The Military and Uniformed Personnel (MUP) Pension Reform Bill 2025 marks a significant shift in how retirement benefits are managed for armed forces and uniformed officers in the Philippines.
Designed to ensure long-term financial sustainability and equitable benefits, the reform introduces mandatory contributions, adjusted retirement age, and structured pension enhancements.
The bill successfully passed its final reading in the House of Representatives on September 28, 2025, setting the stage for broad changes in the pension system.
Overview of the MUP Pension Reform
The new law aims to revamp the pension scheme for uniformed personnel by addressing the growing pension liability.
Under the current system, pension payouts are entirely funded by the national government, without requiring any contribution from the personnel themselves. This model has proven unsustainable, prompting a strategic overhaul through this reform.
Who Is Covered Under the MUP Pension System?
The MUP Pension Reform Bill covers the following sectors:
- Armed Forces of the Philippines (AFP)
- Philippine National Police (PNP)
- Bureau of Fire Protection (BFP)
- Bureau of Jail Management and Penology (BJMP)
- Philippine Public Safety College (PPSC)
- Philippine Coast Guard
- Bureau of Corrections (BuCor)
These personnel currently enjoy a system that guarantees automatic pension adjustments based on the active service salary scale and promotion to the next rank upon retirement after 20 years of service.
Eligibility Criteria Under MUP Pension Reform 2025
New rules and agreements under the bill include:
- A fixed retirement age of 57 years for all military and uniformed personnel.
- A maximum retirement pay of 90% of base pay, applicable to those with 36 or more years of service.
- AFP members receive a 5% increase in retirement benefits.
- PNP personnel with less than 20 years of service will be entitled to a lump-sum benefit upon separation.
- Retirement pay starts at 50% of base salary and longevity pay for 20 years of service, increasing by 2.5% per year up to a 90% cap.
Pension Reform Contributions and Benefit Amounts
To stabilize the pension system financially, the reform introduces the following contribution and payout structure:
| Category | Contribution Rate | Payout Details |
|---|---|---|
| New MUP Entrants | 12% of base pay | Contributed to a dedicated pension fund |
| Current Military Personnel | 9% of base pay | Deducted monthly for pension sustainability |
| Retirement Benefit (20 years) | N/A | 50% of base pay + longevity; increases 2.5%/year up to 90% at 36 years of service |
| Annual Compensation Adjustment | N/A | Guaranteed 3% yearly increase in compensation over a 10-year period |
This ensures both sustainability and fairness across new and current personnel.
MUP Pension Reform Rollout Timeline
Although the reform bill has been passed, the official implementation date is yet to be confirmed. Initially slated for May 2025, the government has not finalized the launch date.
Stakeholders and concerned personnel are advised to stay tuned for updates from official sources, and we will update our page promptly once the MUP pension reform date is announced.
The MUP Pension Reform Bill 2025 represents a major shift toward a more sustainable and equitable retirement system for the Philippines’ uniformed services.
By incorporating mandatory contributions, structured retirement benefits, and guaranteed increases, the bill aims to balance the interests of current and future personnel with national budgetary constraints.
Those impacted should carefully review the eligibility requirements and prepare for the upcoming changes to ensure smooth transition into the new system.
FAQs
Who needs to contribute under the new MUP Pension Reform?
New MUP personnel must contribute 12% of their base pay, while current members contribute 9% to the pension fund.
What is the minimum service period for full pension benefits?
Personnel are eligible for full pension benefits after 20 years of service, with benefits increasing by 2.5% for each additional year.
Has the government confirmed the start date for the MUP pension reform?
No, while it was initially planned for May 2025, the final implementation date has not been announced yet.