Quezon City - The Philippine government is set to implement a reformed pension system for military and uniformed personnel (MUP), ensuring pensions, annual pay increases, and improved benefits. This initiative was highlighted by House of Representatives Speaker Ferdinand Martin Romualdez during "The Defense Forum" organized by the National Defense College of the Philippines Alumni Association at According to Philippines News Agency, Camp Aguinaldo in Quezon City. According to a new release by the House of Representatives, the reform is part of President Ferdinand R. Marcos Jr.'s commitment to enhancing the welfare of the country's uniformed personnel, who form the core of the national defense system.
Romualdez stated that the government is taking decisive steps to boost benefits and promote the welfare of uniformed men and women, aligning with fiscal responsibility and national security commitments. House Bill 8969 or the MUP Pension System Act, which was approved in September, aims to address previous pension fund arrears and ensure long-term financial sustainability for the pension system. The proposed law applies to all uniformed government employees and includes provisions for a 3 percent annual salary increase for MUP for the first ten years following the law's enactment.
Under the bill, the mandatory retirement age is set at 57 years or after 30 years of active service, with provisions for voluntary and compulsory retirement under specific conditions. The bill also stipulates the computation of monthly retirement pay based on service duration and last held salary grade. To manage and oversee these reforms, the bill proposes the creation of two MUP trust funds for the Armed Forces of the Philippines and other uniformed services, administered by a committee chaired by the finance secretary. The Government Service Insurance System is designated as the manager of these trust funds, ensuring the efficient administration of benefits for uniformed personnel.