GSIS reserves to last 31 years; monetizing idle assets eyed

Cebu City (CNN Philippines, September 15) — Idle assets of the Government Service Insurance System will be "put to use" to add more funds to the state-run pension system, the GSIS chief said Thursday.

In a press briefing in Cebu City, GSIS President and General Manager Jose Arnulo Veloso said the agency is identifying which assets will be sold or will be up for lease and which will be invested in joint-venture projects.

"Kami po ay nag-fast track ngayon ng pag-identify ng aming mga non-earning asset tulad ng real estate," he said. "Sapagkat ang real estate kapag nakatiwangwang ay hindi magbibigay ng returns sa ating mga myembro."

[Translation: We fast-tracked the identification of our non-earning assets such as real estate. An unused real estate does not give returns to our members.]

Veloso also said the GSIS has “enough reserve funds” for its members and its fund life could last for 31 years.

"Kami po ay naniniwala na sa mga ginagawa naming ito ay ma-extend po namin lalo ang fund, mas lalo na kung ang mga non-earning asset ay magsisimula ng kumita. Napakarami pong idle assets ang GSIS," he added.

[Translation: We believe that because of what we do, we will be able to extend our fund life, especially if our non-earning assets will start generating revenue. GSIS has a lot of idle assets.]

Among the real properties that the GSIS is eyeing to use to generate more income are those near Manila Bay —which are giving low returns to the agency — and the ones in Cebu.

Veloso is in Cebu as part of his itinerary to make the rounds in different GSIS branches across the country.

The GSIS will go digital to enhance its services, provide a cost-efficient way to avail of its services, and save money, Veloso said.

The agency will also invest in government infrastructure projects, he added.

"We are putting a very coherent strategy in terms of investment that will allow us to be able to come up with the right return," he explained. "We have approved, three weeks ago, ₱125 billion that we can invest in infrastructure programs of the government."

Veloso said the GSIS will disclose soon the details of its investments.

He touted that in his past one and a half months leading the agency, he was able to add ₱25 billion to its funds.