GSIS looks to improve its lending programs

THE GOVERNMENT Service Insurance System (GSIS) plans to make its lending programs more competitive versus those offered by private creditors as it looks to boost its investment income.

“At GSIS, 20% of our investments are in loans. What we want is to double this to 40%,” GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso told reporters last Thursday.

“So, we will have enhancements. I cannot share these yet but to give you an idea, we have to be competitive. And to be competitive, we must be able to differentiate ourselves and compete with the private lending institutions.”

The state pension fund is also awaiting the finalization of the Philippine Stock Exchange’s (PSE) stock investment loan framework, Mr. Veloso said.

The PSE is pushing for the revival of stock investment loan programs (SILP) by state pension funds to inject more liquidity into the stock market.

PSE President Ramon S. Monzon earlier said that restructuring these programs to fund long-term equity investments by linking to a voluntary retirement savings program under the  Personal Equity and Retirement Account (PERA) law could be more feasible for pension funds and its members.

GSIS earlier said it is proposing a phased study and pilot approach that will validate the systems, measure members’ understanding of the program, and assess feasibility before broader rollout.

Mr. Veloso said last week that he wants a clear indicator of borrowers’ level of understanding of how the stock market works to gauge their suitability for the program, as well as their risk tolerance.

“We are always open for business. But when we are open for business, that means that we have to make sure that we have the right parameters to ensure that there’s ample customer protection,” he said.

GSIS’ net income from operations stood at P137.74 billion in 2025.

Total income rose by 6.4% year on year to P344.47 billion, driven by insurance revenues and investment returns.

“Social insurance income accounted for the bulk of revenues at P212.17 billion,” it said in a statement on Tuesday. “General insurance posted total premium income of P11.39 billion, up P1.11 billion or 10.8% from 2024, on higher new and renewal policy issuances.”

“Investment income from financial assets totaled P76.55 billion, strengthening the fund’s capacity to meet long-term pension obligations.”

GSIS’ total assets rose by 8.2% year on year to P1.96 trillion at end-2025.

“In 2025, we paid out more in benefits than the year before while growing our assets by over P148 billion,” Mr. Veloso said in the statement.

He said their financial results in 2025 showed “disciplined fund management.”

“Every peso in this fund belongs to a government worker who expects it to be there when they retire or when their family needs it.” — Aaron Michael C. Sy