The GSIS will give its pensioners a nice Yuletide present after the GSIS Board of Trustees approved the release of P1.18 billion worth of Christmas cash gift this December, representing a 27.6-percent growth from the P923 million budget allocated for the Christmas cash gift last year.
In fact, the amount has been steadily increasing the past few years. In 2006, the GSIS allotted P623 million for the cash gift and P587 million in 2005.
“We want to give our pensioners a nice holiday present. We know this cash gift will go a long way in making their Christmas a truly merry one,” said GSIS President, General Manager and concurrent Board Vice-Chair Winston F. Garcia.
Mr. Garcia attributed the robust growth in the amount of Christmas cash gift the GSIS has allotted for its pensioners to the consistent increase in the monthly pension the pension fund has been giving its pensioners.
In addition, the GSIS chief noted that with the number of government retirees eligible to receive pension from the GSIS increasing every year, it is deemed necessary that the total allotment for the Christmas cash gift be correspondingly increased as well.
Starting January 2009, the average monthly pension of GSIS pensioners will increase to around P7,800 from the current average of around P7,200.
The GSIS is the only pension system that has managed to consistently increase its pension yearly for the past decade. Since 2000, the GSIS has increased its monthly pension benefit by as much as 84 percent, a feat unmatched in the country.
Furthermore, Mr. Garcia pointed out that the healthy income growth the GSIS has been enjoying so far this year contributed significantly to the increase in the budget allotted for the Christmas cash gift.
For the first 11 months of the year, GSIS has already earned P43 billion in net income and is on pace to hit its P50-billion net income target for the full year.
The GSIS has also issued the guidelines for the cash gift entitlement. For pensioners whose 2007 Christmas cash gift is above P10,000, they shall be granted an amount equivalent to one-month current pension up to a maximum of P12,600. On the other hand, for pensioners whose 2007 Christmas cash gift is P10,000 and below, they shall be granted an amount equivalent to one-month current pension up to a maximum of P10,000.
Meanwhile, for pensioners who resumed their regular monthly pension after December 15, 2007 (after the five-year guaranteed period), they shall be granted an amount equivalent to one-month current pension up to a maximum of P10,000.
Those entitled to receive the Christmas cash gifts are old-age and retirement pensioners including joint-life retirees and disability pensioners under R.A. 8291, P.D. 1146 and R.A. 660 who are receiving their regular monthly pensions and are still qualified to their corresponding pensions and whose status as pensioners is still active as of December 15, 2008.
On the other hand, those not entitled to receive the cash gift are basic survivorship pensioners, dependent pensioners and joint life beneficiaries; retirees who received in advance their guaranteed pensions in the form of lump sums, who shall be resuming their regular monthly pensions after December 15, 2008; and new retirees in 2006 and 2008. They shall only be entitled to this benefit after five years from their retirement date.
Others who are not yet eligible to receive the cash gift this year include members who separated from the service in 2006 and 2008 before reaching the age of 60 and who started their regular monthly pension in 2006, 2007 and 2008. They shall only be entitled to the cash gift if they have been regular pensioners for at least five years; and pensioners under R.A. 7699 (Portability Law) who are receiving their regular pro-rata pension, including those who are receiving pro-rata pension as a result of the Premium-Based Policy.
