THE Department of Budget and Management (DBM) has released on Thursday, Aug. 9, the pension differential for retirees of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP).
In a statement, the DBM said that it has released P532.54 million to cover the pension differential arrearages for 4,392 AFP retirees, which covers July 2008 to February 2013.
It also released P267.82 million for 13,157 PNP retirees covering the pension differential from July to December 2009.
The DBM said that the releases are chargeable against the pension and gratuity fund of the 2018 budget.
The government is currently seeking to reform the pension of military and uniformed personnel and make them contributory, as the pension payouts are starting to take a toll on the country’s fiscal position.
The government has to pay P33 billion to AFP and PNP retirees by 2019, and is expected to double in eight year’s time. This is because the retiree’s pension is indexed to any increases in the salaries of those in active service.
Budget Secretary Benjamin E. Diokno has said that the government is crafting the pension scheme, and will submit a proposal to Congress before September. — Elijah Joseph C. Tubayan