Saturday, July 12, 2008 Speak out: Proposed increase in GSIS pension By Felix D. Abella President, Senior Citizens of the Visayas
This is in reaction to calls for the Government Service Insurance System (GSIS) to increase retirees’ monthly pension because of the rising prices of commodities.
For the information of retirees, GSIS is mandated by law to make adjustment in the pension based on the cost of living index.
I am referring to PD 712 which took effect on April 1, 1975changing the fixed monthly pension to indexed monthly pension.
As provided in the said decree, adjustment of the pension for those who retired on April 1, 1975 and thereafter must be based on the “cost of living index” or other government indices.
And cost of living index means the “consumer price index” for the Philippines, as compiled by the Central Bank of the Philippines [Sec. 2 (b) and (c), PD 712].
It is the job of the president and general manager of GSIS to direct its Actuary to make a periodic computation contained in PD 712, and approved by the President of the Philippines.
The full text of PD 712, including the attached technical notes, must be read by the GSIS to guide it in the periodic adjustment of monthly pension.
Besides, RA 8291 which took effect on May 30, 1997, also provides in its Section 14 that “the monthly pension of all pensioners including all those receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS Actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS.”
These laws must complement each other as PD 712 and RA 8291 are social legislations and retirees as of April 1, 1975 and thereafter has acquired a vested right to the indexed monthly pension.
It is really disheartening to note that while prices of basic commodities, transportation, gas, electricity, etc. are increasing, the GSIS has not made any substantial increase in the monthly pension based on the “consumer price index.”
Considering, therefore, the present inflation, adjustment of retirees’ monthly pension, including those receiving survivorship pension, is very much needed, timely and justifiable.
