GSIS pensioners underpaid by P1.1M

a total of P1.1 million, according to state auditors.

This observation was made in the Commission on Audit’s (CoA) audit

“Management did not update the ideal minimum basic monthly

in the underpayment of pension

sampled old-age and disability pensioners contrary to Board Resolution procedural guidelines] on Pension Administration, thus, depriving the pensioners the correct amount of of the monthly pension processed -

to non- adjustment of minimum monthly pension. On the average, said amount comprises 17.51 months underpaid pension for the

Based on the audit report, the According to the audit report,

subject to the president’s approval, a pension increase for old-age and disability pensioners effective Januwell as the grant of a one and a halfpercent increase, the adjustment of the

the one and a half-percent increase. receiving monthly pension of over

one and a half-percent increase.

“Qualified for the minimum BMP are old- age and disability pensioners, as well as those whose length of service is more than 15 years but have less than 15 years of periods with paid premiums. Not

who Law and retired survivorship under the pensioners,” Portability CoA said.

the or survivorship updating of record retiree-pensioner is required in case amount of an and increase updating in the of pension the pensioner’s status.

monthly minimum pension to six

“Despite Management’s automated system, isolated cases of pensioners with outdated pension records still ensue thereby depriving the P1- million differential pension

members who were underpaid their monthly pension.

the pension record of all pensioners with original BMP below the mini

records and e-credit the pension adjustment of those pensioners’ with BMP below the minimum.” - form the pensioners to always check

would be kept informed on their pension record.

and after pension runs) advisories to its Operating Units Concerned (OUC) to check those pensioners

database. However, that practice is not able to consider pension accruals (or initial pension payments) processed by OUCs using less than

develop a monitoring tool that will check if processed pension accruals by OUCs used the minimum pension or not, and shall from then on advice the OUCs to validate and correct the pension accrual performed as necessary.”

“Promotion of the use of the Pensioners, is a continuing activity and a desired endeavor for the

provide quality service. Apart from the status of their pension and their

Loans unpaid

According private to loans the same to companies audit report, with P2.1- billion total outstand

accrued interest remained uncol

of recover lack of the concrete same. action plan to

“Examination of the available records submitted by Management showed that on various dates, then

loans with a total principal amount

Commercial Lending Program, all of which remained outstanding as

more from the date of loan granting. In addition, an interest receivable of

from eight loan accounts were recognized in the books of accounts and

statements.” CoA said.

of 25 aforementioned companies amounting to P2.118 billion, ex

Family Bank and Development Bank of the Philippines, were already considered as fully impaired since

of the said companies were still existing and operative. Likewise, all the recorded accrued interest

considered fully impaired unevenly

- parent that there is either no accrual of interest, surcharges and penalties or only partial accrual of the same in the books of accounts,” it said.

“The lack of prompt and concrete action plan to recover the foregoing private loans is contrary to the

2 of PD No. 1445 on the protection and safeguard of the invested funds which results in the continuous de

and its collectability also casting more considering doubt as that to amicable settlement or negotiation deemed not effective but only delayed the appropriate legal action,” CoA said.

Presidential Decree (PD) 1146 is

-

the Philippines.

among others, “[f]ormulate a concrete action plan for the recovery of private loans with the principal

computed accrued interest, surcharges, and penalties.” - READMO [Real Estate Asset Disposigoing. During the Board Meeting on

by the Board to submit a memorandum regarding the proposed action plan by the Management to address the collection of the long outstanding private loans. READMO will provide further update on actions taken on this matter not later than

CoA, in response, emphasized

the total loan balance of the 25 private loan accounts as of

observed that to date only five out of 25 private loan accounts have updated total loan balance/

“In this regard, we respectfully enjoin the Management to update

- vate loan accounts not just for the purpose of possible future legal action for the collection of the same but also as basis for the request for authority to write-off accounts in accordance with the relevant COA rules. The implementation of the action plan of Management within the timetable indicated therein will be