THE non-monetary benefits being given to soldiers and their families, such as health services and skills upgrade training, would compensate for whatever perceived loss they may incur once the rationalization of the military and uniformed personnel (MUP) pension system becomes effective, Department of National Defense (DND) Secretary Gilbert Teodoro Jr. said yesterday.
Teodoro, in a briefing in Malacanang, reiterated that expediting the fixing of the pension system is his top priority as DND Secretary.
He also allayed concerns about the possible exodus of enlisted personnel from the Armed Forces and the police force ahead of the passage of the MUP law.
“I believe that our men, women in uniform are not averse to the fact that they have to contribute to the national government just as long as they see that at the end of their tours of duty, number one, they will be taken care of; number two, that the fund or whatever they have to participate in is transparently, professionally and competently managed and not mismanaged,” he said.
Teodoro also said those in the military would realize that being a soldier remains a “very attractive” career option because of non-monetary benefits such as free medical care, continuous skills training, and educational opportunities not just for them but for their families as well.
He said having specific skill sets could enable them to still be employed in the private sector after their retirement.
“It’s a matter of getting an amount now, without the continuing non-monetary benefits that you will enjoy in your career path, in your career pattern. If you invest now on skills upgrading, in healthcare, not just of the soldiers but also their families, and other non-monetary opportunities, I think they would stay,” he added.
Teodoro said that it is just a matter of explaining things properly and clearly.
He also said there is a need to rationalize the pension system to prevent the hemorrhaging of the government financial system while ensuring the retirees receive the pension due to them.
Finance Secretary Benjamin Diokno previously said the pension received by a military pensioner at present is already nine times higher than the average pension of a pensioner under the Social Security System (SSS), and three times higher than the average pension under the Government Service Insurance System (GSIS).
Diokno said unless reforms are done now, there will come a time when the current budget of the country will only be equal to about a third or a fourth of the money that is paid to the MUP pensioners.
Last March, President Marcos Jr. approved and endorsed the proposed MUP pension reform aimed at fixing their pension system and addressing future fiscal uncertainty.
DOF-PNP MEET
High-ranking representatives from the DOF, Bureau of the Treasury, and the GSIS have met with the PNP to discuss proposed reforms to the MUP pension system.
The DOF said the dialogue held last June 7 at Camp Crame in Quezon City was attended by around 300 police officers in person, while there were at least 1,000 online participants.
The economic team welcomed the concerns raised and assured the PNP that these would be taken into serious consideration when drafting the formal proposal.
National treasurer Rosalia De Leon discussed the goals of the proposed reform and emphasized its intention to maintain the quality of life of uniformed personnel while balancing long-term financial sustainability.
De Leon stressed that stakeholder consultations form an integral part of the reform process. The forum with the PNP is the second leg of a comprehensive series of consultations. Earlier, the economic team consulted with the Armed Forces to also gather their sentiments.
“This is precisely why we have these kinds of forums. So we can get your perspectives and together we can achieve a collective buy-in,” De Leon said.
The DOF said that many participants asked if the pension of uniformed personnel would be the same as the pension for civilian civil servants.
GSIS senior vice president George Ongkeko, Jr. emphasized that the GSIS would only manage the funds and protect the independence of the pension for MUPs.
“We ensure that there will be no co-mingling of funds,” Ongkeko said.
DOF undersecretary Maria Luwalhati Dorotan Tiuseco added the team was more than willing to have further conversations to further flesh out other concerns and details.
“Rest assured that we would be more than willing to talk in smaller groups if needed so we can better explain the proposals,” she said.
PNP Lt. Gen. Michael John Dubria delivered a message on behalf of PNP chief Benjamin Acorda Jr., saying the police would remain “open to further discussions.”
Dubria ended the event by saying that everyone “hopes for the best, for the good of the economy, the nation and the welfare of all.” — With Angela Celis
