President Benigno Aquino has announced the increase of the Basic Minimum Pension of Government Service Insurance System’s old-age and disability pensioners to P5,000 effective January next year, a GSIS press release said.
GSIS president and general manager Robert Vergara said the increase would be more responsive to the needs of old age and disability pensioners particularly in light of the rising prices of basic commodities.
He said the GSIS will increase the monthly pensions as follows: GSIS will continue to apply to Old-age and Disability Pensioners, the regular 1.5 percent increase based on Board Resolution No. 229 dated Dec. 8, 2009; and thereafter, all Old-age and Disability Pensioners still entitled to less than P5,000 will receive the new minimum monthly pension of P5,000 while those receiving over P5,000 but less than P8,000 will receive an adjustment of P200 every month, the press release said.
He also said that almost half of the pension fund’s Old-age and Disability Pensioners will benefit from the new pension increase.
“Roughly 57,000 pensioners will enjoy the new minimum pension while another 50,000 will qualify for the P200 increment.”
Vergara said that with the pension increase, the actuarial life of the Social Insurance Fund will only be reduced by approximately one year from 2046 to 2045.
Under Republic Act 8291, otherwise known as The GSIS Act of 1997, the GSIS Board of Trustees may recommend to the President of the Philippines the adjustment of the basic monthly pension in accordance with the rules and regulations prescribed by the GSIS: Provided, however, that the basic monthly pension shall not be less than P1,300.00.
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 pensioner-friendly measures include: 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, the press release added.*