The Department of Budget and Management (DBM) on Wednesday said the government is still studying proposed reforms to the military and uniformed personnel (MUP) pension system, with no final decision yet on whether changes will be pursued within the current administration.
Acting Budget Secretary Rolando Toledo said the issue of MUP pension reform remains under review, citing provisions under Executive Order 187 that mandate the continued study of retirement policies for uniformed services.
“The pension reform is still being studied,” Toledo said during a briefing.
He added that earlier recommendations made in 2023, including those proposed by former Finance secretary Benjamin Diokno, would need to be reassessed in light of developments during the Marcos administration.
Toledo said that any reform would have significant fiscal implications and is being examined by a technical working group created under Executive Order 17, which is tasked with reviewing the pension requirements of military and uniformed personnel.
While pension reform remains unresolved, Toledo emphasized that the proposed 2026 national budget provides assured funding for salary adjustments, allowances, and pension obligations of MUPs.
Under the budget, the government will begin the first tranche of base pay increases for MUPs in 2026 in line with Executive Order 107, with P21.7 billion allocated for the adjustment. Of that amount, P15.4 billion is earmarked for active personnel and P6.3 billion for pension obligations.
The budget also raises the subsistence allowance of MUPs to P350 per day starting January 1, supported by P71.1 billion in funding, according to DBM.
Additionally, the 2026 budget allocates P4.06 billion to fund 10,077 new military and uniformed positions across several agencies.
These include 1,358 positions in the Armed Forces of the Philippines; 2,000 each in the Philippine National Police, Bureau of Fire Protection, and Bureau of Jail Management and Penology; 1,000 in the Bureau of Corrections; and 1,790 in the Philippine Coast Guard.
Toledo also rejected claims that salary increases, retirement benefits, or pensions of MUPs would be delayed or affected by budget realignments.
He said funds that were earlier flagged under unprogrammed appropriations were not removed but were transferred from the Miscellaneous Personnel Benefit Fund to the respective agency budgets to allow faster and more direct release of benefits.
“Salary increases for both civilian and uniformed personnel are already included in agency budgets. They were not removed or postponed,” Toledo said.
He stated that pensions of uniformed personnel would not be affected, noting that any potential impact would only apply to new retirees under optional retirement schemes.
The government, according to him, has special purpose funds, including the Pension and Gratuity Fund, to cover any additional requirements if needed.
