Author Topic: AFP completes draft bill on pension reforms  (Read 7843 times)

pearl21

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AFP completes draft bill on pension reforms
« on: June 05, 2011, 11:17:33 PM »
AFP completes draft bill on pension reforms
By Alexis Romero (The Philippine Star) Updated June 06, 2011 12:00 AM

MANILA, Philippines -  The military’s Retirement and Separation Benefits System (RSBS) has completed a draft bill that aims to reform the armed forces’ retirement scheme and to address the government’s growing pension arrears.

RSBS president Emilio Marayag said among the proposals of the draft bill is the scrapping of a provision in the retirement law that raises retirees’ pension every time the salaries of active soldiers are upgraded.

Marayag noted that the provision, part of a Marcos-era presidential decree, resulted in the ballooning of the government’s retirement obligations.

“Our pension (arrears) is growing. It is caused by a provision of PD 1638 or the retirement law. When the salary of active soldiers increases, the pension of retirees should also increase. We will remove that provision in our proposal,” Marayag said in an interview over the weekend.

pearl21

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Re: AFP completes draft bill on pension reforms
« Reply #1 on: June 20, 2011, 08:53:17 AM »
Government needs P120 B in 10 years to sustain new AFP retirement system
By Alexis Romero (The Philippine Star) Updated June 20, 2011 12:00 AM

MANILA, Philippines - The government needs P120 billion for 10 years to support a new and reformed military retirement system and to address its pension arrears, an official of the armed forces’ Retirement and Separation Benefits System (RSBS) said.

RSBS president Emilio Marayag said allotting the amount as seed money would allow the new retirement body to invest in profitable ventures and be self-sufficient.

“In order to be self-sufficient, you have to post earnings. This (P120 billion) will allow the retirement body to generate income,” he told The STAR in a phone interview over the weekend.

Marayag said allotting P120 billion for the new body is included in their draft bill that seeks to reform the existing military retirement system.

Tora^2

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Proposed Amended AFP Pension Fund
« Reply #2 on: July 28, 2011, 08:28:14 AM »
If this gets passed on both Houses of Congress and gets signed into law, this will help the AFP avert a fiscal blackhole worse than its numerous ongoing COIN/CT campaigns:

AFP adopting new pension plan to avert fiscal crisis
By Dona Z. Pazzibugan
Philippine Daily Inquirer
5:32 am | Monday, July 25th, 2011

The Armed Forces of the Philippines (AFP) is bracing its soldiers and retirees for an overhaul of its pension system.
The military has embarked on a mass information campaign on a proposed new retirement benefits law that would do away with the automatic increase in pension rates when the salaries of soldiers are increased.
In its information campaign, the AFP told soldiers and retirees that reforms in the pension system were needed to avert a crisis in which the government would no longer be able pay the billions of pesos in annual pension requirements

---------------EDIT-----------------------------------------------------

According to the AFP information message, the other provisions of the draft proposal include raising the retirement age from 56 to 58; no longer being promoted to the next rank upon retirement; deactivation of the RSBS; increase in members’ contributions and in the government’s counterpart in the pension fund; and computations for periodic adjustments of separation and retirement benefits.
RSBS president retired Rear Admiral Emilio Marayag had said that without the reforms, the annual pension requirements for soldiers alone would reach P1 trillion by 2040.

Mods, feel free to move this to the Legislation Subboard. No House Bill Number was mentioned
« Last Edit: July 28, 2011, 08:34:21 AM by Tora^2 »
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Tora^2

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Re: Proposed Amended AFP Pension Fund
« Reply #3 on: August 08, 2011, 12:57:23 PM »
Retired General and Diplomat, Ramon Farolan has this to say on the shortcomings of the AFP-RSBS:

Why did the RSBS fail to attain self-sufficiency and assume payment of military pensions, which was the rationale for its creation?
The drumbeaters for a new pension scheme, to be known as the Philippine Military Pension System (PMPS), argue that the original RSBS was bound to fail because of several flaws in its charter: (By the way, the acronym makes it sound like a woman’s condition of discomfort—Pre-Menstrual Position Syndrome. I can almost see media going to town on this one.)
Actual funding was inadequate—government seed money of P200 million was given in five tranches starting in 1976 and spread over a four-year period. But as early as 1970, the funding requirement was already P712 million. From the very start, the system was underfunded.
Structural flaws—employer-employee contribution rate of RSBS was 5 percent coming only from the member without any government share. In the case of GSIS and SSS, contribution rates were 21 percent and 10.4 percent, respectively, without any refund. Contributions came from both employer and employee.
The bright boys who came up with the RSBS charter obviously did not do their homework. Otherwise they would have discovered these flaws without too much effort. But that is what happens when people are gung-ho on a project for reasons of their own. The focus is on getting things started right away, believing that substantial issues can be addressed later and usually done by throwing more money down the drain.
The drumbeaters also warn that due to ballooning pension costs, there are signals that the government may be unable to continue paying pensions. They cite pension arrears of more than P15 billion. I would characterize these as scare tactics to get people on the bandwagon. We all know that any attempt to decrease pensions is a surefire formula for unrest in the military. Any sacrifices that need to be made must be shouldered by all sectors of society—the pork barrel of legislators, the excessive pay and allowances of executives of government corporations, the conditional cash transfers, and other similar government programs.
« Last Edit: August 08, 2011, 08:48:08 PM by Tora^2 »
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pearl21

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Re: Proposed Amended AFP Pension Fund
« Reply #4 on: August 08, 2011, 07:00:24 PM »
also discussed on this thread

AFP completes draft bill on pension reforms   
 

Adroth

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Re: Proposed Amended AFP Pension Fund
« Reply #5 on: August 08, 2011, 07:34:21 PM »
Don't get mad at China. GET EVEN. Join the movement to defy a Chinese "order".


pearl21

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Re: AFP completes draft bill on pension reforms
« Reply #6 on: August 12, 2011, 09:35:26 AM »
23 priority bills to be presented at LEDAC meeting
By Aurea Calica (The Philippine Star) Updated August 13, 2011 12:00 AM

MANILA, Philippines - Twenty-three priority measures will be presented to leaders and members of Congress during Tuesday’s Legislative Executive Development Advisory Council (LEDAC) meeting, President Aquino said yesterday.

Aquino said the pension system for the military and the police would have to be a priority because the government would need one that was viable due to the increasing number of beneficiaries and actual personnel services for it.

masq

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Military pension crisis looms in 2016: Abad
« Reply #7 on: October 10, 2011, 02:10:04 AM »
Military pension crisis looms in 2016: Abad
http://www.abs-cbnnews.com/business/10/10/11/military-pension-crisis-looms-2016-abad
Quote
"Pension benefit requirements of the military — under the Armed Forces of the Philippines (AFP) and the Philippine Veterans Affairs Office (PVAO) — would amount to P67 billion by 2016. This will overtake the projected personal services requirements for active staff that amounts to P63.7 billion," Abad said, in a statement.

Based on DBM data, there will be 401,938 retired personnel who will require P68.18 billion in pension by 2016.  This is compred to 389,199 retired personnel requiring P45.5 billion in pension in 2013.
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pearl21

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Re: AFP completes draft bill on pension reforms
« Reply #8 on: October 11, 2011, 05:16:14 PM »
AFP concerned about looming crisis on pension system
By Alexis Romero (The Philippine Star) Updated October 12, 2011 12:00 AM

MANILA, Philippines - The Armed Forces of the Philippines (AFP) yesterday expressed concern over the looming crisis in the military’s pension system that could affect the retirement benefits of soldiers.

AFP public affairs chief Col. Arnulfo Burgos Jr. said they have undertaken measures to avert a possible crisis.

“We in the AFP have long recognized and anticipated this problem which may occur in the pension system by year 2016,” Burgos told The STAR.

“We are actually concerned about this potential problem, knowing that many of our soldiers in the active service will be affected,” he added.

Burgos said the problem could be prevented by state agencies dealing with the military’s retirement system.

“We are optimistic that concerned authorities would be able to address and avert this potential problem,” he said.

*****************************************

The AFP Retirement and Separation Benefits System had earlier called for the passage of a bill that would reform the pension system to reduce the government’s ballooning pension requirements.

The bill calls for the scrapping of the “indexation” provision of the current retirement law, which raises the retirees’ benefits whenever the salaries of active soldiers are upgraded.

O-4794

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AFP concerned about looming crisis on pension system
« Reply #9 on: October 12, 2011, 09:04:13 AM »
AFP concerned about looming crisis on pension system
By Alexis Romero (The Philippine Star)
Updated October 12, 2011 12:00 AM  
 


MANILA, Philippines - The Armed Forces of the Philippines (AFP) yesterday expressed concern over the looming crisis in the military’s pension system that could affect the retirement benefits of soldiers.

AFP public affairs chief Col. Arnulfo Burgos Jr. said they have undertaken measures to avert a possible crisis.

“We in the AFP have long recognized and anticipated this problem which may occur in the pension system by year 2016,” Burgos told The STAR.

<edited>

The AFP Retirement and Separation Benefits System had earlier called for the passage of a bill that would reform the pension system to reduce the government’s ballooning pension requirements.

The bill calls for the scrapping of the “indexation” provision of the current retirement law, which raises the retirees’ benefits whenever the salaries of active soldiers are upgraded.


« Last Edit: October 12, 2011, 09:41:02 AM by O-4794 »

prairiefire

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Re: AFP concerned about looming crisis on pension system
« Reply #10 on: October 12, 2011, 01:10:20 PM »
Well, dammit, if that basterd Carlos Garcia did not steal what he did, there would be 300 million pesos more in the system... :angry:

O-4794

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Re: AFP completes draft bill on pension reforms
« Reply #11 on: October 12, 2011, 08:49:21 PM »
No contest there because the Court Martial's decision on his convicion is already being implemented.  I'm one of those whose pensions will be affected by all this, too.

Old soldiers like me will just fade away but I hope the government and our lawmakers will not forget the other retirees when they decide to scrimp on money for pensions especially former EPs who have nothing else to support themselves and their family but their pensions that they use for their daily needs especially if they have to pay for their medical expenses and are far from the free medical care given by Veterans Memorial Medical.
« Last Edit: December 04, 2011, 04:13:35 PM by O-4794 »

Adroth

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Re: AFP completes draft bill on pension reforms
« Reply #12 on: November 01, 2011, 04:10:45 PM »
Enlisted men, generals slam pension bill

http://www.manilastandardtoday.com/insideNews.htm?f=2011/november/1/news5.isx&d=2011/november/1
 
ENLISTED personnel and active and retired generals on Monday slammed a revamped pension system as unacceptable, saying they would bear the cost of reforming the Armed Forces’ “corrupt” Retirement Separation and Benefits System.

Text messages criticizing the revamp, which is in a bill that is now on second reading in the Senate, was circulated among enlisted soldiers Monday.

The proposed law, the messages said, would drastically cut the retirement benefits that had previously been granted to retiring soldiers, including a one-rank promotion and a lump-sum payment on retirement.

< Edited >

But one enlisted soldier complained that the new system would turn them all into contractual workers who would need to renew their contracts every three years.

The bill’s other features include changing the mandatory retirement age to 58 from 56, and lengthening the compulsory retirement to 25 years from 20 years now.

The bill also seeks to cut the payments to the families of deceased pensioners to 50 percent of the total from 75 percent. Florante S. Solmerin
Don't get mad at China. GET EVEN. Join the movement to defy a Chinese "order".


...-happy ka na?

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Re: AFP completes draft bill on pension reforms
« Reply #13 on: November 01, 2011, 08:01:56 PM »
Enlisted men, generals slam pension bill

http://www.manilastandardtoday.com/insideNews.htm?f=2011/november/1/news5.isx&d=2011/november/1
 
ENLISTED personnel and active and retired generals on Monday slammed a revamped pension system as unacceptable, saying they would bear the cost of reforming the Armed Forces’ “corrupt” Retirement Separation and Benefits System.

Text messages criticizing the revamp, which is in a bill that is now on second reading in the Senate, was circulated among enlisted soldiers Monday.

The proposed law, the messages said, would drastically cut the retirement benefits that had previously been granted to retiring soldiers, including a one-rank promotion and a lump-sum payment on retirement.

< Edited >

But one enlisted soldier complained that the new system would turn them all into contractual workers who would need to renew their contracts every three years.

The bill’s other features include changing the mandatory retirement age to 58 from 56, and lengthening the compulsory retirement to 25 years from 20 years now.

The bill also seeks to cut the payments to the families of deceased pensioners to 50 percent of the total from 75 percent. Florante S. Solmerin

the consequence of the draconian measures for averting the perceived financial crisis include affecting the morale of those in the service and maybe the worse part is a sudden rise in retirements among those who can avail of early retirement in order not to be affected by the changes.

so what? well, with many personnel moreso the skilled and veterans of the trade suddenly leaving the AFP, there will be a gap in knowledge  and skills tunrover, to name one effect.  that may lead to problems in maintaining and operating the organization as whole and not just the equipment.

like what is pretty evident, time was when there was a glut in  personnel but not in equipment; nowadays even the human resources ( moreso the mission essential ones) are getting to be scarce too, and this latest policy change may cause more outflow than inflow of personnel.

 :pirate:

40niner_com

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Re: AFP completes draft bill on pension reforms
« Reply #14 on: April 03, 2013, 11:51:47 PM »
This remains a touch subject for those who have served and those who are still serving.

AFP, PNP retirement 'time bomb' bogs DBM - Abad

ILOILO CITY, April 3 (PNA) -- Department of Budget and Management (DBM) secretary Florencio Abad on Wednesday admitted that a "time bomb" is lurking at his office regarding the retirement payment scheme of retirees of the Armed Forces of the Philippines (AFP) and Philippine National Police (PNP) set to explode by 2015-2016.

Abad said the retirement payment will be greater than the salaries of those in active service by then and estimated to be P18 billion for the AFP retirees and about P17 billion for retirees of the PNP.

The budget chief was in Iloilo City on Wednesday to keynote the first quarter meeting of the Philippine Association for Government Budget Administration (PAGBA), Inc.

Abad explained that members of the AFP and PNP do not contribute to the Government Services Insurance System (GSIS) for their retirement benefit but the national government is paying their pension retirement which they have not contributed to the fund.

The DBM chief said his office is currently reviewing the whole pension system in order to have a more rationalized pension policy in close consultation with the AFP and PNP officials.

Earlier, retirees in Western Visayas led by retired policeman Jimmy Punzalan expressed apprehension over the proposed reduction of the monthly retirement pension complemented by non-paying of pension increases due to a P35 billion pension fund in arrears.

Abad admitted that the rationalization of the pension fund may cause some disagreements but he said the Aquino administration is doing everything to settle the problem.

He assured that retirees will get what is due them. (PNA)
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