THE DEPARTMENT of Finance (DoF) has backed a Senate bill seeking to overhaul the pension system for military and uniformed personnel (MUP), but said that the guaranteed increase in their salaries should be studied first, Senate President Pro-Tempore Jose “Jinggoy” P. Estrada said on Tuesday
At a media forum at the Senate, Mr. Estrada said senators are still debating on whether Senate Bill No. 2501, which he sponsored, should increase the salaries of MUPs yearly and if both new military officers and uniformed personnel should both contribute 7% to the fund.
The Senate is set to continue floor debates on the bill that seeks to will overhaul the pension system for the military and police by requiring them to contribute 7% of their monthly income. The National Government will contribute double the rate.
Under the measure, other uniformed personnel would have to contribute 9% with a government top-up of 12%.
If passed, the reform would allow a guaranteed 3% yearly increase in the base pay of active personnel and in the pension benefits of retirees over the next decade.
Mr. Estrada said he has proposed to require both military and other uniformed personnel to both contribute 7% instead of a higher rate for the latter.
He said he had consulted Finance Secretary Ralph G. Recto and other DoF officials if the government can afford to impose the 7% contribution. He said they told him it was a viable provision, but suggested removing the guaranteed salary increases provided in the measure, citing the need for more study.
“I will strive for the MUP bill to be made into law and this has been long overdue and I think the government badly needs this in order to avoid bleeding the coffers of our government,” he said.
“There are just small problems with the increase of salaries of MUPs,” he said in mixed English and Filipino.
The House of Representatives approved a similar measure in September last year.
