THE Government Service Insurance System (GSIS) said it is studying the Philippine Stock Exchange’s (PSE) proposal for state-run pension funds to revive stock investment loans and other financial products, with a framework that emphasizes member protection and operational oversight.
GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso said the pension fund recognizes the potential of such programs to expand retirement investment opportunities and strengthen the Philippine stock market.
“The PSE’s call comes at a time when our markets need institutional support and our members deserve broader investment opportunities for their retirement,” he said in a statement on Tuesday.
“Our responsibility is to ensure that any program we implement protects retirement security while genuinely contributing to market health.”
Rather than launching the program immediately, GSIS is proposing a phased study and pilot approach. Central to the framework is the accreditation of licensed, reputable stockbrokers to perform functions they are best equipped for: assessing whether the program is suitable for each member, evaluating their comfort with risk, providing investment advice, and handling stock purchases and sales.
“Pension funds manage pooled investments and benefits administration. Brokers manage individual client accounts and capital market transactions,” Mr. Veloso said.
“Accrediting qualified market professionals to conduct these functions allows the GSIS to focus on governance, oversight, and loan structuring while members receive expert guidance.”
The framework sets clear eligibility rules and loan limits based on salary, length of service, and existing retirement savings to prevent members from borrowing beyond their capacity.
Mandatory disclosures will ensure members understand that the prices of financial products and the amounts they borrow may be affected by market gains or losses.
The GSIS also plans to integrate the program with the Personal Equity and Retirement Account (PERA) and other tax-advantaged retirement programs under Republic Act No. 9505.
Pilot testing will validate the systems, measure members’ understanding of the program, and assess feasibility before broader rollout.
“We are not opposed to innovation. We are insisting on precision. A pilot allows us to build evidence, refine protections, and scale responsibly,” Mr. Veloso said.
The pension fund will work with the PSE, market regulators, and other stakeholders to develop all program elements, which will be reviewed and approved by the GSIS Board of Trustees, he also said. — Aaron Michael C. Sy