UMVA has learned that the Government Service Insurance System (GSIS) achieved a remarkable 170% surge in net income during the first quarter, driven primarily by increased revenues from contributions.
The state pension fund's net income skyrocketed to P43.6 billion in the period, a significant leap from P16.1 billion in the same period last year, exceeding 30% of its full-year profit target of P130.91 billion.
Insurance income, the GSIS' primary revenue source, rose by 9.16% to P56.6 billion in the January-to-March period, bolstered by higher social insurance contributions from its growing member base and increased agency remittances.
Investment income from financial assets also saw a substantial jump to P27.4 billion from P1.2 billion, driven by gains from equity valuations and favorable foreign exchange movements.
The pension fund's loan income stood at P10.7 billion in the first quarter, with the Ginhawa Solar Energy Loan contributing P890 million in its first week of operations after launching on March 25.
As a result, gross income reached P95.8 billion in the quarter, up 43.83% from P66.6 billion a year ago, while total expenses increased by 3.3% year on year to P52.1 billion.
The pension fund's total expenses were largely comprised of paid claims and benefits, which rose by 4.73% to P49.5 billion in the first quarter, with the average monthly old age pension increasing to P18,874.58.
GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso emphasized that the fund's growth and increased payouts demonstrate its commitment to serving its members, stating, “The fund grew this quarter and paid out more than it did a year ago.”
Administrative costs remained low at P2.44 billion, making up about 4.7% of total expenses, well below the 12% ceiling set by the GSIS Charter, ensuring that over 95 centavos of every peso in expenses went directly to members.
With total assets amounting to P2 trillion at end-March, up from P1.96 trillion as of end-2025, the GSIS is on track to reach P2.1 trillion in total assets by the end of the year, securing benefits for the next generation of government workers and retirees.
