Dr. Mario “Mayong” J. Aguja

Trustee, Government Service Insurance System (GSIS), Philippines

“Pension Towards Socially Responsible Investment” May 3, 2013, New Delhi, India

The Philippine Investment Alliance for Infrastructure (PINAI)

Fund

•GSIS is a government –owned and

controlled corporation (GOCC) created

by law under Republic Act 8291

otherwise known as the Government

Service Insurance Act of 1997 which

amended the 20-year old revised

charter of the GSIS, known as

Presidential Decree No. 1146.

•GSIS is a premium-based social

insurance for government employees,

with

Premium Sharing defined by law

•Govt. provides 12% of basic salary

•Member provides 9% of basic salary

•Total contribution = 21%

•Benefits are fixed by law

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The GSIS covers all government workers

irrespective of their employment status, except:

•Members of the Judiciary and Constitutional

Commissions who are covered by separated

retirement laws;

•Contractual employees who have no employee-

employer relationship with their agencies;

•Uniformed members of the Armed Forces of the

Philippines and the Philippine National Police,

including the Bureau of Jail Management and

Penology and the Bureau of Fire Protection.

(since 1997).

GSIS Membership (1,784,006)

Assets, Liabilities and Networth as of Dec. 31, 2012

In USD*

Total assets 17.7 B

Total liabilities .452 B

Total reserves 15.9 B (16.4 B)

surplus 1.8 B

Total networth (17.7 B - .452) $17.3 B

*USD 1=PHP 40.9

Loan and investment portfolio as of March 2013, in USD billion = USD17.8B

GSIS Investment Policy

Sec. 36, RA 8291

“…That investment shall satisfy

the requirements of liquidity,

safety/security and yield in order to

ensure the actuarial solvency of the

funds of GSIS…”

The Phil. Investment Alliance for

Infrastructure or PINAI Fund

A private equity fund for infrastructure

development in the Philippines

Its an investment alliance between ADB, GSIS,

Algemen Pensionen Groep (APG) of The

Netherlands and Macquaire Group

Macquarie Infrastructure and Real Assets (MIRA),

a global infrastructure asset manager, will serve

as the investment manager

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Why the need for PINAI Fund?

To help develop infrastructure financing

solutions in the Philippines

Foster Philippine capital market development

What’s in it for GSIS?

Invest in infrastructure projects which offers

higher returns than Phil. government

securities

Partnership will increase the amount of

investible funds and spread out risk

Leverage the multilateral organizations

expertise and access their vast resources of

networks

Provide comfort that the highest levels of

professionalism, corporate governance and

international best practices will be followed.

Safeguards and social dimensions

The investment is classified category F1

for impacts on the environment,

involuntary resettlement, and indigenous

peoples.

The fund will apply ADBs prohibited

investment activities list

Abide by applicable national laws and

regulations and comply with ADBs

Safeguard Policy Statement (2009)

Establish an appropriate Environmental

Social Management System (ESMS)

satisfactory to ADB

The PINAI Fund’s ESMS include

arrangements to comply with national

labour laws and ADBs Social Protection

Strategy to ensure adherence to

internationally recognized core labour

standards, including provisions to

prohibit any discrimination against

women in hiring and to provide equal pay

for men and women for equal work.

Includes appropriate provisions

prohibiting corruption, money laundering,

and the financing of terrorism, and

remedies for ADB in the event of

noncompliance.