DBM sees P10.7B savings if PNP, BJMP, BFP retirement age is raised

The Department of Budget and Management (DBM) on Friday said the government may save approximately P10.74 billion should the compulsory retirement age of personnel of the Philippine National Police (PNP), Bureau of Jail Management and Penology (BJMP), and Bureau of Fire Protection (BFP) be raised from 56 to 57.

DBM Chief Budget and Management Specialist Reynaldo Moreno revealed this during the hearing of the Senate Committee on Public Order and Dangerous Drugs on the bills seeking to extend the retirement age for the mentioned uniformed personnel by one year.

According to Moreno, the possible savings would include P7.34 billion for the PNP; P1.72 billion for the BJMP; and P1.68 billion for the BFP.

“Sa kabuuan po, P10.74 billion ‘yung estimated savings na aming na-kwenta,” he added.

(In total, the estimated savings we calculated amount to P10.74 billion.)

Senate President Pro Tempore Vicente “Tito” Sotto III then clarified whether the projected savings would result from the deferred monthly retirement pension for the PNP, BJMP, BFP personnel.

“Mr. Chair, dahil nga po ‘yung bilang na nabanggit ko sa possible na extension na isang taon, ‘yun po ‘yung kapalit naman po…kasi mas made-delay ‘yung implementation,” Moreno answered.

(Mr. Chair, because of the possible extension of one year, this is what we get in return given the delay in their retirement.)

The DBM official noted that raising the retirement age for the uniformed personnel would also incur costs to the government for their additional pay and allowances.

Specifically, for fiscal year 2027, he said it would take approximately P1.18 billion for 1,210 PNP positions; P386 million for 271 BFP positions; and P258 million for 546 BJMP positions.

“Ito pong maaaring impact ay ma-o-offset ng posibleng savings sa PGF (Pension and Gratuity Fund) dahil nga ma-e-extend. Pero mahalagang mai-konsidera din po na ‘yung proposed na extension ng service, in the long run, may epekto sa retirement requirements,” Moreno said.

(This potential impact could be offset by possible savings in the PGF, given the extension. However, it is also important to consider that the proposed extension of service will have an effect on retirement requirements in the long run.) —LDF, GMA News