THE GOVERNMENT will start offering next year leases on military land to raise funds for pensions of uniformed personnel.

“Next year. We’ve been discussing with the Bureau of the Treasury and the GSIS (Government Service Insurance System),” Budget Secretary Benjamin E. Diokno said during a press briefing yesterday when asked for a timetable of such leases.

Mr. Diokno said the government has identified over 100 properties in Metro Manila, Cavite, and Tarlac.

He said the government prefers joint-venture development agreements rather than outright sales to ensure a sustainable flow of funds.

The pension system for uniformed personnel is being considered for GSIS administration, which would require capital of at least P7 trillion.

However Mr. Diokno said the requirement may hit P8-9 trillion given the growing number of retirees.

Mr. Diokno said a draft bill reforming the pensions was submitted to Congress “two months ago.”

The reforms will shift the burden of funding pensions to member contributions.

Mr. Diokno said payments for military pensions currently total P90 billion, or about two-thirds of the Department of National Defense’s P134.29-billion budget this year.

This is expected to rise further following the doubling of the salaries of troops starting next year, as pensions entitlements rise along with the increase in active-duty salaries.

If unaddressed, the funding requirement for military pensions could double to P187.9 billion in 2018. — Elijah Joseph C. Tubayan

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