House eyes win-win solution to MUP funding issue
A House leader underscored the need to resolve the Military and Uniformed Personnel (MUP) pension system’s fiscal issues in order for the government to move forward in financing credible defense posture especially in the West Philippine Sea (WPS).
According to Albay Representative Joey Salceda, chairman of the House Committee on Ways and Means, the House of Representatives is committed to approving its version of what it calls a “win-win solution” to the MUP pension system.
The ad hoc committee on the MUP Pension System is set to meet to discuss bills on the pension system and to look for the “win-win solution.”
“We need to resolve the MUP pension system’s fiscal defects so that we can move forward with devoting more of the national budget to credibly defending the country’s territory,” Salceda said.
“Our expenditures are growing for defense, even as our MUP pension liabilities also grow. That is untenable. We have a solution that inflicts the least pain possible on all stakeholders,” he added.
Salceda said the House leadership, who met the economic managers on August 2 is keen on discussing the “win-win solution” that was agreed to during the meeting.
“The pension structure will be retained in full – pensionable age, retirement at one rank higher, years before optional retirement, the benefits structure. Everything stays,” he said.
“We will also assure a 3 percent annual salary increase to all active personnel. That’s win-win because most of the time, MUP do not get salary hikes, but when they do, it’s at unpredictable rates.
Our proposal makes the salary adjustment assured at a stable rate. No shocks to our fiscal system,” the solon added.
To be discussed by the panel are the indexation or an increase in pension for 10 years, limiting indexation to 50 percent of the salary increase, contributions, capacity to pay.
Salceda added that the panel is studying the creation of MUP Trust Fund to augment the pension funding needs.
“Definitely we will create a MUP Trust Fund to augment pension funding needs. Military assets not in use will be infused into the Fund. We will just work out the policies and administrative details. At least there will be some sure source of funding for the pension system. To reiterate, it’s our “Three Guarantees” version. Guaranteed pension hike. Guaranteed salary hike. Guaranteed funding source,” he said.
Solving MUP pension issues will help PH “move forward” with defense spending, the solon pointed out.
