The Home of Representatives authorized on third and ultimate studying yesterday a consolidated invoice offering for a pension system deemed financially draining by some quarters for navy and different uniformed personnel (MUP).
With 272 votes towards 4 damaging and one abstention, the chamber gave its nod to Home Invoice (HB) No. 8969 making a ‘sustainable fiscal framework’ for the pension system for MUP.
The measure additionally supplies mechanisms for the disposition of some authorities property to generate funds for the MUP pension.
Speaker Martin Romualdez, a principal creator of the invoice, stated the measure additionally supplies for a ‘assured’ three % annual wage improve for MUP for the primary 10 years from the time the proposed regulation takes impact.
However he underscored that HB 8969 – to be generally known as ‘Navy and Uniformed Personnel Pension System Act’ – will rationalize the system of granting month-to-month pension and different advantages to MUPs ‘in a manner that’s truthful to them and the nationwide authorities.’
‘This landmark laws demonstrates our unwavering dedication to the women and men in uniform, who danger their lives every day to keep up peace and order,’ he stated.
Romualdez famous HB 8969 supplies for ‘a sturdy, sustainable and truthful pension system that acknowledges their invaluable service to our nation.’
‘With this reform, we’re not solely prioritizing the well-being of our MUP but additionally making certain the nation’s financial stability. It’s a testomony to our dedication to nationwide safety and monetary accountability,’ he added
The Speaker congratulated the advert hoc committee, headed by committee on methods and means chair Joey Salceda, and different lawmakers for ‘their onerous work and dedication in direction of this urgent subject.’
Below the invoice, energetic MUPs aren’t mandated to contribute to their pension whereas new entrants should contribute 9 % of their base pay as their ‘private share whereas authorities will shoulder 12 %.’
P934 billion price
However throughout plenary debates on the invoice, Salceda admitted that it will price the federal government some P934 billion to finance the pension of MUPs for 35 years or till 2058.
It’s because the Belief Fund to be created for the pension system would solely be ‘self-sustaining’ by 2058.
Salceda identified that they got here up with this estimate by assuming new entrants will start working at 22 years previous and retire on the age of 57.
However he stated MUP companies are ‘already very pleased’ with the reforms of their pension system.
In a press release, Salceda famous the reforms instituted within the proposed laws would ‘considerably enhance our fiscal place.’
The measure additionally makes the fiscal dangers of the MUP pension system ‘very predictable.’
‘We happy the three ensures we gave in trade for the sacrifice MUPs had been keen to make for the reform: Assured wage improve, assured pension improve and assured funding sources,’ he added.
‘As I stated, it is a social compact, between MUP companies, the taxpayers as represented by the financial group and the individuals at massive – brokered by Speaker Martin Romualdez on the President’s instruction,’ he stated.
Different provisions
The proposed regulation units the obligatory retirement age at 57 years, or upon accumulation of 30 years of energetic service, or whichever comes later. MUPs might voluntarily retire after 20 years of service.
For key officers, retirement is upon completion of tour of obligation or upon reduction by the President.
For brand spanking new entrants, or those that entered or re-entered the service after the enactment of the proposed MUP pension regulation, retirement pay will likely be 50 % of their base pay plus longevity pay in case of 20 years of service, rising by 2.5 % for yearly of service past 20 years to a most of 90 % for 36 years of service and over.
The pension of retired MUP and survivorship pension of certified survivors shall be robotically listed at a price not exceeding 100% of the rise within the base pay of energetic MUP holding the identical rank throughout the identical yr.
The measure additionally creates two MUP belief funds, one for the Armed Forces of the Philippines and one other for uniformed personnel providers.
Kabataan party-list Rep. Raoul Manuel voted ‘no’ to HB 8969, underscoring that solely round 25 Home members had been bodily current on the session corridor throughout the voting.
Manuel additionally questioned the three % annual pay hike of MUPs for the primary 10 years after the invoice’s enactment, citing the dismal salaries of academics.
‘In exempting energetic MUPs from contributing to the pension funds, it’s going to turn into too burdensome for the federal government earlier than the belief fund turns into self-sustaining. This is the reason this illustration votes NO to Home Invoice 8969,’ he maintained.
Not sustainable
Albay Rep. Edcel Lagman stated he additionally voted no to Home Invoice No. 8969, saying it ‘is not going to be sustainable in the long term.’
‘Solely international locations with tremendous economies like the USA, Nice Britain and Canada, all G7 international locations and China, the second largest economic system on this planet right now, have MUP pension techniques absolutely backed by the State,’ he identified. The Philippines ‘shouldn’t be within the league of those international locations,’ he added.
‘Even G7 international locations like France and Italy impose contribution from MUP of their pension plans,’ he pressured.
The lawmaker additionally stated that ‘higher center earnings international locations like Malaysia and Thailand, and our fellow decrease center earnings international locations like Indonesia and Vietnam, which have even higher economies than the Philippines, impose obligatory contributions from the possible pensioners of their respective navy and uniformed personnel.’
He underscored that even throughout the martial regulation regime when MUPs had ‘ascendancy,’ the navy and uniformed personnel had been required to contribute to their respective pension plans.
For Lagman, it’s ‘not a legitimate purpose’ to exempt MUP members from contribution as a result of they might die in line of obligation.
He maintained that extra staff within the civilian service and the personal sector additionally die of work-related causes.
Copyright © 2022 PhilSTAR Every day, Inc Supplied by SyndiGate Media Inc. (Syndigate.info).
