STATE pension fund Government Service Insurance System (GSIS) expects to record its biggest gain in income and assets for 2014. GSIS President and General Manager Robert Vergara said the challenge for the state pension fund this year is to generate sufficient investment returns to secure sustainability and enhance benefits.
Vergara expressed confidence that they could meet their target as the pension fund’s total assets increased 16 percent to P909 billion in the first 11 months of last year.
Its comprehensive income also increased to P130.7 billion over the same period, more than double the P60.4 billion recorded in 2013.
“This represents a record-breaking performance in the pension fund’s 77-year history,” said Vergara.
Revenues in the 11 months to November 2014 totaled P141.5 billion, up 13.2 percent over the P125 billion posted in 2013.
While revenues from social insurance contributions were nearly flat year-on-year, gains from financial assets rose 50 percent to P42 billion due to the robust performance of local capital markets.
A further P20.4 billion was generated from loans, and the remaining balance from general insurance and investment properties.
In September of last year, the pension fund made history with the sale of two properties in Fort Bonifacio in Taguig City at a gain of more than P1 billion, setting a benchmark price of P500,000 per square meter in the area.
Total expenditures for social insurance benefits paid out to its 1.8 million members and pensioners amounted to P73.6 billion which, together with administrative and other expenses, resulted in net income of P62 billion.
Including unrealized gains in its bond and equity portfolio, GSIS posted a record comprehensive income of P130.7 billion.
As of December, the pension fund’s assets are 64 percent invested in financial assets, 29 percent in loans to GSIS members, 3 percent in real properties, and the rest in cash.