PSMBFI
2019PUBLIC SAFETY MUTUAL BENEFIT FUND, INC.
ANNUAL
REPORT
About the Cover
Transcendence, in PSMBFI’s method, is defined as
our capacity to bring forth our past achievements
during the last 22 years to a state of dominance
beginning 2020. As we embark on a new vision of
being the organization of choice for all public safety
practitioners, we shall provide member-centered
financial services that give protection and peace
of mind.
The heart of our success is a strong team symbolized
by The Geese with a shared goal of transcending
upward, guided by the five core values of
Unparalleled Member Experience, Professionalism, Integrity, Respect In The
Workplace, and Excellence, as illustrated by the origami folds in the geese.
The 13 pillars at the back of the geese collectively raised in a shape of a diamond
represent PSMBFI’s 13 partner agencies whom we enjoy having a fair, honest,
and sustainable relationship with.
With great optimism, we shall conquer our vision of leadership through teamwork
and by sharing a common direction and purpose with our stakeholders – that
of securing the future of our members and their families.
VISION “We shall be the organization of choice for all public
safety practitioners providing member-centered financial
services that give protection and peace of mind.”
• To provide timely and quality financial services for our public safety
practitioners and their families
MISSION • To provide a nurturing and empowering work
environment for our employees
• To maintain a fair, honest, and sustainable relationship with our
stakeholders
• Unparalleled member experience
CORE VALUES • Professionalism
• Integrity
• Respect in the workplace
• Excellence
Table of
CONTENTS
2 PSMBFI Mission and Vision
4 Message from the Chairman
5 Message from the President & CEO
6 The Board of Trustees and Committees
8 The Board of Trustees and Corporate Officers
16 President’s Report 2019
24 Corporate Governance Report
30 PSMBFI Department and Offices
33 PSMBFI by the Numbers 2019
34 Report of Independent Auditor
77 PSMBFI Offices
4 PSMBFI 2019 Annual Report
To our Valued PSMBFI Members:
Ihumbly present the Annual Report 2019 of
the Public Safety Mutual Benefit Fund, Inc.,
produced by the grace of God during these
most trying times.
For more than two decades, PSMBFI has
provided life insurance as protection to our
country’s public safety practitioners. In 2019,
the Association raised the bar of performance, as
it remained resilient to various challenges. Hence,
ARCHIE FRANCISCO F GAMBOA this Annual Report chronicles PSMBFI’s operational
Police General achievements with very impressive results.
Chief, PNP and Chairman, PSMBFI Most of our members are law enforcers
who are addressing criminality in the country.
PSMBFI, in turn, was mindful that they were sacrificing their lives – thus, we were more
than determined to present activities that advanced their best interest.
The Philippine National Police also beefed up its force with new police recruits in 2019.
PSMBFI was keen in enrolling them, that even without their first premium deduction –
they immediately became members of the Association. They were treated by PSMBFI
not as faceless entries but as individuals with loved ones waiting for them back home.
PSMBFI also condemns in the strongest manner the acts of terrorism and ambushes
perpetrated against our members. Their families were assured that the cash advance
of insurance claims was immediately processed with the least requirements, along with
killed-in-action benefit.
The Association also fulfilled its corporate social responsibility by providing financial
assistance to members in need and assist in the programs of partner agencies.
In all of these accomplishments, it is but fitting that I acknowledge the PSMBFI Board
of Trustees, Management, and workforce for selflessly looking after the welfare of our
members. I also wish to extend my sincerest gratitude to our partner agencies and
members for putting their trust and confidence in PSMBFI.
Let us continue to trust the strength of our collective resolve and prepare ourselves for
more challenges in this new normal era. We will adapt to necessary changes, but the
hallmark of PSMBFI’s service will never be diminished.
This is our unwavering commitment to all who dedicate their very lives upon our people.
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PSMBFI 2019 Annual Report 5
Every time our public safety practitioners don their uniform,
they turn into heroes.
As they set off to fulfill their duties, they know the task
is to save the day for someone. While it comes in many
forms, the end goal is the same: to ensure public safety.
One can tell this is not an easy task. Once they set off
for work, they are aware that risks and dangers abound.
Nonetheless, off they go, with courage and devotion.
The question now is: Who looks after these heroes and
their families?
The Public Safety Mutual Benefit Fund, Inc (PSMBFI) exists DIR MARIO A AVENIDO
to fulfill this role. The mission of the company is clear: “To
provide timely and quality financial services to front liners President and CEO
and their families.”
After all, peace is felt when public safety is ensured. PSMBFI knows this for a fact, and so, it puts
several measures in place to ensure our heroes get what they deserve – an unparalleled service
mirroring their own.
We acknowledge that we need an equally empowered squad to deliver our commitment.They must
be dedicated, reliable, and beneficent. Fortunately, we have them, and we call them our Employees.
The Company, however, understands that in order for our internal force to carry out their critical role,
they must thrive and flourish as well.
For this reason, PSMBFI works to provide a nurturing and empowering working environment for
our employees – one that would inspire them to embrace their noble job of serving our modern-day
heroes.
Our mission, however, doesn’t stop here. We also need to maintain a fair, honest and sustainable
relationship with our stakeholders who support our endeavors, causes, and advocacies.
It is only through this that we are able to keep a strong company that is relevant, reliable, and resilient.
All these pursuits entail devotion to driving significant change. We are where we are now, 22 years
in service, because of our earnestness to serve.
We saw this from those who came before us – our former presidents, our forebears, and the Board
of Trustees. We thank them for laying the foundation for us. We will keep your legacy of upholding
accountability and integrity in all our endeavors.
We also acknowledge with gratitude our management team and employees who remain unrelenting
in the fulfillment of their day to day tasks. Your dedication and hard work truly show our care to our
members. May your hearts never grow tired of serving them. Their undying commitment to serve
the Filipino people and our motherland deserve our salute and the outstanding service that PSMBFI
deliver to you.
And as we watch a new chapter unfolds for us, may we always remember what Les Brown once
said, “You either commit to mediocrity or commit to greatness.” It is our desire that we choose the latter.
Mabuhay!
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6 PSMBFI 2019 Annual Report
Board of Trustees and Committees
The Board of Trustees supervises and controls the business, property, funds, and affairs of
the Association. It adheres to rules and regulations that are consistent with the law and with its
charter and by-laws in the management of the business.
BOARD COMMITTEES
The Executive Committee is organized to evaluate resolutions, projects, or activities for Board
action. It may also act on all other matters upon its own initiative or as may be delegated by
the Board.
The Governance Committee provides for the Board’s effectiveness and continuing
development, and assists the Board in all matters relating to corporate governance and in
making recommendations as described in this Charter or as requested by the Board and such
other matters as:
a. Corporate governance policies and practices;
b. Director nomination;
c. Board and management review and evaluation;
d. Review of possible conflicts of interest;
e. Director compensation;
f. Director orientation and education;
g. Organizational Structure;
h. Screening and remuneration;
i. Review of by-laws and other policies;
j. Review and performance evaluation of contracted services; and
k. Other delegated duties or responsibilities.
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PSMBFI 2019 Annual Report 7
The Membership Committee is created primarily to assist the Board in all matters relating to
membership such as but not limited to expansion, recruitment, retention and renewal.
It shall also act on any and all matters upon its own initiative or upon delegation of the
Executive Committee and the Board.
The Information Technology Committee is created to assist the Executive Committee
evaluate and/or supervise IT-related activities to ensure that the functions, objectives, and
processes of the Company are vigorously carried out in pursuit of its Vision and Mission.
It may also act on any and all IT-related matters upon its own initiative or upon delegation
of the Executive Committee.
The Risk and Audit Committee assists the Board in carrying out its responsibilities for policy
formulation; in fulfilling its oversight responsibility relating to risk management systems; in
overseeing the Company’s financial reporting, internal control structure, and the internal and
external audit functions; in overseeing its funds management functions; in complying with
legal and regulatory matters; and in making recommendations in relation to all matters within
its responsibility as described in this Charter or as requested by the Board.
The Committee ensures that an overall set of risk management policies and procedures exist
for the Company; reviews the adequacy of the Company’s risk management framework/
process; and reviews the result of the annual risk assessment. The Committee shall regularly
oversee the Company’s process for management and communication of key risks facing the
Company, as well as the guidelines, policies, and processes for monitoring and mitigating such
risks, and for other matters concerning the internal and external risks faced by the Company.
The Committee shall oversee the fairness of the Company’s financial statements and the
soundness of its financial reporting process, the robustness of its internal control and internal
audit activities, and the annual external independent audit of the financial statements.
The Committee’s principal function is one of oversight, review and monitoring.
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8 Board of Trustees and Corporate Officers PSMBFI 2019 Annual Report
Board of Trustees and Corporate Officers
DIR ARCHIE FRANCISCO F GAMBOA
BORN: SEPTEMBER 2, 1964 AGE: 55
EDUCATIONAL Position: The Deputy Chief for Operations,
BACKGROUND PNP
POST GRADUATE STUDIES Inclusive Dates: September 1, 2018 to present
School:
Jose Rizal University Position: The Chief of Directorial Staff, PNP
Degree: Inclusive Dates: March 17, 2017 to August 31, 2018
Bachelor of Laws
Year Graduated: Position: Director,
2004 Directorate for Comptrollership,
PNP
School: Fr Saturnino Urios University Inclusive Dates: July 1, 2016 to March 16, 2017
Degree: Masters in Business Administration
Year Graduated: 1995 Position: Deputy Director,
Directorate for Logistics, PNP
COLLEGE Inclusive Dates: June 30, 2016
School: Philippine Military Academy
Degree: Bachelor of Science APPOINTMENT WITH PSMBFI
in Military Service Position: Chairman
Year Graduated: 1986 Date Elected / Appointed: January 28, 2020
Position: EXPERIENCE Position: Vice-Chairman
Inclusive Dates: The Chief, PNP Date Elected / Appointed: March 1, 2017
January 20, 2020 to date
Position: OIC, CPNP
Inclusive Dates: October 12, 2019 to January 19, 2020
DIR LYNDON G CUBOS
BORN: FEBRUARY 3, 1964 AGE: 56
EDUCATIONAL Position: Executive Officer,
BACKGROUND
POST GRADUATE STUDIES Directorate for Personnel and
School: Jose Rizal
University Records Management, PNP
Degree:
Bachelor of Laws Inclusive Dates: February 11, 2016 to March 14, 2016
Year Graduated:
2001 Position: Acting Executive Officer,
COLLEGE Directorate for Personnel and
Philippine Military Academy
Bachelor of Science Records Management, PNP
1986
Inclusive Dates: December 8, 2016 to February 10, 2016
EXPERIENCE
Director, DPRM, PNP Position: Police Liaison Officer,
April 27, 2018 to February 3, 2020
School: Philippine Consulate General
Degree: Director, Finance Service,PNP
Year Graduated: July 1, 2016 to April 26, 2018 in San Francisco, CA
Position: Director, PNP Retirement and Inclusive Dates: 2011 to 2015
Inclusive Dates: Benefits Administration Service
March 16, 2016 to June 30, 2016
Position:
Inclusive Dates: APPOINTMENT WITH PSMBFI
Position: Position: Vice Chairman
Inclusive Dates: Date Elected / Appointed: February 7, 2020
Position: Chairman, Membership Committee
Date Elected / Appointed:
Position: Corporate Treasurer
Date Elected / Appointed: July 28, 2016
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PSMBFI 2019 Annual Report Board of Trustees and Corporate Officers 9
DIR MARIO A AVENIDO
BORN: NOVEMBER 18, 1957 AGE: 62
Position: Regional Director,
EDUCATIONAL Police Regional Office ARMM, PNP
BACKGROUND
POST GRADUATE STUDIES Inclusive Dates: February 23, 2012 to January 4, 2013
School: Manuel L
Quezon University Position: Director,
Degree: Master in Public
Administration Police Community Relations
Year Graduated: 1995
Group, PNP
COLLEGE
Philippine Military Academy Inclusive Dates: November 3, 2010
Bachelor of Science
1981 to February 22, 2012
Position: Deputy Director,
School: Directorate for Police Community
Degree:
Year Graduated: Relations, PNP
Inclusive Dates: August 12, 2010
to November 3, 2010
School: Siliman University
Degree: Bachelor of Science APPOINTMENT WITH PSMBFI
in Civil Engineering Position: President/CEO
Year Graduated: 1975 Date Elected / Appointed: February 28, 2014
EXPERIENCE Position: Vice President
Date Elected / Appointed: January 30, 2014
Position: Director,
Finance Service, PNP
Inclusive Dates: February 14, 2013 to November 15, 2013 Position: Corporate Treasurer
Date Elected /Appointed: February 27, 2013
DIR ARMANDO E RAMOLETE
BORN: MARCH 13, 1960 AGE: 60
EDUCATIONAL EXPERIENCE
BACKGROUND
POST GRADUATE STUDIES Position: Director,
School: University of
Asia and the Pacific Philippine National Police
Degree:
Strategic Business Academy
Economics Program
Year Graduated: 2018 Inclusive Dates: 2014 to 2016
Position: Deputy Director,
Directorate for Personnel and
Records Management, PNP
Inclusive Dates: 2013 to 2014
School: Greenville College Position: Police Attaché, Washington DC
Degree: Doctor of Public Administration Inclusive Dates: 2009 to 2013
Year Graduated: 2017
School: Philippine College of Criminology Position: Senior Police Assistant to the
Degree: Ph.D. in Criminology, Candidate
Secretary of the Interior and
Local Government
School: International University, Inclusive Dates: 2006 to 2009
Missouri, USA
Degree: Masters in Business Administration Position: Chief,
Year Graduated: 1993 Foreign Liaison Division,
Directorate for Intelligence, PNP
School: Polytechnic University of the Inclusive Dates: 2003 to 2006
Philippines
Degree: Masters in Psychology APPOINTMENT WITH PSMBFI
Position: Vice President
Year Graduated: 1991 Date Elected / Appointed: April 16, 2016
School: COLLEGE
Degree: Philippine Military Academy
Year Graduated: Bachelor of Science
1982
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10 Board of Trustees and Corporate Officers PSMBFI 2019 Annual Report
DIR JOSELITO M VERA CRUZ
DATE OF BIRTH: MARCH 8, 1966 AGE: 54
EDUCATIONAL EXPERIENCE
BACKGROUND Position: Directorate for Integrated Police
POST GRADUATE STUDIES Operations (DIPO)
School: Pamantasan ng - Western Mindanao, PNP
Lungsod ng Maynila Inclusive Dates: December 2019 to Present
Degree:
Master on Government APPOINTMENT WITH PSMBFI
Management Position: Member, Board of Trustees
Year Graduated: 1998 Date Elected / Appointed:
School:
Degree: COLLEGE
Year Graduated: Philippine Military Academy
Bachelor of Science
1987
DIR FELIPE S MOQUIALA
BORN: SEPTEMBER 28, 1967 AGE: 52
EDUCATIONAL Position: Regional Executive Senior Police
Officer (RESPO) PRO 11, PNP
BACKGROUND Inclusive Dates: November 2016 to August 2017
POST GRADUATE STUDIES
School:
Quezon College of Position: Chief Clerk,
Southern Philippines Regional Investigation and
Degree: MA in Detective Management Division,
Educational Management PNP
Year Graduated: 2002 Inclusive Dates: 2013 to 2016
Position: Investigator/ Intel/ OPN PNCO
COLLEGE Sto. Tomas Police Station,
Bukidnon State College
School: Bachelor of Arts in Mathematics DNPPO, PRO 11
Degree: 1991
Year Graduated: Inclusive Dates: 1998 to 2013
EXPERIENCE Position: Riffleman
PNP Special Action Force
Position: Chief Executive Senior Police Inclusive Dates: 1993 to 1998
Officer (CESPO)
National Headquarters, PNP APPOINTMENT WITH PSMBFI
Position: Assistant Treasurer
Inclusive Dates: August 5, 2017 to present Date Elected / Appointed: August 30, 2017
Position: Member, Board of Trustees
Date Elected / Appointed: April 22, 2017
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PSMBFI 2019 Annual Report Board of Trustees and Corporate Officers 11
ATTY MATTHEW P BACCAY
BORN: SEPTEMBER 21, 1970 AGE: 49
EDUCATIONAL EXPERIENCE
BACKGROUND Position: Director,
POST GRADUATE STUDIES Legal Service, PNP
School: Inclusive Dates: July 1, 2019 to date
University of Mindanao
Degree: Position: Chief, Fiscal Division,
Bachelor of Laws Directorate for Comptrollership,
Year Graduated: PNP
2001 Inclusive Dates: 2016 to present
School: Ateneo de Davao University Position: Chief, Regional Comptrollership
Division, PRO ARMM, PNP
Degree: Master in Public Administration Inclusive Dates: 2015 to 2016
Year Graduated: 1997
COLLEGE Position: Chief, Budget and Fiscal Division
School: Philippine Military Academy Directorate for Personnel and
Degree: Bachelor of Science Records
Year Graduated: 1992 Management Division, PNP
Inclusive Dates: 2014 to 2015
APPOINTMENT WITH PSMBFI
Position: Corporate Secretary
Date Elected / Appointed: March 1, 2017
DIR NAPOLEON C TAAS
BORN: JUNE 20, 1962 AGE: 58
EDUCATIONAL EXPERIENCE
BACKGROUND
POST GRADUATE STUDIES Position: Commander,
School: University of Asia
and the Pacific ASEAN 2017 Security Task Force
Degree: Strategic
Business Economics Inclusive Dates: November 2016 to December 2017
Program
Year Graduated: 2015 Position: Director,
Directorate for Information and
Communications Technology
Management, PNP
Inclusive Dates: 2016
School: Information Systems Audit and Position: Director,
Control Association (ISACA)
Degree: Certified Information Security Information and Technology
Manager (CISM)
Year Graduated: 2014 Management Service, PNP
Inclusive Dates: August 2013 to 2015
School: Philippine Christian University Position: Commander,
Degree: Master in Management
Year Graduated: Anti-illegal Drugs Special
1998
Operations Task Force, PNP
Inclusive Dates: January 2013 to August 2013
COLLEGE
School: US Military Academy, West Point, Position: Senior Executive Assistant,
Office of the Chief, PNP
New York Inclusive Dates: 2008 to 2009
Degree: Bachelor of Science
in Civil Engineering
Year Graduated: 1984 APPOINTMENT WITH PSMBFI
Position: Corporate Auditor
Date Elected / Appointed: August 29, 2013
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12 Board of Trustees and Corporate Officers PSMBFI 2019 Annual Report
DIR RICARDO C MARQUEZ
BORN: AUGUST 28, 1960 AGE: 59
EDUCATIONAL EXPERIENCE
BACKGROUND Position: Chief,
POST GRADUATE STUDIES Philippine National Police
School: University of Asia Inclusive Dates: July 16, 2015 to June 28, 2016
and the Pacific
Degree: Position: The Director for Operations, PNP
Certificate in Business Inclusive Dates: December 13, 2014 to July 15, 2015
Economic
Year Graduated: 2018 Position: Regional Director,
PRO 1, PNP
School: Philippine Christian University Inclusive Dates: January 9, 2013
Degree: Master in Management to December 12, 2013
Year Graduated: 1996
APPOINTMENT WITH PSMBFI
COLLEGE Position: Chairman / Member,
School: Philippine Military Academy Board of Trustees
Degree: Bachelor of Science Date Elected/ Appointed: August 25, 2015
Year Graduated: 1982
DIR JUANITO B VAÑO JR
BORN: MAY 30, 1960 AGE: 60
EDUCATIONAL EXPERIENCE
BACKGROUND
POST GRADUATE STUDIES Position: Director,
School:
Philippine Christian Directorate for Logistics, PNP
University
Degree: Inclusive Dates: May 7, 2014 to May 30, 2016
Master in Management
Year Graduated: 1996 Position: Regional Director,
COLLEGE PRO 9, PNP
Philippine Military Academy
Bachelor of Science Inclusive Dates: December 27, 2012 to May 7, 2014
1983
APPOINTMENT WITH PSMBFI
Position: Member, Board of Trustees
School: Date Elected / Appointed: April 12, 2014
Degree:
Year Graduated:
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PSMBFI 2019 Annual Report Board of Trustees and Corporate Officers 13
DIR KEITH ERNALD L SINGIAN
BORN: JULY 12, 1961 AGE: 59
EDUCATIONAL EXPERIENCE
BACKGROUND Position: Director,
POST GRADUATE STUDIES Directorate for Human Resources
School: and Doctrine Development,
University of La Salette PNP
Degree: Doctor on Inclusive Dates: 2016 to 2017
Public Administration
Year Graduated: Position: Deputy Director,
2015 Directorate for Human Resources
and Doctrine Development,
School: University of La Salette PNP
Degree: Masters in Criminology Inclusive Dates: 2015 to 2016
Year Graduated: 2011
Position: Deputy Regional Director for
School: Pamantasan ng Lungsod ng Administration, PRO CARAGA
Maynila Inclusive Dates: 2013 to 2015
Degree: Masters in Government
Management Position: Deputy Director for Operations,
Year Graduated: 1997 Criminal Investigation and
Detection Group
COLLEGE Inclusive Dates: 2012 to 2013
School: Philippine Military Academy
Degree: Bachelor of Science Position: Chief / Head,
Year Graduated: 1983 School for Investigation and
Detective
School: University of Sto. Tomas Development (SIDD),
Degree: Bachelor of Science Directorate for Investigation and
in Chemical Engineering Detective Development, PNP
Year Graduated: Undergraduate Inclusive Dates: 2010 to 2012
APPOINTMENT WITH PSMBFI
Position: Member, Board of Trustees
Date Elected / Appointed: April 22, 2017
DIR VALFRIE G TABIAN
BORN: FEBRUARY 24, 1961 AGE: 59
EDUCATIONAL
BACKGROUND EXPERIENCE
POST GRADUATE STUDIES Position: Deputy Director General
School: for Administration
St. Ferdinand University, Bureau of Corrections
Ilagan City Inclusive Dates: September 2017 to October 2018
Degree: Master in Public
Administration APPOINTMENT WITH PSMBFI
Year Graduated: 1999 Position: Member, Board of Trustees
Date Elected / Appointed: April 22, 2017
COLLEGE
School:
Degree: Philippine Military Academy
Year Graduated:
Bachelor of Science
1986
School: St. Louis University of Tuguegarao
Degree: Bachelor of Science
in Civil Engineering
Year Graduated: Undergraduate
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14 Board of Trustees and Corporate Officers PSMBFI 2019 Annual Report
DIR ELMO FRANCIS O SARONA
DATE OF BIRTH: SEPTEMBER 10, 1964 AGE: 55
EDUCATIONAL EXPERIENCE
BACKGROUND
POST GRADUATE STUDIES Position: Director,
School:
Jose Rizal University Directorate for Investigation and
Degree:
Bachelor of Laws Detective Management,
Year Graduated:
2001 PNP
Inclusive Dates: January 2018 to Present
APPOINTMENT WITH PSMBFI
Position: Member, Board of Trustees
Date Elected / Appointed: May 2019
School: Pamantasan ng Lungsod ng
Maynila
Degree: Master on Government
Management
Year Graduated: 2000
School: COLLEGE
Degree: Philippine Military Academy
Year Graduated: Bachelor of Science
1986
DIR WARREN GASPAR A TOLITO
DATE OF BIRTH: JANUARY 13, 1970 AGE: 50
EDUCATIONAL EXPERIENCE
BACKGROUND
POST GRADUATE STUDIES Position: Chief,
School: Asian Institute of
Management Records Management Division,
Degree:
Masters in Development DPRM, PNP
Management
Year Graduated: 2011 Inclusive Dates: January 14, 2019 to Present
Position: Provincial Director,
Cagayan Police Provincial Office,
PNP
Inclusive Dates: May 5, 2017 to January 12, 2019
School: COLLEGE APPOINTMENT WITH PSMBFI
Degree: Philippine Military Academy
Year Graduated: BS Public Safety Position: Member, Board of Trustees
1996
Date Elected / Appointed: May 2019
School: Saint Louis University
Degree: Bachelor of Science in Electronics
and Communications Engineering
Year Graduated: 1993
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PSMBFI 2019 Annual Report Board of Trustees and Corporate Officers 15
DIR LYNETTE M TADEO
BORN: FEBRUARY 5, 1977 AGE: 43
EDUCATIONAL EXPERIENCE
BACKGROUND Position: Acting Chief,
POST GRADUATE STUDIES Legal Research and
School: Evaluation Division,
San Sebastian College PNP Legal Service
– Recoletos Manila Inclusive Dates: June 29, 2016 to present
Degree:
Bachelor of Laws APPOINTMENT WITH PSMBFI
Year Graduated: 2002 Position: Member, Board of Trustees
Date Elected / Appointed: September 28, 2017
COLLEGE
School: Far Eastern University
Degree: AB Political Science
Year Graduated: 1998
DIR RODOLFO A COLLADO JR.
DATE OF BIRTH: NOVEMBER 22, 1965 AGE: 54
EDUCATIONAL Position: EXPERIENCE
BACKGROUND Regional Executive Senior Police
Officer
COLLEGE Police Regional Office 4A
School: Lyceum Inclusive Dates: (CALABARZON)
Polytechnic of the December 2, 2012 to Present
Philippines
Degree: Bachelor Position: Chief Clerk,
of Science, Major in
Criminology Regional Intelligence Division
Year Graduated: On-going
Police Regional Office 4A
(CALABARZON)
School: Laguna College of Business Inclusive Dates: July 2010 - December 2, 2012
and Arts
Degree: Bachelor of Arts, Position: Plans PNCO/PSS PNCO/Operations
Major in Psychology PNC/LES PNCO
Year Graduated: 1998 Regional Operations and Plans
Division Police Regional Office 4A
(CALABARZON)
Inclusive Dates: 1992 to July 2010
Position: First Sergeant
Regional Command 4,
Regional Special Action Force
Inclusive Dates: September 1988 to July 1992
APPOINTMENT WITH PSMBFI
Position: Member, Board of Trustees
Date Elected / Appointed: May 2019
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P R16 resident’s eport PSMBFI 2019 Annual Report
“Despite stiff competition
in the market and other
operational challenges, we have
maintained our position in the
industry as the leading insurance
provider and reliable partner of
public safety practitioners.
“DIR MARIO A AVENIDO
President & CEO
P The Dear Members,
resident’s
Report 2019 Another year has passed and I am pleased
to report that we were able to successfully
implement our programs and projects for the
welfare of our members despite stiff competition
in the market and other operational challenges.
We have maintained our position in the industry
as the leading insurance provider and reliable
partner of public safety practitioners.
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PSMBFI 2019 Annual Report P Rresident’s eport 17
We Got Your Back
PSMBFI is always here,
ready to serve and to
support our members and
their beneficiaries in times of
needs. When eventualities
happen, we immediately
provide the insurance
benefit in the form of a “cash
advance” which remains our
flagship service.
In 2019, we were able to
help 1,631 beneficiaries cope
up with their financial burden
by releasing Php291.47
million worth of life insurance
benefit for the death of 451
members who were either killed in a legitimate operation or from other causes. One hundred
forty-two of them had an outstanding loan obligations with PSMBFI and through the Credit
Life Insurance (CLI), their loan obligations amounting to Php22.43 million were extinguished
due to their untimely death.
We have also provided support to 223
members who were injured in the line of duty
by releasing Wounded-in-Action benefit in the
total amount of Php5.29 million. Likewise, we
have released Php2.21 million to 20 members
who were disabled due to accident; Php1.76
million as financial assistance to 471 members
who got sick, ill or injured; and given out
Php1.89 million to 347 members who were
hospitalized due to accident.
Through the Free Insurance of a Dependent,
we were able to help 26 members for the
passing of their loved ones. This is our way of
expressing our sympathy by sharing with their
financial burden.
In times of calamities, we are always there to help and among the first responders to
our members’ needs. In 2019, we released Php11.50 million as financial assistance to 1,975
members who were affected by fire, typhoon and the series of earthquakes in Mindanao. In
any way we can, we would like to assure our members that they can always rely on us and
that PSMBFI truly cares.
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P R18 resident’s eport PSMBFI 2019 Annual Report
There are also times when our members are financially challenged due to unexpected
needs. PSMBFI also extends loans for their financial requirements. In 2019, we have granted
Policy Loan to 17,653 members and Salary Loan to 21,108 members. Our loan operation,
along with our cash investment, generated an interest income of P1.84 billion.
Giving More
This favorable performance enabled us
to provide more benefit for our members. In
2019, we have declared Php289.67 million
as Members’ Experience Refund (MER) and
Php656.11 million as Members’ Benefit from
the Interest of Equity Value (MBIEV). This is one
of the advantages of being with PSMBFI—
earnings of the company are shared among
the members.
Giving Back to the Community
Our financial strength further reinforced our capacity in doing our share to help
our community. Through our CSR Program, we have assisted our partner agencies in
their program and projects that redound to the welfare of our members. We released
Php14.08 million and the bulk was used to strengthen the capability of our partner
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PSMBFI 2019 Annual Report P Rresident’s eport 19
agencies in responding to medical emergencies. For this project, we have started
distributing units of ambulance to the PNP Regional Offices (PROs). During the first
quarter of 2019, we have turned-over three (3) units of ambulance to PRO-2, PRO-
9, PRO-BARMM and another four (4) units in 2020 for select PROs. These emergency
medical services will greatly help in providing immediate care not only to our members
but also to the community where they serve.
PSMBFI also continues to support the education of deserving dependents of the
uniformed personnel of the PNP. Through the Experience Refund of the Special Group
Term Insurance (SGTI), we have also turned-over the amount of Php4.88 million to the
PNP DPRM under the Morale and Welfare
Division who manages the Scholarship
Program of the PNP.
In making a difference, we have also
conducted an activity for a cause in
2019. PSMBFI helped two (2) marginalized
communities/indigenous people improve
the quality of their lives by providing an
alternative, sustainable, and cheaper
source of electricity. As a symbol of hope,
Liters of Light, powered by solar energy,
were given to the Batac Tribe in Palawan
and Ati Tribe in Aklan.
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P R20 resident’s eport PSMBFI 2019 Annual Report
How We Performed
As a result of our operations, our net income in 2019 was recorded at Php1.15 billion. This
amount is not as much as the prior year’s figure due to the substantial amount of benefit
that was given back to the members. There was a significant increase in the financial
assistance we have granted during the year and earnings are also shared to the members
through the declaration of the MER and the MBIEV.
Aside from these benefits, huge amount was provided for doubtful accounts or provision
for those who were not able to pay their loan obligation. The amount is quite significant
which affected our performance.
With this financial performance, we have maintained our growth momentum. Our
assets expanded by 18% over the 2018 figure. We ended the year with Php19.17 billion in
assets and this financial strength reassures our members that we can continuously meet
our contractual obligations.
Moving Forward
As our Association grows and the business environment changes, we have updated
our vision, mission and core values in order to be timely, responsive, and remain relevant.
Guided by these new statements, we will cultivate a corporate culture of dedicated teams
and we will encourage innovation and creativity. Operationally, we have already started
taking the necessary steps through our IT Roadmap which aims to improve our operational
efficiency and strengthen our capability. These initiatives will ultimately redound to our
aspiration of providing our members with a seamless customer journey.
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PSMBFI 2019 Annual Report P Rresident’s eport 21
The onslaught of Covid19 pandemic members deserve.
has affected the global economy and
financial markets—a game changer to all We recognize the bravery and heroism
companies on how to effectively thrive of our members as frontliners in this time
under the New Normal. For PSMBFI, we of crisis. Rest assured that PSMBFI will
have already complied with the required continue fighting with them through our
safety and health protocols in order to insurance protection. We have also
protect our employees and our members launched the PSMBFI Bayanihan Program
from the risk of infection. We have for our members which aims to provide
calibrated some of our processes in order support in times of crisis and other services
to bring the customer experience that our that are relevant to them.
Maraming Salamat Po
We take pride in what PSMBFI has accomplished in the past year and we acknowledged
that we could not achieve this alone without the support of our members and our
stakeholders. On behalf of the PSMBFI family, I would like to extend my gratitude to
our partner agencies for their trust and confidence; to the members of our Board of
Trustees for their wisdom and guidance; and to our employees for their dedication to
work. To our members, my sincerest thanks for giving us the opportunity to be of service
to you and to your beneficiaries. With enthusiasm, we continue our mission of providing
you and your family with timely and quality financial services especially in moments
when it is needed the most.
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P R22 resident’s eport PSMBFI 2019 Annual Report
Membership % of Growth
5%
Insurance Benefit Claims:
336 Equity Plan 20
64 41
Natural Death Accidental Killed-In-Action Accidental
Disablement
159,250,784 Death 30,574,293
1,953,508
60,621,442
174 347 26
49 Wounded-in-Action Accident Free Insurance
Hospitalization Coverage
Wounded-in-Action (major injury)
Benefit 1,300,000
(major injury) 3,480,000
1,889,000
1,810,000
Special Group Term Insurance
20 307 106
Disability Natural Death KIPO / Accident
74,925 5,219,000 4,452,000
Basic Group Burial Assistance
Term Plan Benefit
402 420
17,434,825 10,479,000
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PSMBFI 2019 Annual Report P Rresident’s eport 23
Endowment at 56 Credit Life Insurance
(E-56) (CLI)
22 142
3,619,173 22,431,392
Financial Assistance (FA) Granted
FA to members who are FA to members who were 53
sick or injured victims of calamity Fire
471 1,156 766
Members Typhoon
Earthquake
Financial Assistance (FA) Granted
to partner agencies
155 Offices • Provide support for the
procurement of equipment
• Turned-over of ambulance and repairs
• Turned-over P4.88 million for the Educational Program of the PNP
(through the SGTI Experience Refund)
• Declared the following:
• P289.67 million Members’ Experience Refund (MER)
• P656.11 million Members’ Benefit from Interest of the
Equity Value (MBIEV)
• Help 2 marginalized communities by providing Liters of Light: Batac
Tribe in Palawan and Ati Tribe in Aklan
• Assets expanded by 18%
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24 PSMBFI 2019 Annual Report
CORPORATE GOVERNANCE
Public Safety Mutual Benefit Fund, Inc. confirms its compliance with the Code of
Corporate Governance of the Insurance Commission. It recognizes its responsibility
to ensure the effective good corporate governance in all its corporate practices and
is committed in ensuring the continuous improvement of the culture good corporate
governance within the organization. The Board of Trustees ensures that the interests
of all stakeholders are taken into consideration.
The PSMBFI Board of Trustees
The Board of Trustees exercises all The provisions of Sections 13 & 14 of
the powers granted by the Corporation Article 9 of the PSMBFI By-Laws provide
Code of the Philippines, PSMBFI By-laws, that the fifteen members of the Board
and all other relevant regulations and of Trustees will have a term of office that
internal policies of the Association. shall be interlocking for two (2) years.
As Trustees, they exercise their The first seven (7) members of the Board
responsibilities judicially and ensure of Trustees obtaining the highest number
good corporate governance is upheld of votes during the GMME in the year
across the organization. 2007 served for two (2) years while the
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PSMBFI 2019 Annual Report 25
remaining eight (8) members served for one (1) year. Alternately thereafter, the
seven (7) or eight (8) members were and shall be elected in the succeeding years
of election of the members of the Board of Trustees.
During the annual General Membership Meeting and Election, Trustees are
elected to fill the seat of those whose terms are expiring. Immediately after the
election, the Board of Trustees meet for an Organizational Meeting, electing therein
from amongst themselves the Chairman, Vice-Chairman, President, other officers,
and the chairman and members of the Board Committees.
The current Board of Trustees are experts in their fields, with a strong sense of
business ethics. Their credentials and experience are disclosed in this Annual
Report. Majority of the Board is composed of Non-Executive Trustees, three (3) of
whom are Independent Directors and one (1) is a woman.
During the GMME last 25 May 2019, the seven (7) duly elected members of the
Board as proclaimed by the GMME Committee on Elections are:
1. PGEN RICARDO C MARQUEZ
2. PBGEN MARIO A AVENIDO
3. PMGEN KEITH ERNALD L SINGIAN
4. PMGEN JUANITO B VAÑO JR
5. PBGEN VALFRIE G TABIAN
6. PMGEN ELMO FRANCIS O SARONA
7. PCOL WARREN GASPAR A TOLITO
The eight (8) members whose term will end in 2020 are:
1. PGEN OSCAR D ALBAYALDE succeeded
by PMGEN REYNALDO BIAY
2. PBGEN ARMANDO ESTEPA RAMOLETE
3. PEMS FELIPE SOLIJON MOQUIALA
4. PMGEN LYNDON GARIBAY CUBOS
5. PLGEN ARCHIE FRANCISCO FERANIL GAMBOA
6. PLTCOL LYNETTE MAJABA TADEO
7. PBGEN MARLON MONTE DE RAMOS GANZON
succeeded by PMGEN JOSELITO VERA CRUZ
8. PEMS KIMANIE JANEA SAROMINES
succeeded by PEMS RODOLFO COLLADO JR
For the term 2019 – 2020, the duly elected Corporate Secretary and Corporate Auditor
are Atty Matthew P Baccay and PMGen Napoleon C Taas, respectively.
These members of the Board are part of the Board-level Committees chosen for their
membership in the committees on the basis of their fields of expertise.
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26 PSMBFI 2019 Annual Report
COMMITTEE MEMBERS
As of 30 June 2020
COMMITTEE CHAIRMAN VICE CHAIRMAN MEMBERS
Executive Lyndon G Cubos Mario A Avenido Armando E Ramolete
Ricardo C Marquez
Juanito B Vaño Jr
Elmo Francis O Sarona
Joselito M Vera Cruz
Reynaldo G Biay
Matthew P Baccay
(Secretary)
Risk and Juanito B Vaño Jr Lynette M Tadeo Ricardo C Marquez
Audit Keith Ernald L Singian
Reynaldo G Biay
Rodolfo A Collado
Napoleon C Taas
Matthew P Baccay
(Secretary)
Governance Ricardo C Marquez Keith Ernald L Singian Mario A Avenido
Juanito B Vaño Jr
Warren Gaspar A Tolito
Lynette M Tadeo
Rodolfo A Collado
Napoleon C Taas
Matthew P Baccay
(Secretary)
Information Joselito M Vera Cruz Napoleon C Taas Armando E Ramolete
Technology Lynette M Tadeo
Felipe S Moquiala
Warren Gaspar A Tolito
Valfrie G Tabian
Matthew P Baccay
(Secretary)
Membership Reynaldo G Biay Elmo Francis O Sarona Armando E Ramolete
Valfrie G Tabian
Keith Ernald L Singian
Warren Gaspar A Tolito
Felipe S Moquiala
Matthew P Baccay
(Secretary)
PMG Ricardo C Marquez Joselito M Vera Cruz Mario A Avenido
Elmo Francis O Sarona
Juanito B Vaño Jr
Matthew P Baccay
(Secretary)
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PSMBFI 2019 Annual Report 27
Meetings and Attendance
The presence of the members of the Board during Board and Committee meetings
is important so as to ensure perceptive discussions and informed decisions. Thus, the
schedule of regular meetings for CY2019-2020 was set by the members of the Board
themselves during the Organizational Meeting last May 24, 2019. During the monthly
regular board meetings held at the last week of the month, the schedule of meetings
for the succeeding month is confirmed or re-scheduled by the members of the Board.
Members are again notified of the schedule at least one week before the meetings
through short messaging system, e-mail, and other electronic means to ensure that the
Board of Trustees could dedicate their time and commitment for each meeting. The
Office of the Corporate Secretary forwards in advance the agenda for each meeting
including relevant materials that are essential in the decision making of Board. The
meeting proceedings are recorded accordingly, the documents for which are in the
safekeeping of the Corporate Secretary.
The summary of attendance to Board Meetings from January to December 2019 is
disclosed below:
ATTENDANCE IN BOARD In %
80
Board of Trustee 93
DIR ARCHIE FRANCISCO F GAMBOA 93
DIR LYNDON G CUBOS 93
DIR MARIO A AVENIDO 100
DIR ARMANDO E RAMOLETE 87
DIR JOSELITO M VERA CRUZ 80
DIR FELIPE S MOQUIALA 93
PMGEN NAPOLEON C TAAS 73
ATTY MATTHEW P BACCAY 100
DIR RICARDO C MARQUEZ 87
DIR JUANITO P VANO JR 93
DIR LYNETTE M TADEO 78
DIR KEITH ERNALD L SINGIAN 80
DIR WARREN GASPAR A TOLITO 50
DIR VALFRIE G TABIAN 83
DIR ELMO FRANCIS O SARONA 57
DIR RODOLFO A COLLADO JR 100
*DIR OSCAR D ALBAYALDE 100
*DIR MARLON MDR GANZON 100
*DIR JOHN Q SOSITO 100
*DIR KIMANIE J SAROMINES
*DIR JOAQUIN R ALVA
*Resigned/ End of Term as of Dec 31, 2019
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28 PSMBFI 2019 Annual Report
Seminars and Trainings
In line with the continuing education of the Board of Trustees, Dir Elmo Francis
Sarona, Dir Warren Gaspar Tolito and Dir Rodolfo Collado attended the Corporate
Governance Orientation Program by the Institute of Corporate Directors for full
appreciation of the best practices in corporate governance and understanding
of the responsibilities of a Board of Trustee.
The Risk and Audit Committee with the Corporate Secretary also attended the
Annual Convention of the Institute of Internal Auditors-Philippines at Lahug, Cebu
City. The 3-day convention’s theme was “Collaborate, Engage, Build, Upgrade :
From Good to Great” where topics on corporate governance and ethics, digital
internal auditing, building resilience, optimizing the role of internal audit, and
challenges and opportunities in the revised corporation code, among others
were discussed.
The full participation of the Board of Trustees was harnessed in the 4-day session,
with the members of the Management Team, dedicated to the development
of the new Vision, Mission, and Core Values of PSMBFI. Immediately thereafter,
the Strategic Planning Workshop was held, with approval of the Medium Term
Strategic Plan 2020 -2024 accorded in October 24, 2019.
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PSMBFI 2019 Annual Report 29
Compliance to Regulatory Bodies and Laws
PSMBFI conforms to the rules and Board of Trustees in Regular and Special
regulations of the Insurance Commission Meetings through Remote Means
(IC), the Bureau of Internal Revenue of Communication was developed
(BIR), and the Securities and Exchange to prescribe the guidelines that will
Commission (SEC). govern the conduct of Committee
and Board meetings through remote
The Insurance Commission renewed communication during extra-ordinary
the Association’s license as a Mutual times. The guidelines, consistent with
Benefit Association last December 2018. the IC Memorandum Circular, was
The license is valid for three (3) years, approved through Board Resolution No.
from 01 January 2019 to 31 December 2020 – 30.
2021. This is a confirmation that the
Association operates in compliance Major steps have been undertaken in
with the laws, rules and regulations of compliance with R.A. 10173 or the Data
the Commission. Privacy Act of 2012. The data privacy
guidelines as stipulated in the law
Pursuant to SEC Memorandum Circular have been implemented and privacy
No. 6, series of 2020, the Guidelines on agreement is secured continuously from
the Attendance and Participation of the members.
Transparency
The Association capitalizes on the PSMBFI website and social media accounts
as its transparency platforms. These avenues are utilized in dissemination of
financial and non-financial information, customer communication, compliance to
regulations and greater disclosure.
Some of the disclosures currently published in the company website are the
ASEAN Corporate Governance Scorecard with the requisite documents, list of
the Board of Trustees including the newly elected members during the Election
of Board of Trustees last 24 May 2019, PSMBFI Annual Report which contains the
audited financial statements of the Association for the year ending 31 December
2018, and other announcements such as invitation to bid, career opportunities
and significant company activities.
The PSMBFI Facebook account, on the other hand, has been actively engaging
customers by answering inquiries and soliciting feedback as basis for the continuous
service improvement.
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30 PSMBFI 2019 Annual Report
Departments & Offices
TOP MANAGEMENT
AND SUPPORT OFFICES
OFFICE OF THE PRESIDENT Come up with strategic plans, policies, and procedures
AND THE VICE PRESIDENTS that will ensure the smooth flow of business operations,
the company’s growth and stability to provide members
with better service and more benefits.
OFFICE OF THE Responsible for the soundness of the internal control
INTERNAL AUDITOR system and the safeguarding of company assests.
The OIA is the departmental arm of the Risk and Audit
Committee.
OFFICE OF THE LEGAL Anticipates and reduces the risk and exposure of
OFFICER the company from any unreasonable and unjustified
claims. The department also protects the company
against all claims.
BOARD SECRETARIAT Provides administrative support to the Board of Trustees.
The Secretariat also keeps all records and minutes of the
meetings and ensures its confidentiality.
CORPORATE SERVICES ADMINISTRATION
GROUP DEPARTMENT
Provides administrative and logistical support to all
departments in order to attain the common goal
of providing the best services to our members. It
also manages the PSMBFI building and all other
real estate concerns of the company and ensures
that all records and documents are adequately
protected and maintained.
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PSMBFI 2019 Annual Report 31
Develops and maintains an information asset INFORMATION
available for utilization in the fields of decision-making, TECHNOLOGY DEPARTMENT
operations, and finance, in compliance with external
regulatory requirements.
Ensures organizational soundness and company-wide HUMAN RESOURCE
operational efficiency through the maintenance of DEPARTMENT
an effective and productive workforce in a customer-
oriented work environment.
Consolidates and analyzes data which are vital to CORPORATE PLANNING
company operations and generates reports that DEPARTMENT
provide valuable support in policy formulation, likewise
reinforcing sound management decision-making and
strategic action.
OPERATIONS GROUP
INSURANCE Designs, develops, administers and maintains insurance
DEPARTMENT products and benefits relative to the requirements of
our members, in accordance with the regulations of the
Insurance Commission.
Provides frontline services to all PSMBFI members.
MARKETING The department is responsible in communicating
DEPARTMENT and promoting all the benefits and services of
the company. It also ensures that the Regional
Extension Offices nationwide efficiently serve all
members assigned in the regions and provinces.
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32 PSMBFI 2019 Annual Report
REGIONAL Provide frontline services and assistance to members
EXTENSION OFFICES in the regions. Regional Officers manage these offices
while Field Officers are regularly deployed to extend the
company’s services in the provinces.
TREASURY FINANCE GROUP
DEPARTMENT
Manages the company’s current account funds. The
department deals with cash receipts, disbursements
and electronic banking transactions.
ACCOUNTING Maintains the company’s books of accounts. The
DEPARTMENT department generates timely and reliable financial
statements in accordance with Philippine Financial
Reporting Standards and Practices applicable to
insurance accounting principles.
INVESTMENT Develops and manages investment activities of
DEPARTMENT the company based on the policies and approved
guidelines of the Insurance Commission.
ACCOUNTS Establishes and implements a well-defined billing and
MANAGEMENT collection system relative to the business transactions of
DEPARTMENT the company. The department also maintains subsidiary
ledgers of members’ accounts.
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PSMBFI 2019 Annual Report 33
Insurance Benefit Claims
Insurance Plans
Equity Plan (EP) Special Group Basic Group Term
Term Insurance Plan (BGTP)
P260,879,027
(SGTI) P17,434,825
1057Claims
P9,745,925 402Claims
Burial Assistance
Benefit 433Claims Credit Life
Insurance (CLI)
P10,479,000 Endowment at 56
(E-56) P22,431,392
420Claims
P3,619,173 142Claims
22 Claims
PSMBFI 2019
by NUMBERS
the
Financial Assistance (FA) Granted
To members who are To members who were To partner agencies for the
sick or injured victims of calamity procurement of equipment,
repairs, and special requests
471 1,975
155 Offices
Members Members
P14.08 Million
P1.76 Million P11.50 Million
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34 PSMBFI 2019 Annual Report
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PSMBFI 2019 Annual Report 35
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36 PSMBFI 2019 Annual Report
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PSMBFI 2019 Annual Report 37
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38 PSMBFI 2019 Annual Report
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PSMBFI 2019 Annual Report 39
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40 PSMBFI 2019 Annual Report
Public Safety Mutual Benefit Fund (PSMBFI) Incorporated
Statements of Financial Position
December 31, 2019 and 2018
(All amounts in Philippine Peso)
Notes 2019 2018
ASSETS
Cash and cash equivalents 2.1 1,498,870,642 2,490,737,333
Financial assets at amortized cost, net
Financial asset at fair value through profit or loss 2.1 17,164,854,329 13,267,734,791
Investment property, net
Property and equipment, net 2.2 216,678,683 221,351,062
Retirement plan asset
Other assets, net 3 2,814,000 2,814,000
Total assets 4 262,814,519 253,384,492
10 11,729,801 -
5 7,978,450 6,029,756
19,165,740,424 16,242,051,434
LIABILITIES AND FUND BALANCE
Accounts payable and accrued expenses 6 1,987,354,405 641,211,548
Claims payable
Legal policy reserves 7 222,776,050 243,335,637
Premium deposits
Retirement benefit obligation 7 428,186,195 355,182,698
Members’ contributions
7 137,202,250 136,081,037
Total liabilities
Retained surplus 10 - 4,580,649
Appropriated 2.3 5,137,750,860 4,762,545,069
Unappropriated
Accumulated other comprehensive loss 7,913,269,760 6,142,936,638
Total fund balance 8 1,902,609,744 1,902,609,744
Total liabilities and fund balance
9,389,168,612 8,231,793,511
10 (39,307,692) (35,288,459)
11,252,470,664 10,099,114,796
19,165,740,424 16,242,051,434
(The notes on pages 1 to 33 are an integral part of these financial statements.)
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PSMBFI 2019 Annual Report 41
Public Safety Mutual Benefit Fund (PSMBFI) Incorporated
Statements of Total Comprehensive Income
For the years ended December 31, 2019 and 2018
(All amounts in Philippine Peso)
UNDERWRITING INCOME Notes 2019 2018
Insurance premiums
7 1,356,910,592 1,306,958,706
UNDERWRITING EXPENSE 7
Claims expense 2.1 (275,548,600) (379,812,950)
Experience refund 2.3 (294,546,659) (5,807,838)
Increase in legal policy reserves 2.1
(73,003,497) (70,049,105)
NET UNDERWRITING INCOME 12 713,811,836 851,288,813
2.2
INTEREST INCOME 1,840,193,645 1,453,352,036
INTEREST EXPENSE 9 (466,948,183) (348,926,971)
NET INTEREST INCOME 13
(PROVISION FOR) REVERSAL OF CREDIT LOSSES 1,373,245,462 1,104,425,065
NET INTEREST INCOME AFTER CREDIT LOSSES 10 (315,244,875) 282,336,501
1,058,000,587
OTHER INCOME 1,386,761,566
Rental income 7,031,619
Fair value changes on financial assets at fair value 7,825,180
through profit or loss 13,733,100
Others 6,777,163 (6,238,532)
7,856,745
INCOME BEFORE OPERATING EXPENSES 27,541,882 9,443,393
1,799,354,305 2,247,493,772
GENERAL AND ADMINISTRATIVE EXPENSES
INCOME BEFORE INCOME TAX (643,202,399) (460,001,744)
1,156,151,906 1,787,492,028
INCOME TAX BENEFIT
NET INCOME FOR THE YEAR 1,223,195 -
OTHER COMPREHENSIVE (LOSS) INCOME 1,157,375,101 1,787,492,028
Item that will not be subsequently reclassified to profit (4,019,233) 12,777,046
or loss (4,019,233) 12,777,046
Remeasurement (loss) gain on retirement benefit 1,153,355,868 1,800,269,074
obligation
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(The notes on pages 1 to 33 are an integral part of these financial statements.)
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42 PSMBFI 2019 Annual Report
Public Safety Mutual Benefit Fund (PSMBFI) Incorporated
Statements of Changes in Fund Balance
For the years ended December 31, 2019 and 2018
(All amounts in Philippine Peso)
Retained surplus Accumulated
other
Appropriated
comprehensive
(Note 8) Unappropriated loss Total
8,298,845,722
Balances as at January 1, 2018 411,000,000 7,935,911,227 (Note 10)
Comprehensive income (48,065,505) 1,787,492,028
- 1,787,492,028 12,777,046
Net income for the year -- -
Other comprehensive income 12,777,046 1,800,269,074
- 1,787,492,028
Total comprehensive income for 12,777,046 -
the year 1,491,609,744 (1,491,609,744) 10,099,114,796
1,902,609,744 8,231,793,511 -
Appropriation of unappropriated (35,288,459) 1,157,375,101
surplus (Note 8) - 1,157,375,101 (4,019,233)
-- -
Balances as at December 31, 2018 (4,019,233) 1,153,355,868
Comprehensive income - 1,157,375,101 11,252,470,664
1,902,609,744 9,389,168,612 (4,019,233)
Net income for the year (39,307,692)
Other comprehensive loss
Total comprehensive income (loss)
for the year
Balances as at December 31, 2019
(The notes on pages 1 to 33 are an integral part of these financial statements.)
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PSMBFI 2019 Annual Report 43
Public Safety Mutual Benefit Fund (PSMBFI) Incorporated
Statements of Cash Flows
For the years ended December 31, 2019 and 2018
(All amounts in Philippine Peso)
CASH FLOWS FROM OPERATING ACTIVITIES Notes 2019 2018
Income before income tax
Adjustments for: 2.1 1,156,151,906 1,787,492,028
Interest income 2.3
Interest expense 2.1 (1,840,193,645) (1,453,352,035)
Provision for (reversal of) allowance for credit losses 2.2 466,948,183 348,926,971
Fair value changes on financial assets at fair value 4 315,244,875 (282,336,501)
through profit or loss 4
Depreciation and amortization 7 (13,733,100) 6,238,532
Gain on sale of property and equipment 10 48,837,577 40,615,558
Increase in legal policy reserves 2.1
Retirement benefit cost (97,960) (796,053)
Amortization of discount of financial assets at amortized 13 73,003,497 70,049,105
cost 10 11,482,739
7,854,417
Net operating income before working capital changes 2.2 (4,319,294)
(Increase) decrease in: 2.1 (39,344,305) 524,001,050
4 174,671,445
Insurance receivables 2.1 (302,419)
Loans and receivables 2.2 (1,411,130) (408,467,829)
Other assets 4 (596,819,881)
Increase (decrease) in: 5,159,608
Accounts payable and accrued expenses 2.3 (1,948,694)
Premium deposits 2.3 (174,635,470)
Claims payable 1,346,142,857 12,542,750
2.1 1,121,213
Net cash from operations 103,515,968
Final taxes paid (20,559,587) 61,813,658
Interest received on cash in banks and loans receivables 901,196,223 -
Contributions to the retirement fund
1,223,195 1,115,477,392
Net cash from operating activities 1,498,896,877 (27,442,421)
CASH FLOWS FROM INVESTING ACTIVITIES
(28,184,100) 1,149,848,629
Interest received 2,373,132,195
Proceeds from maturities of: 321,941,113
320,422,375
Financial assets at fair value through profit or loss 65,489,470
Financial assets at amortized cost 71,019,834 400,000,000
Proceeds from sale of property and equipment 2,217,613,628
Additional investments in: 813,901
Financial assets at amortized cost 99,837
Financial assets at fair value through profit or loss (1,465,108,381)
Property and equipment (5,771,528,332) (109,675,499)
(52,614,355) (53,659,498)
Net cash used in investing activities (58,269,481) (840,198,894)
CASH FLOWS FROM FINANCING ACTIVITIES
(3,273,256,494) 1,098,093,723
Additional members’ contributions (1,434,551,208)
Refund of members’ contributions 983,318,156
(1,075,060,548) (336,457,485)
Net cash used in financing activities (26,807,750)
NET DECREASE IN CASH AND CASH EQUIVALENTS (91,742,392)
(991,866,691)
CASH AND CASH EQUIVALENTS
At January 1 2,490,737,333 2,517,545,083
1,498,870,642 2,490,737,333
At December 31
(The notes on pages 1 to 33 are an integral part of these financial statements.)
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44 PSMBFI 2019 Annual Report
Public Safety Mutual Benefit Fund (PSMBFI) Incorporated
Notes to the Financial Statements
As at and for the years ended December 31, 2019 and 2018
(In the notes, all amounts are shown in Philippine Peso unless otherwise stated)
1 General information
Public Safety Mutual Benefit Fund (PSMBFI) Incorporated (the “Association”) was incorporated and registered with the
Securities and Exchange Commission (SEC) as a non-stock, not-for-profit association on December 11, 1997. The Insurance
Commission (IC) granted the Association a license to transact business as a mutual benefit association on February 4, 1998,
which is renewable every year.
The enactment of Republic Act (RA) No. 8291, otherwise known as the Government Service Insurance System (GSIS) Act of
1997 excluded the Philippine National Police (PNP), among other public safety practitioners, from the social insurance
coverage of GSIS, without providing for an alternative option. After the passage of that law, the families of deceased
policemen no longer received insurance benefits. As a remedy, the PNP organized the Association that is primarily engaged
in providing insurance protection and financial and material aid to its members, which are limited to public safety practitioners
as defined in the Association’s by-laws.
As a non-stock, not-for-profit entity, the Association is exempt from paying income taxes as set forth in Section 30(c) of the
National Internal Revenue Code (NIRC). The Association, however, is subject to the corresponding internal revenue taxes
under the NIRC on income derived from any of its properties, real or personal, or any activity conducted for profit regardless of
the disposition thereof.
The registered office address of the Association, which is also its principal place of business, is at No. 318-320 Boni Serrano
Avenue corner 1st and 2nd West Streets, San Juan City.
Subsequent event: Impact of coronavirus (COVID-19) pandemic
During the first quarter of 2020, local and worldwide social and economic activities became severely affected by the
spread and threat of COVID-19. The Association is taking actions to minimize risk to its employees, including restricting
travel and instituting extensive work from home protocols in response to the enhanced community quarantine (ECQ)
mandated by the Philippine government. The ECQ, which began on March 16, 2020, and was further extended and
modified by the government up to June 30, 2020, mandated the closure of non-essential business establishments and
home quarantine.
On March 24, 2020, President Rodrigo Duterte signed into law Republic Act No. 11469, otherwise known as The
Bayanihan to Heal as One Act (Bayanihan Act). The Bayanihan Act mandated all private and public banks, quasi-banks,
financing companies, lending companies and other financial institutions to implement a moratorium for the payment of all
loans falling due within the ECQ without interests, penalties, fees or other charges.
As at the date on which these financial statements were authorized for issue, the Association is not yet able to estimate
the total amount of losses arising from the COVID-19 pandemic. However, the Association anticipates that the impact of
the pandemic would result in the decrease of interest income on loans (due to the loan moratorium mandated by the
Bayanihan Act) and an increase in expenses due to the provision of financial assistance to qualified members of the
Association. The Association continues to closely monitor the developments on the COVID-19 outbreak and will further
evaluate its impact on its financial position and operating results in the 2020 financial statements.
Approval of the financial statements
The accompanying financial statements were approved and authorized for issue by the Board of Trustees (the Board) on
June 29, 2020.
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PSMBFI 2019 Annual Report 45
2 Financial assets and financial liabilities
The Association holds the following financial instruments as at December 31:
(a) Financial assets
Financial assets at amortized cost Notes 2019 2018
Cash and cash equivalents
Insurance receivables, net 2.1(a) 1,498,870,642 2,490,737,333
Loans and receivables, net 2.1(b) 16,315,021 14,903,891
Other financial assets at amortized cost 2.1(c)
2.1(d) 5,866,899,432 5,564,450,033
Financial assets at fair value through profit or loss (FVTPL) 11,281,639,876 7,688,380,867
2.2
216,678,683 221,351,062
18,880,403,654 15,979,823,186
A financial asset is any asset that is (a) cash; (b) an equity instrument of another entity; or (c) a contractual right to receive
cash or another financial asset from another entity, or to exchange financial assets or financial liabilities with another entity
under conditions that are potentially favorable to the Association.
The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial
assets mentioned above.
Critical accounting judgment: Classification of financial assets
The Association classifies financial assets on the basis of the Association’s business model for managing the financial assets,
unless option to designate a financial asset at FVTPL is applied, following the requirements of Philippine Financial Reporting
Standard (PFRS) 9, Financial Instruments. The Association assesses the business model within which the assets are held
and whether the contractual term of assets represent solely payments of principal and interest (SPPI) on the principal amount
outstanding, with interest representing time value of money and credit risk associated with the principal amount outstanding.
The judgments exercised in the classification affect the measurement of financial assets.
(b) Financial liabilities
Notes 2019 2018
Financial liabilities at amortized cost 6 1,977,140,303 632,138,013
Accounts payable and accrued expenses, excluding 7
withholding tax payables 2.3 186,480,785 152,832,627
Claims payable, excluding portion pertaining to 5,137,750,860 4,762,545,069
incurred but not reported (IBNR) claims 7,301,371,948 5,547,515,709
Members’ contributions
A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another entity, or
to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavorable to the
Association.
The Association’s exposure to various risks associated with the financial instruments is discussed in Note 2.5.
The accounting policies for the classification and measurement of the Association’s financial instruments under PFRS 9 are
disclosed in Note 17.3.
2.1 Financial assets at amortized cost
(a) Cash and cash equivalents
The account as at December 31consists of:
Cash on hand 2019 2018
Cash in banks
Cash equivalents 618,000 603,000
119,917,166 131,200,628
1,378,335,476 2,358,933,705
1,498,870,642 2,490,737,333
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46 PSMBFI 2019 Annual Report
Cash in banks earn interest at the respective bank deposit rates. Cash equivalents include deposits and placements which can
be withdrawn anytime depending on the immediate cash requirements of the Association and earn interest at effective rates
ranging from 1% to 6.75% in 2019 (2018 - 2.00% to 4.80%).
Interest income earned from cash and cash equivalents for the year ended December 31, 2019 amounts to P100,159,688
(2018 - P80,372,499).
There are no restrictions imposed on the Association’s cash and cash equivalents as at December 31, 2019 and 2018.
(b) Insurance receivables, net
The account as at December 31 consists of:
Gross insurance receivables 2019 2018
Less: Allowance for credit losses 62,786,064 61,374,934
(46,471,043) (46,471,043)
16,315,021 14,903,891
Based on the Association’s assessment of the recoverability of the insurance receivables, additional allowance for credit
losses for the years ended December 31, 2019 and 2018 is not necessary.
(c) Loans and receivables, net
The account as at December 31 consists of:
Loans receivable 2019 2018
Salary loans
Equity loans 5,967,344,420 5,632,333,006
636,795,897 375,616,425
Interest receivable 82,320,761 61,446,368
Advances to officers and employees 4,880,505 4,331,318
Others 1,945,793 1,865,985
Less: Allowance for credit losses 6,693,287,376 6,075,593,102
(826,387,944) (511,143,069)
5,866,899,432 5,564,450,033
Interest income earned from loans and receivables for the year ended December 31, 2019 amounts to P1,419,611,582
(2018 - P1,138,558,364).
(i) Salary loans receivable
Salary loans are due in monthly installments ranging from one to five years with fixed nominal interest rates ranging from
9.00% to 16.00% per annum.
(ii) Equity loans receivable
Equity loans, which the members can avail up to 90.00% of the members’ equity value, bear interest of 8.00% per annum and
are due over a period of two years.
(iii) Interest receivable
Interest receivable pertains to interest income earned but not yet collected from the Association’s debt investments, and its
salary and equity loans.
(iv) Allowance for credit losses
Beginning January 1, 2018, the Association applied the general approach under PFRS 9, Financial Instruments, to measure
expected credit losses (ECL) on its loans and receivables. The ECL model in PFRS 9 replaces the incurred loss model
previously used under Philippine Accounting Standard (PAS) 39, Financial Instruments: Recognition and Measurement.
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PSMBFI 2019 Annual Report 47
To measure the ECL, the Association uses three categories that reflect the credit risk of the underlying receivable balance
and how the loan loss provision is determined for each of those categories. A summary of the assumptions underpinning the
Association’s ECL model is as follows:
Category Definition of category Basis for recognition of credit loss
Performing Counterparty debtors have a low risk of 12-month expected losses. Where the
default and a strong capacity to meet expected term of the loan is less than 12-
Underperforming contractual cash flows months, expected losses are measured at
its expected lifetime.
Non-performing Loans for which there is a significant increase Lifetime expected losses
in credit risk; a significant increase in credit
risk is presumed if interest and/or principal Lifetime expected losses
repayments are more than 90 days past due
Interest and/or principal repayments are
more than 180 days past due
Over the term of the loans, the Association accounts for its credit risk by appropriately providing for ECL on a timely basis.
The ECL rates are based on the payment profiles of loans and receivables over a period of 36 months before
December 31, 2019 and December 31, 2018, respectively, and the corresponding historical credit losses experienced within
this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors
affecting the ability of the customers to settle the receivables. The Association has identified the unemployment rate to be the
most relevant macroeconomic factor, and accordingly adjusts the historical loss rates based on expected changes in the
factor.
The movements in the allowance for credit losses of loans and receivables for the years ended December 31, 2019 and 2018
are shown below:
At January 1 2019 2018
Increase (decrease) in allowance for credit losses recognized in 511,143,069 793,479,570
profit or loss during the year 315,244,875 (282,336,501)
826,387,944 511,143,069
At December 31
The allowance for credit losses pertains to salary loans receivable and equity loans.
Management has performed an assessment and concluded that the allowance for credit loss pertaining to the other loans
and receivable balances is immaterial.
Critical accounting judgment: Impairment of loans and receivables
The Association determines the recoverable amount of loans and receivables based on the ECL of the portfolio of loans and
receivables as a whole. In arriving at the ECL for a particular period, management considers both historical loss experience
and the relevant macroeconomic factor. In these cases, management uses judgments based on the best available facts and
circumstances, including, but not limited to, the length of relationship with the counterparty debtors and whether there had
been any payment defaults in the past. An evaluation of loans and receivables designed to identify potential charges to the
allowance for credit losses is performed on a continuous basis throughout the year.
The calculated allowance for credit losses is reviewed on a regular basis to reflect proper valuation in the financial records.
Any change in the Association’s assessment of the collectibility of receivables could significantly impact the calculation of
allowance for credit losses, if any, and the results of its financial performance.
The Association considers that it is impracticable to disclose with sufficient reliability the possible effects of sensitivities
surrounding the extent of the net present value of estimated cash flows of individually impaired accounts and the estimated
impairment for collectively assessed accounts.
Management, based on its assessment, believes that the loans and receivables are fully collectible as at December 31, 2019
and 2018. The Association’s assessment of loans and receivables disclosed a level of ECL equivalent to those already
provided for.
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48 PSMBFI 2019 Annual Report
(d) Other financial assets at amortized cost
The account as at December 31 consists of:
Debt securities 2019 2018
Government securities
Retail treasury bonds 1,385,000,000 1,085,000,000
Fixed treasury notes 5,222,928,694 4,037,178,435
Treasury bills 1,522,671,721
8,130,600,415 374,427,675
Short-term investments 5,496,606,110
Corporate bonds 819,264,704
Long-term negotiable certificate of deposits 1,940,700,000 -
1,875,700,000
Other 390,000,000
Deposits to service providers 11,280,565,119 315,000,000
7,687,306,110
1,074,757
11,281,639,876 1,074,757
7,688,380,867
Government securities amounting to P25,000,000 as at December 31, 2019 and 2018 are on deposit with the Bureau of
Treasury under the Registry of Scripless Securities System, in accordance with the provision under Section 405 of the
Insurance Code of the Philippines, as amended by Republic Act No. 10607, “An Act Strengthening the Insurance Industry”
(the amended Code), as security for the benefit of members and creditors of the Association.
The average interest rates of the debt security investments for the years ended December 31 are as follows:
Government securities 2019 2018
Retail treasury bonds
Fixed treasury notes 4.93% 4.71%
Treasury bills 4.59% 4.31%
3.70% 4.70%
Short-term investments 3.70%
Corporate bonds 5.64% -
Long-term negotiable certificate of deposits 3.89% 5.61%
3.71%
For the year ended December 31, 2019, interest earned from investments held at amortized cost amounts to
P320,422,375 (2018 - P250,496,153).
Movements in the debt securities for the years ended December 31 are shown below:
As at January 1 2019 2018
Acquisitions
Maturities 7,687,306,110 6,617,878,435
Amortization of discount 5,771,528,332 1,465,108,381
(2,217,613,628) (400,000,000)
As at December 31
39,344,305 4,319,294
11,280,565,119 7,687,306,110
Management has performed an assessment and concluded that the allowance for credit loss pertaining to the other financial
assets at amortized cost is immaterial considering the counterparties’ credit standing (sovereign and corporate entities rated
investment-grade at a minimum and deposits held at banks with high credit ratings) and history of no payment defaults in the
past.
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PSMBFI 2019 Annual Report 49
2.2 Financial assets at FVTPL
The financial assets at FVTPL account as at December 31 consists of:
Debt securities 2019 2018
Government securities
Unit investment trust funds (UITFs) 167,156,384 149,989,849
Mutual funds 3,806,583 9,658,641
Corporate bonds -
29,372,740
Equity securities - listed shares 19,791,166 19,494,306
190,754,133 208,515,536
12,835,526
25,924,550 221,351,062
216,678,683
In 2017, the Plan entered into a trust fund agreement with Metropolitan Bank and Trust Corporation and BDO Unibank,
Inc.-Trust and Investment Group for the administration of these investments. The Association determines the fair value of
these investments based on net asset value per share as at reporting date.
Movements in the account for the years ended December 31 are shown below:
At January 1 2019 2018
Acquisitions
Maturities 221,351,062 183,403,565
Fair value adjustments 52,614,355 109,675,499
(71,019,834) (65,489,470)
As at December 31 13,733,100 (6,238,532)
216,678,683 221,351,062
The unrealized fair value gains or losses on financial assets at FVTPL are presented as part of “Fair value changes on
financial assets at FVTPL” in profit or loss.
2.3 Members’ contributions
The account as at December 31 consists of:
Principal contributions 2019 2018
Accumulated earnings
4,314,521,383 3,553,998,762
823,229,477 1,208,546,307
4,762,545,069
5,137,750,860
Members’ contributions pertain to the portion of the contributions received from the Member’s Benefit Equity Plan (MBEP)
and Member’s Equity Plan (MEP) which represent the members’ savings in the Association. The members’ contributions are
withdrawable on demand by the member.
The estimated fair value of members’ contributions is the amount repayable on demand which is equal to the members’
equity value. The most significant input for purposes of estimating fair value pertains to its interest rates.
In 2016, as part of the preparation for the 20th anniversary of the Association, the Board approved the implementation of the
strategy and activities for the proposed transfer of its members’ basic plan from MBEP to MEP upon election of the member.
The transfer from MBEP to MEP shall entitle the member to refund the member’s contribution and accumulated earnings as
of date of transfer and as such, subsequent collections will be accounted for under MEP.
Features of MBEP and MEP are as follows:
Contributions breakdown
Members’ contribution Insurance premiums Interest rate
MBEP 44% 56% 12%
MEP 4%
50% 50%
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50 PSMBFI 2019 Annual Report
The movements in the principal contributions for the years ended December 31 are shown below:
At January 1 2019 2018
Contributions during the year
Refunds during the year 3,553,998,762 2,886,802,212
983,318,156 1,098,093,723
At December 31 (222,795,535)
(430,897,173)
4,314,521,383
3,553,998,762
The movements in the accumulated earnings of principal contributions as at December 31 consist of:
At January 1 2019 2018
Interest on contributions during the year
Refunds during the year 1,208,546,307 1,863,273,371
466,948,183 348,926,971
At December 31 (852,265,013)
(1,003,654,035)
823,229,477
1,208,546,307
2.4 Fair value determination of financial assets and liabilities
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the
fair value hierarchy described as follows:
• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices); and
• Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the asset or liability is classified is determined based on the lowest level of significant input to the
fair value measurement.
For financial instruments traded in active markets, the determination of fair values of financial assets and financial
liabilities is based on quoted market prices or dealer price quotations. This includes listed equity securities and quoted
debt instruments on major exchanges and broker quotes from Bloomberg.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. If the above criteria are not met, the market is regarded
as being inactive. Indications that a market is inactive are when there is a wide bid-offer spread or significant increase in
the bid-offer spread or there are few recent transactions.
For all other financial instruments, fair value is determined using valuation techniques. In these techniques, fair values are
estimated from observable data in respect of similar financial instruments, using models to estimate the present value of
expected future cash flows or other valuation techniques, using inputs (for example, LIBOR yield curve, foreign exchange
rates, volatilities and counterparty spreads) existing at reporting date. The Association uses widely recognized valuation
models for determining fair values of non-standardized financial instruments of lower complexity. For these financial
instruments, inputs into models are generally market observable.
In cases when the fair value of unlisted equity instruments cannot be determined reliably, the instruments are carried at
cost less impairment. The fair value for loans and advances as well as members’ contributions are determined using a
present value model on the basis of contractually agreed cash flows, taking into account credit quality, liquidity and costs.
The following table classify the Association’s financial assets at FVTPL according to level of the fair value hierarchy as at
December 31:
2019 Level 1 Level 2 Level 3 Total
Debt securities
Equity securities 170,961,454 19,792,679 - 190,754,133
25,924,550 - - 25,924,550
2018 -
Debt securities 196,886,004 19,792,679 216,678,683
Equity securities -
189,021,230 19,494,306 - 208,515,536
12,835,526 - - 12,835,526
201,856,756 19,494,306 221,351,062
There were no transfers between levels of fair value hierarchy in 2019 and 2018.
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