House to conduct inquiry on budget for military pensioners

Manila, Philippines - The House committee on veterans affairs is set to conduct an inquiry to assist the government in coming up with ways to raise funds to pay some 112,000 military pensioners, who are owed about P12 billion in pensions and other benefits.

The public hearing was prompted by House Resolution 1158 filed by Cagayan de Oro Rep. Rufus Rodriguez and Abante Mindanao Rep. Maximo Rodriguez directing the panel to conduct an inquiry into the matter and come up with options to address the problem.

“There is a need to look into the finances of the government and find possible sources of additional funding to pay the retirement and pension benefits of retired soldiers in the country,” Rodriguez said.

He said the funding problem for the pensioners had deteriorated since 2006 when the Armed Forces of the Philippines-Retirement and Separation Benefits System (AFP-RSBS) was deactivated due to irregularities.

Citing a report from Col. Rolando Jungco, chief of the AFP Pension and Gratuity Management Center, he said the funding requirement for the retirement benefits of the soldiers has ballooned to P16 billion because some 4,000 to 5,000 soldiers are retiring from the service every year.

Under Presidential Decree 361 that created AFP-RSBS, all officers and enlisted personnel in the active service shall contribute to the system an amount equivalent to four percent of their monthly base and longevity pay, which contribution shall be deducted from their pay from the AFP and paid to the system.

Rodriguez said the law provided that any officer or enlisted person, who is separated through no fault of his own and is not eligible for either retirement or separation benefits shall, upon his separation, be refunded in one lump sum all his actual contributions to the AFP-RSBS, plus interest at the rate of four percent.

He said the irregularities under the AFP-RSBS started when its funds were invested in low-return real estate projects and loans.

“These soldiers have sacrificed the prime of their lives to fight and defend the country but up to this time they are yet to receive their pension and benefits,” Rodriguez said.

He said the congressional inquiry shall also “serve notice to all concerned including the DND, AFP and such other entities and corporations, which may shed light and resolve the issue.”