Sept. LEDAC to determine priority status of military pension reform

THE Legislative-Executive Development Advisory Council (LEDAC) meeting next month will determine whether military and uniformed personnel (MUP) pension reform remains on the priority legislation list, Budget Secretary Amenah F. Pangandaman said.

“We’ll find out during our LEDAC meeting. It’s scheduled for September. There, we will check if it’s still included among the priority legislation,” Ms. Pangandaman said during the Kapihan sa Manila Bay briefing on Thursday.

Asked if the government is still pushing for pension reform, she said, “Yes, I think,” adding that “the Department of Finance (DoF) is the one in charge.”

“There really is no fiscal space. It is still the same allotment. We don’t know what will happen with the bill. The bill is still pending,” she said.

According to the 2026 National Expenditure Program (NEP), the government allocated P197.99 billion for the pension and gratuity fund, up 36.80%.

Finance Secretary Ralph G. Recto has said the government is unlikely to revive the MUP reform bill due to cost constraints.

Last year, Mr. Recto sought changes in the MUP pension scheme applicable only to new personnel.

In 2023, the House of Representative approved House Bill No. 8969, which sets a member contribution rate of 9% of monthly salary for new entrants and a 12% top-up from the government.

The Senate version of the MUP reform bill has been awaiting second reading approval since November 2023.

Senate Bill No. 2501 seeks to set monthly retirement pay at 50% of the base pay for the last position held by retired MUPs. It also requires new MUPs to contribute to their pension. — Aubrey Rose A. Inosante