NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1421
of tijf
■22 OCT 27 P3S2
RECEIVED BY;
Introduced by SENATOR RAMON BONG REVILLA, JR.
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 great tasks of upholding Philippine 
sovereignty and territorial integrity; protecting lives and properties; and maintaining 
peace and order.
To perform their respective mandates, uniformed services engage in the active 
recruitment of their respective manpower complement. Such recruitment will 
invariably result not only in increased current operational cost, but also in higher future 
pension payments.
The current pension system for military and uniformed personnel retirees, 
however, is unsustainable. The pension is entirely dependent on the annual general 
appropriations. Apart from delays in the payment of pension claims, the government 
is also facing a ballooning pension requirement without a viable fund source.
For 2022 alone, the government has set aside P163.9 billion, or 3.3 % of its 
total new appropriations, for military and uniformed personnel pensions.
This bill seeks to address the fiscal hemorrhage by establishing a government 
guaranteed insurance fund to cover the insurance needs of new entrants to the 
uniformed services. 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 shail then be used to pay for the separation or retirement benefits 
of quaiified uniformed personnel members. It 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 limited government resources 
shall be realized.
In view of the foregoing, the approval of this bill is most earnestly sought.
RAMON^ONG REVILLA, JR.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1421
Of tlif g'ftrrtflri*
*22 OCT 27 P3 52
R!-CE!V : J 5V:
Introduced by SENATOR RAMON BONG REVILLA, JR.
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 House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. — This Act shall be known as the "Military and Uniformed
2 
Personnel Insurance Fund Act of2022."
3 
Sec. 2. Declaration of Policy. - The State recognizes the invaluable contribution
4 
of the uniformed services in providing an environment conducive to nation-building
5 
and economic development. The State likewise recognizes the role of uniformed
6 
personnel who faithfully carry out their mandate to uphold Philippine sovereignty and
7 
territorial integrity; to protect lives and properties; and to maintain peace, order, and
8 
safety - often at great personal risk and peril.
9 
To recompense such dedicated performance of duty, it is hereby declared the
10 
policy of the State to provide immediate and adequate care, benefits, and other forms
11 
of assistance to veterans of the uniformed services, as well as to their surviving
12 
spouses and orphans.
13 
Towards this end, the State shall develop a sound, viable, and tax-exempt
14 
military and uniformed personnel insurance and pension fund that caters to the needs
15 
of the military and uniformed personnel of the National Government, and motivates
16 
them to faithfully abide by their commitments to the country and its people.


1 
Sec. 3. Definition of Terms. - For purposes of this Act, the following terms are
2 
hereby defined:
3 
(a) Military and Uniformed Personnel (MUP) Insurance Fund shall refer to the
4 
special insurance fund for the new entrants to the uniformed services of the
5 
National Government created under Section 4 of this Act;
6 
(b) Base Pay shall refer to the primary cash compensation for work performed
7 
by uniformed personnel of the uniformed services, excluding any other pay,
8 
allowances, benefits or incentives;
9 
(c) Government Service Insurance System (GSIS) shall refer to the Government
10 
Service Insurance System created by Commonwealth Act No. 186, as amended;
11 
(d) New Entrants shall refer to newly-appointed, -recruited or -admitted
12 
uniformed personnel of the uniformed services after the effectivity of this Act;
13 
(e) Uniformed Personnel shall refer to the commissioned officers and enlisted
14 
personnel of the uniformed services; and
15 
(f) Uniformed Services shall refer to the Armed Forces of the Philippines (AFP),
16 
Philippine National Police (PNP), Bureau of Fire Protection (BFP), Bureau of Jail
17 
Management and Penology (BJMP), Philippine Coast Guard (PCG) and
18 
commissioned corps of the National Mapping and Resource Information
19 
Authority (NAMRIA).
20 
Sec. 4. Military and Uniformed Personnel Insurance Fund. - To carry out the
21 
purposes of this Act, the Military and Uniformed Personnel Insurance Fund is hereby
22 
created, herein referred to as the "MUP Insurance Fund", as a special insurance fund
23 
for the new entrants to the uniformed services who received their initial appointments
24 
after the effectivity of this Act. The GSIS shall be responsible for the administration of
25 
the MUP Insurance Fund and the implementation of the provisions of this Act:
26 
Provided, That the MUP Insurance Fund shall be administered and repotted separately
27 
from the GSIS Social Insurance Fund provided under Section 34 of Republic Act No.
28 
8291, otherwise known as " The Government Service Insurance System Act of1997."
29 
The MUP Insurance Fund shall not be used for purposes other than those provided for
30 
under this Act. No portion of the MUP Insurance Fund or income thereof shall accrue
31 
to the General Fund of the national government and its political subdivisions.


1 
instrumentalities and other agencies, including government-owned and controlled
2 
corporations, except as may be allowed under this Act.
3 
Sec. 5. Coverage. - Upon recruitment, appointment or admission, coverage in
4 
the MUP Insurance Fund shall be mandatory for all new entrants to the uniformed
5 
services.
6 
Sec. 6. Section 3 of Republic Act (RA) No. 8291, or the "The Government
7 
Service Insurance System Act of 1997," is hereby amended to read as follows:
8 
"SECTION 3. Compulsory Membership. — Membership in the GSIS shall be
9 
compulsory for all employees receiving compensation and FOR NEW
10 
ENTRANTS TO THE UNIFORMED SERVICES COVERED BY THE MUP
11 
INSURANCE FUND, who have not reached the compulsory retirement age,
12 
irrespective of employment status, except members of the Armed Forces of the
13 
Philippines and the Philippine National Police, subject to the condition that they
14 
must settle first their financial obligation with the GSIS, and contractual who
15 
have no employer and employee relationship with the agencies they serve."
16 
Sec. 7. Section 24 of Republic Act No. 8291 is hereby further amended to read
17 
as follows:
18 
"SECTION 24. Compulsory Life Insurance. — All employees except for Members
19 
of the Armed Forces of the Philippines (AFP) and the Philippine National Police
20 
(PNP)] AND NEW ENTRANTS TO THE UNIFORMED SERVICES COVERED
21 
BY THE MUP INSURANCE FUND shall, under such terms and conditions as
22 
may be promulgated by the GSIS, be compulsorily covered with life insurance,
23 
which shall automatically take effect as follows: " XXX."
24 
Sec. 8. MUP Insurance Fund Generation. — The government agency concerned
25 
shall contribute to the MUP Insurance Fund an amount equivalent to twenty-one
26 
percent (21%) of the monthly base pay of their uniformed personnel appointed after
27 
the effectivity of this Act. The government agency concerned shail include in its annual
28 
appropriation such sums as may be necessary to cover the required contribution
29 
provided for in this Act. The manner of collection and remittance of contributions to
30 
the MUP Insurance Fund shall be in accordance with the relevant provisions of RA
31 
8291.


1 
Sec. 9. MUP Insurance Fund Investments. - The portions of the MUP Insurance
2 
Fund, which are not needed to meet any current obligation, may be invested in
3 
accordance with Section 36 of RA 8291.
4 
Sec. 10. Retirement, Separation and Other Benefits. - The provision of
5 
retirement, separation, and other benefits chargeable against the MUP Insurance
6 
Fund, including eligibility requirements, shall be governed by the relevant provisions
7 
of RA 8291.
8 
Sec. 11. Grant of Additional Retirement and Separation Benefits. — GSIS may,
9 
upon determination of actuarial soundness, provide better pension benefits to qualified
10 
military and uniformed personnel retirees covered by the MUP Insurance Fund.
11 
Sec. 12. Exemptions from Tax, Legal Process and Lien. - All laws to the contrary
12 
notwithstanding, all contributions for the MUP Insurance Fund and all accruals thereto
13 
and income or investment earnings therefrom shall be exempt from any tax,
14 
assessment, fee, charge, or customs or import duty, in accordance with Section 39 of
15 
RA 8291.
16 
Sec. 13. Government Guarantee. - The government of the Republic of the
17 
Philippines hereby guarantees the fulfillment of the obligations of the GSIS to
18 
uniformed personnel members covered by the MUP Insurance Fund as and when they
19 
fall due.
20 
Sec. 14. Cost of MUP Insurance Fund Administration. — The MUP Insurance
21 
Fund shall bear the costs of its administration and development, in such amounts and
22 
for limits as the GSIS Board of Trustees may deem appropriate, but not exceeding ten
23 
percent (10%) of the annual revenues from all sources: Provided, That the President
24 
of the Philippines may, on the basis of actuarial and management studies, increase
25 
the allotment for the administrative and operational expenses for the MUP Insurance
26 
Fund.
27 
Sec 15. Audit. - The audit of the MUP Insurance Fund shall be conducted in
28 
accordance with Section 22 of RA 8291.
29 
Sec. 16. Pension Benefits for Pensioners and Active Uniformed Personnel Prior
30 
to the Effectivity of this Act. - Existing pensioners and uniformed personnel in active
31 
duty prior to the effectivity of this Act shall enjoy the retirement benefits provided


1 
under Presidential Decree No. 1638 as amended, Republic Act No. 6975 as amended
2 
by Republic Act No. 8551, Republic Act No. 9993, and other applicable laws.
3 
Sec. 17. Appropriations. - The amount necessary for the initial implementation
4 
of this Act shall be charged against any available funds and/or savings of the AFP,
5 
PNP, BFP, BJMP, PCG and NAMRIA. Thereafter, such sums as may be necessary for
6 
the implementation of this Act shall be included in the General Appropriations Act.
7 
Sec. 18. Implementing Rules and Regulations (IRR). - Within ninety (90) days
8 
from effectivity of this Act, the GSIS and the Department of Budget and Management
9 
(DBM) shall, in coordination with the Department of Environment and Natural
10 
Resources (DENR), the Department of the Interior and Local Government (DILG), the
11 
Department of National Defense (DND), and the Department of Transportation
12 
(DOTr), and after consultation with directly affected stakeholders, promulgate the
13 
rules and regulations to effectively implement the provisions of this Act.
14 
Sec. 19. Separability Clause. - If any provision of this Act is declared invalid or
15 
unconstitutional, other provisions hereof which are not affected thereby shall remain
16 
in full force and effect.
17 
Sec. 20. Repealing Clause. - All laws, decrees, orders, rules and regulations
18 
which are inconsistent with the provisions of this Act are hereby repealed or modified
19 
accordingly.
20 
Sec. 21. Effectivity. - This Act shall take effect fifteen (15) days following its
21 
complete publication in the Official Gazette or in at ieast two (2) newspapers of general
22 
circulation in the Philippines.
Approved,