AFP-RSBS to liquidate assets for members’ refund

THE Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS) is confident that it will have enough money to refund retirement contributions of its soldiers once the agency liquidates its assets.

“We are very confident that we will be able to raise the total amount for refund when we start liquidating our assets,” Norman C. Legaspi, AFP-RSBS president and chief executive officer (CEO), said on Tuesday. “We have to refund the contributions and the accrued interest they earned.”

The AFP-RSBS said it currently has P17 billion worth of assets in book value, with the decadesold retirement fund’s liquidated assets currently at almost P6.5 billion “in cash and cash equivalents.”

Soldiers contribute 5% of their monthly base pay to the AFPRSBS. In turn, their fund receives 6% interest per annum.

The RSBS has to refund a total of P15-16 billion including interest, according to Mr. Legaspi.

The refund however will be given when the soldiers retire or separate from the military, regardless of the nature of the separation.

DIFFICULT

The RSBS president added that it will be difficult to accelerate the refund and it will depend on the outcome of the liquidation of its assets.

In 2006 and 2007, two executive orders (EO) — EO 590 and EO 590A — were signed by then president Gloria Macapagal-Arroyo mandating the deactivation of the AFP-RSBS.

These were not fully implemented until last April 8, when Memorandum Order No. 90 rationalized the effects of both EOs and ordered the abolition of the agency.

“This memorandum paves the way for the system to streamline and wind down its operations in an efficient and orderly manner with the end in view of refunding all of its members’ contributions and accrued interests as they fall due,” the AFP- RSBS said in its statement. —