THE Department of Budget and Management (DBM) wants Congress to pass a supplemental budget to cover the P34.197-billion funding needed to cover the payment of 2018 pension differentials for retired military and uniformed personnel (MUPs).
Budget Secretary Wendel E. Avisado on Tuesday revealed he has relayed this proposal to House Speaker Lord Allan Velasco, saying the approved allocation under the 2021 national budget for Pension and Gratuity Fund (PGF) would be insufficient to cover the 2018 pension differentials.
The budget department last week said it originally proposed P172.9 billion for the PGF under the 2021 proposed national budget to partially fund the 2018 pension differentials for MUP, but this was cut by P20 billion when the 2021 national budget was passed.
“I was telling the Speaker of the House that because of this, Congress needs to pass a supplemental budget because our approved budget for Pension and Gratuity Fund would not be sufficient to pay all of the required amounts for the dIfferentials for the pensioners who benefitted from the indexation that happened in 2018,” Avisado said in a virtual news briefing.
He also pointed out Congress is “very much” receptive to this proposal.
“Since this is being planned, a supplemental budget, we will make sure that this be included within the year,” he said.
In 2018, President Duterte signed Congress Joint Resolution 1, authorizing the increase in base pay of MUPs.
Sought to clarify how much is the supplemental budget being eyed by the DBM, Budget Assistant Secretary and spokesman Rolando Toledo told the BusinessMirror the actual amount would depend on several factors, especially the availability of funds.
“As to the amount of the 2018 pension differentials, the initial computation is P34.197 billion, which the DBM will endeavor to be included to ensure that we can cover this important requirement,” he said.
Nonetheless, Avisado also appealed for the public’s understanding to give them more time. He said the agency will continue to look for other ways and means to respond to pensioners’ needs and those affected by the reduction in the budget for PGF.
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