MANILA -- A House of Representatives ad hoc committee on Tuesday approved a substitute bill overhauling the military and uniformed personnel (MUP) pension system, which seeks to create 2 separate pension funds and requires MUPs to contribute for their retirement.

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Speaker Martin Romualdez on Tuesday commended the chair and members of the ad hoc Committee on the Military and Uniformed Personnel Pension System for coming up with a revised version of the bill that is now "acceptable" to all stakeholders, including the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP).

“Salamat sa House Ad Hoc Committee, makakatulog na nang mahimbing ang mga military at uniformed personnel natin gayundin ang kanilang mga pamilya. Sigurado nang mababayaran ang lahat ng pensyon nila, may dagdag pa silang suweldo taun-taon," Romualdez said in a statement.

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The substitute bill consolidated all House measures introduced by various members related to proposed reforms in the MUP pension system.

The Speaker's Office explained the salient agreements reached during the hearing Tuesday which include:

• 90 percent maximum retirement package based on base pay of all MUP, raising by 5 percent the previous package for AFP personnel;
• Include PNP personnel who served below 20 years in list of eligible for separation lump sum;
• Fix to 57 the age of retirement for all MUP;
• Guaranteed 3 percent salary increase annually for all MUP;
• Two separate pension management system, one for AFP and one for civilian uniformed personnel;
• 50 percent indexation for MUP;
• Creation of a window in pension fund system for disadvantaged pensioners.

"This landmark legislation demonstrates our unwavering commitment to the men and women in uniform, who risk their lives daily to maintain peace and order. It provides a robust, sustainable, and fair pension system that recognizes their invaluable service to our nation," Romualdez said.

Panel chair Rep. Joey Salceda called it a "win-win solution."

Salceda said that the House is committed to approving its version on third reading as soon as possible.

The panel will submit the bill to the whole House for action.