STATE pension funds will not be used as seed capital for the establishment of the Maharlika Investment Fund (MIF), said President Ferdinand “Bongbong” Marcos Jr. on Wednesday, May 31, 2023.

But in an interview with reporters on the sidelines of the 68 anniversary celebration of the Government Service Insurance System (GSIS), Marcos said it would still be up to the Social Security System (SSS) and GSIS to decide whether or not to invest in the MIF.

"We will not use it as a seed fund. However, if a pension fund, which is what pension funds do, is they invest. If the pension fund decides that Maharlika fund is a good investment, it's up to them if they want to invest in it," he said.

GSIS President and General Manager Jose Arnulfo “Wick” Veloso said they will heed to whatever the lawmakers will decide on.

The Senate approved on third and final reading Senate Bill 2020, which seeks the establishment of MIF.

Among the amendments adopted by the upper chamber in its version of MIF are the absolute banning of the SSS, GSIS, Philippine Health Insurance Corporation (Philhealth), Pag-Ibig, Overseas Workers Welfare Administration (Owwa), Philippine Veterans Affairs Office (PVAO), and Home Development Mutual Fund (HDMF) from investing in the MIF, whether on a mandatory or voluntary basis.

The capital of the MIF will be sourced from the Landbank of the Philippines (P50 billion), Development Bank of the Philippines (25 billion) and the National Government (P50 billion).

The contribution from the National Government will come from the Bangko Sentral ng Pilipinas' total declared dividends, National Government's share from the income of Pagcor, properties, real and personal identified by the DOF-Privatization and Management Office and other sources such as royalties and/or special assessments. (SunStar Philippines)