(Eagle News)—-The Government Service Insurance System has recommended a P1000 increase in the minimum pension of “old age and disability” pensioners.
The GSIS made the recommendation for the 67,201 pensioners to receive the P6000 effective February in a letter to President Rodrigo Duterte.
GSIS President and General Manager Jesus Clint Aranas said, however, that survivorship pensioners and those who retired under the Portability Law (Republic Act 7699) are not entitled to the proposed pension increase.
He said portability law pensioners have been granted pension benefit after combining their contributions to the GSIS and to the Social Security System.
“The law dictates that the amount of benefit to be paid by GSIS or SSS should be in proportion to the actual premium contributed to the pension fund, ” Aranas said.
According to Aranas, the proposed increase for the “old age and disability” pensioners will “not necessitate an increase in the monthly contribution of our members nor bring about adverse effects in the actuarial life of the pension fund.”
“After the approval of the proposal, those whose pension are still lower than P6,000 after the 1.5% increase will get another round of increase to adjust their pension to P6,000 retroactive to February 2019,” he said.
According to Aranas, the proposal is approved by the president, it would be the “second round of increase to be given to qualified GSIS pensioners in a span of two months.”
He said the first one, the annual 1.5% pension increase which has been regularly granted by the pension fund since 2010, was given to “old age and disability pensioners” in January this year.
At present, the average monthly pension of GSIS is P12,560.
