Department of Defense Secretary Gilbert Teodoro Jr. expressed his intention to establish a distinct retirement system for the Armed Forces of the Philippines (AFP) during an interview on Monday.
He emphasized that the AFP's mission roles and organization differ significantly from other law enforcement agencies, warranting a separate retirement plan.
“There are lines of convergence but it is a distinct discipline and organization from the rest of the law enforcement agencies,“ Teodoro pointed out.
“And their mission roles are different and we shall be coming out with a suggestion to Congress on a bill for that,” he added.
Teodoro clarified that retirees' entitlements and benefits will remain unchanged, but contributions will be required under the eyed new system.
“The transition from non-contributory to contributory shall be phased and not implemented in one go,“ he explained.
“And shall be such that the contributor, who and on what rank and what stage… in their career they are, shall feel the least financial impact as possible,” said the defense secretary.
Meanwhile, the Defense Secretary assured that the new retirement system will not discourage new AFP personnel as the job remains attractive and competitive.
