MUP pension bill drops mandatory contribution provision, says Salceda

 Albay Representative Joey Salceda said Tuesday that the bill on military and uniformed personnel (MUP) pension reform will no longer include the  provision on mandatory contribution, except for new entrants.

Salceda, ways and means committee chairperson, made the disclosure during plenary deliberations on the bill.

Under the initial version of the MUP pension reform bill filed by Salceda, MUP in active service will be contributing 5% of their base and longevity pay during first to third year of the measure's implementation; 7% on the fourth to sixth year; and 9% on the seventh year onwards.

Government contribution, meanwhile, was pegged at 16% during the first to third year; 14% on the fourth to sixth year; and 12% on the seventh year onwards.

“Wala na iyan. Tinanggal na,” Salceda said during the questioning of House Assistant Minority Leader Arlene Brosas of Gabriela.

“The contribution is for new entrants at 9%,” he added.

Salceda said the pension reform bill sets an annual guaranteed salary increase of 3% percent for all MUPs, still with full indexation of pension benefits, instead of the current average of 6.8% annual salary increase.

“The only way to cap pension is to cap salary growth. Because if we remove indexation, we might have mass retirement,” he said.

“We have to minimize that risk. With the bill, our fund requirement for MUP pension will be at P178 billion. Without the bill, it would be at P252 billion. Nakatipid tayo,” he added.

Brosas, however, disagreed since the burden of paying the pension of the MUPs still rests on the government.

“P178 billion is huge. Hindi tayo nakatipid. Tayo pa ring [taumbayan] ang magbabayad [ng pension nila] ng buong buo,” Brosas said.—LDF, GMA Integrated News