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DBM’s Pangandaman says study on MUP pension system to be finished within the month

Budget Secretary Amenah Pangandaman on Thursday said the study on the Military and Uniformed Personnel (MUP) pension system would be finished within this month or in the next two weeks.

At a Palace briefing, Pangandaman said the government's economic team has just finished its consultations about the MUP pension program.

"Matatapos din po nila ang study [the study will be finished] within the month or the next two weeks. By then po, we will have the admin version of the MUP so since wala pa po, same pa rin po 'yung budget natin [since there is still none, the budget is still the same] we still provided the fund for the MUP which is almost P150 billion," Pangandaman said.

Speaker Ferdinand Martin Romualdez earlier said the economic team and the officials of the House of Representatives have reached a consensus on how to fund the reforms needed for the MUP pension system.

The House created an ad hoc committee on the MUP pension systems chaired by Albay Second District Representative Joey Salceda.

Salceda said his election as committee chairperson guarantees three things: a sure salary increase, indexation of pensions, and funding for the pension system.

"President Marcos has already helped address the problem by being very responsible about any salary increase for the MUP before a viable pension system is in place. And with this reform, his government will solve the pension problem for decades to come," Salceda said.

"This solution also enables a salary increase for the MUP since we can control its fiscal consequences on the pension system," he added.

The committee will lead all matters relating to the reforms of the pension systems, including funding and revenue sources, management and schemes, contributions and benefits, and provisions on fiscal sustainability.

The reform of the MUP pension system was among the key measures cited by President Ferdinand "Bongbong" Marcos Jr. in his second State of the Nation Address on July 24.

''We are inclusive in our pursuit of social protection. The pension of the military and uniformed personnel is as important, urgent, and humanitarian as that of all other civilian Filipino employees,'' Marcos had said.

The President had pushed for "self-regenerating" pension plans for both the Armed Forces of the Philippines and the Philippine National Police in an effort to avoid a scenario in which funds would be depleted. — RSJ, GMA Integrated News