The Government Service Insurance System (GSIS) recorded a massive 170% surge in net income, reaching ₱43.6 billion for the first quarter of 2026, fueled by robust investment returns, elevated insurance collections, and expanding loan programs.
In a press release issued on Thursday, the state pension fund disclosed that its total assets climbed to nearly ₱2 trillion as of March 31, 2026, up from ₱1.96 trillion at the end of 2025. Total revenue also saw a substantial 43.83% increase, jumping to ₱95.8 billion compared to the ₱66.6 billion posted during the same period last year.
“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,” said GSIS President and General Manager Wick Veloso.
Revenue Drivers and Investment Gains
Core insurance operations remained the bedrock of the fund’s financial success, generating ₱56.6 billion—a 9.16% increase from 2025. This growth was driven by higher social insurance contributions and more consistent remittances from various government agencies.
Meanwhile, investment income from financial assets experienced an exponential leap, skyrocketing to ₱27.6 billion from just ₱1.2 billion a year ago. The state pension fund attributed this dramatic turnaround to rebounding equity valuations and favorable foreign exchange movements.
GSIS also highlighted the steady performance of its Ginhawa loan facilities, which brought in ₱10.7 billion during the quarter. Notably, the newly launched Ginhawa Solar Energy Loan—introduced following President Ferdinand “Bongbong” Marcos Jr.’s declaration of a national energy emergency under Executive Order No. 110—secured ₱890 million in applications within its first week of rollout.
Higher Payouts and Controlled Spending
The pension fund expanded its disbursements, paying out ₱49.5 billion in claims and benefits during the first quarter—a 4.73% increase from last year, largely due to higher pension distributions. Retirees saw a notable bump in their benefits, as the average monthly old-age pension rose to ₱18,874.58 from ₱17,809.10 in 2025, adding over ₱1,000 to their monthly accounts.
Total expenditures for the quarter settled at ₱52.1 billion, representing a mild 3.3% year-on-year increase. Payouts for claims and benefits took up 95% of total spending, while administrative overhead was kept tightly controlled at ₱2.44 billion, or 4.7% of total expenses—well below the 12% ceiling mandated by the GSIS Charter.
“Administrative costs at 4.7% means more than 95 centavos of every peso in expenses went directly to members. That is where it should go,” Veloso emphasized.
Long-Term Outlook
With first-quarter earnings already accounting for 33.3% of its ₱130.91 billion full-year target, GSIS is well-positioned to breach its ₱2.1 trillion total asset goal by the end of December.
Furthermore, the state pension fund assured members of its enduring stability, citing its latest actuarial study which confirms that the fund’s life remains sustainable until 2058, ensuring the long-term benefit security of government employees and retirees.