MANILA, Philippines -- The Government Service Insurance System (GSIS) has raised its basic minimum monthly pension for old-age and disabled retirees to P5,000 beginning January this year.
GSIS president and general manager Robert G. Vergara said the increase would be more responsive to the needs of old age and disability pensioners amid rising prices of basic commodities.
Pensioners receiving less than P5,000 will receive the new minimum monthly pension of P5,000, while those receiving over 5,000 but less than 8,000 will receive a P200-increase in their monthly pension.
Vergara said about 57,000 pensioners would enjoy the new minimum pension while another 50,000 would qualify for the P200 increment.”
Old-age pensioners receiving below P5,000 comprise about 35 percent of the 220,000 GSIS retirees.
Vergara noted earlier that the pension increase, the actuarial life of the Social Insurance Fund would only be reduced by approximately one year from 2046 to 2045.
Under the GSIS Act of 1997, the state-run pension fund’s Board of Trustees may recommend to the President of the Philippines the adjustment of the basic monthly pension provided, however, that the basic monthly pension shall not be less than P1,300.
The increase in pension forms part of a series of initiatives launched by the GSIS to provide responsive service to its pensioners since 2010.
Other measures aimed at improving services include an expanded partnership with the Land Bank of the Philippines as an alternative servicing bank, deployment of 500 additional GWAPS (GSIS Wireless Automated Processing System) kiosks in key cities, clusters of municipalities and big government agencies such as the Education Department; relaxing the entitlement qualifications for survivorship pension and payment of proportionate pension.