NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
Second Regular Session 
]
SENATE
S.B. No. ^^46
lifi
i'. 'o of t‘‘?
23 SEP 19 P5 53
RECEIVED 8'.':
Introduced by SEN. WIN GATCHALIAN
AN ACT
STRENGTHENING THE MILITARY AND UNIFORMED PERSONNEL PENSION 
SYSTEM, CREATING THE MILITARY AND UNIFORMED PERSONNEL 
INSURANCE FUND, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 
8291, OTHERWISE KNOWN AS "THE GOVERNMENT SERVICE INSURANCE 
SYSTEM ACT OF 1997", AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Absent any reform, the existing military and uniformed personnel (MUP) 
retirement scheme continues to contribute to the ballooning government budget 
deficit as the last salary adjustment of active MUP translates to a corresponding 
increase in the pension that retired MUPs receive. Being non-contributory, the MUP 
pension and any increases thereto is drawn solely from the national budget through 
the General Appropriations Act.
In a 2020 actuarial study conducted by the Government Service Insurance 
System (GSIS) on the financial impact of the existing MUP retirement scheme, the 
total funding requirement of the current system was estimated at Php. 9.6 Trillion. If 
the current system prevails, the GSIS projects that around Php. 850 Billion may need 
to be allocated to MUP pensions annually for the next 20 years.1 Based on a September 
2021 presentation of the GSIS assuming a lower percentage of salary increase and
1 Department of Finance. Available at https://www.dof.gov.ph/btr-pension-reform-to-ensure-fiscal-stability-sustained-support- 
to-military-other-uniformed-personnel/. Accessed on August 15, 2023.


including new entrants, the adjusted total funding requirements under the existing 
MUP retirement scheme still remains at over Php. 5.7 Trillion or roughly Php 500 Billion 
in annual payments if amortized over the course of 20 years.
Alarmingly, the amount spent by Uniformed Services for MUP pensions already 
exceed the amount they spend on maintenance and other operating expenses 
(MOOE), as well as capital outlays (CO). In 2022, Php. 164 Billion was spent on MUP 
pensions, roughly 31.2% higher than the amount spent by Uniformed Services on 
MOOE and CO combined during the same period.2
According to Department of Finance (DOF) Secretary Benjamin Diokno, the 
existing pension system is not sustainable and, if not addressed, will lead to fiscal 
collapse. The gravity of the situation is evident in the 48.39% increase of the Pension 
and Gratuity Fund (PGF) allocation from Php. 183.94 billion in 2022 to Php. 272.94 
billion in 2023.3
Accordingly, this bill seeks to avert this impending fiscal disaster by establishing 
a government-guaranteed insurance and pension fund, the MUP Insurance Fund, to 
provide life insurance, retirement, and other social security benefits to new entrants 
to the uniformed services of the government. This fund shall be managed by the GSIS 
through an office specifically created to manage the MUP Insurance Fund. The fund 
shall be generated through mandatory monthly contributions of 9% and 12% from 
MUPs and the Uniformed Services respectively, or a total of 21% of the total monthly 
base pay of uniformed personnel. The fund and the proceeds from investing portions 
thereof shall be used to pay for the separation and retirement benefits of qualified 
uniformed personnel.
To ensure the viabiliity of the MUP Insurance Fund, the GSIS is empowered to 
charge interests on delayed remittances to the fund, to be paid by the Uniformed 
Services concerned, without prejudice to any action that may be commenced by the 
GSIS or the aggrieved Uniformed Personnel against officers or employees of the 
Uniformed Services responsible for such delay. In addition, the MUP Insurance Fund
2 Inquirer.net. Available at https://newsinfo.inquirer.net/1769556/treasury-exec-govt-spending-more-on-pension-than-soldlers- 
training. Accessed on August 15, 2023.
3 Philstar Global. Available at https://www.phllstar.eom/headlines/2023/03/29/2255259/diokno-warns-fiscal-collapse-uniformed- 
personnel-pensions. Accessed on May 18, 2023.


shall similarly be subject to the audit and examination provided under Repubiic Act 
No. 8291 or the "The Government Service Insurance System Act of 1997".
This bill will be applied prospectively in order to ensure that existing pensioners 
and MUPs in active service prior to its approval shall enjoy the prevailing retirement 
benefits at the time of their initial appointment, recruitment, or admission to the 
uniformed services. Through the creation of the MUP Insurance Fund, it is hoped that 
a viable and sustainable funding source for pension requirements shall be secured, 
and a responsible management of scant government resources shall be realized.
In view of the foregoing, the very urgent passage of JHis m/asure is earnestly 
sought.


NINETEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
Second Regular Session 
]
SENATE
S. B. No. 2446
of tllf is> ■.' -■Mvr
23 SEP 19 P5 S3
RECEIVED BV
Introduced by SEN. WIN GATCHALIAN
AN ACT
STRENGTHENING THE MILITARY AND UNIFORMED PERSONNEL 
PENSION SYSTEM, CREATING THE MILITARY AND UNIFORMED 
PERSONNEL INSURANCE FUND, AMENDING FOR THIS PURPOSE 
REPUBLIC ACT NO. 8291, OTHERWISE KNOWN AS "THE 
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997", AND
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Phiiippines 
in Congress assembied:
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SECTION 1. Short Tide. - This Act shall be known as the "Military and
2 
Uniformed Personnel Insurance Fund Act".
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SEC. 2. Deciaration of Poiicy and Objectives. - The State recognizes the
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invaluable contribution of the uniformed services in providing an environment
6 
conducive to nation-building and economic development. The State likewise
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recognizes the role of uniformed personnel who faithfully carry out their
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mandate to uphold Philippine sovereignty and territorial integrity; to protect
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lives and properties; and to maintain peace, order, and safety - often at great
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personal risk and peril. To recompense such dedicated performance of duty, it
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is hereby declared the policy of the State to provide immediate and adequate
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care, benefits, and other forms of assistance to veterans of the uniformed
13 
services, as well as to their surviving spouses and orphans. Towards this end,


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the State shall develop a sound, viable, and tax-exempt military and uniformed
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personnel insurance and pension fund that caters to the needs of the uniformed
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personnel of the National Government, and motivates them to faithfully abide
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by their commitments to the country and its people.
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SEC. 3. Definition of Terms. - For the purposes of this Act:
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(a) Military and Uniformed Personnel (MUP) Insurance Fund shall refer
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to the special insurance fund for the new entrants to the uniformed services of
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the National Government created under Section 4 of this Act;
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(b) Base Pay shall refer to the primary cash compensation for work
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performed by uniformed personnel of the uniformed services, excluding any
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other pay, allowances, benefits or incentives;
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(c) Average Monthly Compensation (AMC) shall refer to the quotient
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arrived at after dividing the aggregate compensation received by the member
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during his last thirty-six (36) months of service preceding his separation /
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retirement / disability / death by thirty-six (36), or by the number of months he
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received such compensation if he has less than thirty-six (36) months of
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service: Provided, That the average monthly compensation shall in no case
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exceed the amount and rate as may be respectively set by the GSIS Board, in
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consultation with representatives of the Uniformed Services under the rules and
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regulations implementing this Act, as determined by the actuary of the GSIS:
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Provided, further, That initially the average monthly compensation shall not
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exceed Ten Thousand Pesos (P10,000.00);
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(d) Government Service Insurance System (GSIS) shall refer to the
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Government Service Insurance System created by Commonwealth Act No. 186,
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as amended;
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(e) New Entrants shall refer to newly-appointed, -recruited or -admitted
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uniformed personnel of the uniformed services after the effectivity of this Act;
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(f) Uniformed Personnel shall refer to the commissioned officers and
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enlisted personnel of the uniformed services; and
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(g) Uniformed Services shall refer to the Armed Forces of the Philippines
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(AFP), Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau


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of Jail Management and Penology (BJMP), Philippine Coast Guard (PCG) and 
commissioned corps of the National Mapping and Resource Information 
Authority (NAMRIA).
SEC. 4. Military and Uniformed Personnel Insurance Fund. - To carry out 
the purposes of this Act, the Military and Uniformed Personnel Insurance Fund 
is hereby created, herein referred to as the MUP Insurance Fund, as a special 
insurance fund for the new entrants to the uniformed services who received 
their initial appointments after the effectivity of this Act.
The GSIS shall be responsible for the administration of the MUP 
Insurance Fund and the implementation of the provisions of this Act: Provided, 
That the MUP Insurance Fund shall be administered and reported separately 
from the GSIS Social Insurance Fund provided under Section 34 of Republic Act 
(RA) No. 8291, otherwise known as "The Government Service Insurance 
System Act of 1997"; Provided further, That there shall be an office under the 
GSIS specifically created to manage the MUP Insurance Fund.
The MUP Insurance Fund shall not be used for purposes other than those 
provided under this Act. No portion of the MUP Insurance Fund or income 
thereof shall accrue to the General Fund of the national government and its 
political subdivisions, instrumentalities and other agencies including 
government-owned and controlled corporations except as may be allowed 
under this Act.
SEC. 5. Coverage. - Upon recruitment, appointment or admission, 
coverage in the MUP Insurance Fund shall be mandatory for all new entrants 
to the uniformed services.
SEC. 6. Section 3 of RA No. 8291 is hereby amended to read, as follows: 
"Section 3. Compulsory Membership. — Membership in the 
GSIS shall be compulsory for all employees receiving 
compensation, INCLUDING NEW ENTRANTS TO THE 
UNIFORMED SERVICES COVERED BY THE MUP


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INSURANCE FUND, who have not reached the
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compulsory retirement age, irrespective of employment
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status, except members of the Armed Forces of the
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Philippines and the Philippine National Police WHO ARE
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NOT COVERED BY THE MUP INSURANCE FUND,
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subject to the condition that they must settle first their
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financial obligation with the GSIS, and contractuals who
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have no employer and employee relationship with the
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agencies they serve.
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Except for the members of the judiciary and constitutional
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commissions who shall have life insurance only, all
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members of the GSIS shall have life insurance, retirement,
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and all other social security protection such as disability,
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survivorship, separation, and unemployment benefits."
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SEC. 7. Section 24 of RA No. 8291 is hereby amended to read, as follows:
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"Section 24. Compulsory Life Insurance. — All employees,
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INCLUDING NEW ENTRANTS TO THE UNIFORMED
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SERVICES COVERED BY THE MUP INSURANCE
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FUND, except for members of the Armed Forces of the
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Philippines (AFP) and the Philippine National Police (PNP)
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WHO ARE NOT COVERED BY THE MUP INSURANCE
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FUND shall, under such terms and conditions as may be
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promulgated by the GSIS, be compulsorily covered with life
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insurance, which shall automatically take effect as follows:
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XXX"
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SEC. 8. MUP Insurance Fund Generation. - It shall be mandatory for the
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new entrants and the concerned Uniformed Services to pay monthly
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contributions specified in the following schedule:
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Monthly 
Percentage of Monthly Compensation Payable by
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Compensation 
New Entrant Uniformed Services


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I. Maximum Average
2
Monthly Compensation
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(AMC) Limit and Below
9.0%
12.0%
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II. Over the Maximum AMC Limit
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• Up to the Maximum AMC Limit
9.0%
12.0%
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• In Excess of the AMC Limit
2.0%
12.0%
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The Uniformed Services concerned shall include in its annual 
appropriation such sums as may be necessary to cover the required contribution 
provided for in this Act. The manner of collection and remittance of contributions 
to the MUP Insurance Fund shaii be in accordance with the relevant provisions 
of RA No. 8291.
Uniformed Services which delay the remittance of any and ali monies due 
the GSIS under this Act shall be charged interests as may be prescribed by the 
GSIS Board but not less than two percent (2%) simple interest per month. Such 
interest shall be paid by the Uniformed Services concerned: Provided, That the 
imposition of interests on delayed remittances shall not preclude the GSIS or 
the aggrieved Uniformed Personnei from commencing any action against the 
treasurer, finance officer, cashier, disbursing officer, budget officer, or other 
official or employee of the Uniformed Services in accordance with Section 52 of 
RA No. 8291.
SEC. 9. MUP Insurance Fund Investments. - The portions of the MUP 
Insurance Fund which are not needed to meet any current obligation may be 
invested in accordance with Section 36 of RA No. 8291.
SEC. 10. Retirement, Separation and Other Benefits. - The provision of 
retirement, separation, and other benefits chargeable against the MUP 
Insurance Fund, including eligibility requirements, shall be governed by the 
relevant provisions of RA No. 8291.


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SEC. 11. Grant of Additional Retirement and Separation Benefits. - GSIS 
may, upon determination of actuarial soundness, provide better pension 
benefits to qualified military and uniformed personnel retirees covered by the 
MUP Insurance Fund.
SEC. 12. Exemptions from Tax, Legal Process and Lien. - Any provision 
of the law to the contrary notwithstanding, all contributions for the MUP 
Insurance Fund and all accruals thereto and income or investment earnings 
therefrom shall be exempt from any tax, assessment, fee, charge, or customs 
or import duty in accordance with Section 39 of RA No. 8291.
SEC. 13. Government Guarantee. - The government of the Republic of 
the Philippines hereby guarantees the fulfillment of the obligations of the GSIS 
to military and uniformed personnel members covered by the MUP Insurance 
Fund as and when they fall due.
SEC. 14. Cost of MUP Insurance Fund Administration. - The MUP 
Insurance Fund shall bear the costs of its administration and development, in 
such amounts and for limits as the GSIS Board of Trustees may deem 
appropriate, but not exceeding ten percent (10%) of the annual revenues from 
all sources subject to review by Congress every three (3) years after the 
effectivity of this Act: Provided, That the President of the Philippines may, on 
the basis of actuarial and management studies, increase the allotment for the 
administrative and operational expenses for the MUP Insurance Fund.
SEC. 15. Audit and examination. - The MUP Insurance Fund shall be 
subject to the audit and examination provided in Sections 46 and 48 of RA No. 
8291.
SEC. 16. Pension Benefits for Pensioners and Active Uniformed Personnel 
Prior to the Effectivity of this Act- Existing pensioners and uniformed personnel 
in active duty prior to the effectivity of this Act shall enjoy the retirement


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benefits provided under Presidential Decree No. 1638, as amended; Republic 
Act No. 6975, as amended by Republic Act No. 8551; Republic Act No. 9993; 
and other applicable laws.
SEC. 17. Appropriations. - The amount necessary for the implementation 
of the provisions of this Act shall be included in the annual General 
Appropriations Act following its enactment into law.
SEC. 18. Impiementing Ruies andReguiations. - Within ninety (90) days 
from effectivity of this Act, the GSIS and the Department of Budget and 
Management (DBM) shall, in coordination with the Department of Environment 
and Natural Resources (DENR), the Department of the Interior and Local 
Government (DILG), the Department of National Defense (DND), and the 
Department of Transportation (DOTr), and after consultation with directly 
affected stakeholders, promulgate the rules and regulations to effectively 
implement the provisions of this Act.
SEC. 19. Separabiiity Ciause. - If any provision of this Act is declared 
invalid or unconstitutional, the provisions not affected thereby shall remain in 
full force and effect.
SEC. 20. Repeaiing Ciause. - All laws, presidential decrees, executive 
orders, presidential proclamations, rules and regulations or parts thereof 
contrary to or inconsistent with this Act are hereby repealed or modified 
accordingly.
SEC. 21. Effectivity Ciause. -This Act shall take effect fifteen (15) days 
after its publication in the Officiaf Gazette or in a newspaper of general 
circulation.
Approved,