Military pension reform shelved; analysts warn of ‘fiscal time bomb’

THE MARCOS administration has shelved a plan to overhaul the pension system for military and uniformed personnel (MUP), Finance Secretary Ralph G. Recto said.

- By Aubrey Rose A. Inosante and Kenneth Christiane L. Basilio Reporters

Analysts have warned that the current pension system for MUPs is a “fiscal time bomb” that threatens the Philippines’ fiscal sustainability.

“I think we discussed that already,” he told reporters on the sidelines of a House Committee on Appropriations briefing late on Monday. “Wala na ‘yung (There will be no) MUP reform so far for the remainder of the term.”

“The reform will be costly at this point in time,” Mr. Recto said without providing details.

However, Budget Secretary Amenah F. Pangandaman said the fate of the MUP reform bill will still be discussed in the Legislative-Executive Development Advisory Council (LEDAC) meeting next month.

“We'll have to sit down. We still have a LEDAC (meeting),” she told Business Worldwhen asked about Mr. Recto’s statement.

Ms. Pangandaman warned that government allocations for MUP pensions will consume a larger share of the national budget in the coming years and could pose a possible fiscal burden if left unchecked.