STATE pension fund Government Service Insurance System’s (GSIS) net income dived by 40 percent to P62.76 billion last year from P104.95 billion in 2019.
Based on its 2020 unaudited financial statement, its total income grew by 4.19 percent to P350.45 billion from P336.36 billion.
On the other hand, its total expenses surged by 24.3 percent to P287.59 billion from P231.32 billion in 2019. The BusinessMirror tried to reach GSIS for comment on the reason for the decline in net income, but it has yet to get a response, as of press time.
Meanwhile, GSIS’s total assets inched up by 6.74 percent to P1.42 trillion from P1.33 trillion in 2019.
The House Public Accounts panel is set to begin its probe on the financial status of GSIS in connection with the proposed hike in member contribution.
This, after House Committee chairman Probinsyano Ako Rep. Jose Singson Jr. lamented that GSIS officials were “unable to respond satisfactorily to queries from committee members as to the financial status of the firm.”
During the same meeting, GSIS chief legal officer Lucio Yu Jr. also said the firm has considered increasing the contributions of its members but as a “last resort.”
GSIS manager Jenny Lobas also said the insurer’s fund life would last until 2044 based on cash flow projections, benefits, contribution rates and other factors.
Both Singson and Kabayan Rep. Ron Salo pointed out GSIS’ actuarial life was 10 years shorter than that of the Social Security System (SSS).