The government will save P11 billion annually once reforms are implemented in the military’s retirement system, an official of the Armed Forces Retirement and Separation Benefits System (RSBS) disclosed yesterday.
RSBS president Emilio Marayag said the proposed reforms would address concerns that the government might be spending too much on retirees’ benefits.
“Our initial estimate is that once these (reforms) are approved, (the government would save) P11 billion per year,” Marayag said in a chance interview during the 35th anniversary of RSBS last Thursday in Quezon City.
He said the figure is based on the assumption that retired officers’ pension would increase by 11 percent while that of enlisted personnel would grow by 16 percent.
Marayag said the government would spend an additional P900 billion for pension benefits in 29 years if the current system were retained.
“Instead of spending P100 million (for benefits), the government would have to spend P1 trillion in 29 years,” he said.
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