The House public accounts panel will hold an inquiry into the Government Service Insurance System’s (GSIS) finances, amid plans by the state pension fund to raise premiums and grant more benefits to members.
Probinsyano Ako Rep. Jose Singson Jr., committee chair, said the inquiry in aid of legislation was “in connection with the proposed increase in member premium contribution.”
In a statement, Singson noted that GSIS officials came unprepared to brief members of the House public accounts committee on Monday on the state insurer’s financial status.
“GSIS officials were unable to respond satisfactorily to queries from committee members as to the financial status of the firm,” he said on Saturday.
He said Lucio Yu Jr., GSIS chief legal officer, and his colleagues were unable to “present a clear picture of the condition of investments made by GSIS to guarantee sound financial position.”
“There should be a breakdown of your income from investments. How much is coming from financial instruments; how much is the principal amount for investments and other important information,” Singson said.
During the briefing, Jenny Lobas, GSIS manager, said the insurer’s fund life would last until 2044 based on cash flow projections, benefits, contribution rates and other factors.
Singson and Kabayan Rep. Ron Salo noted that the GSIS’ actuarial life was 10 years shorter than that of the Social Security System (SSS), which previously said its fund life was up to 2054.
“Unlike GSIS, the SSS already imposed an adjustment in membership premium starting January 2021 and has aired misgivings to bills proposing to grant the President the authority to suspend increases in members’ contributions in times of emergency,” Singson said.
The House public accounts panel is also probing the SSS’ finances following the lower chamber’s passage of a bill granting President Duterte the power to suspend increases in premium rates during times of emergency.
The SSS has expressed its misgivings on the bill, saying the premium increases have been long-delayed and would affect its fund life and the delivery of benefits to its members.
In a recent briefing before the House panel, SSS officials said it would have over P9 trillion in unfunded liability or benefits to be paid out in the 68 years.
As to the GSIS, Singson noted Yu’s statement that the GSIS had considered increasing contributions of its members as a “last resort,” while maintaining members’ benefits.