Apply same laws to all government retirees

This is regarding the editorial “Reform retirement system” (2/4/23) that pointed out the need for our lawmakers and policymakers to study reforming and improving the pension system.

There are two separate retirement or pension system showing marked differences in terms of benefits given to retirees in the government service.

The first scheme covers retirees under the Government Service Insurance System who make mandatory contributions to their pensions. Their monthly pension is way below their salary on their last day of service and cannot exceed 90 percent of the average monthly salary for the last three years in the service, provided the retiree has rendered at least 35 years in the government service. Their monthly pension is increased after five years from the last day of service to a maximum of 1.5 percent per year, and in case of death of the retiree, the surviving spouse is entitled to receive 50 percent of the monthly pension, which shall continue until the surviving spouse’s death or remarriage.

The other scheme covers employees who have separate retirement schemes under special laws and are, therefore, covered by their respective retirement laws, such as the uniformed members of the Armed Forces of the Philippines, the Philippine National Police, the Philippine Coast Guard, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Bureau of Corrections, the members of the judiciary, the constitutional commissions, and other similarly situated government officials. What may be considered as “preferential treatment” to retirees under this retirement scheme is that they are not required to contribute to their pension, as the pension funds were noncontributory, since the budget to finance the pension fund is included in the annual General Appropriations Act. The monthly pension of the retirees is also indexed to the salary of the incumbent of the position in the service and is automatically increased whenever there is an increase in the salary of the same position from which the retiree retired. In case of death of the retiree in the uniformed services, the surviving spouse is entitled to receive 75 percent of the monthly pension, while in the case of members of the judiciary and constitutional commissions, the surviving spouse is entitled to receive 100 percent of the monthly pension for life.

Clearly, there is no uniformity in the implementation of retirement laws for retirees in the government service. If the salary scheme for government personnel is standardized across all government agencies under the Salary Standardization Law to create an enabling environment that will promote social justice and excellence in the civil service, why not apply the same concept and principle to all retirees in the government?

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