GSIS Q1 net earnings jump to P43.6B as contributions grow

THE GOVERNMENT Service Insurance System (GSIS) posted a 170% increase in net income for the first quarter amid higher revenues, driven mainly by contributions.

The state pension fund’s net income stood to P43.6 billion in the period from P16.1 billion in the same period last year.

This was already over 30% of its full-year profit target of P130.91 billion.

Insurance income, which is the GSIS’ primary revenue line, increased by 9.16% to P56.6 billion in the January-to-March period from P4.75 billion a year ago.

This came amid higher social insurance contributions as collections were supported by its growing member base and higher agency remittances.

Meanwhile, investment income from financial assets jumped to P27.4 billion from P1.2 billion, supported by gains from equity valuations and favorable foreign exchange movements.

Loan income stood at P10.7 billion in the first quarter amid higher disbursements across Ginhawa Loan facilities.

GSIS said the Ginhawa Solar Energy Loan contributed P890 million in its first week of operations after the state pension fund started accepting applications on March 25.

As a result, gross income stood at P95.8 billion in the quarter, up 43.83% from P66.6 billion a year ago.

Meanwhile, the pension fund’s total expenses went up by 3.3% year on year to P52.1 billion from P50.5 billion. It said 95% of total expenses were paid claims and benefits, which rose by 4.73% to P49.5 billion in the first quarter amid higher pension payments.

The average monthly old age pension rose to P18,874.58 in 2026 from P17,809.10 in 2025, it added.

“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 Jose Arnulfo “Wick” A. Veloso said in a statement.

Administrative costs, covering personnel services and operating expenses, stood at P2.44 billion. This made up about 4.7% of total expenses, well below the 12% ceiling set by the GSIS Charter.

“Administrative costs at 4.7% means more than 95 centavos of every peso in expenses went directly to members,” Mr. Veloso said.

GSIS booked total assets amounting to P2 trillion at end-March, up from P1.96 trillion as of end-2025.

This puts the fund on track to reach P2.1 trillion in total assets by the end of the year.

“Based on the fund’s latest actuarial study, the GSIS has a life extending to 2058, ensuring that benefits remain secure for the next generation of government workers and retirees,” it said. — Aaron Michael C. Sy