PSMBFI 2018 Annual Report

PSMBFI 2018 1
Annual Report

MISSION • To provide timely financial and material aid and comfort to
public safety practitioners and their families.

• To enhance the work environment that will further develop
competent, committed, trustworthy and service-oriented
personnel.

• To embark on projects that will improve mutual
assistance and foster camaraderie among members.

VISION By 2020, PSMBFI shall be a progressive and stable mutual
benefit association extending benefits and services that are highly
responsive to the needs of members.

CORE • Loyalty • Ethics • Accountability & Integrity
VALUES • Professionalism • Service Excellence

About the Cover

There is nothing more important to PSMBFI than its commitment to sustainability.

The upward trajectory created by the geese that encapsulates the Association’s partner
agencies’ icons is a vivid symbol of our attestation of stability and support for our partner
agencies and its members as we continue to secure their future by providing products that
are created to suit their needs.

The image of the golden geese induces a sense of
optimism as we create strategic plans to innovate our
products and its benefits to members, and further develop
the market by extending our reach to other sectors and
agencies.

We look at every aspect of our business practices to
ensure we are acting responsibly, in a timely manner,
and with concentration on making tangible changes as
we move forward into the future.

Twenty-one years on and we continue to stand strong,
deeply rooted and progressive, dedicated to our core
values, mission and vision - an absolute beacon of
sustainability.

PSMBFI 2018 3
Annual Report

Table of Contents 2
4
PSMBFI Mission, Vision and Core Values 6
Brand Voice: “Protecting Lives, Securing The Future” 8
Message from the Chairman 10
Message from the President & CEO 14
Our Partner Agencies 16
Board of Trustees and Committees 24
Board of Trustees and Corporate Officers 43
President’s Report 52
Corporate Governance 54
Vice Chairman’s Call To Action 57
Departments and Offices 58
Securing Our Future Through Sustainable Management 60
Brand Voice: Your Welfare Is Our Main Concern 61
Impossible Until Its Done: PCol Harris Fama Story 62
Finding The Right Attitude, And Hitting The Target: REO 12 63
The Little Big Man: Ernesto Tumampo Jr. Story 115
PSMBFI Financial Statement
PSMBFI Offices



“Protecting Lives,
Securing the Future”

6 PSMBFI 2018 Chairman’s Message
Annual Report

“We, at PSMBFI, are prudent in putting to good
use the hard-earned premium of our members.
Extra caution is exercised at all times, as not to
compromise the quality of benefits presently
“being enjoyed and by the next generations of
public safety practitioners, thereafter.

CHAIMReMsAsaNg’Se

Chairman’s Message PSMBFI 2018 7
Annual Report

Iam honored to present the Sustainability Report of the Public Safety Mutual
Benefit Fund, Inc. for the year 2018.

For more than two decades, it has become PSMBFI’s drive to outperform
its accomplishments each passing year. There was a significant increase in
membership and company assets, thus further solidifying our stance among
other mutual benefit associations, with our core business of providing insurance
protection for public safety practitioners.

At the beginning of the year, the uniformed personnel across all ranks enjoyed
the higher monthly base pay after President Rodrigo Roa Duterte signed Joint
Resolution No. 1. This was most favorable for our members as their insurance
coverage increased, and are now assured of more savings, bigger killed-in-
action benefit and accidental death coverage.

The real challenge however, was to reach as many members to tell them of
the dynamic upgrades of their benefits. Yet, they must be reminded that their
monthly premium to the Equity Plan still remains valued at three percent of their
base pay. These developments were cognizant to the risks that go with the public
safety and law enforcement profession. It also came in timely as our partner
agencies continue to intensify their campaign against criminality, insurgency,
terrorism, and illegal drugs during this disruptive times.

We, at PSMBFI, are prudent in putting to good use the hard-earned premium
of our members. Extra caution is exercised at all times, as not to compromise the
quality of benefits presently being enjoyed and by the next generations of public
safety practitioners, thereafter. Good relations with partner agencies will always
be maintained, of which we are thankful that the Bureau of Corrections have
entrusted their personnel to the care of PSMBFI in 2018.

The remarkable accomplishments of PSMBFI in 2018 are discussed in the
ensuing pages of this report. Needless to say, all these will not be possible
without the invaluable support of our members and partner agencies. Thank
you for trusting PSMBFI!

OSCAR DAVID ALBAYALDE
Police General
Chief, PNP and Chairman, PSMBFI

8 PSMBFI 2018 President’s Message
Annual Report

“The sustainability of any business could not
be achieved unilaterally. It requires the support
and cooperation of all stakeholders to ensure its
continued survival and to attain certain stability and
growth. It is imperative therefore for a company
that relies heavily on membership to foster a sense
PMReEsSsaIDgEeN“ T’Sof inclusivity to the public safety community.

President’s Message PSMBFI 2018 9
Annual Report

The famous adage “no man is an island” conveys that no human being is self-sufficient
and that one needs to be a part of a community and to rely on others in order to thrive.
The same is true in business—it cannot stand alone, and relationship with others is necessary
for its continued survival.

Creating a strong and stable relationship with our members and our partner agencies has
been the key to our corporate longevity. The significant growth of the company is a testament
of this mutually beneficial partnership and a reflection of the right strategies and business
decisions implemented over the years. The strong foundation of PSMBFI serves as our driving
force in expanding our membership base. With PNP as our only partner during our inception
in 1998, four (4) public safety agencies came into our fold as of 2007. With these partnerships,
we have shown our credibility in the industry, thereby making us the top choice of other public
safety practitioners for their insurance needs. The built trust has strengthened us and made us
more effective in looking after the welfare of our members.

Driven by highly responsive products and services, eight (8) public safety agencies followed
suit for a span of five consecutive years starting in 2014. These new alliances further solidified
our financial position, keeping our course towards our vision of becoming a progressive and
highly stable mutual benefit association. Capitalizing on this growth momentum, we will
continue our stride in building bridges with other public safety agencies.

Our desire to ensure the financial wellbeing of our public safety practitioners could not
be made possible without the help of the heads of our partner agencies; thus, I would like
to take this opportunity to express my deep appreciation for their invaluable support to the
Association. Our partnership has created a community of purpose where members are given
the opportunity to help others.

On behalf of the Management, let me also extend my gratitude to the Board of Trustees for
the leadership, guidance, and unwavering support. Your strategic leadership and decisive
actions are instrumental in the continuous shaping of a brighter future for PSMBFI. I would
also like to acknowledge the entire PSMBFI team which I also consider as our competitive
advantage for the dedication, diligence, and hard work.

Lastly, to our members whom we have the privilege of serving, thank you for your continued
patronage to the Association. Rest assured that our strategies and efforts are all geared
towards addressing your needs and concerns. We will stay true in our commitment that in
“PSMBFI: Buhay Protektado, Kinabukasan Sigurado”.

DIR MARIO A AVENIDO
President and CEO

10 PSMBFI 2018 Our Partner Agencies
Annual Report

Our Partner Agencies

The Philippine National Police enforces the laws of the land
with a mission to give every Filipino a safer place to live, work,
and do business. It works in partnership with communities to
achieve a crime-free country.

With the risks that go with the police profession, PSMBFI was
created primarily for the protection of the PNP uniformed
personnel by providing them with insurance benefits. PSMBFI
protects our devoted police force to sustain the peace and
order in our nation. Thus, we can continue savoring a secure
country where we can thrive.

The National Police Commission maintains a strong
relationship among the police force, local executives, and
communities. It exercises administrative control and supervision
over the PNP and investigates irregularities of erring cops. The
NAPOLCOM upholds the credibility of the PNP in maintaining
the country’s peace and order.

PSMBFI’s partnership with NAPOLCOM is intended to give
its personnel with life insurance, as they give citizens the
confidence and peace of mind to go about their daily lives
and activities.

The Philippine National Police Academy provides tertiary
education to aspiring commissioned officers who shall
enter the PNP, BFP, and BJMP. The Academy develops the
knowledge and skills of cadets, and hones their virtues of
justice, integrity, and service.

As the PNPA molds the country’s generation of leaders,
PSMBFI inculcates to them the importance of life insurance.

Our Partner Agencies PSMBFI 2018 11
Annual Report

The Bureau of Fire Protection saves lives, prevents and
suppresses destructive fires. It also responds to other man-made
and natural disasters, and emergencies.

PSMBFI acknowledges the heroic efforts of our country’s
firemen, hence providing insurance protection to BFP personnel
who help sustain the safety of all from potentially life-threatening
fire incidents.

The Office for Transportation Security secures the country’s
transportation systems, its civil aviation, sea transport and
maritime infrastructure, land transportation, rail system and
infrastructure. OTS implements and coordinates transportation
security policies to guarantee the secure transport of people
and goods.

PSMBFI provides insurance protection for OTS personnel and
with their consistent efforts, every Filipino may continue enjoying
a comfortable and secure trip whether it is by land, sea or air.

The Philippine Coast Guard is the keeper of our country’s
waters and sea travelers. It executes various maritime
concerns, such as: search and rescue, safety and security,
law enforcement and environmental protection. The PCG is
committed to save lives, promote cleaner seas, and secure
the country’s maritime jurisdiction.

PSMBFI values the significant contribution of PCG, and offers
its personnel with insurance and living benefits to ensure that
they are able to guarantee our maritime safety.

The National Mapping and Resources Information Authority
is the country’s central mapping agency. It provides
mapmaking services to the public through topographic maps
and nautical charts.

PSMBFI extends insurance benefits to NAMRIA personnel
who help provide the public with comprehensive geospatial
data. With this partnership, NAMRIA’s consistent public service
is also recognized so that we can all embrace a geospatially-
empowered Philippines.

12 PSMBFI 2018 Our Partner Agencies
Annual Report

The Metropolitan Manila Development Authority keeps the
metro clean, organized, and safe. Included in its services are
development planning, transport and traffic management,
and solid waste disposal. MMDA also manages sewerage and
flood control systems, promote pollution control, and sustain
public safety.

Acknowledging the crucial responsibilities of MMDA,
PSMBFI provides insurance protection and living benefits to
the agency’s personnel as they keep Metro Manila dynamic,
ecological-friendly, and livable.

The Philippine Public Safety College empowers the
personnel of the PNP, BFP, and BJMP through human resource
development, training, and education. It instills in public safety
practitioners the character, competence, and commitment
in their sworn duties.

PSMBFI values the PPSC in shaping the integrity and
competence of those who “serve and protect”. A staunch
partnership is formed with PPSC in providing its personnel with
insurance protection as they remain dedicated and efficient
in performing their noble tasks.

The Department of Environment and Natural Resources
manages, protects, and conserves the country’s environment
and natural resources, which in turn contributes to social
and economic development. This includes the conservation
of marine life and terrestrial areas as heritage, and the
preservation thereof for the next generations to come.

As DENR personnel protects the natural resources from
destruction and depletion, they are likewise encouraged to
be members of PSMBFI. With DENR’s sustained effort and this
partnership with PSMBFI, we can all embrace a preserved
environment unique to the world.

Our Partner Agencies PSMBFI 2018 13
Annual Report

The Bureau of Immigration ensures that there are no
lawless individuals settling in the country. By enforcing
immigration, citizenship, alien admission, and registration
laws, the BI contributes to national safety.

By regulating the movement of individuals to, from,
and within the Philippines, the BI is able to prevent

violence and terrorism. As a partner agency, PSMBFI
provides BI personnel with insurance benefits. This way,
they can effectively secure our country in order to
achieve developmental goals.

The Land Transportation Office ensures riding
individuals of safe and comfortable land travel. It
effectively implements transportation laws, rules, and
regulations. The LTO also clears the streets off colorum
public utility vehicles.

The agency aims to be progressive and forward looking
in order to provide fast and efficient public service. As
it plays a vital role in the daily lives of Filipinos, PSMBFI
in turn, extends insurance protection to LTO personnel
ensuring the safety of land travel, securing transit for all
commuters, and ridding the roads of law violators.

The Bureau of Corrections has in its custody the rehabilitation
of national offenders. It keeps them safe, prevents them
from committing crimes, provides for their basic needs, and
develops their skills by means of livelihood programs.

PSMBFI extends to its personnel insurance protection, as
they ensure the positive transformation of persons deprived of
liberty through various rehabilitation programs.

14 PSMBFI 2018 Board of Trustees and Committees
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.

Board of Trustees and Committees PSMBFI 2018 15
Annual Report

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.

16 PSMBFI 2018 Board of Trustees and Corporate Officers
Annual Report
Board of Trustees
and Corporate Officers

School: COLLEGE
Degree: Philippine Military Academy
Year Graduated: Bachelor of Science
1986

School: University of Assumption, Pampanga
Degree: Engineering
Year Graduated: 1982

Position: EXPERIENCE
Chief,
Inclusive Dates: Philippine National Police
April 19, 2018 to present

DIR OSCAR D ALBAYALDE Position: Regional Director, NCRPO
Inclusive Dates: July 1, 2016 to April 19, 2018
BORN: NOVEMBER 8, 1963 AGE: 55
Position: Executive Officer,
EDUCATIONAL BACKGROUND Directorate for Plans, PNP
Inclusive Dates: August 11, 2015 to June 30, 2015

POST GRADUATE STUDIES

School: Manuel L Quezon University APPOINTMENT WITH PSMBFI

Degree: Master in Public Administration Position: Chairman

Year Graduated: 1996 Date Elected / Appointed: May 24, 2018

School: COLLEGE
Degree: Philippine Military Academy
Bachelor of Science
Year Graduated: in Military Service
1986

Position: EXPERIENCE
Inclusive Dates: The Deputy Chief for Operations, PNP
September 1, 2018 to present

DIR ARCHIE FRANCISCO F GAMBOA Position: The Chief of Directorial Staff, PNP
Inclusive Dates: March 17, 2017 to August 31, 2018
BORN: SEPTEMBER 2, 1964 AGE: 54
Position: Director,
EDUCATIONAL BACKGROUND Directorate for Comptrollership, PNP
Inclusive Dates: July 1, 2016 to March 16, 2017

POST GRADUATE STUDIES

School: Jose Rizal University Position: Deputy Director,

Degree: Bachelor of Laws Directorate for Logistics, PNP

Year Graduated: 2004 Inclusive Dates: June 30, 2016



School: Fr Saturnino Urios University APPOINTMENT WITH PSMBFI
Degree: Masters in Business Administration
Year Graduated: 1995 Position: Vice-Chairman

Date Elected / Appointed: March 1, 2017

Board of Trustees and Corporate Officers PSMBFI 2018 17
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EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: Manuel L Quezon University

Degree: Master in Public Administration

Year Graduated: 1995



COLLEGE

School: Philippine Military Academy

Degree: Bachelor of Science

Year Graduated: 1981

School: Siliman University DIR MARIO A AVENIDO

Degree: Bachelor of Science in Civil Engineering BORN: NOVEMBER 18, 1957 AGE: 61

Year Graduated: 1975

EXPERIENCE Position: Deputy Director,

Position: Director, Directorate for Police Community

Finance Service, PNP Relations, PNP

Inclusive Dates: February 14, 2013 to November 15, 2013 Inclusive Dates: August 12, 2010 to November 3, 2010



Position: Regional Director, APPOINTMENT WITH PSMBFI

Police Regional Office ARMM, PNP Position: President/CEO

Inclusive Dates: February 23, 2012 to January 4, 2013 Date Elected / Appointed: February 28, 2014

Position: Director, Position: Vice President

Police Community Relations Date Elected / Appointed: January 30, 2014

Group, PNP

Inclusive Dates: November 3, 2010 to February 22, 2012 Position: Corporate Treasurer

Date Elected /Appointed: February 27, 2013

EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: University of Asia and the Pacific

Degree: Strategic Business Economics Program

Year Graduated: 2018

School: Greenville College
Degree: Doctor of Public Administration
Year Graduated: 2017

School: Philippine College of Criminology
Degree: Ph.D. in Criminology, Candidate

School: International University, Missouri, USA DIR ARMANDO E RAMOLETE
Degree: Masters in Business Administration
Year Graduated: 1993 BORN: MARCH 13, 1960 AGE: 59

School: Polytechnic University of the Philippines Position: Police Attaché, Washington DC
Degree: Masters in Psychology Inclusive Dates: 2009 to 2013
Year Graduated: 1991

School: COLLEGE Position: Senior Police Assistant to the
Degree: Philippine Military Academy Secretary of the Interior and
Year Graduated: Bachelor of Science Local Government
1982 Inclusive Dates: 2006 to 2009

Position: EXPERIENCE Position: Chief,
Director, Foreign Liaison Division,
Inclusive Dates: Philippine National Police Academy Directorate for Intelligence, PNP
2014 to 2016 Inclusive Dates: 2003 to 2006

Position: Deputy Director, APPOINTMENT WITH PSMBFI
Directorate for Personnel and
Records Management, PNP Position: Vice President
Inclusive Dates: 2013 to 2014
Date Elected / Appointed: April 16, 2016

18 PSMBFI 2018 Board of Trustees and Corporate Officers
Annual Report

Position: EXPERIENCE
Inclusive Dates: Director, DPRM, PNP
April 27, 2018 to present

Position: Director, Finance Service,PNP
Inclusive Dates: July 1, 2016 to April 26, 2018

Position: Director, PNP Retirement and
Benefits Administration Service
Inclusive Dates: March 16, 2016 to June 30, 2016
Position: Executive Officer,
Directorate for Personnel and
Records Management, PNP
Inclusive Dates: February 11, 2016 to March 14, 2016

DIR LYNDON G CUBOS Position: Acting Executive Officer,
Directorate for Personnel and
BORN: FEBRUARY 3, 1964 AGE: 55 Records Management, PNP
Inclusive Dates: December 8, 2016 to February 10, 2016
EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: Jose Rizal University Position: Police Liaison Officer,

Degree: Bachelor of Laws Philippine Consulate General

Year Graduated: 2001 in San Francisco, CA

Inclusive Dates: 2011 to 2015

School: COLLEGE APPOINTMENT WITH PSMBFI
Degree: Philippine Military Academy
Year Graduated: Bachelor of Science Position: Corporate Treasurer
1986
Date Elected / Appointed: July 28, 2016

Position: EXPERIENCE
Chief Executive Senior Police Officer
(CESPO)
Inclusive Dates: National Headquarters, PNP
August 5, 2017 to present

Position: Regional Executive Senior Police
Officer (RESPO) PRO 11, PNP
Inclusive Dates: November 2016 to August 2017

Position: Chief Clerk,
Regional Investigation and
Detective Management Division, PNP
Inclusive Dates: 2013 to 2016

DIR FELIPE S MOQUIALA Position: Investigator/ Intel/ OPN PNCO
Sto. Tomas Police Station,
BORN: SEPTEMBER 28, 1967 AGE: 51 DNPPO, PRO 11
Inclusive Dates: 1998 to 2013

EDUCATIONAL BACKGROUND Position: Riffleman
PNP Special Action Force
POST GRADUATE STUDIES Inclusive Dates: 1993 to 1998

School: Quezon College of Southern Philippines

Degree: MA in Educational Management

Year Graduated: 2002 APPOINTMENT WITH PSMBFI

Position: Assistant Treasurer

COLLEGE Date Elected / Appointed: August 30, 2017
Bukidnon State College
School: Bachelor of Arts in Mathematics Position: Member, Board of Trustees
Degree: 1991
Year Graduated: Date Elected / Appointed: April 22, 2017

Board of Trustees and Corporate Officers PSMBFI 2018 19
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EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: Philippine Christian University

Degree: Master in Management

Year Graduated: 1996



COLLEGE

School: Philippine Military Academy

Degree: Bachelor of Science

Year Graduated: 1982

EXPERIENCE

Position: Chief,

Philippine National Police

Inclusive Dates: July 16, 2015 to June 28, 2016

Position: The Director for Operations, PNP DIR RICARDO C MARQUEZ
Inclusive Dates: December 13, 2014 to July 15, 2015
BORN: AUGUST 28, 1960 AGE: 58

Position: Regional Director, APPOINTMENT WITH PSMBFI
PRO 1, PNP
Inclusive Dates: January 9, 2013 to December 12, 2013 Position: Chairman / Member,

Board of Trustees

Date Elected/ Appointed: August 25, 2015

EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: Philippine Christian University

Degree: Master in Management

Year Graduated: 1996

School: COLLEGE
Degree: Philippine Military Academy
Year Graduated: Bachelor of Science
1983

Position: EXPERIENCE
Director,
Inclusive Dates: Directorate for Logistics, PNP
May 7, 2014 to May 30, 2016

Position: Regional Director,
PRO 9, PNP
Inclusive Dates: December 27, 2012 to May 7, 2014

APPOINTMENT WITH PSMBFI DIR JUANITO B VAÑO JR

Position: Member, Board of Trustees BORN: MAY 30, 1960 AGE: 58

Date Elected / Appointed: April 12, 2014

20 PSMBFI 2018 Board of Trustees and Corporate Officers
Annual Report

School: University of Sto. Tomas
Degree: Bachelor of Science
in Chemical Engineering
Year Graduated: Undergraduate

Position: EXPERIENCE
Director,
Directorate for Human Resources and
Inclusive Dates: Doctrine Development, PNP
2016 to 2017

DIR KEITH ERNALD L SINGIAN Position: Deputy Director,
Directorate for Human Resources and
BORN: JULY 12, 1961 AGE: 57 Doctrine Development, PNP
Inclusive Dates: 2015 to 2016

EDUCATIONAL BACKGROUND Position: Deputy Regional Director for
Administration, PRO CARAGA
POST GRADUATE STUDIES Inclusive Dates: 2013 to 2015

School: University of La Salette

Degree: Doctor on Public Administration Position: Deputy Director for Operations,
Criminal Investigation and
Year Graduated: 2015 Detection Group
Inclusive Dates: 2012 to 2013
School: University of La Salette
Degree: Masters in Criminology Position: Chief / Head,
Year Graduated: 2011

School: Pamantasan ng Lungsod ng Maynila School for Investigation and Detective
Degree: Masters in Government Management
Year Graduated: 1997 Development (SIDD),

COLLEGE Directorate for Investigation and
School: Philippine Military Academy
Degree: Bachelor of Science Detective Development, PNP
Year Graduated: 1983
Inclusive Dates: 2010 to 2012



APPOINTMENT WITH PSMBFI

Position: Member, Board of Trustees

Date Elected / Appointed: April 22, 2017

EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: St. Ferdinand University

Degree: Master in Public Administration

Year Graduated: 1999

School: COLLEGE
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

Position: EXPERIENCE
Deputy Director General
for Administration
Inclusive Dates: Bureau of Corrections
September 2017 to present

DIR VALFRIE G TABIAN APPOINTMENT WITH PSMBFI

BORN: February 24, 1961 AGE: 58 Position: Member, Board of Trustees

Date Elected / Appointed: April 22, 2017

Board of Trustees and Corporate Officers PSMBFI 2018 21
Annual Report

EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: Philippine College of Criminology

Degree: Doctor of Philosopy in Criminology

Year Graduated: 2017

School: National College of Business
Administration
Degree: Master of Public Administration
Year Graduated: 2007

School: Philippine Law School DIR JOAQUIN R ALVA
Degree: Bachelor of Laws
Year Graduated: 2002 BORN: FEBRUARY 9, 1967 AGE: 51

School: COLLEGE Position: Chief of Police,
Degree: Philippine National Police Academy
Year Graduated: Bachelor of Science in Public Safety Mandaluyong City
1992
EPD, NCRPO, PNP

Inclusive Dates: January 9, 2016 to November 22, 2017

School: Philippine College of Criminology
Degree: Bachelor of Science in Criminology
Year Graduated: 1988 Position: Chief,

ORIDMD, R7 NCRPO, PNP

Inclusive Dates: August 15, 2015 to January 8, 2016

Position: EXPERIENCE Position: Chief,
Acting Chief of Staff,
Inclusive Dates: PNP Legal Service PPSFU NCRPO, PNP
March 5, 2019 to present
Inclusive Dates: September 10, 2013 to August 14, 2015

Position: Chief, APPOINTMENT WITH PSMBFI

OPRMD, NCRPO Position: Member, Board of Trustees

Inclusive Dates: January 1, 2018 to March 4, 2018 Date Elected / Appointed: April 22, 2017

EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: San Sebastian College

– Recoletos Manila

Degree: Bachelor of Laws

Year Graduated: 2002

School: COLLEGE
Degree: Far Eastern University
Year Graduated: AB Political Science
1998
Position: EXPERIENCE
Acting Chief,
Legal Research and Evaluation
Inclusive Dates: Division, PNP Legal Service
June 29, 2016 to present

APPOINTMENT WITH PSMBFI DIR LYNETTE M TADEO

Position: Member, Board of Trustees BORN: FEBRUARY 5, 1977 AGE: 42

Date Elected / Appointed: September 28, 2017

22 PSMBFI 2018 Board of Trustees and Corporate Officers
Annual Report

EDUCATIONAL BACKGROUND

COLLEGE

School: Cebu State College of Science and

Technology, Inc

Degree: Bachelor of Science in Industrial Education

Year Graduated: 1990

School: Collegio de San Jose Recoletos, Cebu City
Degree: Bachelor of Science in Civil Engineering
Year Graduated: Undergraduate

Position: EXPERIENCE
Regional Executive Senior Police Officer
Inclusive Dates: (RESPO), PRO 7
January 2015 to present

DIR KIMANIE J SAROMINES APPOINTMENT WITH PSMBFI

BORN: JULY 25, 1966 AGE: 52 Position: Member, Board of Trustees

Date Elected / Appointed: August 04, 2018

School: COLLEGE
US Military Academy, West Point,
Degree: New York
Year Graduated: Bachelor of Sciencein Civil Engineering
1984

Position: EXPERIENCE
Commander, ASEAN 2017
Inclusive Dates: Security Task Force
November 2016 to December 2017

DIR NAPOLEON C TAAS Position: Director,

BORN: JUNE 20, 1962 AGE: 56 Directorate for Information and

Communications Technology Management,

EDUCATIONAL BACKGROUND PNP

POST GRADUATE STUDIES Inclusive Dates: 2016

School: University of Asia and the Pacific Position: Director,
Information and Technology Management
Degree: Masters in Business Economics Service, PNP
Inclusive Dates: August 2013 to 2015
Year Graduated: On-going

School: University of Asia and the Pacific Position: Commander,
Degree: Strategic Business Economics Program Anti-illegal Drugs Special Operations
Year Graduated: 2015 Task Force, PNP
Inclusive Dates: January 2013 to August 2013
School: Information Systems Audit and Control
Association (ISACA) Position: Senior Executive Assistant,
Degree: Certified Information Security Manager
(CISM) Office of the Chief, PNP
Year Graduated: 2014
Inclusive Dates: 2008 to 2009

School: Philippine Christian University APPOINTMENT WITH PSMBFI
Degree: Master in Management
Year Graduated: 1998 Position: Corporate Auditor

Date Elected / Appointed: August 29, 2013

Board of Trustees and Corporate Officers PSMBFI 2018 23
Annual Report

EDUCATIONAL BACKGROUND

POST GRADUATE STUDIES

School: University of Mindanao

Degree: Bachelor of Laws

Year Graduated: 2001

School: Ateneo de Davao University

Degree: Master in Public Administration

Year Graduated: 1997



COLLEGE

School: Philippine Military Academy

Degree: Bachelor of Science

Year Graduated: 1992

Position: EXPERIENCE DIR MATTHEW P BACCAY
Chief, Fiscal Division,
Inclusive Dates: Directorate for Comptrollership, PNP BORN: SEPTEMBER 21, 1970 AGE: 48
2016 to present
Position:
Chief, Regional Comptrollership
Inclusive Dates: Division, PRO ARMM, PNP
2015 to 2016

Position: Chief, Budget and Fiscal Division

Directorate for Personnel and Records

Management Division, PNP

EDUCATIONAL BACKGROUND Inclusive Dates: 2014 to 2015

POST GRADUATE STUDIES

School: San Sebastian College – Recoletos Manila APPOINTMENT WITH PSMBFI

Degree: PhD in Management Position: Corporate Secretary

Year Graduated: 2014 to present Date Elected / Appointed: March 1, 2017

School: De La Salle University
Degree: Master of Science in Financial Engineering
Year Graduated: 2005

School: Asian Institute of Management
Degree: Master in Management
Year Graduated: 1999

School: University of the Philippines, Diliman
Degree: Master in Technology Management
Year Graduated: 1999

School: COLLEGE
Degree: Philippine Military Academy
Year Graduated: Bachelor of Science
1983

Position: EXPERIENCE CAPT SEBASTIAN C SIGA-AN PN(RET)
Security Service Group Manager,
Inclusive Dates: Ibiden Philippines, Inc. BORN: AUGUST 17, 1960 AGE: 58
January 2012 to July 2012

Position: Corporate Security Manager Position: Deputy Director of the
and Port Facility Security Officer,
Asian Terminals, Inc. Defense Modernization,
Inclusive Dates: 2010 to 2012
Office of the Department of
Position: Director for Security Services,
Pacific Strategies and Assessments National Defense
Inclusive Dates: 2008 to 2010
Inclusive Dates: 2002 to 2005
Position: Group Commander,
Course Director and Head, Position: Head of Production Branch,
Command Leadership and AFP Retirement and Separation
Management Department of the AFP Benefits System
Command and General Staff College Inclusive Dates: 1999 to 2002
Inclusive Dates: 2005 to 2008
APPOINTMENT WITH PSMBFI

Position: General Manager / COO

Date Elected / Appointed: April 1, 2014 to present

24 PRESIDENT’S Report

Keeping the “It was important for us to fuel
Momentum the momentum to enable us to
of Growth deliver and maintain the PSMBFI
towards a “brand of service to our members
Sustainable who need us the most, thus
Mutual Benefit propelling us to sustain the level of
Association growth that we are enjoying today.

DIR MARIO A AVENIDO

President & CEO

PRESIDENT’S Report 25

Dear Members,

On behalf of PSMBFI Management, it is my pleasure to report to the General Membership
that our Association achieved another record performance in 2018. Reflective of
this remarkable accomplishment is an ALL-TIME-HIGH NET INCOME of P1.80 BILLION or a
97% increase from the 2017 record. This is another milestone in the history of PSMBFI—an
indicative of our continued strength in terms of fiscal performance as well as operational
governance.

Inspired and challenged by our exceptional performance on our 20th-year celebration,
we worked harder in 2018. We continued our efforts in expanding our membership base,
generating new opportunities to provide better services to our members, streamlining
our operations, and maintaining a robust balance sheet. It was important for us to fuel
the momentum to enable us to deliver and maintain the PSMBFI brand of service to our
members who need us the most, thus propelling us to sustain the level of growth that we
are enjoying today.

We are also deeply honored to be recognized for our efforts in governance and
management through the awards and citations given to us by various local government
units and our institutional partners as we remain committed to improving further our
services to our valued members.

Overall, 2018 was a year of remarkable progress and strong results for PSMBFI, as our
strategic trajectory has remained aligned with our long-term corporate aspirations, all
without losing traction of what we have already established in the past 20 years. By
investing in high-potential securities, striving for capital discipline, and taking advantage
of modern technologies, we have marked a wonderful impression not only to our
stakeholders but surprisingly to ourselves as well.

Of course, the success we have is not possible without the hard work of our employees,
the management, and the board—all of whom worked hand in hand in employing highly
effective strategies and efficient operations in order to maximize our resources and the
business opportunities made available to us.

Looking forward, we will continue to put our resources, expertise, creativity, and
passion to better serve our members and other potential markets that we might include
in the future, develop more sustainable operational practices, and to focus on our
long-term interests.

To our members, we thank you for your continued patronage and support to PSMBFI.
Cheers to a fruitful 2019!

26 PRESIDENT’S Report

The Year in Review

P1.80B

P16.24B

97% 8%
Net
Assets
Income

Increased KIA Coverage Extended Compensable
Days for AHB

P321.16M insurance Covered
benefits paid for Bureau of Corrections
2,566 claims

Garnered six awards and
recognition including Top
10 Taxpayers by the City

of San Juan

PRESIDENT’S Report 27

Financial Performance

2,000
1,500
1,000

500

2014 2015 2016 2017 2018

NET INCOME

We have seen the biggest growth in has greatly contributed to the rise in their
income, ALMOST DOUBLE, ending the year premium contributions to the fund.
2018 with 97% increase at P1.80 billion. This
robust growth was brought upon by our Interest income also went up by 9%,
core earnings, the increase of our members’ thanks to the yield from the loans offered
premium payments, our solid growth on to our members as well as the diversity of
loans, steady yield on investments, and the our investment portfolio.
effective management of our resources
and expenses. Our profit margin reached 63% which
is attributed to our capital and expense
  discipline, effectively reducing operating
Despite the modest growth of our expenses by 70% and the interest expense
membership, the government-mandated by 11%.
salary increase of public safety practitioners

28 PRESIDENT’S Report

Financial Performance

ASSETS

PHP 16.24 BILLION

The consistent 8% year-on-year increase in assets in the
last five years proves that we are capable of settling
our obligations to our members and stakeholders at
any given time. The 11% increase in assets over
the 2017 record shows our stability given
the market volatility and unpredictable
economic environment. Members need
not worry about our financial standing as
we are always prepared to protect
their interests, regardless of the
market situation.

11%

RETURN
ON ASSETS

NET WORTH

PHP 10.13 BILLION

Overall, the steady improvement in our financial performance—8% year-on-year
increase in net worth—keeps us on track to achieve our strategic plan for 2023. Our
P10.13 billion net worth finish for 2018, which is an 11% increase from 2017, allows us to
seek new endeavors and add more sustainable benefits and services that will further
enhance our members’ confidence in our Association and to draw potential markets.

PRESIDENT’S Report 29

Optimized Investment Portfolio

With our regional personnel’s aggressive 13%
field service operations along with our Head
Office team’s augmented support, we Fixed Income
were able to release P2.08 billion in loans to Securities
members. This loan assistance has helped
our members in their financial needs—22,386 25%
borrowers in Salary Loan and 17,729 borrowers
in Equity Loans. Earnings on
Placements
Our loan production in 2018 is 41% of our
2018 revenue, contributing P1.14B in interest 5%
income.
Loans to
Another source of our healthy financial Members
performance are our carefully placed
investments. Our periodic review of existing 5.5%
investment policies coupled with regular
evaluation of accredited banks plus in-depth Earnings on
ROI analysis of the available investment Loans
instruments allowed us to increase our portfolio
diversification at 13%. We have optimized our 10.51%
earnings on fixed-income securities by 25%. At
yearend, our yield of investment is at 10.51%, YIELD
surpassing our 2018 target of 9%.

Corporate
Governance

Our strategic trajectory is anchored mainly
on providing benefits and services that are
highly responsive to the needs of public
safety practitioners and their beneficiaries
while keeping a highly efficient and cost-
effective operations within the Association.

We have implemented various
marketing efforts and internal operational
improvements to propel our direction to
increased market share and long-term
sustainability.

30 PRESIDENT’S Report

Growing PSMBFI Family

Known to provide the highest standard of
customer service to our members, PSMBFI
has remained to be the prime choice and
trusted partner of public safety agencies in
the Philippines for their insurance needs
and other related requirements.

For 2018, we welcomed the Bureau of
Corrections to the Association, which has
seen the level of trust and confidence that
our existing members have given us.

This specific agency under the
Department of Justice is officially
the 13th member of the PSMBFI
family.

NEW!

Although our membership growth stayed modest, we are proud to share that our
aggressive marketing initiatives have paid off. Our intensive membership campaigns
complemented with information drives, office swarming activities, marketing collaterals
distribution, and promotional support to partner agencies have increased our enrollment
of new members from different public safety agencies.

PRESIDENT’S Report 31

Insurance Benefit Claims

Unlike other insurance providers, P321.16
PSMBFI poses no delay in releasing Million
the insurance proceeds to the
member’s beneficiaries. Within insurance benefit
24 hours after the receipt of claims paid
information of a member’s death,
we immediately provide partial 2,566
payment to the beneficiaries so
that they can immediately use the processed
fund for which it is intended. insurance claims

Even the beneficiaries of P01
recruits who have signed up the
Membership Application Form but
HAVE NOT paid yet the first monthly
contribution are entitled to the
claims, without any delay. Death
benefits are also released regardless
of the cause of death.

This is our COMPETITIVE
ADVANTAGE—the brand of service
we provide to our members and their
beneficiaries that other insurance
companies could not replicate.

In 2018, we have released a total
of P321.16 million worth of insurance
benefits, for a total of 2,566 claims
made.

“Even the beneficiaries of P01 recruits who have
signed up the Membership Application Form but
HAVE NOT paid yet the first monthly contribution

are entitled to the claims.“

32 PRESIDENT’S Report

Insurance Benefit Claims

P157.48M P71.19M

Natural Accidental

Death Death

EQUITY P22.49M P5.83M
PLAN
Killed-in- Wounded-in-

Action Benefit Action Benefit

P5.28M

Natural

P2.08M P1.23M Death

Disability Accidental

Benefit Hospitalization

Benefit SPECIAL P5.17M
GROUP
TERM PLAN KIA and

Accidental

Death

P17.62M P10.43M P0.10M

Basic Group Memorial Disability

Term Plan Plan Benefit

P600K

Insurance

Benefit of

Dependent

P4.29M P17.37M

Endowment Credit Life

at 56 Insurance

PRESIDENT’S Report 33

Additional Insurance Benefits

INSURANCE BENEFITS OF DEPENDENTS

One of the features of Members’ Equity Plan
(MEP) is an insurance worth P50,000 to one
identified beneficiary at no additional cost. In
case of the beneficiary’s death, the member
is entitled to claim this benefit.

 
For this type of insurance, the Association
has released a total of P600,000 for claims
made by 12 MEP members.

MEMBER’S BENEFIT FROM INDIVIDUAL
EQUITY VALUE OR MBIEV

The distribution of the interest component
of the Equity Value is annually paid out to
members for them to enjoy the fruit of their
savings. In 2018, PSMBFI has released P538.89
million to 83,517 qualified members of the
Mutual Benefit Equity Plan (MBEP).

PLATINUM BENEFIT

Members who have been with PSMBFI for at least 20 years are given the privilege to
transfer to the Members’ Equity Plan in order to avail better benefits. In 2018, we have
refunded P1.84 billion worth of Equity Value to 21,957 qualified members.

34 PRESIDENT’S Report

What’s New in 2018?

INCREASED

KILLED-IN-ACTION
COVERAGE

In an effort to provide more value to
our existing members, we have raised
the Killed-in-Action benefit from 50% of
basic life insurance to 100% coverage for
the Members Equity Plan.

EXTENDED
ACCIDENT
HOSPITALIZATION

COVERAGE

In 2018, the compensable days
for accident hospitalization has
been extended from 7 days to 10
days, without additional premium
to the member.

PRESIDENT’S Report 35

Operational Efficiency

To operate more efficiently and to boost value creation both internally and externally, our
strategic direction is centered in the following:

By investing in our employees’ skills
enhancement, acquiring effective data and
information management system, and by
keeping abreast with the regulations and
laws imposed by the government, we can
ensure that our operations will continue to run
smoothly and our capacity maintained at a
maximum.

Organizational Development

Staying ahead of other our e-learning facility which is 36
already at its second phase
industry players in a highly of development. public seminars
with 59 participants
competitive market is
6
challenging especially if one
in-house trainings
is not equipped with the right We recognize the with 420 participants
importance of emotional
knowledge and skills needed and spiritual health of our 34
employees thus, we have
to successfully penetrate the organized different team- product information
building and fellowship sessions with
market. At PSMBFI, we have activities to further highlight
camaraderie and work-life 111 participants
ensured that our employees balance. We also actively
participated in the Inter-
have the proper weapon Financial Sport fest to promote
healthy competition with our
to remain relevant in our peers.

industry. With seminars, talks,

and workshops conducted

all year round with themes

on product mastery,

communication skills,

teamwork, leadership and

other essential skills, we have

prepared our personnel on To boost the morale of

how to deal with various employees, additional

situations. We have also benefits were provided

taken learning out of the including hospitalization and

traditional classroom through medical needs.

36 PRESIDENT’S Report

Document Management System and
Workflow Automation

We have successfully eliminated
the hassles and reduced large
margin of errors brought about
by traditional, manual, paper-
driven processes by digitizing
paper documents with the help of
Docuware.

Not only did our system become
faster and more cost effective but
we were also able to eliminate the
bulky and loss-prone physical paper
documents in our office.

Furthermore, our new paperless approach has eradicated incidents of document
tampering and has improved our disaster data recovery measures.

IT Facility Enhancement

Transforming into a digital-ready business is one of our core objectives. With the approval
of the PSMBFI IT Roadmap in 2018, the Association is now confident to accommodate
the growing and more demanding information and communication requirements of
the Association. We are keen to adding more programs in helping shape our workflow
automation process in the next years.

Compliance to Regulatory
Requirements

With PSMBFI slowly turning to digitalization, in compliance to the sections provided by
we have taken even more serious measures applicable laws.
to remain compliant to the Data Privacy
Act also known as Republic Act 10173, As a financial institution operating in the
even with the introduction of our new IT Philippines, PSMBFI regularly submits credit
system. We treat the information provided information of borrowers to the Credit
by our members with high regard and Information Corporation, in compliance to
confidentiality and we are committed in the Credit Information System Act of 2008 or
ensuring that their data remains private, Republic Act No. 9510.

PRESIDENT’S Report 37

Awards and Citations

Our efforts and operational excellence have given us the following recognitions:

• Top 10 Taxpayers Merit of Awards given by San Juan City local government
• Awardee of the PNP’s Stakeholders’ Night “Gabi ng Pagkilala at Pasasalamat”
• Plaque of Recognition for the strong support provided and for the continuing institutional

partner of the PNP in the realization of its vision.
• Plaque of Recognition for the unwavering support to the PNP Retirement and Benefits

Administration Service.
• Plaque of Recognition for the invaluable and untiring support to the PNP in enhancing

the operational and administrative capabilities of the Police Community Relations Group.
• Plaque of Appreciation for the continuing support to the PNP during its 1st Police Strategy

Management Unit Family Conference for 2018.

38 PRESIDENT’S Report

Corporate Social Responsibility

Transforming into a digital-ready business is one of our core objectives. With the approval
of the PSMBFI IT Roadmap in 2018, the Association is now confident to accommodate
the growing and more demanding information and communication requirements of
the Association. We are keen to adding more programs in helping shape our workflow
automation process in the next years.

P5.88 Million

Financial Assistance to
sick and injured member

P17.74 P6.16
Million Million

2018 CSR Support to
Partner Agencies

P5.70 Million

3 units of ambulance for
3PROs

PRESIDENT’S Report 39

SUPPORT TO PNP’S EDUCATIONAL PROGRAM

Going beyond our contractual obligations
with PNP, we have remained steadfast in
providing support to the dependents of
our members through the PNP Scholarship
Program. Through the Experience Refund
of the Special Group Term Insurance, we
annually allocate funds for the education
of deserving beneficiaries of our police
personnel. In 2018, we have entrusted P5.81
million to the PNP DPRM.

Mikee quips, “My scholarship grant helped me
pursue my goals in life. It became my motivation
to strive harder and finish my studies. This is why I
am now in my second year of my Master’s Degree
in Public Administration.”

The scholarship grant funded by the PNP In her desire to give back all that the PNP and
in partnership with the Public Safety Mutual PSMBFI have granted her, Mikee opted to work and
Benefit Fund Inc. (PSMBFI) has prepared NUP share her skills and capabilities to the organization.
Mikee Camile Rasos Gallano to become who Currently, she is a Non-Uniformed Personnel, Admin
she is today. Aide VI (Clerk 3) assigned at the Police Regional
Office 3 – Office of the Regional Director under the
Proud daughter of PMAJ BENJAMIN Regional Public Information Office.
GALLANO (RET), former Deputy Chief of Police
of Macabebe Municipal Police Station, and To the Philippine National Police and Public
PEMS Imelda Gallano, Chief Clerk of the Safety Mutual Benefit Fund Inc. (PSMBFI), this she
Regional Chaplain Service of PRO3, she has to say, “Maraming Salamat po sa inyong lahat
was fortunate to be one of the recipients at mabuhay po kayo!”
of the scholarship grant from 2007 until
2015.

The PNP Comprehensive Educational OTHER TWO RECIPIENTS OF THE PNP SCHOLARSHIP GRANT ARE BEAH MARIE
Assistance Program has lessened the RENTUAYA, DAUGHTER OF PCInsp MA BELLA D RENTUAYA FROM PRO 8, and
load of her parents in paying the tuition MARY THERESE A. LIMPANGOG, DAUGHTER OF PSMS JOSEPH B. LIMPANGOG
fees and the money intended for her FROM PRO 11.
school expenses was put to use for other
important things.

40 PRESIDENT’S Report

SUPPORT TO PNP FINANCIAL LITERACY PROGRAM

We also advocate for the Financial Literacy Program of the PNP and therefore provided
monetary support for the Pre-Retirement Seminar of Retiring PNP Personnel.

ANNUAL GIFT GIVING

It has been our tradition
to conduct yearly gift-
giving activities to two
institutions: the PNP Hospital
and the PNP OLC Learning
Center.

 

PRESIDENT’S Report 41

Members who are
confined at the PNP
Hospital were given bags of
groceries and other gifts to
help them recuperate while
pupils at the OLC Learning
Center received toys and
some goodies from the
PSMBFI staff.

DONATION TO THE GRACE TO BE BORN MATERNITY
HOME AND NURSERY

Aside from our pledges and established gift-giving to our partner agencies and
beneficiary institutions, we also make it a point to choose a charity to further show our
support to the community.

 
For this year, we have chosen the Grace to be Born Maternity Home and Nursery,
home to unwed mothers and their children. We donated supplies for the nursing mothers
and for the babies and gave a certain amount of cash to the management to boost
their operational funds.

42 PRESIDENT’S Report

The Next Steps

With our exceptional execution in 2018, we see a more prosperous and productive 2019.
Guided by our Five-Year Development Plan, we have identified specific core that focuses
on sustainability, growth, and competitiveness.

 
On top of that, we are keen at creating more value for our members, through the following
actions:

• Increase the insurance coverage of the Basic Group Term Plan (BGTP) and Memorial
Plan (MemP) by 35%

Basic Group Term Plan Premium Insurance Coverage

Supt - Director P60.00 From To
Cadets; Insp – C/Insp P50.00
SPO1 – SPO4 P30.00 P80,000.00 P108,00.00
PO1 – PO3 P25.00
P70,000.00 P94,500.00

P40,000.00 P54,000.00

P35,000.00 P47,250.00

Memorial Plan Option Premium Insurance Coverage

Option 1 P32.00 From To
Option 2 P16.00
P42,000.00 P56,700.00

P21,000.00 P28,350.00

• Reduce the contribution rate to be more affordable to members
• Reduction of Interest Rate of Salary Loan
• Declare and distribute:

• Members’ Experience Refund with PSMBFI’s remarkable fiscal performance
in 2018

• Members’ Benefit from Individual Equity Value (MBIEV) covering the years
2017 and 2018

• Implement the second phase of the PSMBFI IT Roadmap to enhance operational
efficiency

• Acquire lots outside PNP camps and build PSMBFI regional offices to ensure
continuous delivery of products and services

PSMBFI 2018 43
Annual Report

CORPORATE
GOVERNANCE

Good corporate governance is the foundation of a company’s integrity.
Commitment to accountability, responsibility, fairness, and transparency, the
core principles of good corporate governance, will ensure corporate success and
economic growth.

The Board of Trustees, the highest decision making body of the company, is at
the forefront in ensuring adherence of the management and employees to good
corporate governance through the exercise of the PSMBFI core values of Loyalty,
Ethics, Accountability and Integrity, Professionalism, and Service Excellence (LEAPS).
This drives PSMBFI in protecting the interests of the members and stakeholders and
in providing them with the highest level of service.

44 PSMBFI 2018 Corporate Governance
Annual Report

The Board of Trustees

The PSMBFI Board of Trustees exercises all the powers granted by the Corporation Code
of the Philippines, PSMBFI by-laws, and all other relevant regulations and internal policies of
the Association. The Board is responsible in overseeing the implementation of all corporate
strategies as set forth through the 5-Year Development Plan and in the assessment of whether
the operations are being conducted in a prudent manner, in compliance with legal and
regulatory requirements.

The Board of Trustees is elected by the General Membership during the annual General
Membership Meeting and Election of the Board of Trustees (GMME). The Board is composed
of 15 members with a term of office which is interlocking for two (2) years. The first seven (7)
obtaining the highest number of votes in the GMME in 2007 shall serve for two (2) years and the
remaining eight (8) for one (1) year. Alternately thereafter, the seven (7) or eight (8) members
shall be elected in the succeeding years of election.

During the GMME last 04 August 2018, the eight (8) duly elected members of the Board as
proclaimed by the GMME Committee on Elections are:

BOARD EDUCATIONAL BACKGROUND DATE FIRST
ELECTED
PDG OSCAR DAVID ALBAYALDE Masters in Public Administration
PCSUPT ARMANDO ESTEPA RAMOLETE 24-May-18
SPO4 FELIPE SOLIJON MOQUIALA "Doctor of Public Administration
\Masters in Psychology 16-Apr-16
Masters in Business Administration"
"Masters in Educational Management 22-Apr-17
Bachelor of Arts in Mathematics"

PDIR LYNDON GARIBAY CUBOS Bachelor of Laws 28-Nov-16

PDDG ARCHIE FRANCISCO FERANIL GAMBOA "Bachelor of Laws 01-Mar-17
Masters in Busines Administration" 28-Aug-17

PSUPT LYNETTE MAJABA TADEO "Bachelor of Laws
AB Political Science"

PCSUPT MARLON MONTE DE RAMOS GANZON Masters in Public Administration 04-Aug-18

SPO4 KIMANIE JANEA SAROMINES BS Industrial Education 04-Aug-18

Corporate Governance PSMBFI 2018 45
Annual Report

The newly elected members of the Board of Trustees have served in the Philippine
National Police for a number of years, performing in various disciplines such as finance, legal,
management, operations, and human resource. Experience, combined with the diverse
educational backgrounds, has armed them with knowledge that are valuable in their role as
decision makers of PSMBFI. In addition, the Trustees serving in the Board for more than a year
have already gained invaluable insights into the dynamics of the Association thereby ensuring
continuity in the deliberations during committee and board meetings.

Meetings

A regular meeting of the Board is held on the last week of the every month, or as
often as required to address exigent business needs. During the regular board meeting,
the schedule of meetings for the succeeding month is confirmed by the members of
the Board. Notice of meetings are sent electronically and SMS notices are sent to the
members for further reminder of meeting schedules. Reference materials are also sent

46 PSMBFI 2018 Corporate Governance
Annual Report

in advance through electronic means for During meetings, the Board and the
their review and perusal in preparation Management Team exchange views on
for the meeting. The meeting proceedings a wide range of issues concerning the
are recorded accordingly, the documents operations of the Association. For the year
for which are in the safekeeping of the 2018, there was a total of fifteen (15) board
Corporate Secretary. meetings held, ten (10) regular meetings and
five (5) special meetings.

CY 2018 Board Meetings

BOARD OF TRUSTEES POSITION MEETINGS ATTENDED
DIR OSCAR D ALBAYALDE
DIR ARCHIE FRANCISCO F GAMBOA Chairman 50%
DIR MARIO A AVENIDO
DIR ARMANDO E RAMOLETE Vice Chairman 93%
DIR MARLON MDR GANZON
DIR FELIPE S MOQUIALA President 100%
DIR RICARDO C MARQUEZ
DIR LYNDON G CUBOS Vice President 100%
DIR JUANITO P VAÑO JR
DIR KEITH ERNALD L SINGIAN Treasurer 100%
DIR VALFRIE G TABIAN
DIR JOHN Q SOSITO Assistant Treasurer 80%
DIR KIMANIE J SAROMINES
DIR JOAQUIN R ALVA Member 80%
DIR LYNETTE M TADEO
PDIR NAPOLEON C TAAS Treasurer 87%
ATTY MATTHEW P BACCAY
Member 87%

Member 100%

Member 47%

Member 100%

Member 100%

Independent 100%

Independent 93%

Corporate Auditor 80%

Corporate Secretary 93%

Corporate Governance PSMBFI 2018 47
Annual Report

General Membership Meeting
and Election of the Board of Trustees

The General Membership Meeting and was moved from 14 April 2018, the 3rd
Election of the Board of Trustees (GMME) Saturday of April as mandated by the
is the best platform where member- PSMBFI By-Laws, to 04 August 2018 due to
stakeholders are able to exercise their the change in leadership in the Philippine
rights and in which the Association National Police (PNP) whose personnel
practices transparency. This is an annual constitutes the base membership of
activity where members are given the PSMBFI. The Securities and Exchange
voice to decide on any and all matters Commission and the members were duly
concerning PSMBFI. informed of the change in the schedule
as part of due diligence.
The GMME for CY 2018 was held on
04 August 2018 at the Novotel Manila Notices of the GMME were sent to
Araneta Center, headed by the members sixty (60) days before the
Chairman, Dir Oscar D Albayalde and meeting. Newspaper ads for the
attended by the members of the Board schedule of the GMME were placed
of Trustees. The schedule of the GMME in newspapers of general circulation.

48 PSMBFI 2018 Corporate Governance
Annual Report

Posters and tarpaulins of the GMME were The members were then given the
also displayed at all PSMBFI Regional opportunity to question, affirm, or veto
Offices and on bulletin boards of the the decisions of the Board through the
PNP Regional, Provincial, and Municipal ratification of all acts and resolutions of
Offices, and at the main office of PSMBFI- the Board which is part of the meeting
partner agencies. The schedule was also agenda. Questions and comments were
posted on the website and social media encouraged during the proceedings
account of PSMBFI. The efforts to inform which the Board and the Management
the members paid off as all sectors Team would address.
covered by PSMBFI were represented
during the annual meeting. The election proper for the Board of
Trustees who will serve for two (2) years
During the GMME, President Mario from 2018 to 2020 was presided over by
A Avenido reported to the General the GMME Commission on Election. The
Membership the status of PSMBFI members freely nominated on the floor
operations and financial position, and their candidates of choice, guided by
asserted its commitment to be of service the qualifications set forth under the
to the members. Copies of the annual PSMBFI By-Laws. The actual election was
report providing for the status report conducted using the Automated Voting
were distributed to the membership and and Canvassing Module where members
posted in the PSMBFI Website. cast their votes using designated laptop

Corporate Governance PSMBFI 2018 49
Annual Report

computers. Electronic canvassing is done real time as votes are immediately
registered into the system once the voters cast/commit their electronic votes.

Seminars and Trainings

An orientation on the PSMBFI operations a more thorough orientation to address
was conducted for the newly elected the questions of the members of the board
members of the Board. For CY 2018, the should the member/s so require.
orientation was held on 14 August 2018,
attended also by the other members as a Members of the Board have previously
refresher course for thorough appreciation attended the Corporate Governance
of the PSMBFI products, services, Orientation Program for appreciation of
operations, and Board responsibilities. The the benefits of best practices in corporate
Corporate Planning Department provides governance.

50 PSMBFI 2018 Corporate Governance
Annual Report

The Risk and Audit Committee with the requirements, making a privacy impact
Corporate Secretary also attended the assessment, key components of a privacy
63rd Annual Convention of the Institute of management program, and managing
Internal Auditors-Philippines at Tagbilaran, data breaches.
Bohol. The 3-day convention’s theme was
“Sustaining Growth and Development” The Corporate Secretary, Atty
where topics on data privacy compliance, Matthew P Baccay also attended the
anti-fraud analytics, quality assessment Mandatory Continuing Legal Education
review, IT Audit, ERM and data analytics, by the UP Law Center.
and internal control assessments among
others were discussed. Two (2) members of the Board were
also enrolled in the Strategic Business
An orientation on Data Privacy and Economics Program (SBEP) by the University
Protection for Mutual Benefit Fund of Asia and the Pacific. This program aims
Institutions was also held exclusively to enhance the capacity of executives
for the PSMBFI Board of Trustees and to handle strategic and long term policy
Management Team at Novotel Manila issues, identify trends and changes in the
Araneta Center. This orientation was national and international economies
conducted to familiarize the Board and and how these influence industries, and
the Management on the general concept apply business and economic tools to
of the Data Privacy Act and compliance create value to the organization.

Compliance to Regulatory
Bodies and Laws

PSMBFI conforms to the rules and the laws, rules and regulations of the
regulations of the Insurance Commission Commission.
(IC), the Bureau of Internal Revenue
(BIR), and the Securities and Exchange Major steps have been undertaken in
Commission (SEC). compliance with R.A. 10173 or the Data
Privacy Act of 2012. The data privacy
The Insurance Commission renewed guidelines as stipulated in the law have
the Association’s license as a Mutual been implemented and privacy agreement
Benefit Association last December 2018. is secured continuously from members.
The license is valid for three (3) years, On the other hand, the comprehensive
from 01 January 2019 to 31 December data privacy policy of the Association is
2021. This is a confirmation that the currently under review prior to submission
Association operates in compliance with to the Data Privacy Commission.