The Philippines’ Government Service Insurance System (GSIS) is studying a proposal from the local bourse for the pension fund to restore a loan scheme for members to buy stocks and financial products, which was shut down in the aftermath of the 1997 Asian financial crisis.
According to Wick Veloso, president and general manager of GSIS, the proposal comes at a time when the local capital market needs institutional support, and members of the pension fund need broader investment opportunities to save for retirement.
“Our responsibility is to ensure that any programme we implement protects retirement security while genuinely contributing to market health,” he says in a statement on January 20.
Last week, Raman Monzon, president and chief executive officer of the Philippine Stock Exchange called on the GSIS and the Social Security System (SSS) to revive their loan schemes to support the stock market.
But Veloso says GSIS would rather have what he describes as a “broker-led pilot phase with rigorous controls” instead of a broad scheme.
This, he says, would see licensed and reputable brokers assess the risk profile of pension fund members, determine the suitability of products, provide financial advice and handle stock trades.
GSIS manages retirement savings of civil servants, with 1.93 trillion pesos (US$32.03 billion) of assets as of end-September 2025.
The SSS manages retirement savings of private sector employees and the self-employed.
Latest available data shows it managed 1.03 trillion pesos of assets as of end-2024.
