‘Source MUP pension from police, military assets’

MANILA, Philippines — The Senate panel tackling the possible restructuring of the pension system of military and uniformed personnel should look for police and military assets that can be privatized, or enter into joint ventures as sources of MUP pension funds, Senate President Juan Miguel Zubiri said yesterday.

In an interview aired over radio dzBB, Zubiri said concerns over the MUP pension system should be addressed as it could get about one-fourth or one-fifth of the total national budget in the next five years.

“What is needed is a formula just like the SSS (Social Security System), GSIS (Government Service Insurance System) – no corruption, no issues, no problems, growing (funds), no need for the government to come in,” he said, referring to the two established government pension systems.

The Senate president said he suggested to Sen. Jinggoy Estrada, who chairs the Senate committee on national defense tackling the revision of MUP funds, to look at the assets of the Philippine National Police (PNP) and Armed Forces of the Philippines (AFP).

“My suggestion to Sen. Jinggoy is to look for assets of the military in terms of military reservations under their names. Maybe, under the law, we can use them or invest the fund from these assets. They can privatize them or they can enter into joint ventures, or put them in the pension fund of the PNP and AFP. In that case, the deduction from the MUP for their pension will be small,” Estrada explained.

The senator presided over a public hearing on the MUP pension to discuss reform in their pension system as Finance Secretary Benjamin Diokno earlier warned of an imminent “fiscal collapse” with total yearly payouts to MUP.

This year, the MUP pension payout is about P213 billion and is expected to reach the P1-trillion mark by 2035.

The Marcos administration’s economic team has proposed that MUP in active service contribute five percent of their monthly pay to their retirement fund for the first three years of a plan to reform their pension system.

The new entrants to the uniformed services will be contributing nine percent of their basic salary and longevity pay.

Zubiri said he agreed with Diokno that the MUP system should be restructured as the funds it needed would be untenable.

“We have to look at it from the fiscal point of view,” he said.

At the same time, Zubiri also supported the observation of former police general and now Baguio City Mayor Benjamin Magalong that corruption persists in the government.

“What general and Mayor Magalong said was right. The bleeding of the budget due to corruption should be stopped. Not just pork barrel; it’s also serious in LGUs (local government units), there are many cases in the ombudsman against mayors and governors. All corruptions should be stopped without pointing to a single branch or unit of government,” he said.

“The law is there, it’s plunder punishable by life imprisonment. I totally agree with Mayor Magalong, the corruption must stop. The money that is stolen can be used for building schools,” he added.

The Senate president further explained that “if 20 to 25 percent is taken by the politicians as commissions, the DPWH (Department of Public Works and Highways) is the culprit. There should be a mechanism that the politician cannot choose the contractor. The problem lies with the implementing agencies.”

He also put to task watchdog and civil society groups, the Commission on Audit and the Office of the Ombudsman to be vigilant in preventing corruption in the government.

Zubiri said he himself had invited investors and had to personally assist them in working on their investments.