3 weeks ago
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The assets of the Government Service Insurance System (GSIS) and the Home Development Mutual Fund, more popularly known as Pag-IBIG Fund, reached record highs while growing their respective bottom lines in 2024.
Their fortified assets ensure the financial viability of these state-run social protection agencies in meeting the needs of members and pensioners.
The GSIS's unaudited condensed statement of financial position, as seen by Manila Bulletin, showed that total assets climbed further to P1.83 trillion in 2024, up from P1.67 trillion in 2023 and P1.54 trillion at end-2022.
Separately, Pag-IBIG Fund's statements of financial position showed total assets up to P1.07 trillion last year, from end-2023's P925.6 billion.
As earlier reported by Manila Bulletin, Pag-IBIG Fund's asset base breached the trillion-peso mark for the first time during the third quarter of 2024.
The GSIS's unaudited condensed statement of comprehensive income reported that the pension fund for government employees saw a 482-percent jump in its 2024 net income, rising to P35.5 billion from P6.1 billion in 2023.
Its total income—composed of service and business income mainly from members' contributions, investment gains, and other non-operating income—rose 27 percent to P444.1 billion last year, outpacing the 18-percent increase in total expenses, which amounted to P408.2 billion.
The GSIS's net income in 2024 reflected a P290.3-million reduction that went to net assistance and subsidies for pensioners and members.
As for Pag-IBIG Fund, last year's net income increased by 35 percent to P56.5 billion from 2023's P41.7 billion, its statements of comprehensive income showed.
Since Pag-IBIG Fund hiked members' monthly contribution rate early last year, total income jumped 26 percent to P96.9 billion from P77.2 billion in the previous year.
Its total expenses, meanwhile, inched up by seven percent year-on-year to P29.4 billion.
Pag-IBIG Fund's 2024 bottom line reflected a P10.9-billion deduction as investment contract benefit expenses.
"The Fund provides returns to MP2 accounts. It is equivalent to flexible return rates higher than that of Pag-IBIG I accounts," it noted, referring to its popular Modified Pag-IBIG II optional savings program.
"Commencing calendar year 2021, MP2 is classified as a financial liability. Consequently, the Fund recognized investment contract benefit expense amounting to P10.981 billion and P8.047 billion in the statements of comprehensive income for calendar years 2024 and 2023, respectively, as returns to member-savers," it added.
It explained that, in compliance with Philippine Financial Reporting Standards (PFRS) 9 for financial assets, "it was assessed that MP2 portfolio qualifies as a financial liability rather than an equity because of its withdrawability feature."
Membership in Pag-IBIG Fund is mandatory for all Filipino workers, both in the public and private sectors. It provides home financing, as well as investment and savings programs, to its members.
