GSIS income jumps two-fold to record P131 B in 11 months

MANILA, Philippines - The Government Service Insurance System (GSIS) registered a more than two-fold jump in its comprehensive income in the 11 months to November last year to P130.7 billion to mark a record breaking performance in its 77-year history.

The state pension fund’s revenues rose 13.2 percent to P141.5 billion from January to November 2014. 

While revenues from social insurance contributions were nearly flat year-on-year, gains from financial assets grew 50 percent to P42 billion, driven by a robust local capital market.

Total assets reached P909 billion, up 16 percent year-on-year. 

Income from loans amounted to P20.4 billion.

Last September, the GSIS made history with the divestment of two properties in Fort Bonifacio that fetched more than P1 billion in sales revenue.  It set a benchmark of P500,000 per square meter in the area.

GSIS president Robert Vergara said the fund paid out P73.6 billion in social insurance claims and benefits to members during the 11-month period, 12.3 percent more than the P65.6 billion released a year earlier.

These benefits cover pension, retirement, life insurance, survivorship, disability and funeral.

The bulk of the increase was accounted for by monthly pension and life insurance payments at P31 billion and P9.6 billion, which went up 14 percent and 34 percent from the prior year, respectively.

Vergara attributed the increased disbursement to the more efficient processing of members’ benefits.

The turnaround time for processing retirement benefit is 90 days under the law that requires government agencies to ensure the early release of retirement pay, pensions and other benefits of retiring government employees.

As of end-December last year, the pension fund’s assets are 64 percent invested in financial assets, 29 percent in loans to GSIS members, three percent in real properties, and the rest in cash.

“The challenge is to generate sufficient investment returns to secure sustainability and enhance benefits,” Vergara said.