Estrada’s Committee on National Defense and Security included this amendment in the substitute measure proposing reforms in the military and uniformed personnel (MUP) pension system to prevent a fiscal collapse in the coming years.
“This means that whatever is being enjoyed by the current pensioners, and whatever is expected by those currently in active service, will still be enjoyed and received by them.
In fact, for some of them, the retirement pay will be higher by five percentage points,” the senator said.
“Hindi po gagalawin, hindi po babaguhin at hindi po papakialaman ng isinusulong nating panukalang batas ang pensyon ng mga pensyonadong retirado.
Wala rin pong magiging pagbaba sa inaasahang pensyon ng kasalukuyang mga nasa serbisyo,” the lawmaker stressed.
Estrada guaranteed a more sustainable and secure pension regime under the proposed Senate version of the bill, which will see the creation of separate trust funds for the Armed Forces of the Philippines (AFP) and another for those in the Philippine National Police (PNP), Philippine Coast Guard (PCG), Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP), Bureau of Corrections (BuCor) and commissioned officers in the National Mapping and Resources Information Authority (NAMRIA).
The trust fund will be managed by the Government Service Insurance System (GSIS) and overseen by the trust fund committees of the military and uniformed services.
For those who will enter the service after the enactment of the bill, the military personnel’s contribution will be 7% of their base pay and longevity pay, while the rest of those in the uniformed services will be 9%, with the government contributing 14% and 12%, respectively, to their pension funds.
Once in place, the retirement pay will be increased to a maximum of 90% of the base pay and longevity pay for all MUP, from the current 75% and 85%.
While there will be no automatic indexation for new entrants, there will be annual adjustments in pension depending on the fiscal or economic conditions, Estrada said.