Salceda says no cuts in MUP pensions even as panel eyes end to indexation

There will be no cuts in the pensions of retired soldiers and other uniformed personnel despite the reform measures being pursued in the system, the chairman of the House ad hoc committee on MUP pensions has said.

This developed even as Albay Representative Joey Salceda said the committee had proposed the removal of the automatic indexation of the MUP pensions to the salaries of MUPs still in the active service.

“There will be no diminution of benefits. That is our most fundamental commitment in this reform. No one will receive less than what they already get,” Salceda said.

The removal of the automatic indexation, however, means MUP pensions will no longer be increased as the salaries of those in the active service are hiked.

"The indexation talaga will have very dire consequences on the economy. In ten years time ang inflection point… The only way to push it is government assets being injected and I am looking at essentially yung NAIA," Salceda said.

"We will put up modernization fund for all MUP services. Pati PNP. So DOF, NAIA, Bilibid, it could be rented, and then the rent could be used," he added.

The other committee proposals include the provision of Cost-of-Living Adjustment (COLA) to ensure that monthly pensions remain on track with changes in prices, the retention of the no-contribution scheme, and the adjustment of pensionable age to 60-years-old.

The panel members also recommended earmark proceeds from the disposition and use of MUP assets and the Ninoy Aquino International Airport (NAIA) and the New Bilibid Prison for the Armed Forces of the Philippines (AFP) modernization and the Philippine National Police (PNP) revitalization program.

Salceda tasked the secretariat to draft a substitute bill, incorporating the key provisions which were agreed during the meeting.

Representatives from the Department of Finance said the DOF would look into these proposals.

Salceda said pension reform was necessary to ensure that "we can fund a credible fighting source."

"A credible, modern, and world-class fighting force is essential. We keep saying we want to have a credible defense system. In truth, we have the lowest military personnel per capita in ASEAN. We have one of the oldest fleets in the region," Salceda said.

"We have to invest in our active forces and in military capability if we will adopt a strong posture in the West Philippine Sea. We can’t afford it unless we prevent the pension budget from bloating,” he added.

According to the lawmaker, the chamber is aiming to pass its version of the measure before the budget hearings in August.

"The Committee will finish sooner than that, of course. We already have a consensus. I will confer with my co-members, all of whom have leadership positions in the House, to see how we can accelerate the passage," Salceda said.

"But we are broadly aligned, and we have already instructed the secretariat to prepare a substitute bill for our consideration," he added. —NB, GMA News