AFP pension managers eye cut in retirement benefits

MANILA, Philippines - The recommendation of military pension fund managers to cut the retirement benefits of soldiers and dependents of personnel killed in action through a proposed legislation is drawing strong opposition from ground troops.

The proposal, aimed at addressing the current financial woes of the Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS), has yet to be approved by AFP chief Gen. Eduardo Oban Jr., but it has already triggered uneasiness among active soldiers, especially those who are assigned in the frontlines.

“If this recommendation will be approved by the AFP and endorsed for legislation in Congress by the Department of National Defense (DND), we are almost certain that there would be an exodus of ordinary troops availing of an early retirement,” a soldier said.

In a letter to Defense Secretary Voltaire Gazmin, AFP-RSBS president and chief executive officer retired Navy Vice Admiral Emilio Marayag proposed the inclusion of the new retirement package for the retirees that also include the pension of slain soldiers’ dependents.

Marayag’s proposed retirement package includes reduction of pension computation based on salary grade from one rank higher to last permanent rank held by a retiree soldier.

At present, pension retirement computation is based on the last rank held by a retired soldier, which, as per military regulations, is promoted one rank higher during retirement.

As per the cash-strapped AFPRSBS proposal, computation of the new retirement package should also be reduced by a certain percentage.

Once the pension package is included in the proposal, it would also include the cutting of the survivorship benefits while at the same time increase the mandatory retirement of soldiers from 56 to 58 years old.

The AFP-RSBS also wanted to add five more years to soldiers’ military service before an active member could avail of optional retirement.