By the staff
The Government Service Insurance System (GSIS) said it is reviewing a proposal from the Philippine Stock Exchange (PSE) to allow state-run pension funds to offer loans for stocks and other financial products.
GSIS president and general manager Wick Veloso said the program could expand retirement investment options and support 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,” Veloso said. “Our responsibility is to ensure that any program we implement protects retirement security while genuinely contributing to market health.”
Instead of a full-scale rollout, GSIS plans a phased pilot. Licensed and accredited stockbrokers would handle member assessments, investment advice, and stock transactions, while GSIS would focus on governance, oversight, and loan structuring.
“Pension funds manage pooled investments and benefits administration. Brokers manage individual client accounts and capital market transactions,” Veloso explained. “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 loan limits based on salary, length of service, and retirement savings, and requires disclosures to ensure members understand potential market risks.
The pilot will also test integration with the Personal Equity and Retirement Account and other tax-advantaged retirement programs under Republic Act 9505.
“We are not opposed to innovation. We are insisting on precision. A pilot allows us to build evidence, refine protections, and scale responsibly,” Veloso said.
GSIS will coordinate with the PSE, market regulators, and other stakeholders before submitting a full proposal to its board of trustees for approval.
