The Government Service Insurance System (GSIS) has approved another round of pension increase for its old-age and disability pensioners.
Effective January next year, the GSIS will be raising monthly pensions by 8.33 percent, bringing the average monthly benefit of GSIS old-age and disability pensioners to P7,800 from the current P7,200.
GSIS records showed that the P7,200 tax-free monthly pension is more than twice the amount of P3,000 received monthly by other petitioners. Since 2000, the GSIS has increased the monthly pension benefit by about 84 percent, mainly due to the fund's improving net income.
"The continuously improving net income of the GSIS, even in the face of financial crises, has been the main reason why our pensioners consistently enjoy the highest average monthly pension in the country," GSIS president and general manager Winston Garcia said in a statement.
For this year, the GSIS is expecting to surpass its P50-billion earnings target this year despite the global financial crisis. Garcia said that the net earnings of GSIS increased only by less than one percent to P41.3 billion in 2007 from P40.9 billion in 2006.
Those who would be eligible to receive the increase, GSIS said, include pensioners under Republic Act 8291 or the 1997 GSIS act, Presidential Decree 1146 or the 1977 revised Government Service Insurance Act, and RA 660 or amendments to Commonwealth Act 186. GSIS added that they should also be receiving their regular monthly pensions, qualified to the corresponding pensions, and living as of January 1, 2009.
Old-age or retirement pensioners, including joint-life retirees and disability pensioners, are also entitled to a P600-increase in the average monthly pension benefit, GSIS said.
However, GSIS pointed out that basic survivorship and dependent petitioners, joint-life beneficiaries and retirees who received their guaranteed pensions in advance in the form of lump sums, and those who are still in their guaranteed period, are not yet qualified to get the increase.
Meanwhile, Garcia said that new retirees who availed of 18 times the basic monthly pension as lump sum plus the immediate monthly pension would only be entitled to the annual pension increase after five years of being regular pensioners. With ANC