DBM: Police retirement fee increases-A A +A
Wednesday, April 3, 2013
DEPARTMENT of Budget and Management (DBM) Secretary Florencio Abad said the retirement payment scheme of retirees of the Armed Forces of the Philippines (AFP) and Philippine National Police (PNP) is set to increase by 2015-2016.
Abad said the retirement payment will be greater than the salaries of those in active service – about P18 billion will be allotted for the AFP retirees and about P17 billion for PNP retirees.
Abad was in Iloilo City on Wednesday for the first quarter meeting of the Philippine Association for Government Budget Administration Inc. (Pagba).
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.
Abad said the DBM 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.