I join our leaders in praying for a safe and peaceful Holy Week despite two issues hounding the uniformed services. First is the delayed release of the promotion papers of many police generals and colonels amid the 5-Man Committee’s continuing deliberation on the papers of the more than 990 3rd-Level Officers who tendered their courtesy resignation to PBBM last January.

Many have suggested that the promotion papers of those who have been cleared by the 5-Man Committee be released soon so they can finally heave a sigh of relief. I was told by some sources that PBBM has already approved the promotion papers of several star-rank officers and full-fledged colonels after they passed a strict scrutiny by all government agencies concerned.

Why the long wait? Amid the sweltering heat, the morale of all concerned are also affected, they say. Thus, they should be made to wear their new rank insignias as soon as possible if their promotion papers have been approved by the Commander-in-Chief as it means they are well suited to stay in the force.

Second, I must tell everybody that Budget Secretary Benjamin Diokno’s warning of a ‘fiscal collapse’ if the young Marcos Jr.’s administration will not overhaul its military pension system which he said is putting a strain on the national budget has been met with outrage by retired police and military officers and men as well as active personnel who are soon to retire from the service.

Sec. Diokno said they are addressing what he described as “the elephant in the room: referring to the much-needed reforms in the Military and Uniformed Personnel or MUP Pension Scheme which is taxpayer-supported and receives no contribution from the retirees themselves.

He explained that the ‘game-changing reform’ has never been addressed by PBBM’s predecessors and thus, he has met with DILG Secretary Benhur Abalos and Defense chief Charlie Galvez to discuss the matter.

The pension fund covers the Armed Forces of the Philippines, the Bureau of Jail Management and Penology, the Bureau of Fire Protection, the Philippine National Police, the Philippine Public Safety College, the Philippine Coast Guard and the Bureau of Corrections.

Members of the Police Retirees Association, Inc. or PRAI however have reacted violently against his proposal. Here are excerpts from the PRAI statement on the matter: “First of all, why are you so irritably mad about our meager monthly pension Sir? Your cruel approach had not changed a bit towards us since the time of PNoy. It gets even worse now that you hold the finance portfolio.

Now you are telling us that the situation is so bleak? Ridiculous? That the amount will bloat, will balloon? You are there to fix it. So do it.

That is your expertise so why can’t you. And don’t complain. You are the alter ego of the President. Should you fail, so is he.”

Retired Vice Admiral Ariston de los Reyes, a former AFP Vice Chief of Staff also wrote this letter to Sec. Galvez. Here are some excerpts of the letter from the member of PMA Class 1971.

“Since 2015, I have been involved in research and continuing study of the military and uniformed personnel (MUP) pension system and provided the Office of the President, Congress, DND, PMAAAI, AGFO, NARAAI, and other MUP organizations with studies/papers in defense of its non contributory nature and being indexed to prevailing rate of those in the active service,” he said.

“ The Confederation of the Uniformed Services Associations (CONUSA) and the PMAAAI in particular have had successes in the recent past most significant of which was the MUP pay adjustment and resumption of pension indexing pursuant to JR No.1 s 2018, benefitting more than 220,000 MUP pensioners and notwithstanding the recommendation of former DBM Secretary Benjamin Diokno to suspend pension indexing.”

“ Likewise, during the term of President Duterte, certain financial technocrats in government pursued the enactment of bills to make MUP pension system contributory and outright stopping of pension indexing.

“Fortunately, both Houses of Congress had been receptive to other alternative to the draconian measures embodied in said bills. During the meeting of the Ad Hoc Committee in the Lower House to review the MUP pension system on 9 June 2021, it decided to propose that MUP pension remain non contributory but indexing would be limited to maximum five (5) percent per annum for 10 years.”

“Then during the hearing of the Senate Committee on National Defense and Security, Peace, Unification, and Reconciliation on 30 September 2021, the five- percent limit to indexing was also taken up. When asked by the Chairman for my comment, I concurred with the proposal provided that such limit will also apply to non MUP pension systems that are non contributory and indexed at 100 percent not only to pay but also including allowances of those in the service_ pension systems for the judiciary, prosecution service, and constitutional commissions. Unfortunately, said proposal was not enacted probably, for want of time due to the forthcoming national election in May 2022.”

Delos Reyes said Sec. Diokno’s “proposal is discriminatory to the more than 600,000 MUP, active and retired.” “He wants that all those in the active service to start contributing to their pension and that those who will optionally retire, will only receive their pension upon reaching the age of 57_ proposals that will have outright deleterious effect to the morale of the MUP, the soldiers in particular. “

“Definitely, not a few will opt to retire just before Secretary Diokno’s proposals could be enacted. As an adviser to the President and Commander-in- Chief of all armed forces, he should also consider that his financial consideration for his advocacy be balanced with maintaining high morale of the MUP.”

“Be that as it may, there are more urgent measures that the DND may have to recommend to President Marcos in order to recompense the MUP for being grossly shortchanged in the grant of their pay adjustment in the recent past namely:

“1. That he certify as urgent bill a joint resolution for the MUP pay adjustment in four tranches effective 2024-2027, just to be at par with pay increase granted to civilian personnel for 2020-2023 pursuant to RA 11466 s 2020, and with pension indexing to new rate. The draft JR forwarded by the Chairman, PMAAAI to the President in 2020 could serve as a reference”.

2. That he amend EO 201 so that the MUP will be entitled to pay adjustment in 2016 and 2017; thus, entitling those in the active service during the period to adjustment in longevity pay and allowances pegged to the base pay and the retired MUP to pension indexing in 2016 and 2017. Pertinent pay/pension differentials may be funded in 2024 or even later. The Draft EO prepared and submitted to President Duterte by CONUSA and PMAAAI may serve as references in pursuing this effort.

“However, should the advocacy of Secretary Diokno progress into a draft bill, recommend that the Department counter with the alternative of maintaining MUP pension non contributory but indexed to inflation, pegged to maximum five percent per annum and should apply not only to MUP pension system but also to those for the members of the judiciary, prosecution service, and constitutional commissions. Otherwise, the DND should recommend that military pension system be exempted from the proposal of Secretary Diokno and remain a non contributory pension system, indexed to prevailing pay rate of those in the active service, pursuant to the 1987 Constitution, CA No.1 s 1935, PD 1638, and RA 9166.”

“With the benefit from hind sight, had the non contributory pension system remained exclusive to the military, (as had been from 1935 to 1990), military pension at current annual appropriation would be about P60 billion only instead of P130 billion for the entire MUP pension,” the retired AFP official said.

AUTHOR PROFILE

Alfred P. Dalizon