GSIS hikes monthly pensions by P600

The Government Service Insurance System (GSIS) has approved a P600 increase in the monthly pension of its old-age and disability pensioners.

GSIS president and general manager Winston Garcia said with the increase – to be implemented starting January 2009 – the average monthly old-age and disability pension would amount to P7,800 from P7,200 at present.

According to GSIS records, on the average, a GSIS pensioner gets about P7,200 in tax-free monthly pension. This is more than twice the average P3,000 monthly pay other pensioners receive, Garcia said.

Those who are entitled to the increase include pensioners under Republic Act 8291, Presidential Decree 1146 and RA 660 who are receiving their regular monthly pensions. Furthermore, Garcia said old-age, retirement pensioners, joint-life retirees and disability pensioners are also eligible to receive higher monthly pensions.

On the other hand, dependent pensioners and those falling under the basic survivorship category will not be covered by higher monthly pensions, Garcia said.

Retirees who received in advance their guaranteed pensions in the form of lump sums and those who are still in their guaranteed period are not yet qualified for the increase. They shall only be entitled to pension increases that may be granted upon the resumption of their regular monthly pension, Garcia said.

New retirees who availed of 18 times the basic monthly pension as lump sum plus immediate monthly pension will also be entitled to the annual pension increase after five years of being regular pensioners.

Since 2000, the GSIS has constantly increased its monthy pension.

“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,” Garcia said.

In 2007, GSIS increased its earnings to P41.3 billion from P40.9 billion in 2006. This year, the pension fund expects to breach its income target of P50 billion.–Iris C. Gonzales, Philippine Star