The document discusses GSIS, a government-owned corporation in the Philippines that provides social insurance to government employees. It outlines GSIS's assets, liabilities, investment portfolio, and membership coverage. It then describes the Philippine Investment Alliance for Infrastructure (PINAI) Fund, a private equity fund for infrastructure development in the Philippines established as a partnership between ADB, GSIS, and other organizations. The PINAI Fund will help develop infrastructure financing solutions in the Philippines while providing returns for GSIS and leveraging partners' expertise. Social and environmental safeguards are in place to ensure the fund's activities comply with relevant standards and regulations.

1. 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
"The views expressed in this paper/presentation are the views of the author(s) and
do not necessarily reflect the views or policies of the Asian Development Bank
(ADB), or its Board of Directors, or the governments they represent. ADB does not
guarantee the source, originality, accuracy, completeness or reliability of any
statement, information, data, finding, interpretation, advice, opinion, or view
presented, nor does it make any representation concerning the same."

2. •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.

3. •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

4. 4
MembershipCoverage
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).

5. GSIS Membership (1,784,006)

6. 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

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

8. 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…”

9. 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

10. EquityContribution

11. Why the need for PINAI Fund?
To help develop infrastructure financing
solutions in the Philippines
Foster Philippine capital market development

12. 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.

13. 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

14. 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.

15. Includes appropriate provisions
prohibiting corruption, money laundering,
and the financing of terrorism, and
remedies for ADB in the event of
noncompliance.