Proposed Retirement Age of 56-Year-Old Opposed by GSIS
The Government Service Insurance System (GSIS) opposed the proposed retirement age of 56-year-old fearing that pensioners’ social insurance might reduce.
Congress’ proposed reduction of retirement age from 60 down to 56-year-old has been opposed by GSIS.
GSIS President at General Manager Jesus Clint Aranas fears that the financial life of the pensioner’s social insurance of the pensioners might be reduced.
“Our main concern on the lowering of retirement age for government employees stems from the results of our actuarial study that it will reduce the financial life of the social insurance fund by 12 years,” Aranas said.
Aranas was citing the House Bill 8683 of ACT Partylist Rep. Antonio Tinio who was amending the Government Service Insurance Act of 1997.
Kamara has already approved the proposed bill on its third and last reading through 206 affirmative votes.
GSIS said that they will be forced to reduce the lifespan of pensioners’ social insurance or might reduce the benefits as well as increasing the monthly contributions of the members.
The agency also explained that their current fund could endure until 2051 but if the House Bill will be implemented it would be reduced until 2039 only.
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