MUP pension budget hiked by over a third

DOF: MUP reform bill means addt’l P141 B

- MARCO LUIS BEECH

The proposed allocation for the pensions of military and uniformed personnel (MUP) has risen to P197.99 billion based on the 2026 National Expenditure Program (NEP), an increase of 36.8 percent from this year’s P144.72 billion.

Despite the government's substantial allocation for MUPs’ pension, the Department of Finance (DOF) expressed reservations over the proposed MUP pension reform bill, warning that it could impose a heavier fiscal burden on the government.

“Every reform comes with corresponding costs. For example, implementing the MUP reform bill is expected to incur an additional cost of around P141 billion over the next three years,” Finance Secretary Ralph Recto said.

The annual fund is meant to pay MUPs’ pension and retirement gratuity and terminal leave benefits, including separation benefits and incentives. The MUPs do not contribute to the fund.