An Act Strengthening the Military and Uniformed Personnel Pension System, Creating the Military and Uniformed Personnel Insurance Fund, Amending Sections 3 and 24 of Republic Act Number 8291, and for Other Purposes
- This bill seeks to arrest an impending fiscal hemorrhage by establishing a government-guaranteed insurance fund to cover the insurance needs of new entrants to the uniformed services of the government.
- This fund shall be managed by the Government Service Insurance System (GSIS) and shall be supported by agency contributions equivalent to 21% of the total monthly base pay of their respective uniformed personnel.
- Proceeds from investing the fund shall then be used to pay for the separation or retirement benefits of qualified uniformed personnel member.
- This bill also ensures that existing pensioners and uniformed personnel in active service prior to its approval shall enjoy the prevailing retirement benefits at the time of their initial appointment, recruitment, or admission to the uniformed services.
- Through the creation of the Military and Uniformed Personnel (MUP) Insurance Fund, it is hoped that a viable and sustainable funding source for pension requirements shall be secured, and a responsible management of scant government resources shall be realized.
COMMENT : Off