PUBLIC SAFETY MUTUAL BENEFIT FUND, INC. ANNUAL REPORT EMPOWERING Mas Sigurado, Mas Protektado! COMMITMENT www.psmbfi.com.ph In Times Of Need www.facebook.com/psmbfi @psmbfi 2023
ABOUT THE COVER VISION CORE VALUES MISSION The cover page of PSMBFI’s Annual Report for 2023 serves as a captivating visual representation of the organization’s core values and mission. Through meticulous design and thoughtfully chosen imagery, the theme of “Empowering Commitment In Times of Need” is vividly brought to life. The cover exudes strength, resilience, and support, setting the tone for the entire report. It captures the essence of PSMBFI’s unwavering dedication to its members, particularly during moments of adversity and challenges. Each element on the cover contributes to a compelling visual narrative, conveying the message of solidarity and empowerment. Vibrant colors and dynamic compositions command attention, drawing viewers into the scene and inviting them to explore further. These design choices evoke a sense of energy and vitality, reflecting the organization’s proactive approach to supporting its members. At its core, the cover serves as a powerful testament to PSMBFI’s commitment to its members. It showcases the organization’s enduring pledge to provide assistance and empowerment when it is needed most, reinforcing the trust and confidence that members place in PSMBFI. As viewers engage with the cover and delve into the contents of the report, they are met with stories of resilience, assistance, and hope—further reinforcing the Association’s mission to uplift and empower its members in times of need. We shall be the organization of choice for all public safety practitioners providing membercentered financial services that give protection and peace of mind. • To provide timely and quality financial services for our public safety practitioners and their families. • To provide a nurturing and empowering work environment for our employees. • To maintain a fair, honest, and sustainable relationship with our stakeholders. • Customer-centricity • Professionalism • Integrity • Respect in the workplace • Excellence
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 and Corporate Officers The President’s Report 2023 Corporate Governance Report PSMBFI Departments and Offices The Department Heads 2023 in Review 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
4 Annual Report 2023 CHIEF, PNP MESSAGE Message of the CHIEF, PNP
Annual Report 2023 CHIEF, PNP MESSAGE 5 On behalf of the Philippine National Police, I am pleased to extend my heartfelt congratulations to the Public Safety Mutual Benefit Fund, Inc. for its outstanding achievements and significant milestones as outlined in the Annual Report 2023 under the theme “Empowering Commitment in Times of Need.” The theme underscores the PSMBFI’s unwavering dedication to providing reliable insurance services to our law enforcement personnel, reflecting our shared commitment to excellence as “Mahusay, matatag at maasahan na kapulisan.” The Annual Report showcases the invaluable support extended to members of various public safety agencies, particularly the PNP personnel, ensuring their financial security and well-being during challenging circumstances. Despite facing acts of criminality, terrorism, and the unfortunate loss of our police officers last year, the PSMBFI’s prompt processing of insurance claims and immediate assistance to families offered a sense of reassurance and stability. Moreover, the Association’s proactive endeavors, including the enrollment of new police recruits and the provision of essential equipment and vehicles through its Corporate Social Responsibility Program, highlight its dedication to enhancing the welfare and effectiveness of our law enforcement community. These noble undertakings certainly help the PNP in effectively performing its mandate, in accord with its ideal – Sa Bagong Pilipinas, Gusto ng Pulis, Ligtas Ka! I commend the dedicated workforce of PSMBFI for their selfless service and encourage them to continue prioritizing the needs of our members. Looking ahead, I am confident that the partnership between the PNP and PSMBFI will continue to thrive, grounded in mutual respect and a shared pursuit of excellence. Together, we will uphold the principles of integrity, professionalism, and compassion, ensuring a safer and more secure Philippines for all. Mabuhay ang PSMBFI! ROMMEL FRANCISCO D MARBIL Police General Chief, Philippine National Police
6 Annual Report 2023 CHAIRMAN’S MESSAGE Message of the CHAIRMAN
Annual Report 2023 CHAIRMAN’S MESSAGE 7 I t is with great pride and gratitude that I present the Annual Report of the Public Safety Mutual Benefit Fund, Inc. for the year 2023. This report encapsulates our collective achievements, demonstrating the unwavering commitment and dedication of our entire community. As we reflect on the milestones of the past year, we are filled with a profound sense of accomplishment and determination to continue serving with excellence. For 26 years, PSMBFI has stood as a beacon of hope and protection for our nation’s law enforcers and public safety practitioners. Our mission to provide life insurance and support to those who tirelessly uphold our safety and security remains at the forefront of our endeavors. In the face of numerous challenges, our members have exemplified courage and resilience, answering the call of duty with unwavering determination. They are the true heroes, selflessly placing themselves on the frontline to safeguard the rights and well-being of our communities. Their trust in PSMBFI as their lifeline is a testament to the vital role we play in their lives, providing essential insurance and living benefits. Beyond our core mission, PSMBFI has embraced its corporate social responsibility with fervor. We have provided crucial financial assistance to our members, offering a lifeline during times of need. Additionally, we have equipped our partner agencies with the tools and resources necessary to enhance their capabilities in protecting our nation. Looking ahead to 2024, we are filled with optimism and determination to expand our reach and impact. We are committed to forging new partnerships and initiatives that will further extend our support to public safety practitioners across the country. I would like to extend my heartfelt gratitude to the PSMBFI Board of Trustees, Management, and workforce for their unwavering dedication and professionalism. It is through their tireless efforts that we have been able to achieve such remarkable success. To our partner agencies and members, I express my deepest appreciation for your continued trust and support. Together, we have created a community bound by a shared commitment to excellence and service. PSMBFI stands as a testament to the power of unity and compassion. As we continue our journey forward, let us remain steadfast in our resolve to push the boundaries of what is possible and to make a lasting difference in the lives of those we serve. Sa PSMBFI, mas sigurado at mas protektado. PLTGEN BENJAMIN D SANTOS JR (Ret) Chairman, PSMBFI
8 Annual Report 2023 PRESIDENT’S MESSAGE Message of the PRESIDENT
Annual Report 2023 PRESIDENT’S MESSAGE 9 I extend my utmost recognition to all members of the Public Safety Mutual Benefit Fund, Inc. for their courage, exemplary performance to duty, and unparalleled dedication towards serving the public. The theme of our Annual Report 2023, “PSMBFI: Empowering Commitment in Times of Need” is dedicated to all members being the lifeblood and backbone of the Association. It also underscores the significance of PSMBFI’s mission of providing timely and quality financial services for our public safety practitioners. The commitment of PSMBFI towards its members is rooted in its creation in 1997, when the PNP leadership found a need to address the insurance requirements of its personnel after the exclusion of the PNP and other armed services from GSIS by virtue of law. PSMBFI constantly looks for ways to attend to the needs of members through its proactiveness to provide them with insurance and living benefits during their most challenging times. The tangible and monetary benefits they receive are strong reaffirmation of our commitment, while the help we extend to partner agencies, through our Corporate Social Responsibility Program, bolster their capability of fulfilling public service. In the coming days, we shall be more determined to upgrade our capabilities and to prepare innovative solutions to emerging challenges that may come. The future of PSMBFI is shaped by its members who provide a strong foundation on which to build upon more insurance and living benefits. Lastly, PSMBFI extends its heartfelt gratitude to our members for their selfless dedication to the nation. Their unwavering commitment makes a profound impact on the lives of the people they serve, embodying a beacon of hope and progress for future generations of public safety practitioners. DIR JOSE CHIQUITO M MALAYO President and CEO
10 Annual Report 2023 THE BOARD OF TRUSTEES AND COMMITTEES The Board of Trustees and Committees Board Committees T he 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. The Executive Committee is organized to evaluate proposed resolutions, projects, or activities for Board action. It also acts 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, assists the Board in all matters relating to Corporate Governance, makes recommendations as described in the Association’s 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.
Annual Report 2023 THE BOARD OF TRUSTEES AND COMMITTEES 11 The Membership Committee assists the Board in all matters relating to membership such as but not limited to expansion, recruitment, retention, and renewal. It also acts on other related matters upon its own initiative or upon delegation by the Executive Committee and the Board. The Information Technology Committee assists the Executive Committee in evaluating and supervising IT-related activities to ensure that the company’s processes vigorously fulfill the functions and objectives of the Association in pursuit of its Vision and Mission. It also addresses any IT-related matters on its own initiative or upon delegation by the Executive Committee. The Risk and Audit Committee assists the Board in fulfilling various responsibilities, including policy formulation, oversight of risk management systems, supervision of financial reporting, internal controls, internal and external audit functions, fund management, legal and regulatory compliance, and making recommendations as per its Charter or Board requests. The Committee ensures the existence of comprehensive risk management policies and procedures, reviews the adequacy of the Company’s risk management framework/process, and assesses the annual risk assessment results. It regularly oversees key risk management processes, guidelines, policies, and mitigation strategies, as well as internal and external risk communication. Additionally, the Committee supervises the fairness of the Company’s financial statements, the integrity of its financial reporting process, the effectiveness of internal controls and internal audit activities, and the annual external independent audit of financial statements. The Project Management Group offers guidance on project-related matters concerning land banking and construction of PSMBFI Regional Offices, as well as other special projects undertaken by the Association. The Committee primarily oversees, reviews, and monitors these activities.
BOARD OF TRUSTEES and CORPORATE OFFICERS 12 Annual Report 2023 DIR BENJAMIN D SANTOS JR Age: 56 Educational Background Educational Background Experience Experience Appointment with PSMBFI Appointment with PSMBFI School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Director, Armed Forces and Police Savings and Loans Association, Inc. (AFPSLAI) Deputy Chief, PNP for Operations Deputy Chief PNP for Operations Director, Directorate for Intelligence, PNP Regional Director, PRO 8 Provincial Director, Bulacan Director for Comptrollership Director, Area Police Command, Southern Luzon, PNP Chief, PNP Command Center Director, Directorate for Human Resource and Doctrine Development, PNP Chairman Vice Chairman Member, Board of Trustees School: School: School: Ateneo De Manila University San Jose Christian Colleges Philippine Military Academy Philippine Military Academy University of Asia and the Pacific Post Graduate Studies Post Graduate Studies College College Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: Date elected: Date elected: August 2022 to April 2023 August 8, 2022 to February 22, 2023 March 7, 2022 to May 2, 2022 March 19, 2020 to November 22, 2020 October 10, 2019 to March 18, 2020 May 14, 2014 to February 1, 2016 March 1, 2021 to August 7, 2022 March 29, 2021 to February 28, 2022 October 12, 2021 to February 28, 2022 November 22, 2020 to March 28, 2021 September 30, 2022 December 16, 2022 November 19, 2021 Degree: Degree: Degree: Master of Science in Information Management Master in Public Administration Bachelor of Science Bachelor of Science Strategic Business Economics Program Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2013 2005 1991 1988 2013 DIR FERDINAND O DIVINA Age: 57
BOARD OF TRUSTEES and CORPORATE OFFICERS Annual Report 2023 13 Educational Background Educational Background Experience Experience Appointment with PSMBFI Appointment with PSMBFI School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: The Deputy Chief PNP for Administration The Chief, PNP Director for Comptrollership The Chief, Directorial Staff, PNP Director, DIPO Northern Luzon OIC, APC Visayas, PNP Director, Philippine National Police Academy Commander, APC Western Mindanao Commander, Counter Intelligence Task Force (CITF) President, PSMBFI Board of Trustee, PSMBFI Board of Trustee, PSMBFI School: School: Graduate Institute for Policy Studies/ Tokyo, Japan Ateneo School of Government Philippine Military Academy Philippine Military Academy Post Graduate Studies Post Graduate Studies College College Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: Date elected: Date elected: August 8, 2022 to October 1, 2022 April 1, 2024 to present May 2, 2023 to March 31, 2024 July 29, 2022 to August 7, 2022 September 3, 2020 to October 16, 2020 June 11 to July 28, 2022 October 24, 2018 to September 3, 2020 Oct 16, 2020 to June 10, 2022 February 3, 2017 to June 1, 2018 April 15, 2022 to Present December 16, 2022 June 30, 2023 Degree: Degree: Masters in Public Policy Master in Pubic Management Bachelor of Science Bachelor of Science Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2007 2019 1989 1991 Age: 57 DIR JOSE CHIQUITO M MALAYO DIR ROMMEL FRANCISCO D MARBIL Age: 55
BOARD OF TRUSTEES and CORPORATE OFFICERS 14 Annual Report 2023 Educational Background Experience Appointment with PSMBFI School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: Independent Director, Top Frontier Holdings, Inc. Independent Director, Eagle Cement Inc. The Chief, PNP The Director for Operations, PNP Independent Director, Petron Corporation Independent Director, San Miguel Foods and Beverages Inc. Chairman, Board of Trustees Member, Board of Trustees School: University of Asia and the Pacific Philippine Christian University Harvard Kennedy School, Cambridge, MA, USA Philippine Military Academy Post Graduate Studies College Degree: Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: Date elected: 2022 to Present 2017 to Present July 16, 2015 to June 28, 2016 December 13, 2014 to July 15, 2015 2022 to Present 2017 to Present August 2015 to June 2016 April 15, 2023 Degree: Certificate in Business Economics Master in Management Executive Course in Leaders in Development Bachelor of Science Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2018 1996 2014 1982 Educational Background Experience Appointment with PSMBFI School: Position: Position: Position: Director, Directorate for Logistics, PNP Regional Director, PRO 9, PNP Member, Board of Trustees School: School: University of Asia and the Pacific Philippine Military Academy Philippine Christian University Post Graduate Studies College Degree: Inclusive dates: Inclusive dates: Date elected: May 7, 2014 to May 30, 2016 December 27, 2012 to May 7, 2014 April 18, 2015 Degree: Degree: Certificate of Business Economics Bachelor of Science Masters in Management Year Graduated: Year Graduated: Year Graduated: 2018 1983 2013 Age: 63 DIR RICARDO C MARQUEZ DIR JUANITO B VAÑO JR Age: 63
BOARD OF TRUSTEES and CORPORATE OFFICERS Annual Report 2023 15 Educational Background Educational Background Experience Experience Appointment with PSMBFI Appointment with PSMBFI School: School: School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Board of Trustee, GCF International Christian School Director, DPRM, PNP Chairman, Board of Elders, Greenhills Christian Fellowship, Inc. Deputy Director, APC, VIS, PNP Director, Directorate for Police Community Relations-PNP Deputy Director, DL, PNP Chief, Public Information Office/ Spokesman-PNP Director, PNP Finance Service Director, PNP Health Service Board of Trustee, PSMBFI Board of Trustee, PSMBFI School: School: Philippine Christian University Grace School of Theology, Woodland, TX, USA Harvard University Bicol University University of the Philippines Philippine Military Academy Philippine Military Academy Post Graduate Studies Post Graduate Studies College College Degree: Degree: Degree: Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: Date elected: 2021 to Present February 2, 2022 to May 24, 2022 2022 to 2023 January 15, 2021 to February 2, 2022 2019 to 2020 November 2020 to January 15, 2021 May 2018 to January 2019 Aug 28, 2020 to September 8, 2020 February 14, 2020 to August 28, 2020 April 23, 2022 April 23, 2022 Degree: Degree: Master in Management Major in Public Administration Master in Ministry Master in Public Administration Cambridge, MA, USA Doctor of Peace and Security Administration Master in Public Administration Bachelor of Science Bachelor of Science Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2004 2023 2013 2004 1996 1988 1988 DIR HERMINIO S TADEO JR DIR BENIGNO B DURANA JR Age: 57 Age: 59
BOARD OF TRUSTEES and CORPORATE OFFICERS 16 Annual Report 2023 Educational Background Educational Background Educational Background Experience Appointment with PSMBFI School: School: School: Position: Position: Position: Position: Position: Director, PNP Finance Service Deputy Regional Director for Administration PRO 3 Deputy Regional Director for Administration PRO 12 Deputy PRBS, PNP Board of Trustee, PSMBFI School: School: School: Jose Rizal University National College of Business & Arts University of San Agustin Philippine Military Academy Philippine Military Academy Philippine Military Academy Post Graduate Studies Post Graduate Studies Post Graduate Studies College College College Degree: Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: September 4, 2020 to November 16, 2020 January to September 2020 March to December 2019 December 16, 2016 to March 15, 2019 April 15, 2023 Degree: Degree: Degree: Master in Public Administration Master in Public Administration Bachelor of Laws Bachelor of Science Bachelor of Science Bachelor of Science Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2007 2010 1998 - 2000 1989 1989 1991 DIR REX M DELA ROSA Age: 58 DIR ROBERT T RODRIGUEZ AGE: 54 DIR JESUS D CAMBAY JR AGE: 57 School: Baguio Central University Degree: Master of Science in Public Administration Year Graduated: 2003 to 2004 EXPERIENCE EXPERIENCE APPOINTMENT WITH PSMBFI APPOINTMENT WITH PSMBFI Position: Position: Position: Position: Position: Position: Position: Board of Trustee, PSMBFI Board of Trustee, PSMBFI Director for Comptrollership, PNP Director DPRM, PNP Area Police Command (APC)- Visayas Commander, PNP Director, Civil Security Group, PNP Director, PNP ACG Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Inclusive Dates: Date Elected: Date Elected: August 8, 2022 to April 19, 2023 May 24, 2022 to December 31, 2023 January 1, 2024 to Present November 15, 2021 to August 08, 2022 January 15, 2021 to May 23, 2022 October 28, 2022 to June 30, 2023 October 19, 2022 to January 31, 2024
BOARD OF TRUSTEES and CORPORATE OFFICERS Annual Report 2023 17 Educational Background Experience Appointment with PSMBFI School: School: School: Position: Position: Position: Position: Position: Position: Position: Director, Directorate for Plans (DPL) Regional Director, Police Regional Office 5 Director, Directorate for Police Community Relations (DPCR) Deputy Director, Directorate for Police Community Relations (DPCR) Director for Human Resource and Doctrine Development (DHRDD) Deputy DIrector, Police Community Affairs Development Group (PCADG) Board of Trustee, PSMBFI School: School: Bicol University National College of Business and Arts Jose Rizal University Charles Sturt University Philippine Military Academy Post Graduate Studies College Degree: Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: March 2, 2022 to March 6, 2022 March 9, 2020 to April 22, 2021 September 15, 2021 to February 2, 2022 April 11, 2019 to February 9, 2020 January 6, 2021 to September 14, 2021 August 30, 2017 to November 3, 2019 April 15, 2023 Degree: Degree: PhD in Peace Security Administration Masters in Public Administration Bachelor of Laws Diploma in Criminal Intel Bachelor of Science Year Graduated: Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2024 2007 2003 2008 1989 DIR BARTOLOME R BUSTAMANTE Age: 57 Educational Background Experience Appointment with PSMBFI School: Position: Position: Position: Position: Position: Position: Position: Director, Directorate for Police Community Relations (DPCR), PNP Deputy Director, DIPO Mindanao, PNP Director, Directorate for Plans, PNP Director, CPSM, PNP Chief, PPD, PNP Chief, CAD, PNP Board of Trustee, PSMBFI School: Philippine Christian University Philippine National Police Academy Post Graduate Studies College Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: February 15, 2021 to August 14, 2022 December 26, 2019 February 15, 2021 May 25, 2020 April 18, 2018 July 26, 2016 April 17, 2021 Degree: Master in Public Administration BS in Public Safety Year Graduated: Year Graduated: 2009 1988 DIR WALTER E CASTILLEJOS Age: 57
BOARD OF TRUSTEES and CORPORATE OFFICERS 18 Annual Report 2023 Educational Background Educational Background Experience Experience Appointment with PSMBFI Appointment with PSMBFI School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Chief, Women and Children Protection Center, PNP City Director, Cotabato City Police Office, PNP Chief, Regional Police Community Relations Division, PRO 12, PNP Chief, Regional Legal Office, NCR OIC, DLOD, DPRM Acting Chief, Regional Legal Office, NCR Legal Officer, CIDG, DPCR, FS, DPRM, Command Group Deputy Chief, Women and Children Protection Center, PNP Chief, Logistics Plans and Programs Division, PNP Chief, Regional Operations Division, PRO 12, PNP Board of Trustee, PSMBFI Board of Trustee, PSMBFI School: School: Development Academy of the Philippines Pamantasan ng Lungsod ng Maynila Philippine National Police Academy Polytechnic University of the Philippines Post Graduate Studies Post Graduate Studies College College Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: Date elected: November 14, 2023 to present May 23, 2019 to April 29, 2020 March 25, 2018 to January 23, 2019 June 6, 2023 to present December 1, 2018 to April 16, 2022 April 17, 2022 to June 5, 2023 January 2007 to April 2022 September 21, 2020 to November 13, 2023 April 30, 2020 to September 30, 2020 January 24, 2019 to May 22, 2019 April 23, 2022 April 23, 2022 Degree: Degree: Master in Public Management Bachelor of Laws BS in Public Safety Bachelor in Political Science with option in Public Administration Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2016 2003 1995 1999 DIR DONNA N VILLAREAL Age: 44 DIR PORTIA B MANALAD Age: 51
BOARD OF TRUSTEES and CORPORATE OFFICERS Annual Report 2023 19 Educational Background Experience Appointment with PSMBFI School: Position: Position: Position: Position: Position: Position: Position: Position: Assistant Chief, PNP Legal Service Strategic Management Unit, PNP Legal Officer, Center for Police Strategy Management, PNP Legal Officer, Police Safety and Protection Group (PSPG), PNP Legal Officer, Women and Children Protection Center (WCPC), PNP OIC, Transnational Criminal Investigation Task Force (TCITF), WCPC, PNP Legal Officer, Anti-Cybercrime Group (ACG), PNP Corporate Secretary, PSMBFI Board of Trustee, PSMBFI School: University of Iloilo Central Philippine University Post Graduate Studies College Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: Date elected: November 2022 to Present March 2024 to Present 2017 to 2018 2014 to March 2023 August 2020 to March 2023 2014 to 2020 November 19, 2021 to Present August 14, 2020 to November 18, 2021 Degree: Bachelor of Laws AB Political Science Year Graduated: Year Graduated: 2008 2000 ATTY CATHERINE E TAMAYO - CIPRIANO Age: 45 Educational Background Experience Appointment with PSMBFI Position: Position: Position: Position: Chief, OCESPO RESPO, NCRPO Proprietor, MJS Autoparts Center Board of Trustee, PSMBFI School: School: Lacson College University of La Salette (ETEEAP) College Inclusive dates: Inclusive dates: Inclusive dates: Date elected: December 31, 2021 to Present January 12, 2021 to December 31, 2021 1997 to present March 31, 2022 Degree: Degree: Banking and Finance BS Criminology Year Graduated: Year Graduated: 1996 2011 DIR LOUIE S MAKILAN Age: 52
BOARD OF TRUSTEES and CORPORATE OFFICERS 20 Annual Report 2023 Educational Background Experience Appointment with PSMBFI School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: Sergeant-at-Arms, House of Representatives Director, Information and Technology Management Service , PNP Commander, ASEAN 2017 Security Task Force Director, Directorate for Information and Communications Technology Management, PNP Commander, Anti-Illegal Drugs Special Operation Task Force, PNP Senior Executive Assistant, Office of the Chief PNP Provincial Director, Nueva Ecija Corporate Auditor, PSMBFI School: University of Asia and the Pacific Information Systems Audit and Control Association (ISACA) Philippine Christian University US Military Academy, West Point, New York Post Graduate Studies College Degree: Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: July 26, 2022 to present August 2013 to 2015 November 2016 to December 2017 2016 January 2013 to August 2013 2008 to 2009 May 14, 2014 to February 1, 2016 August 29, 2013 Degree: Strategic Business Economics Program Certified Information Security Manager (CISM) Master in Management Bachelor of Science in Civil Engineering Year Graduated: Year Graduated: Year Graduated: Year Graduated: 2015 2014 1998 1984 PMGEN NAPOLEON C TAAS (RET) Age: 61 PMGEN CELSO I PESTAÑO (RET) Age: 59 Educational Background Experience Appointment with PSMBFI School: Position: Position: Position: PNP Officer, Philippine National Police PC Ofiicer, Philippine Constabulary VP for Operations, PSMBFI Philippine Christian University Post Graduate Studies Degree: Inclusive dates: Inclusive dates: Date elected: 1991 to 2020 1988 to 1991 March 8, 2021 Master in Management Year Graduated: 2007 School: Philippine Military Academy College Degree: Bachelor of Science Year Graduated: 1988
BOARD OF TRUSTEES and CORPORATE OFFICERS Annual Report 2023 21 EDNA CATHERINE A. FABIAN Age: 57 Age: 57 GABRIEL M. CASTRO JR Educational Background Educational Background Experience Experience Appointment with PSMBFI Appointment with PSMBFI School: School: School: School: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Position: Group Chief Financial Officer and Chief Human Resource and administrative Officer, ENDECGROUP Inc. Chief Human Resource Officer, Human Resources and Training Division, LICA Group of Companies Vice President, Human Resources and Training Division, LICA Group of Companies Vice President, Human Resources Department, Toyota Manila Bay Corporation Human Resource and Training Director, Dearborn Motors Company Inc. Assistant Vice President Prudentialife Plans Inc., Alternative Marketing Division/Direct Marketing Chief Financial Officer and Corporate Treasurer; Commercial Legal Head; Financial Services Division Head, FUJIFILM Business Innovation Philippines Corp. Senior Vice President - Chief Operating Officer, Zion Optimum Business Solutions Corporation Branch Manager, EQUITABLE PCIBANK - Philippines VP for Finance, PSMBFI VP for Corporate Services, PSMBFI Philippine Christian University Philippine Christian University Colegio De San Juan De Letran San Pedro College of Business Administration Post Graduate Studies Post Graduate Studies Degree: Degree: Degree: Degree: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Inclusive dates: Date elected: Date elected: November 2021 to April 30, 2023 September 16, 2020 to January 28, 2023 September 16, 2019 to September 15, 2020 May 2, 2018 to September 15, 2019 July 2006 to April 2018 March 2004 to July 2006 December 2017 to October 2021 March 2014 to January 2015 May 1997 to June 2000 July 16, 2023 to Present November 16, 2023 to April 15, 2024 Doctor of Philosophy in Business Management Major in Strategic Management Masters in Business Management Masters in Business Administration Major in Business Management Bachelor of Science in Education (Certificate Course – 18 Units) Year Graduated: Year Graduated: Year Graduated: Year Graduated: March 2022 - Present March 2020 - March 2022 School: School: University of Santo Tomas University of Santo Tomas, Manila College College Degree: Degree: Bachelor of Science in Commerce Major in Business Administration Bachelor of Science in Commerce Major in Business Administration Year Graduated: Year Graduated: 1986
PRESIDENT’S REPORT 2023 22 Annual Report 2023 THE PRESIDENT’S REPORT 2023 RESULTS OF OPERATIONS DIR JOSE CHIQUITO M MALAYO PRESIDENT AND CEO
PRESIDENT’S REPORT 2023 Annual Report 2023 23 Dear fellow Members, PSMBFI had a remarkable year, characterized by notable achievements, innovations, and newfound opportunities. Fueled by our steadfast dedication to our valued members, I’m delighted to announce that we concluded the year on a high note, successfully executing our plans and programs for 2023. Additionally, we proudly retained our position as the leading insurance provider for public safety practitioners. We established a vision centered around offering member-focused financial services aimed at providing protection and peace of mind. We took decisive actions to deliver timely and high-quality financial services to our members while also fostering sustainable relationships with our stakeholders. PSMBFI has undergone a remarkable transformation since its modest inception in 1997, particularly in three significant areas: expanding insurance benefits for members, enhancing direct engagement through digital platforms, and enriching our Corporate Social Responsibility Programs for partner agencies. At our essence, we remain dedicated to our members, fondly referred to as “Kabalikats”. In this report, we outline our comprehensive efforts, highlight our achievements, and unveil our future strategies crafted to strengthen our membership community and ensure sustained growth and prosperity.
PRESIDENT’S REPORT 2023 24 Annual Report 2023 KEY ACHIEVEMENTS Enhancing Membership Strength Over the past year, we have dedicated ourselves to strengthening our membership base, recognizing it as a cornerstone of our success and vitality. A significant milestone of the past year was the inclusion of the Philippine Drug Enforcement Agency or PDEA as one of our partner agencies as this underscores the growing collaboration and support between PSMBFI and the public safety agencies in the country, reflecting a mutually beneficial relationship. To steer proactive engagement, a series of initiatives were strategically launched. These efforts encompassed comprehensive information dissemination campaigns conducted through various channels, including both onsite and online platforms. The objective was to ensure broad awareness and understanding of the array of offerings and benefits provided by PSMBFI. Onsite initiatives involved organizing events, seminars, and info-drives aimed at directly reaching out to our target members in their own locations. These events provided opportunities for face-to-face interaction, enabling us to convey information effectively and address any queries or concerns in real-time. This included events such as the “Kabalikat Kabuhayan Fair”, conducted in partnership with DPCR, wherein PSMBFI engaged with the PNP community to highlight our commitment in supporting their well-being and livelihood by offering different franchise opportunities and discounts on various products and services. Another was the “Kabalikat Ronda Motorcade”, which was organized to distribute water, snacks, and vitamins to PNP Highway Patrol and MMDA traffic enforcers along EDSA. Aside from making our presence felt, this gesture demonstrates our gratitude towards those implementing traffic enforcement operations, ensuring road safety, and protecting the public from street crimes.
PRESIDENT’S REPORT 2023 Annual Report 2023 25 Noteworthy also is the launch of the “Para Sa’yo Kabalikat” Program, which involved inviting personnel from the Public Information Offices of our partner agencies to a cheerful gathering, the primary objective of which was to foster stronger ties between PSMBFI and our partner agencies while leaving a positive impression on all involved parties. During the gathering, attendees had the opportunity to engage in friendly interactions and networking activities aimed at building rapport and camaraderie. This event was streamed live via Facebook and also viewed on the PSMBFI Viber community.
PRESIDENT’S REPORT 2023 26 Annual Report 2023 Moreover, “Bayaning PSMBFI Awardee” Program was also launch, which sought to recognize and celebrate members who exemplify the core values and spirit of PSMBFI. This initiative was designed not only to acknowledge outstanding contributions of our members, but also to inspire others and instill loyalty by fostering a sense of pride and belonging within our membership community. To further encourage enrollment under the Get-Member Program, PSMBFI partnered with the country’s top pharmacy chain to provide our new members with a gift certificate worth Php 1,000.00, which can be redeemed nationwide for the purchase of medical necessities. Through these multifaceted efforts, we endeavored to not only increase membership but also to strengthen the bond between PSMBFI and its members, ultimately contributing to the sustained growth and prosperity of our organization.
PRESIDENT’S REPORT 2023 Annual Report 2023 27 Online Engagements In an era defined by digital transformation and evolving consumer preferences, our organization has embraced the power of online platforms to foster meaningful interactions and relationships with our members. From interactive webinars to social media campaigns, we have leveraged a diverse range of digital channels to enhance communication, deliver value, and strengthen the bond with our members. Firstly, we improved the visual presentation of our social media contents, crucial for enhancing brand perception, by ensuring that all social media graphics, including profile pictures, cover photos, and post designs, align with PSMBFI’s visual identity. Secondly, we organized several online contests offering cash prizes and other incentives. One notable example of which is the “Grab It Kabalikat” contest, conducted in partnership with a popular food delivery service, which aimed to incentivize our members to join the PSMBFI Viber community. Further, PSMBFI representatives were frequently invited as guests on various multimedia platforms like Pulis News Network and UNTV to highlight the significance of PSMBFI life insurance for public safety practitioners. These discussions were streamed live on Facebook and YouTube, reaching thousands of viewers nationwide. As part of our ongoing efforts for continuous improvement and to gauge our members’ understanding of their benefits, we conducted the online survey titled “Knowledge Check! Gaano mo kakilala ang PSMBFI?”. The results revealed that our member engagement and initiatives were effective, as the majority of respondents
PRESIDENT’S REPORT 2023 28 Annual Report 2023 demonstrated awareness of their PSMBFI benefits. At the heart of our online engagement efforts lies a commitment to putting our members at the forefront of everything we do. By harnessing the power of technology and embracing digital innovation, we strive to create meaningful experiences that resonate with our members and contribute to their success and well-being. Top-tier Protection PSMBFI has continuously upheld its commitment to offering members the highest quality insurance products, specifically designed to meet the unique needs of those in the armed services who face inherent risks in their profession. In the unfortunate event of a member’s passing, we expedite the processing of insurance claims, ensuring swift access to funds for bereaved families. Our streamlined process includes minimal documentary requirements, facilitating timely cash advances to provide immediate support to those in need in less than 24 hours. In 2023, a total of 2,322 beneficiaries received life insurance benefits totaling Php 324.48 million following the passing of 418 members due to sickness, accidents, or in the line of duty. Among these beneficiaries, 80 members had outstanding loan obligations amounting to Php 11.61 million, which were settled through Credit Life Insurance (CLI) following their untimely demise.
PRESIDENT’S REPORT 2023 Annual Report 2023 29 Additionally, 86 members sustained injuries in the line of duty, resulting in the disbursement of Wounded-in-Action benefits totaling Php 13.82 million. Furthermore, 11 members experienced disabilities due to accidents, and we disbursed Php 962 thousand in support. Moreover, 353 members were hospitalized due to accidents, with a disbursement of Php 2.65 million. Lastly, 178 members benefited from the Free Insurance of a Dependent for the demise of their designated loved one, the disbursement of which totaled Php 13.41 million. There were also occasions when our members faced financial challenges stemming from unforeseen circumstances, prompting them to utilize our credit facilities. In 2023, we provided Policy Loans to 16,270 members and Salary Loans to 36,209 members. Through our loan operations, coupled with our cash investments, we generated an interest income of Php 1.10 billion.
PRESIDENT’S REPORT 2023 30 Annual Report 2023 Expanding Member Benefits We offer privileges aimed at bolstering the financial well-being of our members. One notable advantage of being a part of PSMBFI is our commitment to sharing the company’s earnings with our members. Thanks to the company’s strong performance, we have disbursed Php 1.06 billion under the Salamat, Kabalikat Program. This initiative was designed to enhance their welfare and instill a sense of reassurance, knowing that they can depend on PSMBFI for support. Giving Back to Partner Agencies Our Corporate Social Responsibility Programs play a pivotal role in fostering strong relationships with partner agencies. These initiatives not only benefit our members but also contribute to the enhancement of public service delivery. Such commitment solidifies PSMBFI’s reputation as a trusted and reliable partner. PSMBFI has steadfastly demonstrated its commitment in supporting the PNP through its consistent support of the agency’s Comprehensive Educational Assistance Program, exemplified by our turnover of the Special Group Term Insurance (SGTI) Experience Refund totaling Php 8.63 million which shall have a profound effect on the education of deserving police dependents, offering them the chance to improve their quality of life.
PRESIDENT’S REPORT 2023 Annual Report 2023 31 PSMBFI provided a specialized Mobile Clinic to the PNP Health Service, equipped with a built-in X-ray machine, enhancing the PNP’s capacity to deliver medical services effectively and efficiently to its personnel and their dependents. PSMBFI has provided vehicles to PNP offices, which are now serving as patrol vehicles to bolster their anti-criminality efforts, uphold peace and order, foster community partnerships, and address security challenges more effectively. Additionally, equipment such as computers and laptops have been supplied to other partner agencies.
PRESIDENT’S REPORT 2023 32 Annual Report 2023 Moreover, various Illnesses and calamities tested the perseverance of our members. Despite these burdens, our members remained resolute in fulfilling their sworn duty. And throughout these challenging times, PSMBFI stood unwaveringly by their side. We provided a total of Php 17.35 million in aid to 1,464 members who were affected by sickness, or by a series of calamities such as fires, earthquakes, and typhoons. These initiatives underscore PSMBFI’s dedication to supporting the public safety community and improving their well-being, thereby fostering a healthier and more resilient workforce. Achieving Excellence The company maintained robust financial health. PSMBFI champions good governance, which serves as the cornerstone for achieving corporate objectives, implementing strategic plans, and fortifying internal controls. As a testament to our efforts, our net income for 2023 reached Php 597.64 million. Building on this financial performance, we have sustained our growth trajectory. Our assets increased by 6.53% compared
PRESIDENT’S REPORT 2023 Annual Report 2023 33 to the 2022 figure. Closing the year with Php 22.58 billion in assets, this financial robustness reaffirms our members’ confidence in our ability to consistently fulfill our contractual commitments. Improved Internal Operations To mitigate both internal and external risks to the company, we bolstered our risk management capabilities through the development of the PSMBFI Enterprise Risk Management Manual. This comprehensive guide will facilitate policy formulation and oversight of organization-wide risks, ensuring compliance with relevant laws and regulations. These measures are crucial preparations for potential obstacles or uncertain environments. Acknowledging the crucial contribution of human resources to service excellence, we strategically invested in our workforce. PSMBFI initiated a change management process in 2022, introducing new organizational structures and filling vital positions to optimize operations and ensure prompt service delivery to members. This operational refinement persisted into 2023, further boosting efficiency, with our committed employees leading the charge, advancing the company’s success through effective execution of business objectives and adept management of daily challenges.
PRESIDENT’S REPORT 2023 34 Annual Report 2023 We initiated the advancement of our company’s Information Technology infrastructure with the implementation of the PSMBFI Unified Loan and Insurance System (PULIS). This initiative heralds significant development and modernization of our current IT system. With PULIS in operation, swift service delivery can be anticipated, boasting impressive capabilities in the long run. In a bid to support members facing financial challenges, we lowered the interest rates for all loan facilities. This proactive measure ensures that we are primed to promptly address their needs. We prioritize processing their loan applications with utmost speed and releasing funds through their preferred channels for maximum convenience. Progressing Ahead We are committed to ensuring the relevance and accessibility of our frontline services through comprehensive information campaigns and extensive field service operations, reaching members nationwide, including those in remote provinces. Our goal is to provide personalized assistance to as many members as possible, ensuring prompt responses to their concerns.
PRESIDENT’S REPORT 2023 Annual Report 2023 35 PSMBFI will further elevate its virtual presence by intensifying digitization efforts, particularly through targeted Social Media campaigns. This strategy aims to deepen members’ understanding of the organization’s mission, products, and services. We will generate additional content to bolster brand visibility and foster positive engagement among online communities. Notably, our Facebook page stands as one of the most frequently visited platforms by members, averaging 12,074 page views daily. Setting Course for a Resilient Future In reflection, 2023 imparted valuable lessons that will empower us to raise the standard for the upcoming year. We extend our heartfelt appreciation to all our partner agencies, members, and their dependents for their invaluable contributions to our journey. Your unwavering loyalty, trust, and support continually inspire us to strive for excellence. Looking ahead, we are resolute in our commitment to innovate dynamic insurance products and deliver enhanced benefits. And as we look forward to the future, let us continue to work together towards our shared goals, building on the achievements of the past and embracing the opportunities of tomorrow. Thank you for your trust and support. Together, we will continue to thrive and make a meaningful impact in the lives of our members and communities. Maraming salamat, mga Kabalikat! DIR JOSE CHIQUITO M MALAYO PRESIDENT AND CEO
36 Annual Report 2023 CORPORATE GOVERNANCE CORPORATE GOVERNANCE Life insurance embodies a pact of trust between the insurer and the insured, a cornerstone of good governance. This trust is contingent on insurers’ belief in the authenticity of policyholder claims and policyholders’ confidence in insurers’ financial stability and timely claims processing. In this regard, the PSMBFI Board of Trustees, collectively with the Management and its workforce, ardently upholds the tenets of sound governance. We are firmly dedicated to transparency, accountability, responsibility, independence, and fairness, ensuring that the trust of our policyholders and stakeholders remains steadfast. Moreover, PSMBFI diligently adheres to regulatory standards set by the Insurance Commission (IC) and Securities and Exchange Commission (SEC). We integrate these standards into our operations, reflecting governance practices that prioritize the well-being of our valued stakeholders.
Annual Report 2023 37 CORPORATE GOVERNANCE • The PSMBFI Board of Trustees The Board of Trustees, as the highest governing body of the Association, holds paramount responsibility for establishing the Company’s long-term strategic direction and ensuring the enduring success and sustainability of PSMBFI. Consisting of fifteen (15) members, each elected for their competence, experience, expertise, and integrity, the Board comprises individuals who are experts in their respective fields. Emphasizing continuous professional development, members are encouraged to engage in educational and training programs to enhance their skills and knowledge. According to the By-Laws, the Board of Trustees is elected during the annual General Membership Meeting and Election (GMME) held on the 3rd Saturday of April every year. Members serve interlocking terms of two (2) years, ensuring continuity in the Association’s programs and initiatives. In the initial year of 2007, the top seven (7) vote recipients served two-year terms, while the remaining eight (8) served for one (1) year. Thereafter, a rotational system was established, with seven (7) or eight (8) members elected in subsequent years, maintaining the Board’s stability and effectiveness. • Annual General Membership Meeting The PSMBFI By-Laws provide that members have the right to participate in all meetings of the General Membership, to vote in person or by proxy, and to be voted for as members of the Board of Trustees.
38 Annual Report 2023 CORPORATE GOVERNANCE The annual GMME for CY 2023 was held on April 15, 2023. 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. Dissemination of notices was done through the installation of posters and tarpaulins, posting on the Association’s Facebook page and website, and through newspaper publication. The nomination of candidate/s for the CY 2023 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 through docs.google. com, while the electronic tabulation of the votes was done during the GMME.
Annual Report 2023 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 general elections 2023 were seven (7) members of the Board of Trustees for the terms 2023-2024 and 2024-2025, namely: • PMGEN BARTOLOME R BUSTAMANTE • PGEN RICARDO C MARQUEZ • PLTGEN JOSE CHIQUITO M MALAYO • PMGEN WALTER E CASTILLEJOS • PBGEN REX M DELA ROSA • PMGEN BENIGNO B DURANA JR • PMGEN JUANITO B VAÑO JR The eight (8) members of the Board of Trustees who remained and continued to serve for the year 2022 - 2023 were: • DIR VICENTE D DANAO JR, succeeded by DIR BENJAMIN D SANTOS JR • DIR FERDINAND O DIVINA • DIR JOSE MELENCIO C NARTATEZ, succeeded by DIR JESUS D CAMBAY JR, then by DIR ROMMEL FRANCISCO D MARBIL • DIR HERMINIO S TADEO JR • DIR LOUIE S MAKILAN • DIR PORTIA B MANALAD • DIR DONNA N VILLAREAL • DIR JOSEF LEO M ANGELES succeeded by DIR ROBERT T RODRIGUEZ During the term spanning 2023 to 2024, Directors Bartolome R Bustamante, Portia B Manalad, and Donna N Villareal dutifully served as Independent Directors. These Trustees operate autonomously from Management and are devoid of any business or personal affiliations that might sway their independent judgment.
40 Annual Report 2023 CORPORATE GOVERNANCE • Meetings of the Board of Trustees The Board of Trustees convenes its regular monthly meetings to review the Association’s operational performance from the previous month, as presented by the President. Discussions during these sessions encompass policies, strategic business plans, the appointment of top and middle management, and other matters requiring Board approval. Additionally, special meetings are promptly called to address urgent concerns as they arise. These gatherings provide a platform for Trustees to offer their insights on the Association’s objectives and corporate strategy. At the end of each month, during the regular Board meeting, members confirm or adjust the schedule for the subsequent month’s meetings. Trustees receive notice of the meeting and relevant materials at least two (2) days prior. These materials, which include the meeting agenda, the President’s operational report, minutes from the previous meeting, and all pertinent documents for discussion, are distributed electronically. They are meticulously labeled and organized to facilitate the Trustees’ engagement and participation in the deliberations.
Annual Report 2023 41 CORPORATE GOVERNANCE The format of PSMBFI’s Board of Trustees meetings has transitioned from the traditional face-to-face format to a virtual or remote setup, or a combination of both, known as hybrid meetings. This adaptation is in accordance with the Guidelines on the Attendance of the Board of Trustees in Regular and Special Meetings through Remote Means of Communication issued by the Securities and Exchange Commission in June 2020. In 2023, the PSMBFI Board of Trustees conducted 10 regular and 4 special meetings using a hybrid format, with sessions hosted at the PSMBFI Main Office in San Juan City. The Corporate Secretary diligently maintains the minutes of Board meetings, reports from all Committees, and other records of proceedings. These records are available for inspection upon request. The attendance of the Board is as follows: BOARD MEETINGS As of December 2023 TRUSTEE Meetings to Attend Meetings Attended % REMARKS DIR BENJAMIN D SANTOS JR 14 13 93% DIR FERDINAND O DIVINA 14 14 100% DIR JOSE CHIQUITO M MALAYO 14 14 100% DIR JESUS D CAMBAY JR 4 3 75% Resigned in June 2023 DIR ROMMEL FRANCISCO MARBIL 8 1 13% Elected in June 2023 DIR LOUIE S MAKILAN 14 13 93% DIR RICARDO C MARQUEZ 14 12 86% DIR JUANITO B VANO JR 14 13 93% DIR HERMINIO S TADEO JR 14 14 100% DIR BENIGNO B DURANA JR 14 14 100% DIR ROBERT T RODRIGUEZ 14 9 64% Resigned in January 2024 DIR WALTER E CASTILLEJOS 14 12 86% DIR BARTOLOME R BUSTAMANTE 10 8 80% Elected in April 2023 DIR REX M DELA ROSA 10 10 100% Elected in April 2023 DIR DONNA N VILLAREAL 14 13 93% DIR PORTIA B MANALAD 14 12 86%
42 Annual Report 2023 CORPORATE GOVERNANCE • Board Committees The Board has six (6) specialize Committees with dedicated area of focus: the Executive Committee, Risk and Audit Committee, Governance Committee, Membership Committee, Information Technology Committee, and Project Management Group. Each Committee has its unique functions and responsibilities. COMMITTEE MEMBERS As of December 23, 2023 COMMITTEE CHAIRMAN VICE CHAIRMAN MEMBERS Executive Ferdinand O Divina Jose Chiquito M Malayo Ricardo C Marquez Juanito B Vaño Jr Benigno B Durana Jr Herminio S Tadeo Jr Robert T Rodriguez Napoleon C Taas (Corp Auditor) Risk and Audit Juanito B Vaño Jr Walter E Castillejos Ricardo C Marquez Portia B Manalad Louie S Makilan Benigno B Durana Jr Robert T Rodriguez Bartolome R Bustamante Napoleon C Taas (Corp Auditor) Governance Ricardo C Marquez Bartolome R Bustamante Juanito B Vaño Jr Benigno B Durana Jr Herminio S Tadeo Jr Donna N Villareal Louie S Makilan Information Technology Benigno B Durana Jr Napoleon C Taas Walter E Castillejos Rommel Francisco D Marbil Portia B Manalad Robert T Rodriguez Rex M Dela Rosa Membership Robert T Rodriguez Herminio S Tadeo Jr Rommel Francisco D Marbil Donna Villareal Portia B Manalad Louie S Makilan Rex M Dela Rosa Walter E Castillejos Project Management Group Herminio S Tadeo Jr Donna N Villareal Ricardo C Marquez Juanito B Vaño Jr Rommel Francisco D Marbil Bartolome R Bustamante Rex M Dela Rosa
Annual Report 2023 43 CORPORATE GOVERNANCE These Committees are entrusted with the evaluation of significant actions, providing recommendations to the Board accordingly. Among them are the corporate governance-related actions endorsed by the relevant Committees and were subsequently approved by the Board: • Organized the composition of Board Committee memberships • Election of Independent Directors of PSMBFI CY 2023 • Corporate Governance Compliance Project for the creation of a Corporate Governance Manual • Amendment to the Procurement Policy • PSMBFI Breastfeeding Policy • PSMBFI Mental Health Policy • PSMBFI Environmental Policy • Commitment to invest in SMC (San Miguel Corporation) • Review of Accredited Banks • Approval of the Qualification Standards of Administration Department Manager • Amendment to the Disposal Policy • Investment Management Agreement • Hiring of an OH Physician/Medical Doctor • Approval of the CY2023 Audited Financial Statements • Conduct of a Vulnerability Assessment and Penetration Test (VAPT) • Updating of the PSMBFI Data Update Form (DUF) • Creation of the Committee on Election for the CY 2023 General Membership Meeting and Election • Amendment to the Policy on Signatories for Accountable Forms • Amendments to the Company Vehicle Assignment Policy • Internal Audit Plan for CY 2023 • Strategic Marketing Plan for CY 2023 • Organization of the PSMBFI Board Committees • Review of the 5-year Strategic Plan • Amendment to the CSR Policy • PSMBFI Business Continuity Plan CY 2023 • PSMBFI Operating Plan and Corporate Budget for CY 2024 • Engagement of an External Auditor for PSMBFI Financial Statement CY2023 Audit
44 Annual Report 2023 CORPORATE GOVERNANCE • Training and Continuing Education PSMBFI upholds a structured orientation program designed specifically for firsttime directors, alongside targeted seminars tailored for all directors, all geared towards enhancing Board effectiveness. The orientation program for new directors encompasses an in-depth introduction to the Association’s operations and addresses pertinent matters crucial to the Association’s success. Additionally, directors participate in corporate governance seminars to gain a deeper understanding of the advantages and implications of contemporary corporate governance best practices and to grasp the duties and responsibilities inherent within board committees.
Annual Report 2023 45 CORPORATE GOVERNANCE • Compliance with Regulatory Bodies and Laws PSMBFI adheres rigorously to the regulatory mandates set forth by the Insurance Commission (IC), the Bureau of Internal Revenue (BIR), the Securities and Exchange Commission (SEC), and the Department of Labor and Employment (DOLE) Significant strides have been taken to ensure compliance with R.A. 10173, or the Data Privacy Act of 2012. The guidelines outlined in this legislation have been meticulously implemented, with ongoing efforts to secure continuous privacy agreements from our members. Additionally, our Money Laundering and Terrorism Financing Prevention Program (MTPP) serves as a robust shield against illicit activities. Our Whistleblower Policy empowers individuals to voice concerns and ensures protection from retaliation. Furthermore, PSMBFI prioritizes employee welfare and inclusivity with policies such as the PSMBFI Breastfeeding Policy and Mental Health Policy. Commitment to environmental sustainability was demonstrated through the PSMBFI Environmental Policy and prioritized employee health with the hiring of an Occupational Health Physician/Medical Doctor. These initiatives reflect our unwavering dedication to legal compliance and fostering a workplace culture that prioritizes the well-being of all employees.
46 Annual Report 2023 PSMBFI Departments and 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 of Trustees to ensure the Association’s growth and stability and provide members with better service and more benefits. The Office of the Internal Auditor provides an independent management advisory service and evalutes the effectiveness of the internal contol system to support the fast and efficient delivery of service. The Management Services Group is responsible for handling projects and research and development initiatives outside the scope of regular research and development functions of other departments within the organization, in addition to providing necessary operational support to the company, aiding to ensure that every part of the business is able to run smoothly. The Office of the Corporate Secretary provides administrative support to the Board of Trustees and keeps all records and minutes of the meetings and ensure confidentiality. OFFICE OF THE PRESIDENT AND VICE PRESIDENTS OFFICE OF THE INTERNAL AUDITOR MANAGEMENT SERVICES GROUP OFFICE OF THE CORPORATE SECRETARY TOP MANAGEMENT AND SUPPORT OFFICES
Annual Report 2023 47 PSMBFI Departments and Offices The Administration Department provides administrative and logistical support such as procurement, fleet management and building management across all departments in order to attain the common goal of providing the best services to the members. The department also oversees the company’s real estate portfolio. They also ensure that all records and documents are adequately protected and maintained. The Information Technology Department maintains the company’s technical and operational system requirements, as well as ensures continuous development through research and efficient management of IT resources. 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 Legal Office anticipates and reduces the risk and exposure of the company from any unreasonable and unjustified claims. The Office also protects the company in all claims. It ensures that compliance requirements of the company are complied with. The Information Security Office is responsible for monitoring and ensuring safety and integrity of all business data, as well as lead the implementation of data security awareness programs among employees. 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 HUMAN RESOURCE DEPARTMENT LEGAL OFFICE INFORMATION SECURITY OFFICE CORPORATE PLANNING DEPARTMENT CORPORATE SERVICES GROUP
48 Annual Report 2023 PSMBFI Departments and Offices The Policy and Claims Management Department ensures the fulfilment of member contractual obligations and the development of insurance products. The Marketing Department focuses on promoting and communicating the services and benefits provided by PSMBFI through social media, Information and Education Campaigns (IEC), and other online and face-to-face engagements with various partner agencies. The department plays a crucial role in ensuring that the public safety practitioners are aware of the Association’s offerings and understand how they can benefit from them. 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. The Membership Services Department ensures professional and quality service assistance to PSMBFI members, and establishes proper management of members’ information. The Loans Department develops and administers viable and responsive loan products as well as processes that promote fast, efficient, accurate and customer-friendly service. POLICY AND CLAIMS MANAGEMENT DEPARTMENT MARKETING DEPARTMENT SALES AND BRANCH OPERATIONS DEPARTMENT MEMBERSHIP SERVICES DEPARTMENT LOANS DEPARTMENT OPERATIONS GROUP
Annual Report 2023 49 PSMBFI Departments and Offices The Fund and Investment Management Department manages the company’s cash flow to ensure that fund 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 books of accounts, prepares the financial statements under Philippine Financial Reporting Standards, complies with the accounting requirements of government agencies, and administers the preparation of the corporate budget. 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 Annual Report 2023 PSMBFI Departments and Offices The DepartJOLLY C. ABUNDO ADMINISTRATION DEPARTMENT AURELIO S. TADLAS, JR. INFORMATION TECHNOLOGY DEPARTMENT MILAN ROCHELLE N. BERNARDO HUMAN RESOURCE DEPARTMENT ATTY. RIZALINA V. LUMBERA LEGAL OFFICE ROMMEL D. RAMIREZ ACCOUNTING DEPARTMENT JASEL J. RABANO OFFICE OF THE INTERNAL AUDITOR MA. CIELO R. MARQUEZ CORPORATE PLANNING DEPARTMENT