MANILA – The Government Service Insurance System (GSIS) is seeking a P1,000-increase in its members’ monthly minimum pension.
According to a news release posted on the pension fund’s website, GSIS president and general manager Jesus Clint Aranas asked for President Rodrigo Duterte’s approval to raise the minimum basic pension from P5,000 to P6,000.
The hike was sought to take effect in February but Malacañang has yet to approve the recommendation.
A total of 67,201 old age and disability pensioners will benefit from the proposal, according to Aranas.
“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,” the GSIS chief said.
If approved, it will be the second round of benefit increase to be given to GSIS pensioners in two months.
The first one, given last January, is the annual 1.5-percent pension hike, which has been regularly granted by the state fund since 2010.
With the president’s approval, those whose pensions are 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.
“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.
Currently, the average monthly pension of GSIS members is at ₱12,560, and the basic minimum is P5,000. (ABS-CBN News)
