GSIS to administer pension of newly-hired uniformed men

In support of the Duterte administration's effort for a more sustainable pension fund for security personnel, the Government Service Insurance System (GSIS) on Wednesday disclosed its plan to take in newly-hired uniformed men under its social security coverage.

According to GSIS president Jesus Clint Aranas, those who will be covered under GSIS are newly-appointed commissioned officers and enlisted personnel of the Armed Forces of the Philippines, Philippine National Police, Bureau of Fire Protection, Bureau of Jail Management and Penology, Philippine Coast Guard, Bureau of Corrections, and commissioned corps of the National Mapping and Resource Information Authority.

"Our earlier pronouncement to accept newly-appointed uniformed personnel as members of the GSIS has taken a more concrete direction now that we have made it a part of our proposed revisions to Republic Act No. 8291 (GSIS Act of 1997)," Aranas said in statement.

Aranas, however, emphasized that the agency could not afford to absorb existing personnel and retirees since they are not required to pay contributions, and their pensions are anchored on an automatic indexation system in which the pension amount is adjusted to match the prevailing salary of the incumbent personnel of the same rank.

"We cannot commingle the fund of the existing uniformed personnel with the coffers of GSIS. We suggest setting up another corporation for them," he said, noting that the agency can manage the fund of the separate entity.

"We will only charge management fee if the fund will earn. But again, we need to clarify the benefit structure that will be put in place," Aranas added.

Meanwhile, he said that under the proposed measure, new entrants who received their initial appointments after the effectivity of the new GSIS law would be accepted to the Military and Uniformed Personnel (MUP) Insurance Fund, which for GSIS, is a more "financially viable option."

"GSIS will manage the MUP Insurance Fund separately and independently from the Social Insurance Fund and other funds it administers. It will be contributory in nature and prospective in application." Aranas said.

At present, Aranas said that GSIS members pay a monthly premium of nine percent of their salary while their employers must pay 12 percent to complete the required total premium of 21 percent. — Anna Felicia Bajo/MDM, GMA News