SEVENTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 
1451
of tijo ^ ftrfta rj*
Introduced by Senator Ralph G. Recto
AN ACT
STRENGTHENING THE MILITARY AND UNIFORMED PERSONNEL PENSION 
SYSTEM, 
CREATING 
THE 
MILITARY 
AND 
UNIFORMED 
PERSONNEL 
INSURANCE FUND, AMENDING SECTIONS 3 AND 24 OF REPUBLIC ACT NUMBER 
8291, AND FOR OTHER PURPOSES
Explanatory Note
Uniformed services are vested with the Aegean tasks of upholding Philippine sovereignty 
and territorial integrity; protecting lives and properties; and maintaining peace, order, and safety. 
To perform their respective mandates, uniformed services engage in the active recruitment of 
their respective manpower complement. Such recruitment of military men, police officers, 
firefighters, jail custodians, and coastguardsmen, will invariably result not only in increased 
operational cost today, but also in higher pension payments in the future.
The current system to finance the pension requirements of military and uniformed 
personnel retirees, however, is unsustainable, if not fiscally irresponsible. The pension system is 
entirely dependent on the funds appropriated for pension requirements in the annual general 
appropriations. Apart from the resulting delays in the payment of pension claims, the 
government is also appropriating funds for a ballooning pension requirement without a viable 
fund source. For 2017 alone, the government has set aside P102.44 billion, or 4.1% of its total 
new appropriations, for military and uniformed personnel pension- an amount equivalent fo 
321% of the amount appropriated for the same purpose just a decade ago. Without ample 
intervention, funding requirements for pensioners shall eclipse the operational requirements of 
all active uniformed services in the country in a few years.
This bill seeks to arrest this impending fiscal hemorrhage by establishing a government- 
guaranteed insurance fund to cover the insurance needs of new entrants to the uniformed services 
of the government. This fund shall be managed by the Government Service Insurance System 
(GSIS) and shall be supported by agency contributions equivalent to 21% of the total monthly 
base pay of their respective uniformed personnel. Proceeds from investing the fund shall then be 
used to pay for the separation or retirement benefits of qualified uniformed personnel member. 
This bill also ensures that existing pensioners and uniformed personnel 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 Military and Uniformed Personnel (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 swift passage of this measureis-eqmestly sought.


SEVENTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1451
Senate
of tljr .'ifc rc ta r/
(tty 15 /111 .-03
,(i/
RECEIi/tOLV;
zr..
Introduced by Senator Ralph G. Recto
AN ACT
STRENGTHENING THE MILITARY AND UNIFORMED PERSONNEL PENSION 
SYSTEM, 
CREATING 
THE 
MILITARY 
AND 
UNIFORMED 
PERSONNEL 
INSURANCE FUND, AMENDING SECTIONS 3 AND 24 OF REPUBLIC ACT NUMBER 
8291, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
S e c t io n  1. Short Title. — This Act shall be known as the "Military and Uniformed
2 
Personnel Insurance Fund Act of 2017. ”
3 
S e c . 2. Declaration of Policy and Objectives. -  The State recognizes the invaluable
4 
contribution of the uniformed services in providing an environment conducive to nation-building
5 
and economic development. The State likewise recognizes the role of uniformed personnel who
6 
faithfully carry out their mandate to uphold Philippine sovereignty and territorial integrity; to
7 
protect lives and properties; and to maintain peace, order, and safety -  often at great personal risk
8 
and peril. To recompense such dedicated performance of duty, it is hereby declared the policy of
9 
the State to provide immediate and adequate care, benefits, and other forms of assistance to
10 
veterans of the uniformed services, as well as to their surviving spouses and orphans. Towards
11 
this end, the State shall develop a sound, viable, and tax-exempt military and uniformed
12 
personnel insurance and pension fund that caters to the needs of the military and uniformed
13 
personnel of the National Government, and motivates them to faithfully abide by their
14 
commitments to the country and its people.
15 
S e c . 3. Definition of Terms. -  For the purposes of this Act:
16 
(a) 
Military and Uniformed Personnel (MUP) Insurance Fund shall refer to the
17 
special insurance fund for the new entrants to the uniformed services of the National
18 
Government created under Section 4 of this Act;
19 
(b) 
Base Pay shall refer to the primary cash compensation for work performed by
20 
uniformed personnel of the uniformed services, excluding any other pay, allowances, benefits or
21 
incentives;
22 
(c) 
Government Service Insurance System (GSIS) shall refer to the Government
23 
Service Insurance System created by Commonwealth Act No. 186, as amended;
PAGE 1 or 4


1 
(d) 
New Entrants shall refer to newly-appointed, -recruited or -admitted uniformed
2 
personnel of the imiformed services after the effectivity of this Act;
3 
(e) 
Uniformed Personnel shall refer to the commissioned officers and enlisted
4 
personnel of the uniformed services; and,
5 
(f) 
Uniformed Services shall refer to the Armed Forces of the Philippines (AFP),
6 
Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau of Jail Management
7 
and Penology (BJMP), Philippine Coast Guard (PCG) and commissioned corps of the National
8 
Mapping and Resource Information Authority (NAMRIA).
9 
Sec. 4. Military and Uniformed Personnel Insurance Fund. -  To carry out the purposes
10 
of this Act, the Military and Uniformed Personnel Insurance Fund is hereby created, herein
11 
referred to as the MUP Insurance Fund, as a special insurance fund for the new entrants to the
12 
uniformed services who received their initial appointments after the effectivity of this Act.
13 
The GSIS shall be responsible for the administration of the MUP Insurance Fund and the
14 
implementation of the provisions of this Act: Provided, That the MUP Insurance Fund shall be
15 
administered and reported separately from the GSIS Social Insurance Fimd provided under
16 
Section 34 of Republic Act No. 8291, otherwise known as “TTie Government Service Insurance
17 
System Act of1997."
18 
The MUP Insurance Fund shall not be used for purposes other than those provided for
19 
under this Act. No portion of the MUP Insurance Fund or income thereof shall accrue to the
20 
General Fund of the national government and its political subdivisions, instrumentalities and
21 
other agencies including government-owned and controlled corporations except as may be
22 
allowed under this Act.
23 
Sec. 5. Coverage. -  Upon recruitment, appointment or admission, coverage in the MUP
24 
Insurance Fimd shall be mandatory for all new entrants to the uniformed services.
25 
Sec. 6. Section 3 of Republic Act No. 8291, otherwise known as “The Government
26 
Service Insurance System Act of 1997,” is hereby amended to read as follows:
27 
“SECTION 3. Compulsory Membership. — Membership in the GSIS
28 
shall be com pulsory for all em ployees receiving com pensation a n d FOR NEW
29 
ENTRANTS TO THE UNIFORMED SERVICES COVERED BY THE MUP INSURANCE
30 
F u n d, w ho have not reached the com pulsory retirem ent age, irrespective o f
31 
employment status, except [members of the Armed Forces of the Philippines and
32 
the Philippine National Police, subject to the condition that they must settle first
33 
their financial obligation with the GSIS, and] contractual who have no employer
34 
and employee relationship with the agencies they serve.”
35 
Sec. 7. Section 24 of Republic Act No. 8291, otherwise known as “The Government
36 
Service Insurance System Act of 1997,” is hereby amended to read as follows:
37 
“SECTION 24. Compulsory Life Insurance. — All employees [except for
38 
Members of the Armed Forces of the Philippines (AFP) and the Philippine
PAGE 2 OF 4


1 
National Police (PNP)] AND NEW ENTRANTS TO THE UNIFORMED SERVICES
2 
COVERED BY THE M U P  INSURANCE FUND shall, under such term s and conditions
3 
as may be promulgated by the GSIS, be compulsorily covered with life insurance,
4 
which shall automatically take effect as follows:
5 
“x . X. X.”
6 
Sec. 8. MUP Insurance Fund Generation. — The government agency concerned shall
7 
contribute to the MUP Insurance Fund an amount equivalent to twenty-one percent (21%) of the
8 
monthly base pay of their uniformed personnel appointed after the effectivity of this Act.
9 
The government agency concerned shall include in its aimual appropriation such sums as
10 
may be necessary to cover the required contribution provided for in this Act. The manner of
11 
collection and remittance of contributions to the MUP Insurance Fund shall be in accordance
12 
with the relevant provisions of Republic Act No. 8291, otherwise known as l'The Government
13 
Service Insurance System Act of1997."
14 
Sec. 9. MUP Insurance Fund Investments. -  The portions of the MUP Insurance Fund
15 
which are not needed to meet any current obligation may be invested in accordance with Section
16 
36 of Republic Act No. 8291, otherwise known as “The Government Service Insurance System
17 
Act of1997."
18 
Sec. 10. Retirement, Separation and Other Benefits. -  The provision of retirement,
19 
separation, and other benefits chargeable against the MUP Insurance Fund, including eligibility
20 
requirements, shall be governed by the relevant provisions of Republic Act No. 8291, otherwise
21 
known as “The Government Service Insurance System Act of1997."
22 
Sec. 11. Grant of Additional Retirement and Separation Benefits. — GSIS may, upon
23 
determination of actuarial soundness, provide better pension benefits to qualified military and
24 
uniformed personnel retirees covered by the MUP Insurance Fund.
25 
Sec. 12. Exemptions from Tax, Legal Process and Lien. -  All laws to the contrai'y
26 
notwithstanding, all contributions for the MUP Insurance Fund and all accruals thereto and
27 
income or investment earnings therefrom shall be exempt from any tax, assessment, fee, charge,
28 
or customs or import duty in accordance with Section 39 of Republic Act No. 8291, otherwise
29 
know n as “The Government Service Insurance System Act of1997."
30 
Sec. 13. Government Guarantee. -  The government of the Republic of the Philippines
31 
hereby guarantees the fulfillment of the obligations of the GSIS to uniformed personnel members
32 
covered by the MUP Insurance Fund as and when they fall due.
33 
Sec. 14. Cost of MUP Insurance Fund Administration. — The MUP Insurance Fund shall
34 
bear the costs of its administration and development, in such amounts and for limits as the GSIS
35 
Board of Trustees may deem appropriate, but not exceeding ten percent (10%) of the annual
36 
revenues from all sources: Provided, That the President of the Philippines may, on the basis of
37 
actuarial and management studies, increase the allotment for the administrative and operational
38 
expenses for the MUP Insurance Fund.
PAGE 3 OF 4


1 
Sec 15. Audit. -  The audit of the MUP Insurance Fund shall be conducted in accordance
2 
with Section 22 of Republic Act No. 8291, otherwise known as "'The Government Service
3 
Insurance System Act o f1997."
4 
Sec. 16. Pension Benefits for Pensioners and Active Uniformed Personnel Prior to the
5 
Effectivity of this Act. -  Existing pensioners and uniformed personnel in active duty prior to the
6 
effectivity of this Act shall enjoy the retirement benefits provided under Presidential Decree No.
7 
1638 as amended, Republic Act No. 6975 as amended by Republic Act No. 8551, Republic Act
8 
No. 9993, and other applicable laws.
9 
Sec. 17. Appropriations. -  The amount necessary for the initial implementation of this
10 
Act shall be charged against any available funds and/or savings of the AFP, PNP, BFP, BJMP.
11 
PCG and NAMRIA. Thereafter, such sums as may be necessary for the implementation of this
12 
Act shall be included in the General Appropriations Act.
13 
Sec. 18. Implementing Rules and Regulations. -  Within ninety (90) days from effectivity
14 
of this Act, the GSIS and the Department of Budget and Management (DBM) shall, in
15 
coordination with the Department of Environment and Natural Resources (DENR), the
16 
Department of the Interior and Local Government (DILG), the Department of National Defense
17 
(DND), and the Department of Transportation (DOTr), and after consultation with directly
18 
affected stakeholders, promulgate the rules and regulations to effectively implement the
19 
provisions of this Act.
20 
Sec. 19. Separability Clause. -  If any provision, section or part of this Act shall be
21 
declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any
22 
other provisions, sections or parts hereof
23 
Sec. 20. Repealing Clause. -  All laws, decrees, orders, rules and regulations which are
24 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
25 
Sec. 21. Effectivity. -  This Act shall take effect fifteen (15) days following its publication
26 
in at least two (2) newspapers of general circulation or in the Official Gazette.
27 
Approved,
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