This is the fourth and hopefully the final hearing of our proposed measure on the Military and Uniformed Personnel (MUP) pension reform.
As reiterated by our fiscal managers, we are pressed for time: the passage of the MUP pension reform bill is earnestly and urgently sought so as not to create any fiscal risks that may compromise the state’s ability to fund both the MUP pensions and a credible defense posture.
All of us here would agree that our shared objective is plain and simple: we must have a clear policy direction to guarantee that the pension requirement is sustainable for the next one hundred years. Nonetheless, we must be grounded in reality that our fiscal capacity is limited while at the same time, be very certain that we will not shortchange the welfare and interest of our uniformed retirees.
Before the suspension of the said hearing, the Committee had requested the following:
1. For various MUPs to submit to the Government Service Insurance System (GSIS) the necessary data with respect to the new entrants, so the latter will be able to update its actuarial study dated 05 January 2021; and
2. For the agencies to submit complete data on the real properties to aid the Bureau of Internal Revenue (BIR) in computing the total value of assets that may be considered in establishing the seed fund.
This Committee has been informed that, to date, the GSIS is yet to update its actuarial study due to either incomplete or delayed submission of some agencies. We can skip this for now as we were told the aggregate amount involved is not substantial enough to contribute to the reduction of subsidies coming from the GAA. Not to mention that the incomplete submission of data has already delayed the crafting of the committee report.
To set the record straight: Sapat at kadalasan ay sobra pa ang pondo para sa mga benepisyo ng ating mga retiradong pulis, sundalo at other uniformed services. Mangyaring makipag-ugnayan sa aming opisina ang mga hindi nakakatanggap ng tamang pensiyon sa email@example.com or sa About/Contact Ping Lacson.
This is a continuation of our previous public hearing held last October 5, 2020, on the MUP pension bills referred to this committee, which was suspended with the commitment that an actuarial study would be conducted by the Government Service Insurance System (GSIS) together with our key stakeholders, such as the Bureau of Treasury and the MUPs, among others.
Just to refresh our memory, last year and this year’s appropriations reflect the veracity of this serious financial concern, given the steep increase in the MUPs’ pension funding from P80 billion in 2020 to P120 billion under the 2021 General Appropriations Act.
The Chair welcomes everyone present in the joint public hearing of the Joint Committee to discuss several proposed measures that seek to rationalize and establish reforms in order to create a fair, sustainable and clear mechanism for the pensions of MUP and other related matters.
Distinguished colleagues who are present this morning, and guests convened today physically and virtually to find the need to address critical concerns which if not managed immediately would mean dire consequences in the financial welfare of our country. I speak of the ballooning pension requirements of our MUP which we fear may no longer be sustained by our scarce government resources in the coming years.
Certainly, it is high time we created a standalone special fund so that we may deter the inevitable fiscal disaster of draining the public coffers attributed to the bloating pension requirements of our uniformed retirees which up to this very moment completely rely on the national budget.