HOUSE OKAYS MUP PENSION BILL

THE House of Representatives on Tuesday (September 26) approved on third and final reading a consolidated bill providing for a pension system for military and uniformed personnel (MUP).

House Bill 8969 also known as the “Military and Uniformed Personnel Pension System Act” received a total of 272 votes from the plenary while four voted against the bill and one abstained. 

The bill also provides for a guaranteed three percent annual salary increase for MUP for the first 10 years from the time the proposed law takes effect.

Speaker Ferdinand Martin Romualdez, one of the principal authors of the measure, said the proposed law rationalizes the system of granting monthly pensions and other benefits to personnel of the uniformed services in a way that is fair to them and the national government.

“This landmark legislation demonstrates our unwavering commitment to the men and women in uniform, who risk their lives daily to maintain peace and order. It provides a robust, sustainable, and fair pension system that recognizes their invaluable service to our nation,” Romualdez said.

“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,” he added.

MUP refers to personnel from the Armed Forces of the Philippines, Bureau of Fire Protection, Bureau of Jail Management and Penology, Philippine Coast Guard, the Philippine Public Safety College, the Bureau of Corrections, and the Philippine National Police and commissioned officers of the hydrography branch of the National Mapping and Resource Information Authority who were transferred from the Bureau of Coast and Geodetic Survey.

Under the bill, the mandatory retirement age for MUP will be changed to 57 instead of 56 or upon accumulation of 30 years of active service, whichever comes later. They may also voluntarily retire after 20 years of service.

For key officers, retirement is upon completion of a tour of duty or upon relief by the President.

Those killed or wounded in action that results in total disability will be considered compulsory retired for purposes of computing their benefits.

Their retirement pay is computed at 90 percent of their base pay plus longevity pay, regardless of years of service.

The monthly retirement pay of those who are already in active service before the enactment of the law shall be 50 percent of the base pay.

They will also receive longevity pay of the grade next higher to the salary grade they last held in case of 20 years of service, increasing by 2.5 percent for every year of service beyond 20 years to a maximum of 90 percent for 36 years of service and over.

For new entrants or those who entered or re-entered the service after the enactment of the proposed MUP pension law, retirement pay will be 50 percent of their base pay, plus longevity pay in case of 20 years of service, increasing by 2.5 percent for every year of service beyond 20 years to a maximum of 90 percent for 36 years of service and over.

Retiring MUPs may receive in advance in one lump sum his retirement benefits for 36 months and get his monthly pension after three years or receive his pension as it accrues after his retirement.

It also mandates the automatic indexation of the pension of retired MUP and survivorship pension at a rate not exceeding 100 percent of the increase in the base pay of active MUP holding the same rank during the same year.