MANILA - Finance Secretary Benjamin Diokno said individual contributions are necessary to keep the military and uniformed personnel (MUP) pension fund running.

In weekly chat with the media, Diokno reiterated the need for military pension reforms to ensure the sustainability of the pension system for soldiers, policemen, and other uniformed personnel.

Diokno was responding to a statement released by Defense Secretary Gilbert Teodoro who is against the proposed "blanket mandatory contributions" under the substitute bill on the MUP pension system which was earlier approved by a House of Representatives ad hoc committee.

Teodoro said he is against the proposed monthly contribution of soldiers who have already completed at least 20 years of active service, adding that their pensions and entitlements should remain unchanged in recognition of their sacrifices for the country.

But Diokno said the government is proposing a loan restructuring for MUPs to allow them to accommodate the required contribution.

“Meron kasing mga sundalo na nag-oobject. Sabi nila, ‘pag nag-contribute kami, mababawasan yung take-home pay ko, e ang dami kong utang. So sabi namin, GSIS (Government Service Insurance System) will help them. Ire-restructure yung mga loan nila… I think satisfied naman sila,” said Diokno.

Even President Ferdinand Marcos Jr. has recognized the immediate need for change, the Finance chief said.

“He knows that we can no longer postpone this. This has been postponed by many presidents before him. Walang gustong mag-recognize ng problem but you have to recognize that this is going to be a threat to the fiscal stability of the country. Lumalaki yung spending natin tapos a big chunk of the budget is going to payment of pension na walang nagco-contribute,” he said.

“Sabi nga niya, he’s willing to use his political capital,” he added.

The substitute bill approved by a House panel requires those in active service to contribute 5 percent of their pay during the first three years of the MUP pension reform implementation.

The contributions would increase in succeeding years.

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