Manila: The Government Service Insurance System (GSIS) posted a 170-percent increase in net income to PHP43.6 billion in the first quarter of 2026, driven by stronger insurance collections, investment gains, and sustained growth in member-based programs.
According to Philippines News Agency, in a news release Thursday, GSIS said the fund's total assets reached nearly PHP2 trillion as of March 31, rising to PHP2.0 trillion from PHP1.96 trillion at the end of 2025, while total income climbed 43.83 percent to PHP95.8 billion from PHP66.6 billion in the same period last year. 'The fund grew this quarter and paid out more than it did a year ago. That is the baseline we hold ourselves to every reporting period,' GSIS President and General Manager Wick Veloso said.
GSIS stated that insurance operations remained its primary revenue source, contributing PHP56.6 billion in income during the quarter, up 9.16 percent from 2025 levels due to higher social insurance contributions and stronger remittances from government agencies. Investment income from financial assets also surged to PHP27.6 billion from PHP1.2 billion a year ago, buoyed by gains in equity valuations and favorable foreign exchange movements.
The pension fund meanwhile paid out PHP49.5 billion in claims and benefits during the quarter, 4.73 percent higher than the same period in 2025, largely due to increased pension releases. GSIS said the average monthly old-age pension rose to PHP18,874.58 in 2026 from PHP17,809.10 last year, translating to over PHP1,000 in additional monthly payments for retirees.
Total expenses reached PHP52.1 billion, up 3.30 percent year-on-year, with claims and benefits accounting for 95 percent of expenditures. Administrative expenses stood at PHP2.44 billion, or 4.7 percent of total expenses, remaining below the 12-percent cap under the GSIS Charter. 'Administrative costs at 4.7 percent means more than 95 centavos of every peso in expenses went directly to members. That is where it should go,' Veloso said.
GSIS also reported continued growth in its Ginhawa loan facilities, which generated PHP10.7 billion in income during the quarter. The Ginhawa Solar Energy Loan, launched following President Ferdinand R. Marcos Jr.'s declaration of a national energy emergency under Executive Order No. 110, recorded PHP890 million in applications during its first week of operations.
With first-quarter earnings already reaching 33.3 percent of its PHP130.91-billion full-year income target, GSIS said the fund remains on track to exceed PHP2.1 trillion in total assets by the end of 2026. The state pension fund added that its latest actuarial study projects fund life sustainability until 2058, ensuring continued benefit security for government workers and retirees.
