Gibo: Issues around MUP pensions have been resolved

Defense Secretary Gilberto Teodoro said the issues hounding the proposed reforms in the pension system for military and other uniformed personnel have already been resolved.

In a radio interview on Wednesday, Teodoro said lawmakers have already given their "encouraging promises" regarding the MUP pension system.

"Sa akin pong palagay, resolbado na po ito (For me, this is already resolved)," he said.

Teodoro cited the bill version of the House of Representatives provides the retirees' indexation at 90 percent, no contribution from those on active duty, and the pension of retirees will no longer be reduced.

This version of measure, he added, requires contribution only from the newly recruited personnel.

"Mabuti naman po ito para matuto po silang mag-ipon (It's good thing for them to learn how to save)," he added.

The defense chief expressed optimism that the House version of the MUP pension bill will be passed in the Senate.

"Meron tayong malakas na indikasyon na iyon din naman po ang aaprubahan ng ating Senado (We have strong indication that the House versions will be approved by the Senate)," he said.

"Kaya wala na ho sigurong issue sa contribution at pagbabawas ng mga pensyon ng ating mga kasundulahon at ang mga retirado (Therefore, there will be no issue with the contribution and reduction of pensions of our soldiers and retirees)," he added.

The lower chamber approved on the third and final reading the House Bill 8969 or Military and Uniformed Personnel Pension System Act in September.

The bill covered retirement, benefits, creation of trust funds, mandatory contributions for new entrants, and annual salary increases of MUP.