THE Duterte administration is seeking the creation of a pension fund for soldiers and policemen to resolve the funding problems of the pensions of those in the uniformed services.
“The reform on Military and Uniformed Personnel pension shall be pursued in view of the ballooning budget burden where the total cost of the pensions will exceed the compensation of those in the active service,” Duterte said in his first budget message submitted to Congress.
“The proposed law will create a pension fund that is similar to or part of the Government Service Insurance System, replacing the current system where the pensions of the military and other uniformed personnel are appropriated by Congress,” he added.
The proposed law will mitigate the effects of a full implementation of the Salary Standardization Law, which is seen as a major blow to the pension system of soldiers and policemen because unpaid pensions have already accumulated to P18 billion since 2000.
Presidential Decree 1638, issued in 1979 by President Ferdinand Marcos, established a system of retirement and separation benefits for military personnel going for optional retirement after 20 years of service, or by reaching the mandatory age of retirement of 56 with at least 15 years of service.
The monthly pension ranges from P11,125.50 to P86,062.50, depending on rank and length of service.
When the pensioner dies, the spouse gets 75 percent of the monthly pension.
In the same budget proposal of the President, Duterte likewise ordered for the increases of compensation for soldiers and policemen.
“I already instructed the DBM to work on the increases on their base pay and certain allowances,” Duterte said.
“Our soldiers, policemen, and other uniformed personnel risk their lives to maintain peace and order and ensure public safety. Hence, they must receive their due.”
“I will fulfill that promise. We will pursue a law that increases the base pay of uniformed personnel but reforms the pension system of retirees,” he added.
The Philippine National Police, meanwhile, which is under the supervision of the DILG will also see an increased budget of P110.4 billion appropriations, which aims to create 10,000 police officer positions and fund its capability enhancement program, which includes the acquisition of more guns and patrol vehicles, and finance other activities for crime suppression.
Duterte had earlier announced his plan to create a pension office for the military to address the problem of soldiers waiting to receive their hard-earned pensions when they retire.
He said he wanted a system to better address their concerns of families who wait forever to receive their pensions and would also push for free education to the children of soldiers “giving their life for the country.”
Budget Secretary Benjamin Diokno had earlier said members of the uniformed services will not receive full salary increases by August, contrary to the President’s promise, because there is no appropriation yet for any increase.
The Budget Department, however, is “looking at a three-year trajectory” to fix the current salaries and at least increase the “take-home pay” of soldiers, if not their full salary.
Diokno said his department is doing what it can to supplement the uniformed personnel’s income.