Military amenable to reform of retirement system

MANILA, Philippines -  Saying there is something wrong with a system wherein the government spends more on pensions than on salaries of active soldiers, Armed Forces of the Philippines (AFP) chief Gen. Eduardo Oban Jr. is open to proposals to reform the military’s retirement system.

“We have to unburden the government from shouldering so much money for pensions. We are supportive of such proposals as long as they are systematized and would not pose burdens to the government,” Oban told The STAR.

“It’s an issue of national concern,” he said.

Oban said he is ready to coordinate with the Retirement and Separation Benefit System (RSBS) to discuss the matter. He is chairman of the RSBS board of trustees in his capacity as AFP chief.

He said a team led by RSBS president Emilio Marayag is now drafting a bill to be submitted to Congress that would reform the AFP retirement scheme.

The AFP chief did not cite specific recommendations, saying he would have to look at the final proposal of RSBS.

“(The bill) will be subject to discussions. There would be consultations and I’m sure Congress would have public hearings on that,” Oban said.

Oban assured all affected sectors that they would be given the opportunity to air their concerns.

“Once the proposed bill is completed, we have to see the interplay of views and perspectives,” he said.

Under the law, retired soldiers and officers are entitled to an increase in their pension every time active soldiers receive salary upgrades. Officials have admitted that such set-up is making it difficult for the government to settle the pension arrears.

Latest data from the AFP Pension and Gratuity Management Center showed that the government has allotted some P24 billion for pension requirements this year. The government owes around P16 billion to about 112,000 military pensioners.