Photo Credit to John Unson of Philstar.com

The Philippine government has recently proposed a new pension law for men in uniforms. Currently, men in uniform, such as soldiers and police officers, are covered by a non-contributory pension scheme. However, the proposed change would make it mandatory for these men to contribute to their pension plan like what GSIS and SSS pensioners do before retiring.

Understanding the New Pension Law

Sen. Christopher Lawrence “Bong” T. Go files the new scheme of pension of men and women in uniforms or the Senate Bill 1419 on March 23, 2020. It will be known as MILITARY AND UNIFORMED PERSONNEL SERVICES SEPARATION, RETIREMENT, AND PENSION ACT OF 2020 once approved. He branded this proposal as a “win-win” solution for the future “ballooning budget burden”. In oder to avoid “fiscal collapse”, Marcos Administration is also eyeing for the implementation of the proposed new scheme of pension law.

Implication Towards the Families of MUP

This proposed change has significant implications for the men in uniform and their families. The non-contributory pension scheme provides a safety net for these men who put their lives on the line to serve and protect their country. The scheme ensures that their families will be taken care of in the event of their death or disability while on duty.

New Pension Law as a Mandatory Contribution

However, the proposed mandatory contribution scheme would require these men to contribute a portion of their salary to their pension plan. While this may seem like a burden, it also has its benefits. The mandatory contribution scheme would ensure that these men have a more secure and stable retirement. It would also lessen the burden on the government to fund the pension scheme.

Implication to Philippine Government

The proposed change also has implications for the Philippine government. The non-contributory pension scheme is funded entirely by the government. This means that as the number of men in uniform increases, the cost of the scheme also increases. With the mandatory contribution scheme, the cost of the pension scheme would be shared by both the government and the men in uniform.

Financial Literacy and Planning

The proposed change in the pension law also highlights the importance of financial literacy and planning. With a mandatory contribution scheme, these men in uniform would need to understand how to manage their finances and plan for their retirement. It is essential that the government provides financial education to these men to ensure they are equipped with the knowledge and skills needed to manage their finances effectively.

The proposed change in the pension law for men in uniform in the Philippines has significant implications for both the men in uniform and the government. While the non-contributory pension scheme provides a safety net for these men and their families, the mandatory contribution scheme would ensure a more secure and stable retirement. The change also highlights the importance of financial literacy and planning, which the government must address to ensure these men are equipped with the necessary skills and knowledge.

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