Defense Secretary Gilberto C. Teodoro Jr. has clarified recent comparisons between the proposed P143-billion Military and Uniformed Personnel (MUP) pension budget and funding for the Armed Forces of the Philippines (AFP) modernization program, stating the figures do not accurately measure military resource allocation.
Responding to a newspaper report titled “P143 billion MUP pension nearly triple AFP’s modernization budget,” Teodoro pointed out that only 49.6 percent of the total MUP pension allocation is earmarked for AFP retirees, with the remainder distributed among other security agencies.
“Therefore, to equate the total MUP pension to the AFP modernization is not accurate as a comparison indicator,” Teodoro said. He emphasized that global security vulnerabilities require nations to increase overall defense spending, adding, “we cannot be immune to this.”
Teodoro also called for the repeal of the AFP Modernization Law and a comprehensive review of its budget. He noted that modernization was supposed to rely on Bases Conversion and Development Authority (BCDA) remittances, which have remained “marginal” and required national government subsidies. Furthermore, he advocated for abolishing the corporate structure of the BCDA to eliminate administrative costs and cross-subsidies, while questioning the relevance of the law’s 15-year planning horizon in today’s security landscape.
Highlighting the continuous operations of soldiers protecting over 7,600 islands and 2.4 million square kilometers of maritime territory, Teodoro argued that AFP pensions must remain funded by the national government. He added that retired military personnel stay actively engaged in supporting national sovereignty.
While clarifying his position, Teodoro noted he is open to adjustments, “I am not opposing reforming pension systems, but it must be done under the spirit laid down by this clarification.”