The military and uniformed personnel (MUP) pension reform will exclude the provision on mandatory contributions, except for new entrants, according to Albay 2nd District Rep. Joey Salceda.
Salceda, the author of the bill, made the statement on Tuesday, September 12, during a plenary deliberation.
In the initial version of the MUP pension reform bill, MUP in active service will be contributing 5% of their base and longevity pay during the first to third year of the measure's implementation; 7% on the fourth to sixth year; and 9% on the seventh year onwards.
Meanwhile, the government's contribution was set at 16% for the first three years, 14% for the fourth to sixth years, and 12% for the seventh year onward.
"Wala na iyan. Tinanggal na. The contribution is for new entrants at 9%," Salceda said when questioned by House Assistant Minority Leader Arlene Brosas.
According to Salceda, instead of the present average of 6.8% annual salary rise, the pension reform bill sets an annual guaranteed salary increase of 3% percent for all MUPs, still with full indexation of pension benefits.
"The only way to cap pension is to cap salary growth. Because if we remove indexation, we might have mass retirement," he said.
"We have to minimize that risk. With the bill, our fund requirement for MUP pension will be at P178 billion. Without the bill, it would be at P252 billion. Nakatipid tayo," the lawmaker added.
Brosas, however, objected, pointing out that the government is still responsible for paying the MUPs' pensions and that P178 billion is huge.
"Hindi tayo nakatipid. Tayo pa ring [taumbayan] ang magbabayad [ng pension nila] ng buong buo," the House Assistant Minority Leader said.
