Pandemic slashed GSIS net income by 40% in 2020

As it disbursed more financial support to its members and pensioners amid the COVID-19 pandemic, the net income of state-run Government Service Insurance System (GSIS) fell by two-fifths to P62.76 billion in 2020.

The GSIS’ latest unaudited financial statement showed that the 40-percent drop from its 2019 net income amounting to P104.95 billion was mainly due to a jump in the pension fund’s expenditures last year.

Total expenses ballooned to P287.59 billion in 2020 from P231.32 billion in 2019, mainly as noncash expenses rose by over half to P155.59 billion.

The GSIS’ expenditures on personnel services also rose to P5.27 billion while maintenance and other operating expenses inched up to P126.63 billion.

Its financial expenses, however, declined to P88.5 million from P118.2 million in 2019.

At the height of the longest and most stringent COVID-19 lockdown in the region, the GSIS offered various loan programs and continued to release benefits on time in consideration of the harder times wrought by the pandemic

It also shouldered insurance benefits to families of medical front-liners in public health institutions who died while in the thick of the battle against COVID-19.

The GSIS’ expenses last year grew at a faster pace than the increase in its total income to P350.45 billion from P336.36 billion in 2019.

Service and business income as well as gains increased to P214.49 billion and P135.41 billion, respectively.

Oher nonoperating income dropped to P540.24 million in 2020 from P1.26 billion in 2019. —Ben O. de Vera INQ