P18B in contributions not credited to SSS, GSIS, AFP-RSBS members
MANILA, Philippines – Six state-run pension funds and housing agencies have not credited P18.188 billion in collections to the accounts of its members and borrowes who contributed and paid loan amortizations in 2015, the Commission on Audit (COA) reported.
The 2015 Annual Financial Report on Government-Owned or Controlled Corporations (GOCCs) – released on October 24 – noted the Social Security System (SSS) had P9.939 billion in what it called "undistributed collections." These were made up of members' premiums and borrowers' loan payments.
Also having uncredit collections in the billions are the Armed Forces of the Philippines-Retirement and Separation Benefits System (AFP-RSBS) with P4.914 billion and Government Service Insurance System (GSIS) with P2.697 billion.
The COA also listed the following government financial institutions:
- Social Housing Finance Corporation – P372.626 million;
- Home Development Mutual Fund (HDMF or PagIBIG Fund) – P264.132 million; and
- Small Business Corporation (SBC) – P1.807 million
The auditors in the report said despite having the amounts in hand, the GOCCs did not declare these in the statements of assets, understating the accounts and bloating their declared liabilities.
The COA warned that such delays in crediting colections to the accounts of members or borrowers could present those accounts with lower entitlement computations or double collections. Said the COA, “(T)he collections of premiums and loans (that) have not been posted to the individual member’s accounts affect the accuracy and correctness of presentation of members’/pensioners’ data …ultimately delaying the processing of benefits of members/pensioners."
In the case of the GSIS, COA also said members could be affected by lesser loan proceeds. This is due to unposted loan payments even if the members are have been paying consistently through salary deductions. “The failure of the GSIS to post accurately and timely the payments should not redound to the members’ benefits, hence, refund for any reconciled/posted payments should be automatically made,” the COA added.
Based on the Policy and Procedural Guidelines No. 265-14 dated September 30, 2014, it is the members who are required to begin the refund procedures. State auditors, however, have said such procedures are unlikely because they may be unaware that their payments were not properly accounted.
With regard to the HDMF, auditors meanwhile explained delays are considered violations of the Accounting Memorandum Order Nos. 2009-002 and 2014-003. Proper reclassification of undistributed collections must be done within 15 days.
“(A) Member paying amortization will not benefit from this since his loan balance will not reflect immediately the correct/actual loan balance due to the delayed posting…(and) deprives members from accumulation of dividends from the time the payment or remittance should have been posted,” the COA explained. – Rappler.com