The Bureau of Fire Protection (BFP) leadership, led by Fire Chief Louie S. Puracan has expressed openness to the creation of a sustainable pension fund for the military and uniformed personnel (MUP). This declaration was made during the economic team’s 21st consultative meeting held on July 4, 2023, at the BFP Headquarters in Quezon City.

More than 40,000 BFP officers and personnel attended the hybrid meeting to listen to the economic team’s proposals and share their suggestions regarding the legislation. The event was also live-streamed, attracting 37,000 viewers.

Fire Chief Puracan stressed that “the BFP leadership supports the military and uniformed personnel pension reform” and emphasized the moral obligation to contribute towards the welfare of the country.

“Part of the proposed reform is to contribute funds…in order for it to be sustainable. We must do our share by supporting the administration’s program as we will be reaping [the benefits] when the right time comes,” Fire Chief Puracan added.

Under the proposed pension system, MUPs will be required to contribute a portion of their salaries as a form of savings, which will be supplemented by the government.
National Treasurer Rosalia V. De Leon highlighted that this reform is specifically designed for the benefit of MUPs, ensuring the availability of funds for their pensions in the future.

“Ang ganitong klaseng reporma ay hindi para sa National Government, kung hindi para sa mga MUPs. With this contribution mas makakasiguro na mayroong pondong mailalaan para sa inyong pensions later on at ito po maibabalik sa inyo kasama ng contribution ng National Government,” National Treasurer De Leon explained.

To fulfill the financial requirements necessary to maintain the non-diminution of benefits for MUPs, the government will act as a co-contributor alongside the MUPs for their pension fund.

National Treasurer De Leon reassured the uniformed personnel that the pension reform will not have a negative impact on their benefits. She emphasized that the current benefit system will remain intact and unaffected. “With the contributions na mandatory na po ngayon, mas magiging mabuti para sa ating MUP dahil mayroon nang isang pondo na nakalaan to take care and handle their pension. Sana wag sila mag-iisip ng erosion of the benefits. Walang erosion of benefits… It’s really a win for the MUP and a win for the national government,” she said.

[With the mandatory contributions in place, this will be beneficial for our MUPs as it ensures the availability of a dedicated fund for their pension. I hope they understand that this is not an erosion of benefits. There will be no erosion of benefits.]

A common concern among the MUP leadership is the number of personnel filing for optional retirement because of the fear of the pension reform. In the case of the BFP, 342 personnel have filed for optional retirement, a more than 250% increase from last year.

Finance Undersecretary Cielo Magno cautioned against early retirement without evaluating the real options of uniformed personnel. She explained that the proposed reform has various options for early retirement which is not significantly different from what they currently have. The pension program is also designed to incentivize the uniformed personnel to stay in the system.

“The longer you stay in service, the bigger your pension will be in the future. Even in the current regime, if you avail of early retirement, you will only get 50% of your base and longevity pay as opposed to the possibility of getting as much as 90% if you compulsory retire under the proposed reform,” Finance Undersecretary Magno explained.

The DOF senior official added that the real choice for those who want to avail of early retirement is whether there is an alternative job waiting for them outside the service. “Huwag po tayong magpadalos-dalos sa desisyon na mag early retirement dahil sa kinakatakutang implikasyon ng reporma. Ang isipin po natin, kung mag e-early retirement ba ako sa serbisyo, may mas maganda bang trabaho o oportunidad na naghihintay sa akin?” she advised.

The government’s thrust in reforming the MUP pension system is to address its sustainability and ensure provision of fair retirement benefits to MUPs while easing the pressure on the government budget over time.