DBM sees nearly P2B in additional budget for 2027 to fund one-year retirement extension of PNP, BJMP, BFP
Uniformed personnel in the Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP), and Bureau of Fire Protection (BFP) backed pending Senate bills on Friday that seek to raise their compulsory retirement age from 56 to 57.
However, the Department of Budget and Management warned that the adjustment—though it could temporarily save the government P10.74 billion in deferred retirement benefits—would require about P1.82 billion in additional funding for salaries and allowances across the three agencies.
The estimated additional cost for salaries and allowances for 2027 would be divided as follows: P1.18 billion for the PNP for 1,210 personnel; P386 million for the BFP for 271 personnel; and P258 million for the BJMP for the 546 personnel.
“This impact could offset the possible savings in PGF (Pension and Gratuity Fund. It is important to consider that the proposed extension of service, in the long run, affects retirement requirements,” DBM Chief Budget and Management Specialist Reynaldo Moreno told a Senate panel.
He emphasized that a one-year delay in retirement could also increase salary payouts, longevity pay, or service credit; retirement base pay after a salary adjustment; and the offset of accumulated unused leave credits.
“Those are the possible effects in the future when this proposal becomes law,” Moreno said of Senate bills.
The House of Representatives already passed the bill's counterpart measure in May.
The projected P10.74 billion in initial savings for 2027 from deferred retirement and terminal leave benefits includes P7.34 billion for the PNP, P1.72 billion for the BJMP, and P1.68 billion for the BFP.
Senator Panfilo Lacson, the panel chair, said postponing retirement by one year may affect the promotion cycle for lower-level officers because senior positions would remain occupied.
National Police Commission Commissioner Rafael Calinisan agreed that the extension could slightly slow career progression by stalling movement in the ranks. Meanwhile, he noted that allowing those with less than a year left to retire at 56 would enable personnel below them to move up.
Nonetheless, Napolcom expressed support for the bills, citing the need to maximize senior officers' expertise, institutional knowledge, and operational experience.
The chair himself is a proponent of the measure. Lacson’s Senate Bill 2395 raises the retirement age of PNP personnel and gives those with less than one year of service the option to retire at 56.
Senate Bill 2396 similarly raises the retirement age of BJMP and BFP personnel.
These bills aim to align the compulsory retirement age of uniformed personnel with that of members of the Armed Forces of the Philippines, whose retirement age was increased from 56 to 57 under Republic Act 11939, signed by President Marcos Jr. in May 2023.
Congress had already passed a similar bill in 2024, but Marcos vetoed it, although the President’s reason did not explicitly cite the mandatory retirement age increase for the disapproval.
To avoid a repeat, Lacson acknowledged the need to carefully craft the current proposal to address the concerns raised by President Marcos in his veto message to Congress.
However, he expressed optimism that the measure could pass this time because it does not appear to directly conflict with the President’s previous concerns.