SPEAKER Martin Romualdez last night announced that a consensus has been reached on how to fund the reforms needed for the Military and Uniformed Personnel (MUP) pension “and make the program more reliable and sustainable in the years to come.”
“Our soldiers and uniformed personnel are now assured: their pension plans are now fully funded. Not only in 2023 or 2024 but in years to come,” Romualdez said.
Romualdez said the consensus was reached after senior House leaders held a three-hour closed-door meeting with members of the government’s economic team upon the instruction of President Marcos Jr. “to thresh out disagreements over the MUP pension reforms.”
“I am happy to report that we have reached a consensus after a three-hour meeting. We all agreed on a solution that we, believe, will be beneficial to all stakeholders in the MUP pension program,” he said.
The Speaker did not disclose how the funding issue will be resolved but it is expected to be discussed once the House tackles the P5.768 proposed national budget for 2024.
“What we made sure was we’ll be able to pay the pension of soldiers and all uniformed personnel. All government agencies and us in Congress will help each other to ensure this,” he said.
The Speaker said resolving the issues surrounding the MUP pension program will also ensure that the salary of MUPs will increase annually.
As an offshoot of the meeting, Romualdez said he instructed the formation of an Ad Hoc Committee in the House to thresh out other details of the reforms agreed upon by executive officials and House leaders.
The Ad Hoc Committee will be chaired by Albay Rep. Joey Salceda, chair of the House committee on ways and means, who offered a “win-win” formula during the meeting.
Appointed vice chairmen of the panel were Rep. Zaldy Co (PL, Ako Bicol), who chairs the committee on appropriations; Iloilo Rep. Raul Tupas, chair of the committee on national defense; and Laguna Rep. Dan Fernandez, who chairs the committee on public order and safety.
Romualdez said the ad hoc committee will invite stakeholders in the MUP pension to join its public hearings and consultations to ensure their concerns are heard and acted upon.
A five percent monthly contribution of MUPs was recommended by economic managers to prevent a fiscal collapse of the MUP pension system since the government shoulders all of it, unlike other government employees who contribute to their pension funds.
Economic managers also proposed that new entrants should contribute nine percent of their monthly salary to the pension funds.
Sen. Jinggoy Estrada, chair of the Senate committee on national defense, has said the proposed five percent monthly contribution of MUPs is worrisome and maybe a big burden to them.
