Home NEWS GSIS premium fee hike eyed

GSIS premium fee hike eyed

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Edu Punay (The Philippine Star) – February 21, 2021 – 12:00am

MANILA, Philippines — Authorities personnel may quickly must pay extra for his or her retirement advantages.

Officers of the Authorities Service Insurance coverage System (GSIS) have expressed help for a proposal to extend premium fee contributions within the retirement fund.

At a digital assembly final Wednesday, the Home committee on public accounts began wanting into the feasibility of additionally rising the premium charges in GSIS following legal guidelines rising the premium fee contributions within the Social Safety System (SSS) and Philippine Well being Insurance coverage Corp. (PhilHealth).

GSIS vp for authorized affairs Lucio Yu Jr. stated that whereas the federal government company just isn’t in monetary hassle – in contrast to SSS and PhilHealth – rising the premium charges could be useful to the fund and its members.

“We’re delighted not as a result of we’re in very dire want of funds, however in view of the completely different developments, such because the decreasing of retirement age invoice and different will increase in salaries, we would must discover that risk simply to maintain the fund,” he instructed the panel chaired by Probinsyano Ako party-list Rep. Jose Singson Jr.

However Yu clarified that such improve in contributions “is our final resort.”

The lawmaker additionally tackled the monetary standing of GSIS through the listening to.

Throughout the presentation, GSIS operations group vp Vilma Fuentes revealed that the fund’s actuarial life is presently at 25 years.

When requested if such interval wouldn’t be a trigger for alarm, GSIS actuary supervisor Jenny Lobas defined that “this system of GSIS would nonetheless have the ability to pay for the scheduled advantages, nevertheless, as much as the extent of contributions that will be collected by GSIS.”

GSIS officers additional bared that, based mostly on 2019 knowledge, the revenue of the fund from premium funds amounted to P131 billion, revenue from loans was round P39 billion, whereas its revenue from numerous investments was P48 billion.

They defined that GSIS charged completely different rates of interest in its completely different mortgage packages.

The panel has set one other listening to pending submission of the monetary assertion of the GSIS.

Below Republic Act 8291 or the GSIS regulation, it’s “necessary for the member and the employer to pay the month-to-month contributions.”

The speed of contribution payable by the member and the federal government company shall be 9 % and 12 %, respectively, based mostly on the precise month-to-month wage of the member.

The proposal to extend the GSIS premium fee got here simply weeks after the scheduled will increase in contributions to SSS and PhilHealth this yr have been deferred as a result of ongoing COVID-19 pandemic.

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