Teodoro disputes comparison of P143B MUP pensions, AFP modernization budget

Defense Secretary Gilberto “Gibo” Teodoro Jr. on Monday disputed reports comparing the P143-billion military and uniformed personnel (MUP) pension budget with the Armed Forces of the Philippines’ modernization funding, saying the comparison inaccurately suggests the entire pension allocation goes to retired soldiers.

Teodoro issued the clarification in response to a Philippine Star report headlined “P143 billion MUP pension nearly triple AFP’s modernization budget.”

“While the MUP budget is indeed triple the AFP modernization budget, it should be noted that only 49.6 percent of the total MUP pension budget is earmarked for AFP retirees. The rest go to other security services. Therefore, to equate the total MUP pension to the AFP modernization is not accurate as a comparison indicator,” Teodoro said.

The Defense chief said discussions about pensions and military modernization should instead consider the government’s total resources devoted to national defense.

“As of this time with worldwide vulnerabilities almost all countries have made the conscious decision to increase defense spending in large adjustments — we cannot be immune to this,” he said.

Teodoro also called for a review of the AFP modernization budget and the repeal of the existing AFP Modernization Law.

He questioned the reliance on Bases Conversion and Development Authority (BCDA) remittances to finance modernization, saying these have been insufficient and have required subsidies from the national government.

“The AFP Modernization budget was supposed to be sourced from BCDA remittances which as we all know have been marginal and need to be subsidized by the National Government,” Teodoro said.

He also called for the abolition of the BCDA’s corporate structure, arguing that doing so could reduce cross-subsidies and administrative expenses that could otherwise be directed toward the military.

Teodoro also questioned the 15-year planning horizon under the existing modernization law.

“On the Modernization Law, which entity works on 15-year horizons this day and age?” he said.

Teodoro defended government-funded pensions for retired AFP personnel, citing the military’s broad responsibilities across the country.

“Our soldiers address a variety of missions 365 days a year without any breaks. Our force structure is extremely lean and, given the fact that they must keep watch over 7,600 plus islands and 2.4 million square kilometers of maritime area on a purely National Government basis and do services for other Government Entities including LGUs etc., their pensions should be National Government derived,” he said.

Teodoro said retired military personnel also continue to contribute to national defense efforts.

“Our AFP pensioners, although retired, are an integral part of continuing defense efforts and actively contribute in various ways to securing our sovereignty and territorial integrity over and above the service that they have already rendered to our people,” he said.

Teodoro stressed that he is not opposed to pension reform but said any changes should take into account the circumstances and responsibilities of military personnel.

“I am not opposing reforming pension systems, but it must be done under the spirit laid down by this clarification,” he said.