Philippines risks investment grade rating if it can't reform military pensions

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MANILA (Reuters) - The Philippines risks losing its investment grade rating if it fails to reform an

"unsustainable" military and uniformed personnel pension system because it will constrain its ability to cut its debt and deficit, the finance secretary said.

The Philippines could see its investment-grade rating, which it has held for a decade, relegated to"junk" territory if"we continue to ignore" the need to reform the MUP system, Finance Secretary Benjamin Diokno told senators on Wednesday in a budget hearing. Troops and uniformed personnel, who include police and prison staff, are not required to contribute to their pensions under the current retirement system, with funding solely coming from the government budget.

 

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