Representatives from the Department of Finance (DOF), Bureau of the Treasury (BTr), and Government Service Insurance System (GSIS) paid a courtesy visit to newly appointed Defense Secretary Gilberto Teodoro, Jr. on June 19 at Camp Aguinaldo to discuss the military and uniformed personnel (MUP) pension reform, particularly the fund’s governance structure.

The meeting drew a robust exchange of ideas among the parties, following the economic team’s 13 consultation sessions with seven MUP services to date.

Among others, the need to carefully determine the governance structure of the MUP pension fund was underscored. Teodoro emphasized the need for expert fund managers with good track records.

Under the current proposal, the fund will be managed by the GSIS and an oversight committee shall be formed composed of the Secretary of Finance, the Secretary of Budget and Management, the Executive Secretary, and the President and General Manager of the GSIS as ex-officio members, and representatives from the MUP services.

The economic team is set to continue dialogues with various MUP service representatives on the proposed governance structure to ensure optimal cash flows and proper representation of stakeholders.

Teodoro referred to the MUPs’ contributions to the fund as an engine for national growth, provided that the fund is prudently managed.

To ensure full understanding of the expected outcomes of the proposed reforms, the economic team will likewise provide the computations on the net take home pay, as well as the net payout of all retirement options.

Finance Undersecretaries Maria Cielo Magno and Maria Luwalhati Dorotan-Tiuseco, National Treasurer Rosalia De Leon, Deputy Treasurer Erwin Sta. Ana, and GSIS Senior Vice President George Ongkeko, Jr. attended the courtesy call in line with their efforts to craft a bill that will guarantee the sustainability of the MUP pension system. DOF Communications Office