GSIS seeks to hike minimum pension to P6,000

MANILA, Philippines — State-run Government Service Insurance System (GSIS) is pushing to raise the minimum pension of its members to P6,000 per month, a top official said yesterday.

In a statement, GSIS president and general manager Jesus Clint Aranas said the state fund has submitted a recommendation to President Duterte proposing the P1,000 increase in the minimum monthly pension of its members, effective February 2019. 

“A total of 67,201 old-age and disability pensioners will benefit from the proposed increase in minimum pension approved by the GSIS Board of Trustees,” Aranas said.

Should the proposal be approved, Aranas said this would be the second round of benefit increase to be given to qualified GSIS pensioners in a span of two months.

The first increase was given in January this year, which
 involves the annual 1.5 percent pension increase that has been granted regularly by the state fund since 2010.

Under the new proposal, those members receiving monthly pension lower than P6,000 even after the 1.5 percent hike would get another round of increase to adjust their pension to P6,000, effective retroactively starting February 2019.

“It should be made clear, however, that survivorship pensioners and those who retired under the Portability Law (Republic Act 7699) are not entitled to the proposed pension increase,” Aranas clarified.

“Portability law pensioners have been granted pension benefit after combining their contributions to GSIS and to the Social Security System (SSS). The law dictates that the amount of benefit to be paid by GSIS or SSS should be in proportion to the actual premium contributed to the pension fund,” he said.

Aranas also assured the public that the recommended pension increase would not negatively impact the viability of the state fund.

“It should be noted that GSIS is recommending a pension hike that will not necessitate an increase in the monthly contribution of our members nor bring about adverse effects in the actuarial life of the pension fund,” Aranas said.

Republic Act No. 8291 or the GSIS Act provides that the basic monthly pension of state fund members may be adjusted upon the recommendation of the president and general manager of GSIS and the approval of the president of the Philippines.

In 2013, the minimum basic monthly pension of GSIS was increased to P5,000. In addition, the GSIS implemented annual pension increases of 1.5 percent, provided that the receiver has been a regular pensioner for at least five years.