The Philippines’ Government Service Insurance System (GSIS), which manages retirement savings of civil servants, is studying proposals to raise premium contributions, and the House of Representatives public accounts committee is launching a “full blown inquiry” on the fund’s finances, according to Jose Singson Jr, who chairs the committee.
GSIS officials made the disclosure at a recent briefing to the committee and could not “respond satisfactorily” to lawmakers’ questions about the pension fund’s financial status, Singson says in a Facebook posting on February 21.
“The officials did not present a clear picture of the condition of investments made by GSIS to guarantee a sound financial position,” and the committee will now “upgrade the briefing into a full-blown inquiry”, he writes.
“This is to determine GSIS’s current financial state in connection with the proposed increase in member premium contribution,” he says. He did not say when inquiry will take place.
GSIS members currently contribute 9% of their basic salary to the pension fund every month, and their employers contribute 12%.
Spokespersons for Singson and the GSIS did not immediately respond to questions from Asia Asset Management.
GSIS had 1.19 trillion pesos (US$22.67 billion) of assets as of end-2020.