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Saturday, May 6, 2023 Vol. 18 No. 201
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PMA ’71 position paper: Military retirement benefit a just due for service ‘paid in blood’
IN this May 28, 2017, file photo, Philippine marines walk to the frontline in the continuing assaults to regain control of some areas of Marawi City. Philippine forces launched airstrikes to drive out militants linked to the Islamic State group after days of fighting left corpses in the streets and hundreds of civilians begging for rescue from the besieged southern city. AP/BULLIT MARQUEZ
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By Rex Anthony Naval
ETIREMENT pensions, especially for those who have served honorably in the Armed Forces of the Philippines and other uniformed services, must be treated as a vital part of an incentive package for retirees as well as for those planning to serve the country through the profession of arms.
This was the stand of the Philippine Military Academy (PMA) “Matatag” Class of 1971 Inc. in its position paper prepared primarily by retired Vice Admiral Ariston Delos Reyes and Col. Rolando Malinis. It is based mainly on several studies of Delos Reyes and Malinis’s book titled Brothers, and significant contributions from former Senator Panfilo “Ping” Lacson, also from PMA ’71, and other “mistahs,” retired Commander Bienvenido Alano, Retired Col. Marte Chioco and other class members. The position paper is an offshoot of the pronouncement of Department of Finance (DOF) Secretary Benjamin Diokno on March 28, 2023, about the Marcos administration’s intent to overhaul the pension system of military and uniformed personnel (MUP). Salient points of that announcement focused on the noncontributory systems of the MUP retirement pensions and indexation of pension, as well as current payments received by those in the active service; and Diokno’s assertion that the current MUP retirement system is not sustainable
“We are appealing to our stakeholders to be circumspect and understanding of those who are working on the issue, and support our efforts in seeking solutions that will be beneficial to all, especially for our national fiscal health.”—Defense Secretary Carlito Galvez
and, if not reformed, could lead to fiscal collapse in the future.
Perk for hardships
“RETIREMENT pensions should be seen as a vital part of an incentive package for: a) retirees who not only served the country well, but also gave more during their active service tour by working beyond the mandatory eight-hour daily shift
without overtime pay, and being assigned on various missions like national defense, internal security operations, UN peacekeeping missions, and disaster relief operations at great sacrifice to life and limb; and b) as a motivation for capable and promising young men to choose the profession of arms,” the paper’s executive summary read. It added that the need for sound budget outlay must be balanced with the motivational needs of the MUP.
Neglect?
THE PMA Class of 1971’s paper also clarified that the MUP pension is not ballooning as claimed in earlier reports. “The data gathered indicated that the main problem is not the growing financial requirements of the MUP pension, but the neglect of the government to sufficiently adjust its budget to cope with the capability development and operational requirements of the military; the fallacy of the Government Service Insurance System (GSIS) study about the P9.6-trillion liability of the MUP pension and its insufficiency as basis for outright and drastic changes to the MUP pension system. “In 2021, then Senator Lacson emphasized the need for such completed actuarial study; and that the MUP Retirement System will cause fiscal collapse in the future was debunked,” it stressed.
Suggestions and recommendations:
TOWARD this end, the paper presented the following recommendations: • That the proponents of pension reform led by Secretary Diokno heed the advice of Chief Presi-
dential Legal Counsel Secretary Juan Ponce Enrile as well as the appeal for prudence by former Senator Lacson, and wait for the much-needed, completed actuarial study; •That during preliminary discussions and consultations by the proponents with MUP and other stakeholders, an alternative bill on pension reform be duly considered with the following salient provisions: • Equalize the MUP disability pension as mentioned by the President during his State of the Nation Address (SONA) in 2022; • Equalize the maximum MUP pension at 90 percent of base pay and longevity pay, thereby adjusting that for the military (85 percent at present); and, • Ensure that the MUP and all other existing non-contributory pension systems are indexed to account for inflation. “That the Presidential Adviser on Legislative Affairs consider recommending to the President to certify as urgent a Joint Resolution authorizing the increase in MUP base pay for 2024-2027, to be at par with that granted to all civilian government personnel in 2020-2023, pursuant to RA 11466. The pay adjustment should be strictly in accordance with RA 9166 of 2002,” it noted. Republic Act 11466 is known as “An Act Modifying The Salary Schedule For Civilian Government Personnel And Authorizing The Grant of Additional Benefits, And For Other Purposes.” Republic Act 9166 refers to “An Act Promoting The Welfare Of The Armed Forces of the Philippines by Increasing the Base Pay and Other Benefits of its Officers and Enlisted Personnel
And For Other Purposes.” It may be recalled that the President, during his SONA on July 25, 2022, mentioned that among his priority legislative measures would be the grant of monthly disability pensions in lieu of unequal disability benefits under existing laws for the MUP. But this does not include changes in the MUP pension system as again being proposed by Diokno, which are similar to those contained in various bills, which were not passed into law during the 18th Congress (2019-2022).
Veterans’ benefits shall be provided by the govt
ACCORDING to the position paper by the PMA Class of 1971 Inc.,
funds for the government shall provide the payment of benefits of veterans. This is pursuant to Section 7, Article XVI of the 1987 Constitution of the Philippines, it emphasized in its position paper. “Such benefits include, among others, AFP retirement pension, old age pension and total administrative disability pension, which have all been funded by the government,” the position paper read. It also stressed that this provision is consistent with the military’s non-contributory pension system that has been in effect since 1935 pursuant to Commonwealth Act No. 1. “The military career is a noble profession of arms. This calling is Continued on A2
PESO EXCHANGE RATES n US 55.2010 n JAPAN 0.4112 n UK 69.4097 n HK 7.0343 n CHINA 7.9853 n SINGAPORE 41.5702 n AUSTRALIA 36.9405 n EU 60.8039 n KOREA 0.0418 n SAUDI ARABIA 14.7191 Source: BSP (May 5, 2023)