In response to President Marcos’ call for the enactment of the military and uniformed personnel (MUP) pension reform bill during his second State of the Nation Address (Sona) on July 24, there is a need for radical and painful organizational soul-searching within the Philippine bureaucracy to address the issue.
The MUP pension reform has become a persistent issue, with Finance Secretary Benjamin Diokno and his team highlighting the pension of retirees and veterans as an “elephant in the room” that could lead to a fiscal collapse if left unaddressed. Diokno’s proposal to have MUP personnel contribute to their pension, like other government employees, is seen as a sustainable solution.
However, there are agencies like the National Mapping and Resource Information Authority (Namria) and other civilian government law enforcement agencies, such as the National Bureau of Investigation (NBI), the Bureau of Customs (BOC), and the Bureau of Immigration (BI), that are not directly providing armed security services but are allowed by law to bear arms and wear uniforms. These agencies should be reclassified as armed civilian institutions, similar to the NBI, BOC, and BI, so that their respective pensions can be handled by the Government Service Insurance System (GSIS).
The Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) should also undergo streamlining as part of the MUP pension reform bill. Support services within the AFP and PNP that are not directly related to law enforcement and national defense should be removed from the qualified MUP beneficiaries. The budget for AFP and PNP pensioners should be allocated separately and managed by the GSIS to prevent any repeat of the AFP Retirement and Separation Benefits System debacle.
It is crucial for the current administration to implement these organizational changes to ensure the sustainability of the MUP pension system. Only through such reforms can we address the ballooning MUP pension and secure the future of our military and uniformed personnel.
Proscoro Ervin Mundo, Ph.D.
University of the Philippines Open University
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