GSIS to scale up housing investments
MANILA -The Government Service Insurance System (GSIS) is adding greater emphasis on its support for the Marcos administration’s Pambansang Pabahay Program as part of a strategy to maintain the pension fund’s growth momentum.
The state pension fund reported that its net income for the first semester ballooned by 20 times to P61 billion this year from P3 billion last year.
GSIS president and general manager Arnulfo Veloso said in a briefing that the 20-fold growth in profitability in the first half of the year was driven by strong revenues, which grew by 84 percent to P144 billion from P78 billion in the same period last year.
Veloso said the GSIS saw significant increases in the valuation gain on equities (94 percent to P46 billion), interest income (42 percent to P17 billion), dividend on stocks (52 percent to P6 billion) and insurance premiums (21 percent to P4 billion).
Also, the first-semester growth was achieved despite a 10-percent jump in administrative and operational expenses—reaching P83 billion—largely due to the increase in claims and benefits.
Going forward, Veloso said the GSIS’ strategies would emphasize investments in housing as well as power generation, food production and healthcare. He said that as of end-June, the GSIS has invested P194 billion in property holdings, with 30,000 titles nationwide.
READ: Marcos names ‘Pambansang Pabahay’ or ‘4PH’ as his flagship program
Overweight property
As part of efforts to support the housing program, the GSIS will make some properties available at least with the option to buy, through an installment-based sale with no downpayment required.
Also, it will make available affordable condominium units in Quezon City and Antipolo City in Rizal.
Loan offers
Further, the GSIS has extended its Housing Account Restructuring and Condonation Program until December 2025.
Through this program, the payment period for housing loans may be extended by 10 more years, provided that the buyer or borrower is younger than 70 years.
It offers full payment options for applicants, including a waiver of all remaining penalties and surcharges, as well as an additional discount on outstanding interest.
The housing condonation program is one of three components under the GSIS’ umbrella program named Pabahay para sa Bagong Bayani na Manggagawa ng Pamahalaan (PBBM). A second initiative under the PBBM housing program involves constructing and developing mid-to-high rise residential buildings in strategic locations.
READ: Pambansang Pabahay Para Sa Pilipino Program: Housing for those who need it most
These will meet member housing needs in these specific areas. The first set of high-rise condominiums will be built on GSIS properties in Fairview, Quezon City, beginning this year. These two-bedroom units will be available for purchase through installments over 30 years, with no required down payment.
The third PBBM initiative is the Lease with Option to Buy program, where GSIS leases out available housing units. Priority will be given to current occupants who wish to purchase these units at any point during the lease. Both cash and installment options are available to government employees. INQ
