27/08/2026
𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁
I wish to make some clarifications regarding an article which was published today in the Philippine Star headlined, “P143 billion MUP pension nearly triple AFP’s modernization budget”. It is important to point out some facts to frame the issue accurately.
While the MUP budget is indeed triple the AFP modernization budget, it should be noted that only 49.6% of the total MUP pension budget is earmarked for AFP retirees. The rest go to other security services. Therefore, to equate the total MUP pension to the AFP modernization is not accurate as a comparison indicator.
Second, the MUP debate, when framing the debate with respect to modernization, evades the key question of total resources devoted to the AFP and to the defense space. As of this time, with worldwide vulnerabilities, almost all countries have made the conscious decision to increase defense spending in large adjustments - we cannot be immune to this.
Third, the AFP Modernization budget and the Modernization Law must be reviewed and the latter repealed. The AFP Modernization budget was supposed to be sourced from BCDA remittances, which as we all know, have been marginal and need to be subsidized by the National Government. Worse, defense-optimized national real estate assets were lost. This must be halted and the corporate structure of BCDA be abolished to reduce cross-subsidies and other administrative costs which should have gone to the AFP. On the Modernization Law, which entity works on 15-year horizons this day and age?
Lastly, our soldiers address a variety of missions, 365 days a year, without any breaks. Our force structure is extremely lean and, given the fact that they must keep watch over 7,600 plus islands and 2.4 million square kilometers of maritime area on a purely National Government basis and do services for other Government Entities including LGUs etc., their pensions should be National Government derived. The other agencies are geared towards securing more identifiable sectors, it is but fair that these sectors share in their pension burdens.
Our AFP pensioners, although retired, are an integral part of continuing defense efforts and actively contribute in various ways to securing our sovereignty and territorial integrity over and above the service that they have already rendered to our people.
I am not opposing reforming pension systems, but it must be done under the spirit laid down by this clarification.
Gilberto C. Teodoro, Jr.
Secretary
Department of National Defense
