GSIS income jumps 170% in first quarter

The Government Service Insurance System posted net income of PHP 43.6 billion in the first quarter of 2026, up 170% from PHP 16.1 billion in the same period last year, as the state pension fund paid PHP 49.5 billion in claims and benefits to government workers, pensioners and their dependents.

GSIS said total assets stood at PHP 2.0 trillion as of March 31, higher by PHP 32.2 billion than the PHP 1.96 trillion recorded at year-end 2025.

Total income for the quarter reached PHP 95.8 billion, a 43.83% increase from PHP 66.6 billion in the same period last year.

“The fund grew this quarter and paid out more than it did a year ago. That is the baseline we hold ourselves to every reporting period,” GSIS President and General Manager Wick Veloso said.

Income from insurance, the fund’s main revenue line, reached PHP 56.6 billion for the quarter.

The figure was up 9.16%, or PHP 4.75 billion, from the 2025 level.

GSIS said the increase was driven by growth in social insurance contributions, supported by a growing member base and higher agency remittances.

Investment income from financial assets contributed PHP 27.6 billion, sharply higher than PHP 1.2 billion in the same quarter last year.

The fund attributed the increase to gains in equity valuations and favorable foreign exchange movements.

Claims and benefits paid during the quarter totaled PHP 49.5 billion, up PHP 2.24 billion, or 4.73%, from the first quarter of 2025.

GSIS said the increase was driven by higher pension payments.

The average monthly old age pension rose to PHP 18,874.58 in 2026 from PHP 17,809.10 in 2025.

The increase added more than PHP 1,000 per month to payments received by retirees.

Total expenses for the quarter reached PHP 52.1 billion, up 3.30% from PHP 50.5 billion a year earlier.

Claims and benefits accounted for 95% of total expenses.

Administrative costs, which cover personnel services and operating expenses, stood at PHP 2.44 billion.

That amount represented about 4.7% of total expenses, well within the 12% ceiling set by the GSIS Charter.

GSIS said administrative costs have remained in the single digits for several consecutive quarters.

“Administrative costs at 4.7 percent means more than 95 centavos of every peso in expenses went directly to members. That is where it should go,” PGM Veloso said.

GSIS member loan programs contributed PHP 10.7 billion in income for the quarter.

The loan programs provide government workers access to credit at rates well below commercial lending.

Loan disbursements grew across Ginhawa Loan facilities during the period.

The Ginhawa Solar Energy Loan, which opened for applications on March 25 after the president’s declaration of a national energy emergency under Executive Order 110, posted PHP 890 million in its first week of operations.

GSIS said total assets of PHP 2.0 trillion place the fund on track to cross the PHP 2.1 trillion mark by year-end.

The projection is in line with the pension fund’s 2026 target.

With first-quarter net income at PHP 43.6 billion, GSIS has covered 33.3% of its full-year net income target of PHP 130.91 billion in the first three months of the year.

Based on the fund’s latest actuarial study, GSIS has a life extending to 2058.

The pension fund said this ensures that benefits remain secure for the next generation of government workers and retirees.

GSIS administers social security benefits for government employees, including life insurance, retirement, separation, disability, survivorship and loan programs.

The first-quarter results underscore the fund’s role as one of the country’s largest institutional investors and a key source of financial protection for public sector workers.