Brawner: AFP personnel filing for early retirement up amid proposed MUP pension reform

Armed Forces of the Philippines (AFP) chief General Romeo Brawner Jr. on Wednesday said the number of military personnel filing for early retirement has increased due to the bill on the reform of the pension system for military and uniformed personnel (MUP).

"Tumaas po 'yung nagfa-file ng early retirement dahil nga po they are anticipating na kapag lumabas yung batas, 'yung unang version po. They are basing it on the early versions," Brawner said during a hearing of the Commission on Appointments' Committee of National Defense on his promotion as general. 

(The number of personnel filing for early retirement increased because they are anticipating the law on the reform of the MUP pension system. They are basing it on the early version.)

Brawner did not provide numbers.

"Gusto nila na mapaloob pa sila sa lumang sistema (They want to be covered by the old system). They want to avail of the old system wherein they will receive a one rank higher pay when they retire and indexation," he said.

Brawner said the AFP "will not be a healthy organization" if senior non-commissioned officers will retire early.

"The alarming situation would be 'yung mawawala po 'yung ating senior non-commissioned officers. So kung puro bata naman yung ating Armed Forces, it will not be a healthy organization," he said.

(The alarming situation would be when our senior non-commissioned officers leave the AFP. So we will be left with mostly young personnel, it will not be a healthy organization.)

"We also need the leadership of our non-commissioned officers," he added.

Brawner said he already advised AFP personnel to just wait for the final version of the law before making a decision on their retirement.

Earlier, Finance Secretary Benjamin Diokno stood firm on removing the indexation from the MUP pension system as part of proposed reforms to address fiscal implications stemming from the current setup.

House ways and means panel chairperson Joey Salceda said allowing full indexation would mean additional P1.2 trillion expenses for the government.

Military and uniformed personnel currently do not make contributions to their pension fund, which is fully funded by the government under the national budget.

Under the current system, retired MUPs' pensions are automatically indexed to the prevailing salary of incumbent personnel of similar rank.

Defense Secretary Gilberto Teodoro Jr. earlier said the burden on the government expenditures due to the pension of AFP retirees will reduce over time.

“The pension burden of the AFP retirees on government expenditures will actually reduce over time as the envisioned AFP Retirement trust fund becomes viable as a funding source given a constant force size,” he said.

“Also, it is proposed that the share in the BCDA earnings of the AFP and other DND related GOCCs be realigned to service AFP retiree pensions,” he added.

Teodoro added that his department was informed that the financial impact of the pension burden of the AFP retirees, now and in the future, is “substantially lower than as originally stated.” —KBK, GMA Integrated News