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DND urges public to stop spreading fake news on MUP pension bill

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MANILA – The Department of National Defense (DND) advised the public on Tuesday not to circulate unconfirmed and inaccurate information about the status of the bill aimed at reforming the pension system for military and uniformed personnel (MUP).

“The DND has taken note of false information circulating online regarding the pension of MUP. We would like to call on the public to refrain from spreading unconfirmed and misleading posts, and be discerning about the information they are consuming and sharing,” Defense spokesperson Arsenio Andolong said in a statement.

He noted that the MUP pension reform bill is still being discussed in Congress, and that there are currently no changes in the current salary of active troops or the pension of uniformed service retirees.

“The salary standardization for civilian government employees under R.A. (Republic Act) 11466 (Salary Standardization Law of 2019) excludes military and uniformed personnel, as provided under Section 4(a) of the law,” Andolong said.

The DND and the Department of Finance (DOF) earlier confirmed that the Duterte administration’s proposed reform of the MUP pension system will only apply to new entrants in the service.

The reform seeks to make the MUP pension system more financially viable.

“While the versions in Congress and Senate have yet to be finalized, the reform intends to control the looming PHP9.6 trillion worth of unfunded pension liabilities, which may continue to grow if the current scheme prevails,” Andolong said.

Meanwhile, the DOF has mentioned that the MUP pension reform is about saving the pension system and is crucial to the country’s post-coronavirus pandemic fiscal and economic recovery.

The Senate’s deliberations on the proposed reform point to the adoption of a dual pension structure.

The present pension and retirement benefits system for currently active and retired troops will be retained, while the reform will only be applied to those who will enter the service after the law takes effect.

Mandatory contributions to fund pensions, the discontinuation of automatic indexation, the computation of pension benefits at-rank upon retirement, the adjustment of pensionable age, the creation of a trust fund committee to oversee the MUP pension system, and the designation of the Government Service Insurance System as the MUP pension system’s administrator are just some of the proposed changes.

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