Congress Approves Maharlika Bill, Excludes Pensions from Funding

Photo source: Win Gatchalian Twitter @WinGatchalian74

The Maharlika Investment Fund (MIF) bill has been approved by lawmakers Last May 31, 2023 in both houses of Congress after removing the provision on financing from state pension funds. The bicameral conference committee gave its approval less than eight hours after the Senate passed its version of the bill, marking the end of a six-month process since the bill was first filed in the Lower House. The amended bill includes stricter safeguards in fund management and prohibits investments from various state pension funds, including the Social Security System and Government Service Insurance System. President Ferdinand Marcos Jr. clarified that the government has no intention of using state pension money as a “seed fund” for the MIF, but the decision to invest in the sovereign wealth fund lies with the pension funds themselves. The bill is expected to be signed into law by President Marcos before his second State of the Nation Address on July 24.