‘GSIS is financially stable, can provide full benefits’

This is in reference to Conrado R. Banal III’s “Breaktime” column titled “Stocks in traffic” (Inquirer, 3/21/13).

May we make the following clarifications on some points raised in Mr. Banal’s column:

The net income of the Government Service Insurance System slightly dropped by .8 percent to reach P61.83 billion in 2012 (unaudited figure) from the audited net income of P62.30 billion in 2011. The slight reduction in income was due to the recognition of impairment loss and increase in the release of social insurance claims and benefits for members.

Nevertheless, the operating expense last year amounted to P3.66 billion. Of this total, P2.19 billion is accounted for by an impairment loss, which pertains to doubtful accounts on loans, premiums and other receivables, and P.45 billion for depreciation expense. The actual operating expense for 2012 of P1.02 billion (without impairment loss and depreciation expense) is still below the P1.31 billion operating expense in 2011.

The total expenditures for 2012 reached P74.89 billion, 84 percent or P62.97 billion of which made up social insurance claims and benefits for some 321,582 members and pensioners. This is 21.9 percent higher than the 2011 grant of P51.67 billion.

As a result of the continued data cleansing and reconciliation of members’ records, the number of retirement claims processed increased from 32,765 in 2011 to 34,705 in 2012; monthly old-age pensions from 215,248 in 2011 to 230,285 in 2012; and life insurance claims from 55,206 in 2011 to 56,592 in 2012.

The GSIS is financially stable and the current board and management remain committed to provide the full benefits of its 1.37 million members and pensioners.

—MARGIE A. JORILLO, vice president, Corporate Communications Office

Government Service Insurance System