MUP Pension System Act, Fully Supported by SSS-GSIS Pensyonado Partylist
The SSS-GSIS Pensyonado Partylist (SGP), which caters to the interest of all member-pensioners of the Social Security System (SSS) and the Government Security and Insurance System (GSIS), is also pushing for the continuation of pension for all retirees from the military and uniformed personnel (MUP).
The military retirees came from the Armed Forces of the Philippines’ (AFP) three branches of service: the Philippine Army (PA), the Philippine Air Forces (PAF) and the Philippine Navy (PN), which is also the mother unit of the Philippine Marines (PM).
The other uniformed personnel are from the Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP), Bureau of Fire Protection (BFP) and the Philippine Coast Guard (PCG) which is now under the administrative and operational control of the Department of Transportation (DoTr).
“The SSS-GSIS Pensyonado Partylist is fully supportive of the MUP Pension System Act. We will definitely push for this bill once we get to Congress,” SGP spokesperson Fercival Yutan said on Monday (July 29).
The Military and Uniformed Personnel Pension System Act
The Military and Uniformed Personnel (MUP) Pension System Act started as House Bill No. 8969. House Speaker Ferdinand Martin G. Romualdez is the principal author of the bill.
“With this reform, we’re not only prioritizing the well-being of our MUP but also ensuring the country’s economic stability. It is a testament to our commitment to national security and fiscal responsibility,” Speaker Romualdez said in a recent statement.
HB 8969 aims to reform the existing MUP pensions, preserving the existing pension for active retirees while applying a new scheme with mandatory contribution for new entrees. It also includes an annual salary increase to take into account the rising costs of living.
HB 8969 was first filed on August 23, 2023 and the first reading made on August 29, 2023. The bill passed its third reading on September 26, 2023 and was approved by the vast majority of congressmen. It’s expected to be signed into law and take effect in 2025.
Rates of Monthly Retirement Pay
The MUP Pension System Act sets different monthly retirement pays depending on the beneficiary being in active service before or after the bill’s enactment.
The MUPs who are actively serving before the bill’s passage will receive a monthly retirement pay of 50% of the base pay and longevity pay of the grade immediately above the salary grade they last held after 20 years of service. The pay increases by 2.5% for every additional year with a maximum of 90% at 36 or more years of service.
Furthermore, these MUPs have two options. They can get retirement benefits for 36 months in one lump sum in advance and a monthly pension after three years. Alternatively, they can get their pension as it accrues following their retirement.
If the MUPs are new entrants or joined the service after the bill’s enactment, their retirement pay will feature 50% of their base pay plus longevity pay assuming 20 years of service. They also get 2.5% more pay for every year they continue to serve after 20 years, and their increase caps at 90% at 36 or more years.
If the MUP was killed in action (KIA) or died in the line of duty, their retirement pay is 90% of their base pay plus longevity pay, no matter how long they served. It also applies if the MUP received a total permanent disability because they were wounded in action.
The pension of retired MUP and survivorship pension of survivors shall be automatically indexed at a rate not exceeding 100% of the increase in the base pay of active MUP holding the same rank during the same year.
New Mandatory Retirement Age
The MUP Pension System Act also sets the mandatory retirement age at either 57 years or after 30 years of active service, whichever comes later.
The MUPs may voluntarily retire after serving for 20 years. Key officers retire after completing a tour of duty or the President relieving them.
If the MUP is killed in action or wounded in action and receives a total disability that their respective services certifies, they shall be considered compulsorily retired for purposes of computing their benefits.
The MUP Pension System Act will have two trust funds to support the pensions. One of the funds is for the Armed Forces of the Philippines (AFP) while the other is for uniformed personnel services, such as the Philippine National Police.
A trust fund committee with the Secretary of Finance as the chairperson will administer the MUP trust funds. The Government Service Insurance System (GSIS) will manage the trust funds.
New MUP entrants will contribute 9% of their salary each month to the trust funds. The national government will contribute 12%. The trust funds will draw funding from other sources and enjoy exemptions from all taxes, assessments, fees, charges, and duties.
The MUP will also receive a 3% annual salary increase during the first 10 years after the MUP Pension System Act begins.
Currently, public funds are used to pay MUP pensions. The 2023 national budget allocated P139.514 billion to MUP pensions.
