The Government Service Insurance System (GSIS) and Accountancy Profession join the ranks of the 12 inaugural institutions named by the Institute for Solidarity in Asia (ISA) as ‘Islands of Good Governance’ (IGG).
Bouncing back from a questionable reputation that triggered employee rallies and member complaints, GSIS set a new 2022 vision to become a “premier pension fund institution and a world-class centre for member-service.” Under management of President and General Manager Robert Vergara, the institution vowed to become transparent, consultative, and member-focused, soon yielding quick wins by improving not only service mechanisms but also relationships with employees, members, and other stakeholders. Reforms to date include improved policies on entitlement to the survivorship pension, removal of the Annual Renewal of Active Status (ARAS), and increased posting and collecting efficiency.
With policy revisions done in 2010, employed surviving spouses and family members are now able to receive pension from the institution. Previously, people who could receive the pension were those with dependent children or unemployed beneficiaries of GSIS members. Over 6,000 surviving spouses whose pensions were cut off in 2009 benefited from this revised policy. The institution also allowed the survivorship claim if beneficiaries had initially applied for the funeral or death benefit.
Since the removal of ARAS, 400,000 old-age and disabled pensioners no longer had to visit any GSIS branch office to renew their status. Instead, the institution decided to partner with the Philippine Statistics Authority (previously known as the National Statistics Office) to be updated on their pensioners. This excluded those overseas (who were not covered by the jurisdiction) and those residing in the Autonomous Region in Muslim Mindanao (ARMM) (due to the Muslim belief that the deceased must be laid to rest within 24 hours). GSIS pensioners and members residing in ARMM, however, could visit the 21 GSIS-deployed kiosks for their transactions. GSIS also collaborated with the Philippine Postal Corporation (PhilPost) so pensioners aged 80 years and above could be checked on at random.
Posting and collection of payments also improved dramatically. The accuracy of posting the premium and loan remittances resulted to a 96.5% efficiency in 2015 (from 87% in 2011 and 2012) and the decrease in erroneously posted or un-posted payments meant a drop to Php 2.7 billion from over 30 billion. All these were due to the institution’s initiatives to update members’ accounts, the establishment of a Reconciliation Task Force (to decrease system flaws), and continuous payment settlements of several agencies’ due accounts.
Vergara himself presented these reforms before a panel in a public revalida held Tuesday, March 29, 2016 at the Asian Institute of Management (AIM).
The Accountancy Profession continues to work with the Professional Regulation Commission to implement the Code of Good Governance for Professions. Reporting on its reform strategy in a public revalida, Philippine Institute of Certified Public Accountants (PICPA) Vice President for Operations Dr. Cesar Mansibang shared the Profession’s successes in raising the bar on professional excellence, international image and reputation, leadership, and organisational engagement—all of which could be attributed to volunteerism and collaboration.
Moving forward the Accountancy Profession is committed to their 2022 vision as a “dynamic force towards national prosperity and excellence with a global perspective” and supporting it through their mission of implementing the Code of Good Governance for the Professions and upholding their role as front-liners in national economic growth and development.
Of note is their inclusion in the World Trade Organization’s (WTO) policy of liberalization of services. This meant they were one of the first Philippine professions to freely compete on a global scale and have established partnerships with international accounting firms that provided them with opportunities for continuous professional development.
Another success was adoption of the international financial reporting standards (IFRS), International Standards on Auditing (ISA), and professional ethics. Philippine CPAs rose in terms of global competitiveness, accountability, and transparency and garnered an improved credit rating in the international market.
The Accountancy Profession is made up of several organizations covered by defined practice areas: education, public practice, commerce and industry, and government sectors. The profession’s primus inter pares (“first among equals”) is PICPA, a “registered accredited professional organization” regulated by the Board of Accountancy (BOA). The integration of these sectors encourages volunteerism through the selection of leadership and structures. This also promotes the contribution of members to the Profession’s strategy. For the past decade, this democratic and consensual arrangement has worked for the profession and assures commitment to the cause.
The Islands of Good Governance (IGG) is ISA’s official recognition program for milestone achievements in using the Performance Governance System (PGS), given based on institution-wide use of effective governance mechanisms to improve public service delivery or create new economic growth initiatives. IGG honours public sector institutions as exemplars of reform and beacons of hope, lighting the way for many others to follow.
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