GSIS seeking Duterte’s approval of minimum pension hike to P6,000
Credit to Author: ggaviola| Date: Fri, 08 Mar 2019 10:33:48 +0000
MANILA, Philippines – The Government Service Insurance System (GSIS) has asked President Duterte to increase the monthly minimum basic pension to P6,000 effective February.
In a statement Friday, GSIS president and general manager Jesus Clint O. Aranas said the P1,000 increase from the current P5,000, already approved by the pension fund’s board of trustees, will benefit 67,201 old-age and disability pensioners.
It was in 2013 when the GSIS last increased the minimum pension to the current level.
‘No monthly contribution hike’
“It should be noted that the 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.
At present, the GSIS’s fund life extends until 2051.
1.5% annual increase
“If the proposal is approved by the President, it will be the second round of increase to be given to qualified GSIS pensioners in a span of two months. The first one, the annual 1.5-percent pension increase which has been regularly granted by the pension fund since 2010, was given to old-age and disability pensioners in January this year. After the approval of the proposal, those whose pension is still lower than P6,000 after the 1.5-percent increase will get another round of increase to adjust their pension to P6,000 retroactive to February 2019,” Aranas said.
The 1.5-percent yearly increase in pension was being given to pensioners receiving their benefits for a minimum of five years already.
Portability Law pensioners
Aranas, however, said those who retired under Republic Act (RA) No. 7699 or the Portability Law and survivorship pensioners could not enjoy the higher pension benefits.
“Portability Law pensioners have been granted pension benefit after combining their contributions to the GSIS and to the Social Security System (SSS). The law dictates that the amount of benefit to be paid by the GSIS or the SSS should be in proportion to the actual premium contributed to the pension fund,” Aranas said.
Under RA 8291 or the GSIS Law, the basic monthly pension can only be increased once recommended by the GSIS president and general manager, then ultimately approved by the President.
The average GSIS pension now stands at P12,560 a month. / gsg