Department of Budget and Management (DBM) Secretary Amenah Pangandaman has approved the release of ₱30.409 billion to cover the pensions of military and uniformed personnel (MUP) for the first quarter of 2025.
The move comes in line with President Ferdinand “Bongbong” Marcos Jr.’s directive to ensure the timely distribution of financial support to retired servicemen and women.
“For many MUP retirees and their families, pensions are a lifeline that ensures their daily needs are met, such as buying medicine or food,” Secretary Pangandaman said.
“We understand—and so does President Marcos—the importance of retirees receiving their benefits. That’s why, once all the necessary documents were completed, we immediately approved the release of the budget to the concerned agencies,” she added.
The allocation, drawn from the Pension and Gratuity Fund (PGF) under Republic Act (RA) No. 12116 or the FY 2025 General Appropriations Act, will benefit thousands of retired military and uniformed personnel across various government agencies.
The funds were released based on pension payroll submissions from the respective agencies as of December 31, 2024.
The timely release of pension funds underscores the government’s recognition of the vital role played by military and uniformed personnel in maintaining national security and public safety. For many retirees, these pensions are their primary source of financial stability.
The announcement comes amidst ongoing discussions on the sustainability of the MUP pension system. Currently, the system is non-contributory, with the government shouldering the entire cost. This arrangement, while generous, has raised concerns about its long-term viability as pension expenses continue to rise annually.
Proposed reforms to require active personnel to contribute to their pension funds have been met with resistance from soldiers and retirees, who argue that such measures could reduce their take-home pay and breach existing agreements.
Despite these debates, the government has prioritized the uninterrupted release of pension benefits to retirees while exploring reforms to ensure fiscal sustainability.
