Search
Close this search box.

Palace Confirms Ongoing MUP Pension System Review for Fiscal Sustainability

Malaca±ang: The review of the military and uniformed personnel (MUP) pension system remains in progress as the government aims to ensure that any reform is balanced, fair, and fiscally sustainable. Palace Press Officer Claire Castro announced that the Inter-Agency Technical Working Group (IATWG), which was assigned to review the MUP pension system under Executive Order (EO) 107 issued in 2025, has not yet submitted its recommendations to President Ferdinand R. Marcos Jr.

According to Philippines News Agency, the IATWG is composed of representatives from the Department of Budget and Management, Department of Finance, Bureau of Treasury, and Government Service Insurance System. The group is responsible for conducting an extensive review of the pension system and recommending appropriate measures or proposed legislation to reform it. MUP agencies are directed to provide complete technical and administrative support to the technical group. The need for comprehensive documentation and study has been cited as a factor contributing to the delay.

Asked about the delay beyond the 180-day period provided under EO 107 and the target date for submitting the recommendations to Marcos, Castro mentioned that the DBM has not yet provided the Palace with a timeline. In December 2025, Marcos issued EO 107, which modifies the base pay schedule and subsistence allowance for MUP. The updated base pay schedule will be implemented in three tranches starting January 1, 2026.

EO 107 also established the IATWG to conduct a comprehensive review of the current MUP pension system, aiming for a sustainable and equitable pension system. The IATWG is tasked with formulating and recommending draft legislation based on the review's results. The order applies to personnel under various departments, including the Department of National Defense, Department of the Interior and Local Government, Philippine Coast Guard, Bureau of Corrections, and National Mapping and Resource Information Authority.