MANILA (UPDATE) — Finance Secretary Benjamin Diokno has called for a separate retirement and pension fund for military uniformed personnel (MUP), as he described the current military pension system as a "big drain to the national budget."

At a media briefing, Diokno said the government was estimated to spend P848.39 billion annually for the next 20 years to finance the current pension system.

He added that the accumulating pension liabilities will likely increase public debt by as much as 25 percent by 2030.

"We can no longer afford to keep this around," said Diokno.

He said soldiers at present were getting pension but were not contributing at all.

"Wala sila contribution, tapos napakalaki ng nakukuha nila. I think this really has to be discussed openly."

(They don't have any contributions, and they enjoy large payouts.)

As an example, Diokno said a retired general would receive a monthly pension of P131,000, tax-free.

The finance secretary added that the current pension system may also be affecting other government projects like education and health.

The Department of Finance (DOF) is scheduled to discuss the matter with other government agencies as well as the military, according to Diokno.

Diokno also said no military official has talked to him to reject the proposal, which would initially require soldiers to contribute 1-3 percent of their monthly salary.

Armed Forces of the Philippines (AFP) spokesperson Col. Medel Aguilar said the military will prepare for the consultation.

Meanwhile, former AFP chief of staff Ret. Gen. Alexander Yano said they will be waiting for the outcome of the meetings between the concerned agencies.

"Let's wait and see the outcome of the meeting of all concerned agencies. I'm sure all factors and the welfare of all concerned sectors will be duly considered," he said.

Ret. Gen. Wilben Mayor, former Philippine National Police (PNP) spokesperson and currently presidential assistant 1 at the Office of the Presidential Adviser on Peace, Reconciliation and Unity (OPAPRU), also said it is better to wait for the outcome of discussions on the issue.

"There will be a discussion on this... I don't want to preempt," he said. "I am confident that our superiors will ensure that existing rights will be protected."

—Report from Jekki Pascual, ABS-CBN News

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