By Wilnard Bacelonia
MANILA – The government could defer up to PHP10.74 billion in retirement-related expenditures if Congress raises the compulsory retirement age of police officers, firefighters and jail personnel from 56 to 57, but the Department of Budget and Management (DBM) cautioned Friday that the financial relief would be temporary.
During the Senate Committee on Public Order and Dangerous Drugs hearing, DBM Chief Budget and Management Specialist Reynaldo Moreno said the proposed extension could postpone PHP7.34 billion in retirement payouts for the Philippine National Police (PNP), PHP1.72 billion for the Bureau of Jail Management and Penology (BJMP), and PHP1.68 billion for the Bureau of Fire Protection (BFP).
The government, however, would incur approximately PHP1.82 billion in additional salaries and allowances in 2027 for personnel remaining in active service.
Senator Panfilo Lacson, who chairs the committee, questioned whether the projected savings would merely postpone government obligations rather than produce lasting reductions in retirement expenditures.
“Pero parang na-postpone lang ‘yung savings, di ba? Eventually magka-catch up (But the savings merely seem postponed, don’t they? Eventually the costs will catch up),” Lacson noted.
Moreno acknowledged that while the government could benefit from lower immediate retirement payouts, costs could increase in succeeding years due to additional longevity pay, accumulated leave credits, salary adjustments and higher retirement benefit computations.
“So, initially, ‘yung sa transition, meron kang savings, pero eventually, maghahabol po ‘yun (Initially, there are savings during the transition, but the costs will eventually catch up),” he said.
The DBM has yet to complete a comprehensive assessment of the proposal’s long-term fiscal implications.
Promotion safeguards
Lacson also raised concerns that extending the service of senior officers could delay promotions among younger personnel waiting for higher positions to become vacant.
He asked the PNP and National Police Commission (Napolcom) to examine a graduated implementation scheme, recalling how similar adjustments in the Armed Forces of the Philippines affected promotion opportunities for certain graduating classes.
Napolcom Vice Chairperson Rafael Calinisan said the impact would depend on the transition provisions, including whether officers approaching compulsory retirement would be covered by the extension.
Lacson requested concerned agencies to address these concerns in their position papers before the committee finalizes its report.
Avoiding another veto
The senator also directed agencies to examine the reasons President Ferdinand R. Marcos Jr. vetoed a broader PNP organizational reform bill in July 2024.
Senate President Pro Tempore Vicente Sotto III noted that the veto message cited compensation disparities, overlapping functions, organizational inefficiencies and concerns over proposed liaison offices that could affect the Department of the Interior and Local Government’s supervision of the police force.
Lacson pointed out that increasing the compulsory retirement age was not expressly identified as a reason for the veto, leaving room for lawmakers to pursue the adjustment through a more focused measure.
The proposals under consideration cover the PNP, BJMP and BFP, whose representatives expressed support for retaining experienced personnel for another year.
The committee will incorporate the agencies’ financial assessments, proposed transition safeguards and recommendations addressing the previous veto before preparing its report. (PNA)
