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The public accounts panel of the House of Representatives will carry out an investigation into the finances of the Government Service Insurance System (GSIS), amid the plans of the state pension fund to increase premiums and grant more benefits to the members.
Probinsyano Ako’s representative, Jose Singson Jr., chairman of the committee, said the research in aid of the legislation was “in connection with the proposed increase in the members’ premium contribution.”
In a statement, Singson said GSIS officials were not prepared to brief members of the House public accounts committee on Monday about the state insurer’s financial status.
“GSIS officials were unable to respond satisfactorily to inquiries from committee members about the financial status of the company,” he said on Saturday.
He said Lucio Yu Jr., GSIS’s chief legal officer, and his colleagues were unable to “present a clear picture of the condition of investments made by GSIS to ensure a sound financial position.”
“There should be a breakdown of your investment income. How much comes from financial instruments; what is the principal amount for investments and other important information, ”said Singson.
During the briefing, Jenny Lobas, GSIS manager, said that the life of the insurer’s fund would last until 2044 based on projections of cash flow, benefits, contribution rates and other factors.
Singson and Kabayan representative Ron Salo noted that the actuarial life of the GSIS was 10 years shorter than that of the Social Security System (SSS), which previously said that the useful life of its fund was until 2054.
“Unlike GSIS, the SSS has already imposed an adjustment to the membership premium beginning in January 2021 and has expressed doubts about bills that propose giving the president the authority to suspend increases in member contributions in times of emergency, ”Singson said.
The House of Representatives public accounts panel is also investigating the finances of the SSS after the lower house passed a bill that gives President Duterte the power to suspend premium rate increases during times of emergency. .
The SSS has expressed doubts about the bill, saying that premium increases have been long delayed and would affect the life of its fund and the delivery of benefits to its members.
In a recent briefing before the House panel, SSS officials said it would have more than P9 trillion in unfunded obligations or benefits to pay over 68 years.
Regarding the GSIS, Singson pointed to Yu’s statement that the GSIS had considered increasing its members’ contributions as a “last resort”, while maintaining member benefits.
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