MUP pension plan reforms will be adopted, DND told
A House leader assured the leadership of the Department of National Defense (DND) that its proposal of indexation for all retired and retiring personnel and a transitioned contribution scheme will be adopted.
House Ways and Means Committee chairman Joey Sarte Salceda said he accepted the proposals of Secretary Gilbert Teodoro on the substitute bill to the Military and Uniformed Personnel pension reform”
The proposal will be introduced as amendments to the floor since a measure was already approved at the committee level.
“As chair of the Ad Hoc Committee, I would like to assure the Secretary that his requests are acceptable. My job is to get a bill that will work fiscally, but is also acceptable to all stakeholders. So, of course, if Secretary Teodoro has major concerns, part of my job is to accommodate. Not without DOF concerns, of course, but that’s for them to settle in the Cabinet,” Salceda said.
“Of course, the proposal will add some 1.2 trillion more to the actuarial reserve deficiency, from the current 2.2 trillion under the current substitute bill,” he added.
Salceda said he will heed the request for full indexation for those who are retired and due for retirement.
However, Salceda said, the Congress is still clarifying with the DOF and the DND exactly what the request is, because we are hearing clarifications that they just want to ensure that those who have given 20 years of service or more will not pay contributions or be subject to lower indexation. Our initial impression from the statement is that they don’t want anybody from the active service to pay any contribution or to give up any amount of indexation.”
Salceda also said that “there could be some pushback from the DOF and the economic managers on the Teodoro proposal. So, we hope that within the executive, they will sort their position out.”
