GSIS assets rise to P480 billion in 2008

State pension fund Government Service Insurance System (GSIS) said yesterday it has increased its total assets to P480 billion in 2008 from P441 billion the previous year despite the challenging environment.

GSIS president and general manager Winston Garcia said earnings from investments and hefty gains from the sale of its stake in Manila Electric Co. (Meralco) last October allowed the pension fund to increase its assets.

“We trumped all challenges in 2008. We felt the effects of the global financial crisis and yet we managed to grow and post record-breaking results,” Garcia said.

Last year, GSIS ventured into the foreign capital market scene through its Global Investment Program (GIP) wherein it placed $600 million in different investment instruments abroad through the help of foreign fund managers.

Aside from the increase in its assets, GSIS said it is also poised to hit its P50-billion net income target for 2008, which 25 percent higher than the previous year’s income level.

Officials attributed this to huge foreign exchange gains, improved member contributions, and the sale of its 27-percent stake in Meralco to San Miguel Corp. GSIS sold its Meralco stake for P27 billion, of which P9 billion came in for 2008.

The GSIS implemented a condonation program on outstanding service loans declared in default as of Dec. 31, 2007 and the restructuring of the remaining balance through the Consolidated Loan Program (ConsoLoan). As of Dec. 17, 2008, the total value of service loans disbursed by the GSIS through the ConsoLoan reached P34.09 billion for some 336,965 availing GSIS members.

The GSIS has also reduced interest rates on outstanding loans in default from 18 percent to six percent.

In addition, the GSIS has paid a total of P32.45 billion for claims and benefits as of Nov. 30, 2008, while claims for social insurance benefits aggregated to P31.45 billion. These were benefits paid for retirement, life insurance, survivorship and other social insurance claims.

On the other hand, optional and unlimited optional life insurance claims reached P436.49 million.

GSIS released P1.178-billion worth of cash gifts in December 2008 for its pensioners. The amount is an improvement from the 2007 budget of P923 million for cash gift.