Almost three decades since this system was implemented, the cracks it has caused in the government’s coffers are widening every year.
MANILA, Philippines – A plan to fix the Philippines’ unsustainable military pension system is supposedly pushing enlisted soldiers to retire early, leaving President Ferdinand Marcos Jr. to spend his political capital to address both pressing concerns.
Their monthly pension is automatically indexed to the salary of personnel in active service. Military pensioners can receive their pension after being in service for 20 years with no minimum pensionable age.The pension system was implemented during the final months of 1998, or the presidency of the late Fidel V. Ramos, who himself fought during the Korean War. He did so after the previous military program called the Retirement and Separation Benefit System effectively collapsed.
Finance Secretary Benjamin Diokno once called it the “most generous pension system for the military in the entire world.” DOF figures also revealed that the current share of unfunded military pension liabilities is already at P9.6 trillion, 53% of the Philippines’ gross domestic product. It did not prosper at all during the administration of former president Gloria Macapagal-Arroyo, who then faced multiple threats of being unseated and needed military backing.
Diokno, Marcos’ finance secretary and Duterte’s former budget chief, said that Marcos is more than willing to spend his political capital to push for reforms.
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