NSCB backs increase in average monthly pension of senior citizens

MANILA, Philippines - An increase in the average monthly pension of senior citizens would significantly help the sector cope with rising commodity prices, the National Statistical Coordination Board (NSCB) said in a recent report on the situation of senior citizens in the country.

In its report, the NSCB said the average pension a senior citizen receives from the Government Service Insurance System (GSIS) was only P7,768 in 2008, P8,359 in 2009 and P8,586 in 2010. GSIS, the state-owned pension fund for government workers, only approved a 1.5 percent increase in pensions effective January 2010.

However, the NSCB said this amount has already been eroded because of rising commodity prices.

“However, average increases of prices of all items between 2009 and 2010 are 3.6 percent and 3.8 percent among all income and bottom 30 percent households, respectively. Thus, during this period, the average monthly GSIS pensions did not increase as fast as prices of general commodities. Certainly, the pensions of your lolos and lolas have been eroded,” said NSCB secretary-general Romulo Virola in the report.

He said that as such, there is a need to address this given the rising number of senior citizen pensioners.

“The number of GSIS pensioners who are senior citizens increased by 4.9 percent between 2008 and 2009; 5.6 percent between 2009 and 2010. As of Dec. 31, 2010, the total number of GSIS pensioners who are senior citizens is 199,579,” Virola said.

Virola cited the case of an 84-year old pensioner who retired in 1990 as a teacher, after having served the government for 30 years. The pensioner receives P5,069 a month from the GSIS.

He said because of inflation – the rise in consumer prices – the senior citizen’s monthly pension of P5,069 is only one-third of the current salary (P18,333) of the same position she held.

“After long years of dedicated service in government, molding the minds of our youth and contributing to the creation of human capital in our country,” senior citizens certainly deserve a much better pension scheme,” Virola said.

He said while the monthly pensions are still sufficient for the needs of one person, they would need caregivers.

“If we want to reduce poverty among senior citizens, unless they are given much more support, achieving our goal will be at risk,” Virola said.

Virola said there is a need to increase the support to senior citizens so they can spend more on health.

“Based on the Philippine National Health Accounts, compiled by the NSCB, the average per capita health expenditure was P2,642 in 2007. The senior citizens most certainly spend more than the average so an annual health insurance premium subsidy of at least P2,642 for our senior citizens would be something that the Philippine Charity Sweepstakes Office (PCSO) can consider in lieu of the at-need-assistance that it currently gives,” he said.

Furthermore, Virola said the share of citizens for their health expenditure was 54.3 percent in 2007 while that of the government was only 26.2 percent.

“Yes, medical bills eat a big portion of the budget of senior citizens and if the Reproductive Health Bill has been taking too long to resolve, maybe Congress will be appreciated more if they can pass a Health Insurance Act for Senior Citizens,” Virola said.

Studies show that the leading causes of death of our senior citizens are cerebrovascular disease, acute myocardial infarction, and chronic lower respiratory diseases, for which many doctors charge not exactly discounted rates.

According to the NSCB, the share of seniors to total population has been steadily increasing over time and is projected to go up to 13.8 percent in 2040.

There were 6.3 million senior citizens last year and the number is expected to increase to 6.6 million or 6.9 percent of the projected population this year of 95.8 million people.