CPBRD Notes
Congressional Policy and Budget Research Department
July 2017
Reforming the Pension System
for the Military and Uniformed Personnel*
The Constitution provides for immediate and
adequate care, benefits and other forms of assistance
to war veterans, and veterans of military campaigns,
their surviving spouses and orphans. The objective
is to reward the men and women in uniform for
their bravery and selfless service to the nation.
The Armed Forces of the Philippines Retirement
and Separation Benefits System (AFP-RSBS)
was established in 1973 by virtue of Presidential
Decree No. 361. Its primary mandate was to ensure
the “welfare of those who serve in the Armed
Forces of the Philippines after their retirement
or honorable separation” from service. The AFP-
RSBS was intended to guarantee the continuous
financial support to and self-sufficiency of the
retirement and separation benefits scheme for
the military. However, the AFP-RSBS failed to
sustain the pension funds admittedly due to the
generous pension package, limited contribution,
and increasing number of pensioners.1
At present, the national government (NG) annually
appropriates for the retirement and pension pay of
the Military and Uniformed Personnel (MUP). The
pension costs have sufficiently grown over the years
and were estimated to eventually surpass the payroll
for active MUP by the year 2022.2 This situation is
alarming because of the fiscal burden on NG, and
the difficulty in the payment of pensions of existing
and incoming MUP retirees.
* This paper was prepared by Aurea Hernandez-Sempio. The study benefitted from discussions with Director Pamela Diaz-Manalo, Executive
Director Roentgen F. Bronce, and Director General Romulo Emmanuel Miral, Jr. Ph.D. The views, opinions, and interpretations in this report do
not necessarily reflect the perspectives of the House of Representatives as an institution or its individual Members.
1
The AFP-RSBS recognized the causes of its collapse in the frequently asked questions (FAQs) published at http://www.afprsbs.com/faqs.html.
2
Explanatory Note, House Bill No, 1137
No. 2013-01
No. 2017-03
Background on the AFP-RSBS
The AFP-RSBS was created initially for the active
military members of the AFP. It was funded out
of the following: (1) appropriated seed money
amounting to P200 million; (2) contributions
equivalent to four percent (4%) of the monthly
base and longevity pay of the officers and enlisted
personnel of the AFP, (3) donations, gifts, legacies,
bequests, etc., (4) tax free earnings of the System,
and (5) additional lump sum fund worth P200
million under P.D.1909, s. 1984.
Under the AFP-RSBS, the monthly contributions
of the military personnel had no corresponding
counterpart from the government, and the
accumulated contributions are returned to the
soldiers or their beneficiaries upon separation from
service, retirement or death. In the case of the
GSIS and SSS members, the contributions were not
subject to refund and they are used to further make
the retirement fund grow and sustain the civilian
pension requirements.
Membership to the AFP-RSBS was later extended
to retired members of the military who were
also required to contribute five percent (5%) of
their gross monthly pension. The military retirees
(or their beneficiaries) were also entitled to a full
refund of their total contributions upon the
“termination of their entitlement to the retirement
Reforming the Pension System for the Military and Uniformed Personnel

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Table 1
Pensions of Uniformed/Military Personnel
2012-2015, (In Million Pesos)
Average
Share to
Agencies 2012 2013 2014 2015
Total (%)
(2012-2015)

DND 34,347.8 39,703.2 39,097.3 42,377.5 62.3

GHQ 27,238.7 29,117.9 29,200.3 32,480.5 47.4

PVAO 7,109.1 10,585.3 9,897.0 9,897.0 14.9

DILG 17,701.4 23,894.2 25,443.6 25,600.3 36.8

BFP 968.1 1,324.7 1,457.1 1,457.1 2.1

BJMP 696.6 982.0 1,080.2 1,103.9 1.5

PNP 16,036.7 21,587.5 22,906.3 23,039.3 33.2

DENR – NAMRIA 14.7 19.5 17.6 15.9 0.0

DOTC – PCG 453.9 541.6 591.3 639.1 0.9

Total
52,517.8 64,158.4 65,149.8 68,632.8 100.0
Source: General Appropriations Act 2012-2015

pension from the government” (P.D. No. 1909)—
e.g., upon death, change of citizenship. The lack
of government counterpart fund, the return of
soldiers’ contribution, and the relatively generous
retirement package of the AFP-RSBS resulted in
the collapse of the military pension system.
Fiscal Burden Due to MUP Pensions
Unlike the civilian personnel in government and
private sector employees who contribute to the
GSIS and SSS, respectively, pensions of the military
and uniformed personnel are fully subsidized by the
NG through annual appropriations. Table 1 shows
that the total allocation for pensions grew by P16.1
billion or 30% within three years—from P52.5
billion in 2012 to P68.6 billion in 2015. Those who
get the bulk of the pension funds are the military
(GHQ-47.4%) and police (PNP-33.2%).
Similarly, a CPBRD study observed that about 10%
of the NG budget for personal services (PS) was
utilized for pensions. It steadily grew from P27.4
billion in 2005 to as much as P68.4 billion by 2013,
about 98% of which was paid out to the retired
MUP alone (Manalo 2015). This year, appropriation
for the MUP pension is P102.4 billion (GAA 2017).
Extraordinary Pension Package. The growing
amount of pension funds is partly due to the
extraordinary pension package for the MUP. Under
the amended law3 on the AFP-RSBS, members of
the military who are due to retire are promoted to
the next rank—hence, increasing the base of their
retirement pay. The monthly pension of the retirees
are also automatically adjusted to the prevailing
salary rates of their counterparts in active service.
Thus, any planned salary increase for MUPs
automatically carries with it the additional funding
requirement for pension adjustments.
Aside from the regular monthly pension, Table 2
shows the other subsidies/benefits for MUP. They
receive additional monthly “old-age pension” of
up to P5,0004, and “total administrative disability
pension” (P1,700 per month for spouse and P500
per month for each minor children)5 starting at
3
Section 17 of PD 1638, s. 1979
4
Republic Act No. 7696, Section 3
5
Republic Act. No. 7696, Section 2, paragraph (h)
 Congressional Policy and Budget Research Department

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Table 2
Pension Package for Military/Uniformed Personnel
Pension Age Legal Basis Computation
3 Years Lump Sum Benefit 56 PD 1638 1 month base pay & longevity of the next grade higher than
the permanent grade last held, multiplied by 36 months
Regular Monthly Pension 59 PD 1638 1 month base pay & longevity of the next grade higher than
the permanent grade last held, automatically adjusted
based on existing salary rate in active duty
Old Age Pension 65 RA 7696 as P5,000 per month
amended
Total Administrative 70 RA 7696 as P1,700 per month + P500 per month for spouse and for
Disability Pension amended each minor child
Survivorship Benefit Death RA 7696 as P1,000 per month for surviving spouse and for each minor
(PVAO) amended child
Survivorship Benefit (AFP) Death PD 1638 50%-70% of regular pension
Educational Benefits Death P18,000 per semester per college student
Burial Death P1,000 granted to the next kin of a deceased veteran
Assistance
Regular Disability Benefit Disability Ranging from P500 to P1,700 per month, depending on
disability
Source: CPBRD Discussion Paper, Issue No.7, August 2015

age 65 and 70, respectively. These benefits were
initially exclusive to those in military service but
were later extended to the uniformed personnel
of the Philippine National Police (PNP),6
Bureau of Fire Protection (BFP), Bureau of Jail
Management and Penology (BJMP),7 as well as to
the Philippine Coast Guard and National Mapping
and Resource Information Authority (NAMRIA)
of the Department of Environment and Natural
Resources (DENR). The inclusion of these groups
of uniformed personnel greatly increased the budget
requirement for the MUP’s pension fund.
Poor Monitoring of MUP Pension. There are
potential leakages in the pension system that could
bloat the financial obligation of NG. According to
the 2015 Annual Audit Report of the Commission
on Audit (COA), the databases of the Pension
Management Information System (PenMIS)
of the AFP are unreliable. This led to the poor
monitoring of the pension system as evidenced by
the overpayments and unclaimed checks, among
others. The COA findings also include lax data entry
control with 46 records without dates of birth and/
or separation from service of MUP.

It may be noted that the salary rates of MUP were
not adjusted under the recent Salary Standardization
Law (SSL IV) because of the fiscal implications of
the indexation policy of MUP pensions. Instead of a
raise in basic salary, the MUP were given provisional
allowance and an increase in hazard pay and officers’
allowance until such time that their base pay schedule
is modified and rationalized.8
The COA recommended that the AFP Management
form a Technical Working Group to revisit its
procedures, particularly in the monitoring of active
and deceased retirees. COA also emphasized the need
to update the locations/addresses of pensioners,
and group them by province, city, municipality and
barangays to facilitate the investigation of pensioners
with suspicious status.

6
Section 74 of RA 6975, s. 1990
7
Section 2 of RA 9263, s. 2004
8
Executive Order No. 201, s. 2016

1
Reforming the Pension System for the Military and Uniformed Personnel
Page 4
Pension Reforms for MUP
The fast growing pension expense has already
raised concerns among the government economic
managers. They recognize the need to establish a
balance between NG’s fiscal stability and its policy
of providing socio-economic security to the military
and uniformed personnel who stake their lives for
the country.
There are proposals to institute reforms in the
pension system for MUPs. These include the
following: (1) Full deactivation of the AFP-
RSBS, (2) Integration of the military/uniformed
personnel into the GSIS retirement/pension system,
(3) Creation of a Uniformed Personnel Retirement
Fund (UPRF) to be managed by the GSIS, and
(4) Repeal of the indexation provisions in various
retirement laws for MUP.
Deactivation of the AFP-RSBS. Despite the
deactivation order contained in Executive Order
No. 590 in 2006, the AFP-RSBS is still operational.9
The System has not been fully liquidated after eleven
years. It was supposed to have transferred its assets to
a government financial institution, sold these assets
and remitted the proceeds from the sale to a Trust
Fund. All these activities should have been done
for purposes of giving back to the members their
contributions with 6% interest upon retirement. Last
year (2016), Memorandum Order No. 90 was issued
by Malacanang directing the abolition of the AFP-
RSBS with the same instructions and procedures
stated in E.O. No. 590, s. 2006.
Integration of the MUP into the GSIS System.
The proposal to merge the MUP’s retirement
scheme with the GSIS system was seen as a possible
threat to the financial stability of GSIS. In an article
by DBM Secretary Diokno (2013), he emphasized
that the distinctions in the structures of retirement
benefits being enjoyed by the MUP compared with
those received by the civilian employees may put
9
There is an ongoing recruitment of applicants for various
vacant positions in the AFP-RSBS official website (www.afprsbs.
com) as of date.
too much pressure on the fiscal soundness of the
pension fund.
Military and uniformed personnel retire at age
56 (with at least 20 years of active service) while
civilian employees retire four to nine years later at
age 60 or 65. The gap in retirement age and the
generous retirement packages for MUP may cause
the GSIS fund to dwindle at the expense of civilian
employees.
Creation of a Uniformed Personnel Retirement
Fund (UPRF). The President in his 2017 Budget
Message recognized the need to create a retirement
fund that will reduce (if not end) the yearly
appropriations for pensions of MUP. The proposed
pension reform law is expected to ease NG of the
pressure brought about by the ballooning budget
for pensions of MUP.
House Bill No. 1137 filed this 17th Congress seeks
to establish the Uniformed Personnel Retirement
Fund (UPRF) requiring both the MUP and NG to
contribute to the Fund. Additional funds for the
UPRF will come from the proceeds of the lease or
joint development, reclamation projects, and sale or
disposition of public lands (to be authorized by the
President).
Table 3
Proposed Schedule
of Contribution to UPRF
Member NG
Schedule
Contribution Counterpart
First three (3) years 5% 22%
Next three (3) years 7% 20%
Every year thereafter 9% 18%
Source: House Bill No. 1137, 17 Congress
th
Table 3 shows the schedule that gradually reduces the
NG share in contribution from 22% (during the first
three years) to 18% (on the seventh year thereafter).
The staggered reduction in NG counterpart is
a way of transitioning to a system comparable to
the GSIS where employee contribution is at 9% of
the member’s monthly salary. Although the UPRF
shall be managed by the GSIS, it is proposed to be
 Congressional Policy and Budget Research Department

Page 5

maintained separately from that of the government
civilian employees’ pension scheme.
Under HB 1137, the proposed schedule of
graduated contributions to UPRF may need to be
clarified. The law should be clear on whether all
contributing members will have to pay 9% of the
premiums by the 7th year of the effectivity of the
law or that all new MUP entrants (regardless of
year of appointment) will have to go through the
schedule that settles their contribution at 9% on the
7th year from the members’ appointment. The latter
case could possibly result in different take home pay
among members of the same rank but of different
years of entry to the service.
Removal of the Indexation Provision. The
number of retirees from the military services
has increased by 6,000 annually since 2014 and is
expected to grow by the same size until 2018 (SEPO
2012). The fast growing pension payroll brought
about by the yearly increase in number of retirees
and the indexation of MUP pensions have resulted
in accumulated liabilities of NG amounting to
about P18 billion (as of 2012).10
of the indexation provision in the retirement law,
and it may also review the provision on automatic
promotion given to retiring MUP.
However, extra care is needed to guarantee that the
change in the pension scheme will still be fair and
attractive to those who want to join the military
and uniformed services. Problems encountered by
the AFP-RSBS which led to its abolition should
provide lessons for the pension system that shall be
set up for the military and uniformed personnel. A
transition plan may be explored to ease the tension
that might be caused by the revocation of the
indexation provision.
Once a UPRF is set up, a periodic monitoring of
the system should be undertaken such that any
future proposal to increase the retirement benefits
of MUP should take into account the viability of
the Fund. The efficient and regular monitoring of
legitimate retirees should also plug leakages in the
pension system.

As early as 2013, DBM Secretary Diokno pushed

for the cancellation of the indexation provision in
the existing MUP Retirement Law. Concerns on a
possible mass retirement among MUP who would
want to avail of the existing generous retirement
scheme were also raised. A well-designed transition
plan must be prepared to cushion the impact of a
possible mass retirement resulting in shortage of
defense manpower for the country.

Summary

The growing fiscal burden due to rising pension

expenditures needs immediate attention. The
indexation of MUP pension with those in active
service continues to put a heavy toll on NG
finances. Congress needs to consider the repeal

10
COA Legal Information Archive, Decision No. 2015-125, April 6,
2016
Reforming the Pension System for the Military and Uniformed Personnel
Page 6
References
AFP-RSBS, ‘Frequently Asked Questions’, [Online],
Available at www.afprsbs.com/faqs.html.
Annual Audit Report (2015), ‘Executive Summary’,
Department of National Defense, Commission on
Audit, [Online], Available at www.coa.gov.ph.
Decision No. 2015-129 (2015),’Money claim of CAUSA-
AFPRVPI on payment of their accumulated pension
amounting to P17,891,468,975, Commission on
Audit, [Online], Available at www.coa.gov.ph.
Diaz-Manalo, Pamela (2015), ‘An Analysis of the
National Government Expenditures for Personal
Services’, CPBRD Discussion Paper, House of
Representatives.
Diokno, Benjamin (2013) ’Military Pension’, Per Se,
University of the Philippines, August 17, [Online],
Available at: www.econ.upd.ph/perse.
House Bill No. 1137 on the Amendment of Pertinent
Laws on the Retirement Benefits and Pension of the
Uniformed Personnel of the Uniformed Services
(authored by Representative Gary C. Alejano), 17 th
Congress.
Republic of the Philippines, General Appropriations Act
(GAA) (various years) Republic of the Philippines
(September 1979) Presidential Decree No.1638
“Establishing a New System of Retirement and
Separation for Military Personnel of the Armed
Forces of the Philippines and for other Purposes.”
Republic of the Philippines (April 1994) Republic
Act No. 7697 “Amending Certain Sections of
Republic Act No. 694 Otherwise Known as “An
Act Standardizing and Upgrading the Benefits for
Military Veterans and their Dependents.”
Republic of the Philippines (December 2006) Executive
Order No. 590, s. 2006 “Deactivating the Armed
Forces of the Philippines Retirement and Separation
Benefits System by 31 December 2006, Directing
the Transfer of its assets in Trust to a Government
Financial Institution, and for Other Purposes.”
Republic of the Philippines (April 2016) Memorandum
Order No. 90, s. 2016 “Directing the Abolition of
the Armed Forces of the Philippines-Retirement
and Separation Benefits System (AFP-RSBS),
Privatization of its Subsidiaries, and for Other
Purposes.”
Republic of the Philippines (December 1973),
Presidential Decree No. 361 “Providing for an
Armed Forces Retirement and Separation Benefits
System.”
Republic of the Philippines (September 1979),
Presidential Decree No. 1638 “Establishing a New
System of Retirement and Separation for Military
Personnel of the Armed Forces of the Philippines
and for Other Purposes.”
Republic of the Philippines (March 1984), Presidential
Decree No. 1909 “Further Amending Presidential
Decree 361Establishing the Armed Forces of the
Philippines Retirement and Separation Benefits
System.”
Republic of the Philippines (December 1990), Republic
Act No. 6975 “An Act Establishing the Philippine
National Police under a Reorganized Department
of the Interior and Local Government and for
other Purposes.”
Republic of the Philippines (February 1998), Republic
Act No. 8551 “An Act Providing for the Reform
and Reorganization of the Philippine National
Police and for other Purposes, Amending Certain
Provisions of Republic Act Numbered Sixty nine
Hundred and Seventy-Five Entitled, ”An Act
Establishing the Philippine National Police under a
Re-organized Department of the Interior and Local
Government, and for other Purposes.”
Republic of the Philippines (March 2004), Republic
Act No. 9263 “An Act Providing for the
Professionalization of the Bureau of Fire Protection
(BFP) and the Bureau of Jail Management and
Penology (BJMP), Amending Certain Provisions of
Republic Act No. 6975, Providing Funds Thereof
and for Other Purposes.”
SEPO (January 2012), ‘The AFP Pension System,’ At a
Glance, Senate of the Philippines.
The President’s Budget Message (2017), ‘Budget
Philosophy’, pp. 24-25, [Online], Available at www.
dbm.gov.ph.
 Congressional Policy and Budget Research Department

Page 7

Monitoring Compliance
to Gender and Development Budget Policy*
The passage of the Women in Development and
Nation Building Act of 1992 (RA 7192) paved
the way for the recognition of women in nation
building. The law set forth the indispensable role
of women in all aspects of national development
and the fundamental equality of women and men
before the law.
Three broad strategies were identified under RA
7192 to achieve the policy of providing equal
rights and opportunities. These include: 1) setting
aside and utilizing a substantial portion of official
development assistance (ODA) funds to support
programs and activities for women; 2) ensuring
that women benefit equally and participate directly
in the development programs and projects of
all government departments; and 3) “gender
mainstreaming” or removing gender bias in the
regulations, circulars, issuances and procedures of
all government departments and agencies. Under
RA 7192, the National Economic Development
Authority (NEDA) is the lead agency responsible
for ensuring that women are recipients of programs
funded out of foreign aid, grants, and loan.
GAD Budget Policy
Women (MCW) in 2009. From thereon, the 5%
mandatory spending for GAD is stipulated in the
GAA-General Provisions. The said budget can be
used: 1) to support in full GAD-focused programs
and activities, 2) to partially fund agency flagship
programs that integrate gender perspectives, or 3)
to serve as counterpart fund to support gender-
responsive ODA-funded projects.
To determine how much of the agency budget
can be attributed to the GAD budget, the agency
subjects its programs to gender analysis using the
Harmonized Gender and Development Guidelines
(HGDG)2 (See Table 1). Depending on the score,
a corresponding percentage of the budget of an
agency may be attributed to the GAD budget.
For example, a program that is identified with
“promising GAD prospects” may be given a score
between 4.0 - 7.9, thus, 25% of the budget for such
program can be tagged for the GAD budget.
Table 1
Harmonized Gender
and Development Guidelines
Corresponding budget for
the year of the program
HGDG Score Description
that may be attributed to
the GAD budget (%)
Below 4.0 GAD is invisible 0%

While RA 7192 sought to ensure Gender and Promising GAD

4.0-7.9 prospects 25%
Development (GAD) funding through the ODA, it (conditional pass)
was the 1995 General Appropriations Act (GAA)
8.0-14.9 Gender sensitive 50%
that initially required all public entities1 to set aside
no less than 5% of their annual approved budget 15.0-19.9 Gender-responsive 75%
to support gender-related programs and activities. Fully gender-
The GAD budget policy gained affirmation with 20.0
responsive
100%

the enactment of RA 9710 or the Magna Carta of Source: Joint Memorandum Circular 2012-01(PCW, NEDA, DBM)

* This paper was prepared by Priscilla B.Escama. This paper benefited from the inputs of Director Pamela Diaz-Manalo, and the overall
guidance of Executive Director Roentgen F. Bronce and Director General Romulo E.M. Miral, Jr.
1
Public entities refer to all government agencies, state universities and colleges (SUCs), government-owned-and-controlled corporations
(GOCCs), and local government units (LGUs).
2
Harmonized Gender and Development Guidelines (HGDG) is a tool to integrate gender concerns in the design, management, implementation,
monitoring and evaluation of agency programs and projects.
Monitoring Compliance to Gender and Development Budget Policy

Page 8

Reporting and Monitoring System (GMMS). It is an online platform for the

submission, review and endorsement of GPBs and
All agencies must submit their respective GAD Plan GAD accomplishment reports.
and Budget (GPBs) and Accomplishment Report
(ARs) every January (one year before the national Meanwhile, the Commission on Audit (COA) issued
budget year) to the Philippine Commission on last 18 March 2014 the Revised Guidelines in the
Women (PCW). The PCW is the overall authority Audit of GAD Funds and Activities in government
mandated to ensure the implementation of RA agencies to ensure agency compliance with existing
9710 or the Magna Carta for Women. It is tasked laws and regulations, and to monitor the proper
to monitor, approve, endorse, and submit the utilization of the GAD budget.
consolidated GPB reports to the President, Congress,
DBM and NEDA as stated in the JMC 2012 -01.3
GAD Plan and Budget Report Compliance
Preparation of the agency’s GPB is supervised
and reviewed by the members of the GAD Focal Prior to the implementation of the GMMS, all GAD
Point System (GFPS) before submission to PCW. plans and budget were manually received by the PCW.
The review by the GPFS and subsequently by the Despite the intent of the GMMS to facilitate review
PCW focuses on the alignment of the GAD plan and endorsement, the initial years of implementation
with the GAD agenda as embodied in the Magna Carta posted some challenges resulting in relatively low
for Women: 1) to ensure that the identified programs submission of GPBs for FY 2015-2017.
and activities are gender responsive, 2) that expected
outcomes and performances have been identified, and 3) Table
that the 5% GAD budget has been properly disbursed. GPB Submission vs. Endorsement
2015 - 2017
All reports that pass the review of the PCW are GAD Plan and Budget (GPBs)
Year
endorsed to the DBM. However, reports that are Submission Endorsed
2015-2017 (%)
(no.) (no.)
found to be inconsistent with the GAD agenda are 2015 662 193 29.2
returned to the agency for further evaluation and
2016 624 150 24.0
revision by the Gender Focal Point person using the
2017 556 127 22.8
HGDG. During the preparation of the GAD Annual
Source: PCW Compliance Report, 2016
Report, the agency again administers the HGDG
test to determine the extent of the attainment of the
targeted HGDG score. This score will be the basis Based on the compliance report4 prepared by the
in determining actual expenditure for GAD. PCW in 2016, there is a decreasing trend in both
submission and endorsement of the GPBs. Total
The Social Watch (2010) noted in its review of the GPB submission declined from 662 in 2015 to 556 in
Philippine GAD budgeting process that while the 2017. Less than one-third (29.2%) of the total GPBs
Philippines authorizes at least 5% of the budget for submitted in 2015 was endorsed. The endorsement
GAD, there is lack of operational mechanisms to ratio was much lower at 22.8% for fiscal year 2107.
actively promote compliance and performance. To
address the problem, PCW implemented, starting According to the PCW, the low endorsement rate
in 2015, the General Mainstreaming Monitoring can be attributed to the following reasons:

3
JMC 2012–01, “Guidelines in the Preparation of the Annual GAD Plan and Budget and GAD Accomplishment Report to Implement the Magna
Carta of Women”, issued by the NEDA, PCW and DBM.
4
The Philippine Commission on Women published in December 31, 2016 the “Report on the Compliance of National Government Agencies in
the Gender and Development (GAD) Budget Policy: FY 2014 – 2017.”

(1) the agency GPBs are not aligned with the GAD
parameters, (2) many agencies still lack an overall
GAD agenda to guide them in their GPB
preparation; and (3) limited number of PCW
reviewers. Note that the Compliance Report does
not cover late submissions, and those agencies not
registered in the GMMS.
All GPBs that are not endorsed by PCW are
returned to the agency for review, and remain in the
GMMS. It is not certain how the implementation of
the GPB plans proceed at the agency level absent
the endorsement of the PCW. Moreover, a question
may be raised on whether unendorsed GPBs should
be funded.
Meanwhile, only 546 accomplishment reports (ARs)
were submitted in 2015—of which 160 or 29.3%
was reviewed by the PCW. The number of reviewed
ARs in 2015 is considerably lower compared with
183 or 31.2% in 2014. The PCW attributed the
rather low review of ARs to limited manpower.
All reviewed ARs which do not meet the reporting
standard as embodied in the guidelines (JMC 2012-
01) are returned to the agencies for review and,
likewise, remain in the GMMS.
GAD Gender Issues and Challenges
“The GAD Budget Policy is undoubtedly an
important instrument in the realization of gender-
responsive governance in the Philippines. As a
guaranteed fund for GAD projects, it ensures
that the empowerment of and development
of women are kept in the regular government
planning.” (Francisco 2001) However, some issues
and challenges in the implementation of the GAD
budget need to be addressed in terms of improving
compliance, ensuring accountability, and monitoring
for results.
On Compliance. Low endorsement and review of
GAD Plan and Budget (GPB) and Accomplishment
Report (AR) is largely due to the lack of an over-
all GAD agenda that could guide the agency in the
Congressional Policy and Budget Research Department
Page 9
GPB preparation. The inability to identify gender
issues and GAD programs, activities and projects
that are relevant to the agency mandates contributes
to the delays in report submission and endorsement.
Frequent changes in the membership of the GFPS
and Technical Working Group (TWG) also hamper
the efficiency of GAD planning and reporting.
GAD tasks must be considered as a regular function
rather than just an intervening assignment to GAD
focal point staff.
The PCW also needs to undertake more GAD-
related capacity building programs. Agencies should
be made familiar with—1) the use of the HGDG to
determine the 5% GAD budget, and 2) identifying
GAD-related programs and performance
measurements. Agencies should be acquainted with
the Gender Mainstreaming Monitoring System
to encourage registration, timely submission, and
efficient monitoring of the GAD reports.
On Accountability and Monitoring. “The
weakest part of the implementation of the GAD
Budget Policy is seen to be the budget execution,
the related task of accounting for the gender budget
and, the linking of the GAD investments to GAD
results” (Illo et al. 2010). The oversight of the GAD
budget may not be left solely to the PCW. More
participatory methods of monitoring can be used
to complement the existing reporting procedures.
Agencies should be able to diligently prepare their
GPBs to assure endorsement of their plans. On
the other hand, the PCW must undertake a more
systematic review of GPBs to minimize non-
endorsements. The Annual Reports submitted
by the PCW to Congress can be used to examine
compliance to the GAD policy, and to ensure
that government funds and resources are indeed
allocated and effectively spent to mainstream gender
concerns. Some non-government organizations
(NGOs) engaged in community works could be
tapped to provide capacity building activities for
women (in the grassroots) so the latter could
effectively demand accountability from government
on the use of the GAD budget.
Monitoring Compliance to Gender and Development Budget Policy

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The impact of the GAD Budget Policy is difficult Philippine Commission on Women. (December 31,
to assess because reporting and audit is limited 2016). Report on the Compliance of National
to compliance. There are also no sanctions for Government Agencies to the Gender and
non-compliance in the preparation and delayed Development (GAD) Budget Policy: (FY 2014-
submission of the GAD Plan and Budget and 2017).
Accomplishment Reports. It is not very clear
as yet whether the GAD budget and plans have
led to increased consciousness in gender and
development in government institutions. A more
effective mechanism of determining results and
impact instead of mere reporting of GAD related
activities should be in place. Aside from monitoring
compliance in report submissions, the PCW should
be able to demand quality reporting of performance
and use of measurements to determine results.

References

COA Circular 2014-01 (18 March 2014), Revised

Guidelines in the Audit of Gender and
Development (GAD) Funds and Activities in
Government Agencies.
Francisco, Josefa et al. (2001). The GAD Budget,
Examining Public Financing with Gender and
Poverty Lens. Social Watch-Philippines.
GAD Budget Advocacy Forum. (1 March 2011).
Compliance, Performance, and Results, a
Review of the Philippine GAD Budget Policy.
General Appropriations Act (GAA) 2010 and 2017.
Illo, Jeanne Francis et al. Accounting for Gender
Results, A Review of the Philippines GAD
Budget Policy, Women and Gender Institute,
Miriam College. 2010.
Joint Memorandum Circular 2012-01 on the
“Guidelines for the Preparation of Annual
Gender and Development (GAD) Plans and
Budgets and Accomplishment Reports to
Implement the Magna Carta of women”, issued
by the Philippine Commission on Women
(PCW), National Economic Development
Authority (NEDA,and the Department of
Budget and Management (DBM) on January
15, 2013.
Congressional Policy and Budget Research Department

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