GSIS BACKS PLANNED PENSION PLAN FOR COPS, SOLDIERS

The Government Service Insurance System (GSIS) is open to managing the planned new pension system for uniformed personnel as proposed by economic managers even as the pension fund sought details of the plan.

“The GSIS supports the proposal, subject to certain conditions and the assurance of a definite source of funding that will be provided to the GSIS, and which shall be separate from the GSIS funds," president and general manager Jesus Clint O. Aranas told the Inquirer.

“Our position ever since is that if the GSIS will administer the pension fund of the uniformed personnel, it should be a separate fund," he said.

Budget Secretary Benjamin E. Diokno told the Inquirer earlier that the government intended to establish a separate pension fund for uniformed personnel to be administered by the GSIS “for efficiency and economy purposes.”

“There will be one board and administrative machinery handling both funds. Key people—actuary, financial strategists and managers—are expensive, hard to find, and costly to retain. Having one set of key officials is the best option,” Diokno said.

Aranas, for his part, said there should be a well-defined and separate structure with distinct accounting system for this purpose.

“It should also be contributory in nature and prospective in application. I can see the GSIS initially managing the pension of incoming personnel or new entrants who will remit their contributions to the GSIS,” he said.