The government’s economic team has met with the newly appointed Department of National Defense chief to discuss the proposed military and uniformed personnel (MUP) pension reform.
In a statement, the Department of Finance (DOF) said representatives from the economic team paid a courtesy visit to Defense Secretary Gilberto Teodoro Jr. on June 19 at Camp General Emilio Aguinaldo, Quezon City, to talk about the proposed measure.
According to the DOF, the need to carefully determine the governance structure of the MUP pension fund was underscored during the discussion, as Teodoro emphasized the need for expert fund managers with good track records.
Teodoro referred to the MUP’s contributions to the fund as an engine for national growth, provided that the fund is prudently managed.
Under the current proposal, the fund will be managed by the Government Service Insurance System (GSIS) and an oversight committee shall be formed composed of the secretary of Finance, secretary of Budget and Management, Executive Secretary and the GSIS president and general manager as ex-officio members and representatives from the MUP services.
The economic team is set to continue dialogues with various MUP service representatives on the proposed governance structure to ensure optimal cash flows and proper representation of stakeholders, the DOF said.
To ensure full understanding of the expected outcomes of the proposed reforms, the economic team will likewise provide the computations on the net take-home pay as well as the net payout of all retirement options.
Prior to this most recent meeting, the economic team has had 13 consultation sessions with seven MUP services.
