Dept. of Budget and Management plans to revise pension plan of retired uniformed personnel

IMAGE_UNTV_NEWS_092017_Budget Secretary Benjamin Diokno

 

MANILA, Philippines — Budget Secretary Benjamin Diokno said they want to amend the existing pension policy of the government for Armed Forces of the Philippines (AFP) and Philippine National Police (PNP) retired personnel.

Diokno explained both the AFP and PNP might face budget problems because almost 60% of their budget only goes to the pension of retired police and military men.

And based on the existing policy, policemen and soldiers do not give contributions for their pension plans while in active service.

When they retire, they receive their pension from taxes collected from the public.

“President Duterte, we are going to address this. Otherwise this will balloon into such a mess that maybe half of our budget goes to the military, ” said Diokno.

He explained that the government spends around P90-billion a year from the general budget for the retirement of uniformed men.

The Budget Department plans to transfer the management of pension plan of retired uniformed personnel to the Government Service Insurance System (GSIS).

But GSIS said they will need an additional P7-trillion if the transfer will push through.

The agency explained that they need huge amount to fund the pensions of retiring policemen and soldiers as they end their service earlier than ordinary members of GSIS.

The retirement age set for all uniformed personnel is 56 years old, while an ordinary government employee retires at the age of 65.

The government also plans to have an automatic salary deduction from soldiers and police in active service which will serve as their contribution for their pension plan.

Currently, DBM is reviewing the proposed amendment on the pension law, and targets to finalize the revision before the end of this year. – Joan Nano | UNTV News and Rescue

The post Dept. of Budget and Management plans to revise pension plan of retired uniformed personnel appeared first on UNTV News.