In a recommendation to President Rodrigo Duterte, the Government Service Insurance System (GSIS) moves to increase the minimum basic pension of its old age and disability pensioners to Php6,000 effective February this year. This will increase the GSIS minimum pension by Php1,000.
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. 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, GSIS President and General Manager Jesus Clint Aranas said.
Aranas added that 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% 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 are still lower than Php6,000 after the 1.5% increase will get another round of increase to adjust their pension to Php6,000 retroactive to 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. 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, Aranas explained.
The GSIS law, Republic Act No. 8291, provides that the basic monthly pension may be adjusted upon the recommendation of the president and general manager of GSIS and approved by the president of the Philippines.
It will be recalled that in 2013, the minimum basic monthly pension was increased to P5,000. In addition, GSIS continued to implement the regular annual pension increase of 1.5% provided a pensioner has been a regular pensioner for at least five years.
At present, the average monthly pension of GSIS is already Php12,560.
Source: Government Service Insurance System