Nation



By Alden M. Monzon, Reporter


40-plus-year old military fund abolished




Posted on April 14, 2016


MALACAÑANG has released an order abolishing a decades-old retirement and benefits trust fund for the military.

Memorandum Order No. 90 signed by Executive Secretary Paquito N. Ochoa Jr. on April 8 directs the abolition of the 42-year-old Armed Forces of the Philippines-Retirement and Separation Benefits System (AFP-RSBS).

Under the immediately effective order, which cited among other factors the fund’s growing liability, the AFP-RSBS Board will act as the body in charge of the liquidation of the assets as supervised by the Governance Commission.

A technical working group composed of representatives of the Department of National Defense, Department of Finance, Department of Budget and Management, Privatization Management Office, AFP-RSBS, and the Armed Forces of the Philippines will be created to assist in the liquidation.

The FAP-RSBS was established by virtue of Presidential Decree No. 361 which was promulgated in December 1973.

According to its profile in the Commission of Audit (CoA), operations of the AFP-RSBS began operations in 1946 and became engaged in various enterprises including the stock market, money market, government and corporate bonds, corporate loans, real estate, and equity holdings.

In 2006 and 2007, two executive orders were signed by then president Gloria Macapagal-Arroyo mandating the deactivation of the AFP-RSBS, but these were not fully implemented.