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What are pension funds?

April 26, 2017epra Filipino funds guide managing ofw ofw journalism consortium pagpapahalaga sa perang kinita Pension Pinoy

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What are pension funds?

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“Pension funds provide retirement income through regular payments to employees covered by a pension plan. Funds are obtained through contributions from employees or employers. You may also want to buy your own pension plan from life insurance companies if you have extra income that you want to save for your retirement. The Government Service Insurance System (GSIS) and the Social Security System serve as the largest pension funds in the Philippines. These two government-administered funds invest in government securities, the stock market, commercial paper, and property development. Their income usually comes from salary and housing loans, interest income in investments, dividends, and foreign exchange gains. (EIU, 2004) Apart from GSIS and SSS, there is another smaller government administered fund: the Armed Forces of the Philippines Retirement Separation and Benefits System (AFP-RSBS). At present, GSIS and SSS experience difficulty in meeting their redistribution goal. Specifically, b