2 2022 Annual Report Aim higher, reach farther. The PSMBFI 2022 Annual Report cover captures the thrust and core purpose of the Association to better serve and protect its dear members and their treasured families. The previous year’s challenges were made into pillars for new opportunities, allowing for a more dynamic and strategic stance. To aim higher in unison – the upward path of the geese, the main elements representing an accord of aspirations, is mirrored by the big triangular elements with a strong trajectory. The choice of colors, simple yet confident, minimal but nevertheless bold and vivid represents PSMBFI’s gallant depiction of its role to the public safety practitioners as their guardian of dreams and aspirations. To reach farther – tapping the unserved sectors in the public safety practice, and providing them with the best life insurance are on the apex of PSMBFI’s goals. Making connections and reconnections, building firm relationships, enlightening and empowering the unapprised and unaware, for them to be covered by the Association’s membercentric blanket of benefits. No compromises when it comes to members’ satisfaction and experience under the Association’s watch. For the members are the soul and purpose of the Public Safety Mutual Benefit Fund, Inc., and for as long as the members exist, the assurance of having the best life insurance protection, delivered by the member-driven personnel of PSMBFI, will steadfastly endure. About The Cover • To provide timely and quality financial services for our public safety practitioners and their families. We shall be the organization of choice for all public safety practitioners providing member-centered financial services that give protection and peace of mind. • Customer-centricity VISION MISSION CORE VALUES • To provide a nurturing and empowering work environment for our employees. • To maintain a fair, honest, and sustainable relationship with our stakeholders. • Professionalism • Integrity • Respect in The Workplace • Excellence
3 TABLE OF CONTENTS Mission • Vision • Core Values Message of the Chief,PNP Message of the Chairman Message of the President & CEO The Board of Trustees - Committees and Corporate Officers The President’s Report 2022 Corporate Governance Report PSMBFI Departments and Offices 2022 in Review PSMBFI Inspirational Stories PSMBFI Regional Service Offices Lessons from the Geese Report of Independent Auditor About The Cover 2 8 36 4 6 22 10 46 50 52 54 62 63
12 2022 Annual Report The Board of Trustees and Corporate Officers EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: Position: Position: Position: Position: Ateneo De Manila University The Deputy Chief of Operations, PNP Chairman Director for Comptrollership, PNP Chief, PNP Command Center, PNP Philippine Military Academy Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Master of Science in Information Management August 8, 2022 to February 22, 2023 March 1, 2022 to August 7, 2022 Ooctober 12, 2021 to February 28, 2022 September 30, 2022 Bachelor of Science Year Graduated: Year Graduated: 2013 1991 DIR BENJAMIN D SANTOS JR AGE: 55 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: Position: Position: Position: Position: Position: Position: San Jose Christian Colleges Deputy Chief PNP for Operations, ODCO, PNP Director, Area Police Command, S L(ODIR), PNP Director, DHRDD (ODIR), PNP Regional Director, PRO 8 Director, DI (ODIR), PNP Provincial Director, Bulacan City Philippine Military Academy Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Master in Public Administration March 7, 2022 to May 1, 2022 March 29, 2021 to February 28, 2022 November 22, 2020 to March 28, 2021 October 10, 2019 to March 18, 2020 March 19, 2020 to November 22, 2020 May 14, 2014 to February 1, 2016 Bachelor of Science Year Graduated: Year Graduated: 2005 1988 Position: Member, Board of Trustees Date Elected / Appointed: November 19, 2021 DIR FERDINAND O DIVINA AGE: 57
13 The Board of Trustees and Corporate Officers EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: Position: Position: Position: Position: University of the Philippines Director, Criminal Investigation and Detection Group, PNP President/CEO Regional Director, Police Regional Office 3, PNP District Director, Manila Police District, PNP Philippine Military Academy Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Bachelor of Laws/Juris Doctor October 20, 2019 to January 20, 2021 November 20, 2018 to October 19, 2019 July 1, 2016 - November 19, 2018 April 17, 2021 Bachelor of Science Year Graduated: Year Graduated: 1998 1987 ATTY. JOEL NAPOLEON M CORONEL AGE: 58 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES School: Baguio Central University Degree: Master of Science in Public Administration Year Graduated: 2003 - 2004 COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: Position: Position: Position: Board of Trustee, PSMBFI Director for Comptrollership, PNP Director, Civil Security Group, PNP Degree: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: August 8, 2022 to April 19, 2023 November 15, 2021 to August 08, 2022 October 28, 2022 Year Graduated: Philippine Military Academy Bachelor of Science 1989 DIR JESUS D CAMBAY JR AGE: 56
14 2022 Annual Report The Board of Trustees and Corporate Officers DIR LOUIE S MAKILAN PMGEN NAPOLEON C TAAS (Ret.) AGE: 51 AGE: 61 EDUCATIONAL BACKGROUND EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: School: School: Position: Position: Position: Position: Position: Position: Position: University of Asia and the Pacific Information Systems Audit and Control Association (ISACA) Commander, ASEAN 2017 Security Task Force Sergeant-At-Arms, House of Representatives Corporate Auditor Director, Directorate for Information and Communications Technology Management, PNP Director, Information and Technology Management Service, PNP Commander, Anti-illegal Drugs Special Operations Task Force, PNP Senior Executive Assistant, Office of the Chief, PNP Degree: Degree: Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Strategic Business Economics Program Certified Information Security Manager (CISM) November 2016 to December 2017 July 2022 to Present 2016 August 2013 to 2015 January 2013 to August 2013 2008 to 2009 August 29, 2013 Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2015 2014 Philippine Christian University US Military Academy, West Point, New York Master in Management Bachelor of Science in Civil Engineering 1998 1984 COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: Position: Position: Position: Board of Trustee, PSMBFI Chief, OCESPO, PNP RESPO, NCRPO, PNP Degree: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: December 31, 2021 to Present January 12, 2021 to December 31, 2021 March 31, 2022 Year Graduated: University of La Salette (ETEEAP) BS Criminology 2011
15 The Board of Trustees and Corporate Officers ATTY CATHERINE E TAMAYO AGE: 44 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: Position: Position: Position: Position: Position: Position: Legal Officer, Women and Children Protection Center (WCPC), PNP Corporate Secretary, PSMBFI Board of Trustee, PSMBFI OIC, Transnational Criminal Investigation Task Force (TCITF), WCPC, PNP Legal Officer, Anti-Cybercrime Group (ACG), PNP Legal Officer, Police Safety and Protection Group (PSPG), PNP Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Date Elected / Appointed: 2014 to March 2023 August 2020 to March 2023 2014 to 2021 2017 to 2018 November 19, 2021 to Present August 14, 2020 to November 18, 2021 Year Graduated: Year Graduated: University of Iloilo Bachelor of Laws 2008 Central Philippine University AB Political Science 2000 DIR RICARDO C MARQUEZ AGE: 61 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: School: Harvard Kennedy School, Cambridge, MA, USA University of Asia and the Pacific Philippine Military Academy Independent Director, Top Frontier Holdings, Inc. Independent Director, San Miguel Foods and Beverage Inc. The Chief, PNP Chairman, Board of Trustees Board of Trustee, PSMBFI Independent Director, Petron Corporation Independent Director, Eagle Cement Inc. The Director for Operations, PNP Philippine Christian University Degree: Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Date Elected / Appointed: Degree: Executive Course in Leaders in Development Certificate in Business Economics Bachelor of Science 2022 to Present 2017 to Present July 16, 2015 to June 28, 2016 2022 to Present 2017 to Present December 13, 2014 to July 15, 2015 August 25, 2015 April 17, 2021 Master in Management Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2014 2018 1982 1996
16 2022 Annual Report The Board of Trustees and Corporate Officers DIR JUANITO B VAÑO JR DIR HERMINIO S TADEO JR AGE: 61 AGE: 56 EDUCATIONAL BACKGROUND EDUCATIONAL BACKGROUND POST GRADUATE STUDIES POST GRADUATE STUDIES COLLEGE COLLEGE EXPERIENCE EXPERIENCE APPOINTMENT WITH PSMBFI APPOINTMENT WITH PSMBFI School: School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Philippine Christian University Philippine Christian University Director, Directorate for Logistics, PNP Director, DPRM, PNP Deputy Director, DL, PNP Board of Trustee, PSMBFI Board of Trustee, PSMBFI Regional Director, PRO 9, PNP Deputy Director, DIPO, VIS, PNP Director, Health Service, PNP Director, Finance Service, PNP Philippine Military Academy Philippine Military Academy Degree: Degree: Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Date Elected / Appointed: Master in Management Master in Management Major in Public Administration May 7, 2014 to May 30, 2016 February 2, 2022 to May 24, 2022 February 2020 to January 15, 2021 December 27, 2012 to May 7, 2014 January 15, 2021 to February 2, 2022 February 14, 2020 to August 28, 2020 August 28, 2020 April 12, 2014 March 31, 2022 Bachelor of Science Bachelor of Science Year Graduated: Year Graduated: Year Graduated: Year Graduated: 1996 2004 1983 1988 School: University of Asia and the Pacific Degree: Certificate in Business Economics Year Graduated: 2018
17 The Board of Trustees and Corporate Officers DIR PORTIA B MANALAD AGE: 50 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: Position: Position: Position: Position: Development Academy of the Philippines Chief, Women and Children Protection Center, PNP Board of Trustee, PSMBFI Chief, Logistics Plans and Programs Division DL, PNP City Director, Cotabato City Police Office, PNP Philippine National Police Academy Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Master in Public Management Major in Security and Development 2022 to Present 2020 to 2021 2019 to 2020 April 17, 2021 BS in Public Safety Year Graduated: Year Graduated: 2016 1995 DIR ROBERT T RODRIGUEZ AGE: 53 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: Position: Position: Position: School: National College of Business & Arts Philippine Military Academy Director, DPRM, PNP Board of Trustee, PSMBFI Director, PNP ACG, PNP University of San Agustin Degree: Degree: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Degree: Master in Public Administration Bachelor of Science May 24, 2022 - Present January 15, 2021 to May 23, 2022 October 19, 2022 Bachelor of Laws Year Graduated: Year Graduated: Year Graduated: 2010 1991 1998 - 2000
18 2022 Annual Report The Board of Trustees and Corporate Officers DIR BENIGNO B DURANA JR DIR WALTER E CASTILLEJOS AGE: 58 AGE: 56 EDUCATIONAL BACKGROUND EDUCATIONAL BACKGROUND POST GRADUATE STUDIES POST GRADUATE STUDIES COLLEGE COLLEGE EXPERIENCE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: School: School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Harvard University Philippine Christian University Bicol University University of the Philippines Director, Directorate for Police Community Relations, PNP Director, Directorate for Plans, PNP Chairman, Board of Elders, Greenhills Christian Fellowship, Inc. Director, CPSM, PNP Chairman, IT Committee, Board of Trustee, PSMBFI Chief, PPDC, PNP Director, Directorate for Police Community Relations, PNP Chief, Public Information Office / Spokesman, PNP Deputy Director, ODDIR, PNP Chief, PPD, PNP Chief, CAD, PNP Philippine National Police Academy Philippine Military Academy Degree: Degree: Degree: Degree: Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Master in Public Administration Master in Public Administration (Coursework: Innovation and Entrepreneurship) Doctor of Peace and Security Administration Master in Public Administration February 15, 2021 to August 14, 2022 February 15, 2021 2022 to Present November 8, 2020 2022 to Present May 25, 2020 2019 to 2020 May 2018 to January 2019 December 26, 2019 April 18, 2018 July 26, 2016 BS Public Safety Bachelor of Science Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2009 2013 2004 1996 1988 1988 Position: Board of Trustee, PSMBFI Date Elected / Appointed: April 17, 2021 APPOINTMENT WITH PSMBFI Position: Board of Trustee, PSMBFI Date Elected / Appointed: April 23, 2022
19 The Board of Trustees and Corporate Officers DIR GREGORIO N LIM AGE: 60 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: Position: Position: Position: Wesleyan University DD, NPD, NCRPO, PNP DRDO, NCRPO, PNP DRDA, PROCOR, PNP Philippine Military Academy Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Master in Business/Public Administration June 2018 to November 2018 August 2017 to June 2018 September 2016 to August 2017 Bachelor of Science Year Graduated: Year Graduated: 2001 1987 Position: Board of Trustee, PSMBFI Date Elected / Appointed: June 11, 2021 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE School: School: Position: Position: Position: Position: The Deputy Chief PNP for Administration, PNP The Chief, Directorial Staff, PNP Commander, APC Western Mindanao, PNP Director, Philippine National Police Academy Philippine Military Academy Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Master in Public Policy August 8, 2022 to October 1, 2022 July 29, 2022 to August 7, 2022 Oct 16, 2020 to June 10, 2022 October 24, 2018 to September 3, 2020 Bachelor of Science Year Graduated: Year Graduated: 2007 1989 Graduate Institute for Policy Studies/ Tokyo, Japan APPOINTMENT WITH PSMBFI Position: Position: Position: Position: Board of Trustee, PSMBFI OIC, APC Visayas, PNP Director, DIPO Northern Luzon, PNP Commander, Counter Intelligence Task Force (CITF) Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: June 11 to July 28, 2022 September 3, 2020 to October 16, 2020 February 3, 2017 to June 1, 2018 December 16, 2022 DIR JOSE CHIQUITO M MALAYO AGE: 56
20 2022 Annual Report The Board of Trustees and Corporate Officers EDUCATIONAL BACKGROUND POST GRADUATE STUDIES POST GRADUATE STUDIES COLLEGE EXPERIENCE School: School: School: Position: Position: Acting Chief, Regional Legal Office, NCR, PNP OIC, DLOD, DPRM, PNP Polytechnic University of the Philippines Degree: Degree: Degree: Inclusive Dates: Inclusive Dates: Bachelor of Laws Master in Management April 17, 2022 to Present December 1, 2018 to April 16, 2022 Bachelor in Political Science with option in Public Administration Year Graduated: Year Graduated: Year Graduated: 2003 2007 1999 DIR DONNA N VILLAREAL AGE: 43 Pamantasan ng Lungsod ng Maynila Philippine Christian University APPOINTMENT WITH PSMBFI Position: Position: Board of Trustee, PSMBFI Legal Officer, CIDG, DPCR, FS DPRM, Command Group, PNP Inclusive Dates: Date Elected / Appointed: January 2007 to April 2022 April 23, 2022 PMGEN CELSO I PESTAÑO (Ret.) AGE: 58 EDUCATIONAL BACKGROUND COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: Position: Position: Position: Philippine Military Academy PNP Officer, Philippine National Police VP for Operations PC Officer, Philippine Constabulary Degree: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Bachelor of Science 1991 to 2020 1988 to 1991 March 8, 2021 Year Graduated: 1988
21 The Board of Trustees and Corporate Officers EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE School: School: Position: Position: Position: Management Consultant, Various Companies Faculty, Graduate School, De La Salle College of St. Benilde Faculty, Graduate School, Jose Rizal University Ateneo De Manila University Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Master in Business Management August 2015 to Present February 2023 to Present October 2020 to Present Bachelor of Arts in Economics Year Graduated: Year Graduated: 1998 1989 ANTHONY L. CUAYCONG AGE: 55 Asian Institute of Management APPOINTMENT WITH PSMBFI Position: Position: Position: Position: Position: VP & COO, Business World Publishing Corp. (Post Merger) VP for Corporate Services President & CEO, Business World Publishing Corp. Member, Board of Directors, Business World Publishing Corp. Senior Vice President/General Manager, Basic Energy Corporation Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: October 2013 to July 2015 May 2009 to September 2013 June 1999 to July 2015 October 2015 to July 2018 March 8, 2021 EDUCATIONAL BACKGROUND POST GRADUATE STUDIES COLLEGE EXPERIENCE APPOINTMENT WITH PSMBFI School: School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: University of the Philippines Institute of Certified Management Accountants Australia De La Salle University Consultant - Acting Chief Finance Officer, IP Ventures Group CFO, Financial Controller, Consultant, Carlos “Sonny” Dominguez Group of Companies Consultant-finance and operations, Capitalife, Inc. Buy A Car Inc., Moneyswap PLC Chief Finance Officer, Star Malls Group Chief Financial Officer, Honda Motor Sports Group Finance Manager, Biogenerics Pharmaceuticals AVP/Branch Manager, Asia United Bank AVP/Branch Manager, RCBC Trader, BPI Family Bank VP for Finance De La Salle University Degree: Degree: Degree: Degree: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected / Appointed: Master, Finance Certification – Management Accounting Master, Business Administration March 2019 to December 2020 2013 to 2018 2012 to 2013 2007 to 2012 2005 to 2007 2003 to 2004 1999 to 2001 1992 to 1999 1990 to 1992 January 1, 2021 BSC, Business Management Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2003 2011 1994 1989 EUGENE EMILIO U. BALCOS IV AGE: 54
The PRESIDENT’S Report PSMBFI had a very successful year, marked by significant accomplishments, innovations, and new opportunities. I am pleased to report that we ended the year creditably well, with the successful execution of our plans and programs for 2022, which was driven by the unwavering commitment and dedication to our dear members. We also maintained our stance as the number one insurance provider for public safety practitioners. We established a vision based on our ability to provide member-focused financial services that provide security and peace of mind. Bold steps were undertaken to provide timely and quality financial services for members, and to maintain sustainable relationship with our stakeholders. The PSMBFI that we know today is a far cry from its humble beginnings in 1997 across three key areas: more insurance benefits for members, more avenues for direct engagement (such as digital platforms), and our corporate social responsibility program for partner agencies. Through it all, our members, or “Kabalikats,” will always be at the heart of our organization. ATTY. JOEL NAPOLEON M. CORONEL
23 The PRESIDENT’s Report When the Philippine National Police, Philippine Coast Guard, and Bureau of Corrections beefed up their force with new recruits, we were proactive in conducting information drives to encourage them to have life insurance coverage while in training. We also engaged with the cadets of the Philippine National Police Academy for the purpose. The activities were conducted in a more participative way that they voluntarily applied for membership and in turn, were immediately embraced as Kabalikats even without their first premium deduction. PSMBFI tokens were given to new members enrolled under the Get Member Program to validate their membership and strengthen their commitment to the Association. Health Maintenance Organization card was also given to cover their emergency care treatment effective for one year. Initiatives were implemented to increase membership. We proactively conducted information drives both onsite and online, supplemented by the presentation of a video of famed financial expert and motivational speaker vlogger Chinkee Tan discussing PSMBFI insurance plans and benefits. STRENGTHENING MEMBERSHIP BASE
24 2022 Annual Report The PRESIDENT’s Report Due to the continued increase in COVID-19 infections, our Field Service Operations were meticulously carried out during the first months of 2022. We interacted with members while adhering to strict health protocols. The “PSMBFI on Wheels” initiative was implemented, which was an “on-the-go” one-stop-shop in which a team onboard the company vehicle moved around Camp Crame with application forms on hand to encourage membership enrollment and assist those with PSMBFI transactions without having to enter office premises.
25 The PRESIDENT’s Report We would engage with police spouses personally or online via the “PSMBFI ka-partner Si Kumander” campaign to orient them on PSMBFI benefits and to request their assistance to be our force multipliers in encouraging their spouses not to sever membership. As part of our commitment to be the insurance provider of choice of public safety practitioners, PSMBFI renewed its partnership with the Metropolitan Manila Development Authority (MMDA) to insure traffic enforcers, street-sweepers, and other employees as they provide service to the metropolis.
26 2022 Annual Report The PRESIDENT’s Report Through the “Saludo Kami sa Iyo Bagong Bayani” campaign, PSMBFI highlighted members’ good deeds and police officers’ best practices. This received thousands of views and interactions in our Facebook page. Through the “Kalinga sa Pamilyang Naulila,” we also featured orphaned dependents of deceased members who sent us video testimonials about how PSMBFI helped them during their most difficult times. PSMBFI representatives were frequently invited as guests on various PNP produced multi-media shows such as Pulis at Ur Serbis and Misis ng Pulis to discuss the importance of PSMBFI life insurance for police personnel. These were streamed live on Facebook to thousands of viewers across the country. Initial discussions with police vloggers were held via the newly formed PNP Content Creators Group to broaden our content and for future collaboration to raise awareness about the importance of PSMBFI insurance. This way, our social media content will continue to evolve and innovate. ONLINE ENGAGEMENTS
27 The PRESIDENT’s Report PSMBFI has always been committed to provide members with the best insurance products. These are tailored-fit for those in the armed service knowing that their profession is exposed to risks. For every death reported to us, we process the insurance claims at the earliest possible time. Cash advances are granted with minimal documentary requirements just so funds are immediately available to the bereaved families. YOUR GOLD STANDARD OF PROTECTION
28 2022 Annual Report The PRESIDENT’s Report In 2022, 1,906 beneficiaries received life insurance benefit amounting to Php292,169,152.54 for the demise of 454 members who passed away due to sickness, accident, or were killed in a legitimate operation. Of this number, 93 members had outstanding loan obligations amounting to Php14,305,415.61 which were extinguished through Credit Life Insurance (CLI) due to their untimely death. Also, 79 members were injured in the line of duty wherein the Woundedin-Action benefit was given in the total amount of Php2,350,000.00; 14 members were disabled due to accident and we released Php1,741,109.23; 665 members received financial assistance due to sickness, illness, or injury and we released the total amount of Php3,325,000.00; 290 members were hospitalized due to accident to which Php1,657,000.00 was released; and 115 members received the Free Insurance for one dependent for the death of their designated loved one. There were also instances when our members were financially challenged due to unexpected needs, thus availing of the credit facilities. In 2022, we granted Policy Loan to 9,389 members and Salary Loan to 27,763 members. Our loan production for 2022 amounted to Php1.63 billion.
29 The PRESIDENT’s Report Pivotal in stimulating relations with partner agencies is our Corporate Social Responsibility Programs with our members being on the receiving end or to further enhance the delivery of public service. This seals PSMBFI’s reputation as their most dependable partner. Financial assistance was provided to our members who were sick, ill, or injured. The support was also extended to those who were victims of calamity. In 2022, a total of Php5,418,000.00 were released to 624 members who were sick and 460 members who were victims of calamity such as typhoon, fire, earthquake, and flood. GIVING BACK TO PARTNER AGENCIES
30 2022 Annual Report The PRESIDENT’s Report We also contributed to the projects and programs of our partner agencies, which benefited our members. PSMBFI’s CSR Program supported a total of 151 units/offices in 2022. A total of Php8,443,261.00 was made available to these units for the purchase of equipment and services, as well as other necessary support to meet their work requirements. PSMBFI has consistently supported the PNP Scholarship Program. We turned over the Special Group Term Insurance (SGTI) Experience Refund of Php7,275,596.38 to the PNP DPRM in 2022. The greatest impact was on the education of deserving police dependents, providing them with the opportunity for a better quality of life. The “PSMBFI at 25: The Silver Anniversary Raffle Draw,” which was broadcast live on Facebook and Viber, was a major activity in 2022. This was our way of saying thank you to our members for their support, trust, and confidence over the past 25 years. Members in good standing were automatically qualified to win prizes such as four-wheeled vehicles, motorcycles, cash, mobile phones, and laptop computers. There were 234 winners in the raffle.
31 The PRESIDENT’s Report The Association demonstrated a strong financial performance for the year 2022. PSMBFI advocates good governance which provides the framework in attaining objectives, in executing various plans of action, and in strengthening of internal controls. As a result of our operations, our net income in 2022 was recorded at Php1.43 billion. With this financial performance, we have maintained our growth momentum. Our assets expanded by 2.06% over the 2021 figure. We ended the year with Php21.19 billion in assets and this financial strength reassures our members that we can continuously meet our contractual obligations. WE PERFORMED BETTER
32 2022 Annual Report The PRESIDENT’s Report To address the internal and external risks to the company, we reinforced our risk management competency by creating a risk register that will identify potential threats to the organization. This will guide us in policy formulation and oversight of system-wide risks, including compliance with applicable laws and regulations. This also helps us prepare for possible challenges in operations. We also invested in the manpower complement, cognizant of the importance of human resource in the delivery of services. PSMBFI’s changes in management took effect with new organizational structures taking on identified positions necessary in the operations and the activation and filling-up of several positions that are vital in ensuring fast and efficient service delivery to members. This change streamlined operations for increased efficiency - with our dedicated employees driving the company’s success by executing business objectives and resolving daily challenges, and driving the Association’s success. ENHANCED INTERNAL OPERATIONS
33 The PRESIDENT’s Report We jump-started the development of our company’s Information Technology infrastructure through the PSMBFI Unified Loan and Insurance System or the PULIS. This brings about massive development and modernization to our present IT System. By having the PULIS in place, the immediate delivery of services can be expected with impressive capabilities. To contribute to the general welfare of members with financial needs, the interest rates for all loan facilities were lowered last December of 2022. This way, we will be the first to respond to meet our members’ needs. Their loan applications were processed in the fastest time and released through their most preferred means.
34 2022 Annual Report The PRESIDENT’s Report We will continue to make our frontline services relevant and readily available through information campaigns and field service operations to reach as many members wherever they are in the country, even those in far-flung provinces. MOVING FORWARD
35 The PRESIDENT’s Report On the whole, 2022 taught us valuable lessons that will prepare us set the bar higher for the succeeding year. We extend sincerest gratitude to all our partner agencies, members and their dependents for helping us get to where we are now. Your loyalty, trust and support are constantly keeping us on our toes to do more. Moving forward, we are determined to develop dynamic insurance products and provide better benefits. We look towards 2023 with great pride as we celebrate our sterling Silver Anniversary. May this year be even brighter as we usher in new opportunities and milestones. We see 2023 as a banner year. There will always be countless reasons to be optimistic as we aim higher and reach farther. Maraming salamat, dear members! MARCHING TOWARDS OUR SILVER YEAR ATTY. JOEL NAPOLEON M CORONEL President and CEO There will also be an increase on PSMBFI’s virtual engagement, zeroing in on digital transformation, through Social Media campaigns. This way, members can appreciate more the organization’s core purpose, products and services. More contents will be created to enhance brand presence and invite positive reactions among netizens. Our Facebook page is one of the top platforms visited by members with an average of 9,000 views per day.
36 2022 Annual Report Corporate Governance CORPORATE GOVERNANCE Life insurance is an agreement between an insurance company and the insured. It is a relationship built on trust between the insurance provider and the policyholder. The insurance provider trusts that any claim that the policyholder will make is genuine while the policyholder trusts that the insurance provider will act in ways that ensure their solvency and that they will promptly pay claims when they are due. Therefore, PSMBFI, its Board of Trustees, and its Management commits to maintain high standards of governance that will ensure that the trust of all policyholders and stakeholders will not be compromised by upholding the principles of transparency, accountability, responsibility, independence, and fairness. PSMBFI is committed to fully comply with all regulatory standards promulgated by the Insurance Commission (IC) and the Securities and Exchange Commission (SEC) and reflect in all ways possible the best practices that are in the interest of its stakeholders.
37 Corporate Governance • The PSMBFI Board of Trustees • Annual General Membership Meeting The Board of Trustees, the highest governing body of the Association, is primarily responsible for setting the Company’s strategic directions for the long-term success and sustainability of PSMBFI. It is composed of fifteen (15) members all elected for their competence, experience, expertise, and integrity. The members are experts in their respective fields. Attendance in professional education programs to enrich their skills is highly encouraged. The members of the Board are mandated to devote sufficient time and contribute their skills and knowledge in the performance of their roles and function. Under the By-Laws, the Board of Trustees are elected during the annual General Membership Meeting and Election (GMME) which is scheduled on the 3rd Saturday of April every year. The Board has a term of office that is interlocking for two (2) years to guarantee that there will be continuity in the programs and initiatives of the Board. The first seven (7) members of the Board of Trustees obtaining the highest number of votes during the GMME in the year 2007 served for two (2) years while the remaining eight (8) members served for one (1) year. Alternately thereafter, the seven (7) or eight (8) members were elected in the succeeding years of election of the members of the Board of Trustees. The PSMBFI By-Laws provides that members have the right to participate in all meetings of the General Membership, to vote in person or by proxy, and be voted for as member of the Board of Trustees.
38 2022 Annual Report Corporate Governance The annual General Membership Meeting and Election (GMME) for CY 2022 was held on 23 April 2022. The notice to members which provides for the date, venue, and manner of conduct of GMME and other guidelines and procedures was released by the Corporate Secretary 30 days before the date of the meeting. In compliance with the COVID-19 health restrictions, dissemination of notices was done through the installation of posters and tarpaulins, posting on the Association’s Facebook page and website, and thru newspaper publication. A proxy letter was made available through the Association’s website to allow members to authorize representative/s to vote in their absence. The nomination of candidate/s for the CY 2022 election was directly submitted to the Office of the Corporate Secretary, 3rd Floor PSMBFI Building, San Juan City, and via electronic mail to a dedicated address created for the purpose of nomination. The procedure for the election/submission of votes was posted on the PSMBFI website and Facebook page. Members were able to cast their votes online thru docs.google.com while the electronic tabulation of the votes was done during the GMME.
39 Corporate Governance During the annual general meeting, members were given the opportunity to ask questions or raise issues during the Other Matters portion of the agenda of the meeting. Elected during the GMME 2022 were eight members of the Board of Trustees for the term 2022-2023 and 2023-2024, namely: • PLTGEN VICENTE DUPA DANAO JR succeeded by PLTGEN BENJAMIN D SANTOS JR • PCOL PORTIA BANAGA MANALAD • PBGEN JOSE MELENCIO CORPUZ NARTATEZ JR succeeded by PMGEN JESUS D CAMBAY JR • PMGEN HERMINIO SUAREZ TADEO JR • PLTGEN FERDINAND ORCALES DIVINA • PLTCOL JOSEF LEO MAGABO ANGELES succeeded by PMGEN ROBERT T RODRIGUEZ • PEMS LOUIE SALVADOR MAKILAN • PLTCOL DONNA NEEDER VILLAREAL The seven (7) members of the Board of Trustees for who remained and continued to serve for the year 2022 - 2023 were: • DIR CESAR HAWTHORNE R BINAG succeeded by PMGEN BENIGNO B DURANA (Ret) • DIR RICARDO C MARQUEZ • DIR GREGORIO N LIM • ATTY JOEL NAPOLEON M CORONEL • DIR WALTER E CASTILLEJOS • DIR MARIO A AVENIDO succeeded by PLTGEN JOSE CHIQUITO M MALAYO (Ret) • DIR JUANITO B VAÑO JR For the term 2022 to 2023, Directors Gregorio N Lim, Portia B Manalad, and Donna N Villareal will serve as Independent Directors. These Trustees are independent of management and free from any business or other relationship which could be perceived to affect the exercise of their independent judgment.
40 2022 Annual Report Corporate Governance The Board of Trustees holds its regular meeting once a month during which the result of operations of the Association during the preceding month is reported by the President. Policies, strategic business plan, hiring of top and middle management, and other concerns that need Board approval are discussed during the regular meeting. Special meetings are convened when necessary for urgent concerns. The Board meetings serve as a platform for the Trustees to give their insights on the Association’s objectives and corporate strategy. During the monthly regular Board meetings held on the last week of the month, the schedule of meetings for the succeeding month is confirmed or rescheduled by the members of the Board. The Trustees receive the notice of the meeting and meeting materials at least two (2) days in advance. The meeting materials including notice of meeting with agenda, information on the Company’s operation as contained in the Report of the President, Minutes of the last Board meeting, and all other documents needed for the Board meeting discussion are sent to the Board of Trustees through electronic mail, labeled and organized in such manner that the Trustees can easily follow and participate in the meeting discussion. Meetings of the Board of Trustees of PSMBFI has evolved from the traditional face-to-face to virtual or remote means, and their combination thereof or hybrid meeting. The new manner of meeting is sanctioned by the Guidelines on the Attendance of Board of Trustees in Regular and Special Meetings through Remote Means of Communication of the Securities and Exchange Commission as approved in June of 2020. For the year 2022, the PSMBFI Board of Trustees held 11 regular and 5 special meetings through a hybrid manner hosted at the PSMBFI Main Office in San Juan City. • Meetings of the Board of Trustees
41 Corporate Governance The Minutes of meetings of the Board, reports of all Committees, and other records of the proceedings are kept by the Corporate Secretary and are open for inspection upon request. The attendance of the Board are as follows:
42 2022 Annual Report Corporate Governance • Board Committees There are six (6) Committees of the Board that handles specific areas of concern: Executive Committee, Risk and Audit Committee, Governance Committee, Membership Committee, Information Technology Committee, and Project Management Group. Each Committee has its own specific functions and responsibilities. COMMITTEE MEMBERS As of 22 March 2023 COMMITTEE CHAIRMAN VICE CHAIRMAN MEMBERS Executive Ferdinand O Divina Joel Napoleon M Coronel Ricardo C Marquez Juanito B Vaño Jr Benigno B Durana Jr Herminio S Tadeo Jr Jose Chiquito M Malayo Napoleon C Taas (Corp Auditor) Catherine E Tamayo (Corp Secretary) Risk and Audit Juanito B Vaño Jr Walter E Castillejos Ricardo C Marquez Jose Chiquito M Malayo Portia B Manalad Louie S Makilan Benigno B Durana Jr Robert T Rodriguez Catherine E Tamayo (Corp Secretary) Governance Ricardo C Marquez Jose Chiquito M Malayo Juanito B Vaño Jr Benigno B Durana Jr Herminio S Tadeo Jr Donna N Villareal Louie S Makilan Catherine E Tamayo (Corp Secretary) Information Technology Benigno B Durana Jr Napoleon C Taas Walter E Castillejos Gregorio N Lim Portia B Manalad Robert T Rodriguez Jesus D Cambay Jr Catherine E Tamayo (Corp Secretary) Membership Herminio S Tadeo Jr Donna N Villareal Walter E Castillejos Gregorio N Lim Portia B Manalad Louie S Makilan Jesus D Cambay Jr Dir Robert T Rodriguez Catherine E Tamayo (Corp Secretary) Project Management Group Jose Chiquito M Malayo Ricardo C Marquez Juanito B Vaño Jr Jesus D Cambay Jr Herminio S Tadeo Jr Gregorio N Lim Donna N Villareal Catherine E Tamayo (Corp Secretary)
43 Corporate Governance The Committees are tasked to evaluate significant actions for recommendation to the Board. Some corporate governance-related actions of the Board recommended by the appropriate committees include the following: • Organized the composition of Board Committee memberships; • Reviewed and approved the fair representation of the 2021 Annual Financial statements; • Reviewed and approved the Job Evaluation Study which involved the change in titles of 19 positions, dissolution of 66 positions due to redundancy, and accommodation of 82 displaced employees to address redundancy through realignment to other positions; • Approved investment in various corporate bonds which provides higher interest offering than commercial banks; • Approved the Free Hospitalization Income Benefit to be provided to Members Equity Plan (MEP) members to support expenses due to confinements from illnesses; • Approved the PSMBFI Money Laundering and Terrorism Financing Prevention Program (MTPP); • Approved the reduction of the interest rate of the PSMBFI Loan Facilities; • Approved the Tier 2, Balanced Scorecard of PSMBFI; • Approved the Salamat Kabalikat Program, providing Php5,000 each for all PSMBFI members; • Reviewed and approved various policies: Learning Management for the “iLearn PSMBFI”, a web-based study platform; and issuance of PSMBFIOwned Communication and IT Equipment; • Set the applicable interest rate of the Members Equity Plan (MEP) for CY 2022; and • Reviewed and approved the Operating Plan and Budget for CY 2023.
44 2022 Annual Report Corporate Governance • Training and Continuing Education PSMBFI maintains a formal orientation program for first-time directors and relevant seminars for all directors aimed to promote effective Board performance. The orientation program for new directors covers an introduction to the Assosiation’s business and matters of pressing concern for the Association. They also attend Corporate Governance seminars for an appreciation of the benefits and impact of modern corporate governance best practices, and the duties and responsibilities of the Board committees.
45 Corporate Governance • Compliance with Regulatory Bodies and Laws PSMBFI conforms to the rules and regulations of the Insurance Commission (IC), the Bureau of Internal Revenue (BIR), and the Securities and Exchange Commission (SEC). Major steps have been undertaken in compliance with R.A. 10173 or the Data Privacy Act of 2012. The data privacy guidelines as stipulated in the law have been implemented and a privacy agreement is secured continuously from members. The PSMBFI Money Laundering and Terrorism Financing Prevention Program (MTPP) was approved to protect the Association and ensure that it shall not be used as a money laundering venue and conduit for the proceeds of unlawful activities. The Whistleblower Policy was approved and adopted as part of initiatives to protect the rights of employees and officers while encouraging and enabling them to freely communicate serious concerns on policy violations and fraudulent acts without fear of retribution or repercussion.
46 2022 Annual Report Departments & Offices The Office of the President and Vice Presidents come up with strategic plans, policies, and procedures that will ensure the smooth flow of business operations. These offices implement the directives of the Board to ensure the Association’s growth and stability and provide members with better service and more benefits. The Legal Office anticipates and reduces the risk and exposure of the company from any unreasonable and unjustified claims. OFFICE OF THE PRESIDENT AND THE VICE PRESIDENTS The Office of the Internal Auditor provides an independent management advisory service and evaluates the effectiveness of the internal control system to support the fast and efficient delivery of service. The Office of the Corporate Secretary provides administrative support to the Board of Trustees and keeps all records and minutes of the meetings and ensures confidentiality. OFFICE OF THE INTERNAL AUDITOR LEGAL OFFICE OFFICE OF THE CORPORATE SECRETARY TOP MANAGEMENT AND SUPPORT OFFICES
47 Departments & Offices The Administration Department provides administrative and logistical support to all departments in order to attain the common goal of providing the best services to the 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. The Information Technology Department maintains the Association’s technical and operational system requirements, as well as ensures continuous development through research and efficient management of IT operations. The Human Resource Department trains, motivates, and maintains an effective workforce within a productive and customer-oriented work environment, and likewise manages development and change initiatives towards organizational soundness and company-wide operational efficiency. The Corporate Planning Department consolidates and analyzes data which are vital to company operations and generates reports that provide valuable support in policy formulation, likewise reinforcing sound management decision-making and strategic action. ADMINISTRATION DEPARTMENT INFORMATION TECHNOLOGY DEPARTMENT CORPORATE PLANNING DEPARTMENT CORPORATE SERVICES GROUP HUMAN RESOURCE DEPARTMENT
48 2022 Annual Report Departments & Offices The Membership Services Department ensures professional and quality service assistance to PSMBFI members, and establishes proper management of members’ information. The Sales and Branch Operations Department provides nationwide frontline services and is responsible for executing and overseeing strategies, as well as efforts to achieve revenue forecasts. SALES AND BRANCH OPERATIONS DEPARTMENT MEMBERSHIP SERVICES DEPARTMENT The Marketing Department manages the marketing, advertising and promotional activities of the company and recommends strategies to enhance the company’s position and image. The Policy and Claims Management Department ensures continuous development and innovation of insurance products as well as monitoring and analyzing cost-effective ratios and risk assumptions of insurance plans. POLICY AND CLAIMS MANAGEMENT DEPARTMENT MARKETING DEPARTMENT OPERATIONS GROUP
49 Departments & Offices The Fund and Investment Management Department manages the company’s cash flow to ensure that target collections and all disbursement requirements of the company are met. The department is also responsible in developing and managing investment activities of the company. The Accounting Department maintains the company’s book of accounts and generates timely and reliable financial statements in conformity with insurance accounting principles and reporting practices generally accepted in the Philippines. The department also maintains subsidiary ledgers of members’ accounts as well as handles budget-related and forecasting functions. The Billing, Collection and Remedial Management Department establishes and implements a well-defined billing and collection system relative to the business transactions of the company. FUND AND INVESTMENT MANAGEMENT DEPARTMENT ACCOUNTING DEPARTMENT BILLING, COLLECTION AND REMEDIAL MANAGEMENT DEPARTMENT FINANCE GROUP
50 2022 Annual Report 2022 in Review STRENGTHENING MEMBERSHIP ONLINE ENGAGEMENTS GOLD STANDARD OF PROTECTION