The Alliance of Concerned Teachers (ACT) urged the Congress to investigate the Government Service Insurance System’s (GSIS) reported investment of P2.308 billion in companies with no proven track record of profitability over the last three years and have not paid dividends even once within the same period, as revealed by the Commission on Audit’s (COA) report in 2023. ACT also lambasted GSIS for its unfair loan policies that impose exorbitant interest rates and harsh penalties on members, while risking contributions on highly speculative investments.
“GSIS’s reckless gamble of public sector workers’ hard-earned contributions on high-risk investments is deeply alarming. This is a gross disservice to the teachers and government employees who rely on GSIS for their future security. We urge Congress to investigate these irregularities and hold accountable those responsible for exposing pension funds to such reckless practices.”
Makabayan lawmakers highlighted in their filed house resolution that the investment is in clear violation of laws and regulations governing the prudent use of members’ funds, exposing significant portions of teachers’ and government employees’ contributions to unnecessary risks while failing to ensure the actuarial solvency of the pension fund.
“While GSIS claims to serve its members, it operates like a ruthless investment agency, prioritizing speculative ventures over the welfare of its contributors. Its high-risk, high-reward approach is nothing short of gambling with the lives and futures of teachers and government employees. They reject our calls for more compassionate loan terms while risking our contributions on speculative investments,” Quetua stressed.
ACT further criticized GSIS for its persistent opposition to the proposed measure to lower the optional retirement age of government workers from 60 to 56 years old. The bill, authored by ACT Teachers Party-list Representative France Castro and other Makabayan bloc lawmakers, seeks to grant government employees the right to retire earlier and enjoy the fruits of their labor. GSIS has consistently rejected this proposal, citing its potential impact on the actuarial life of the pension fund.
“GSIS’ rejection of the lower retirement age measure underscores its disregard for the welfare of its members. Teachers and government workers deserve the option to retire earlier and spend their later years in comfort, especially given their productive years in public service,” ACT emphasized.
ACT calls on Congress and all concerned agencies to take immediate action to protect the pension funds of public sector workers from inefficiency and corruption, and to abolish all exploitative policies against its contributors.#
