Teodoro: Current military pension system draining public funds

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Metro Manila (CNN Philippines, June 7) — New Defense Secretary Gilbert Teodoro on Wednesday described the current military pension system as a "big drain" on the yearly budget.

"It's a big financial drain on our yearly appropriations. And since the salaries were increased, it takes a chunk out of our National Pie. And we really need to find a new system which will ease the hemorrhage," Teodoro told CNN Philippines' The Final Word.

The new defense chief earlier said the president's first marching order was for him to help address the contentious issue of reforming the military and uniformed personnel or MUP pension system

READ: Biting the bullet: The Marcos administration's push for MUP pension reform 

Teodoro said the new system should be able to balance financial sustainability and still give due regard to the sacrifices and service of uniformed personnel.

"Now I see my role basically as an intermediary between the recipients the soldiers, and the legislature and our economic managers," the secretary added.

Teodoro said he will consult with stakeholders, and expressed optimism that all parties will be able to reach an agreement on the matter.