THE Executive branch and legislators have reached a consensus on the need for military and uniformed personnel (MUP) to make mandatory contributions towards their pensions.
“We’d like to confirm that representatives of the economic team met with leaders of the House of Representatives and we have an emerging consensus on the general terms,” Finance Undersecretary Maria Luwalhati C. Dorotan-Tiuseco said in a chat with journalists on Friday.
Ms. Dorotan-Tiuseco said that the bill being prepared in Congress will require mandatory contributions from MUPs, topped up with contributions from the government.
“We have an agreement as to the mandatory contributions… (in which) the government counterpart payment will have to be bigger,” she said.
“For the (exact) percentage, we still have to do the numbers. But definitely there’s a bigger government share,” she added.
Earlier versions of the reform proposed that current active-duty personnel contribute 5% of their monthly pay over the first three years, which will be supplemented by a contribution from the government equivalent to 16% of their pay. This shares will gradually be adjusted to 9% and 12%, respectively, in the seventh year.
Meanwhile, new MUPs will pay 9% of their base and longevity pay, with a 12% contribution from the government.
“The fund will have an oversight committee represented by some MUP members,” Ms. Dorotan-Tiuseco added.
MUP pension reform is on the Legislative-Executive Development Advisory Council’s list of 20 priority measures that are targeted for approval by December.
Last week, the House of Representatives approved the ad hoc committee on MUP reform. Albay Rep. Jose Ma. Clemente S. Salceda will chair the committee. — Luisa Maria Jacinta C. Jocson