romualdez, the bill guarantees a 3% annual salary hike for the first 10 years from the effectivity of the planned law.
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.
Meanwhile, 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.”
Trust Funds
Two trust funds will also be established — one for the Armed Forces of the Philippines (AFP) and another for uniformed personnel services.
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%.
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