CORPORATE GOVERNANCE SCORECARD REPORT – A

Name of GOCC: PHILIPPINE RETIREMENT AUTHORITY

Sector: TRADE, AREA DEVELOPMENT AND TOURISM SECTOR

Date Submitted: Wednesday, March 27, 2024

Year being assessed: CY 2023

COMPONENT GOCC SUBMISSION

I. Stakeholder Relationship

ITEM QUESTION COMPLIANCE ANS REFERENCE LINK/SUPPORTING DOCUMENTS
1.a Does the GOCC disclose a policy that: Stipulates the existence and scope of its effort to address customer’s welfare?

The stakeholders of PRetA are identified in its Quality Management System (QMS) Manual posted in its corporate website.The QMS Manual includes a Stakeholder Mapping Matrix which indicates that PRetA identifies and determines through various means, the needs/requirements of each all its stakeholders, which are treated as valuable inputs to the review, formulation, and/or enhancement of programs, activities and projects (PAP), action plans, strategic initiatives, relevant policies and system development of PRA.

Further, there were provisions under Sections 3 (a) to 3 (d) of Article II of PRetA Manual of Corporate Governance concerning welfare of its stakeholders.

Y Transparency Seal:
IX-C. Quality Management System (QMS) Manual



Corporate Governance:
IV-E. PRA Manual of Corporate Governance

1.b Does the GOCC disclose a policy that: Elaborates its efforts to interact with the communities in which they operate? There was no separate policy yet. However, may refer to the provisions of Sections 34 and 35, Communication Policy, of the PRA Manual of Corporate Governance. Corporate Governance:
IV-E. PRA Manual of Corporate Governance
1.c Does the GOCC disclose a policy that: Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? There was no separate policy yet. However, may refer to the provisions of Sections 34 and 35, Communication Policy, of the PRA Manual of Corporate Governance. Corporate Governance:
IV-E. PRA
Manual of Corporate Governance
2.a Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Customer health and safety) In the PRA E-newsletter Volume 7 issue No. 3 August -September 2023 the PRA offered a Health Care Facilities to its members from one of our Industry Partners. Y PRA E-News Letter Vol. 6 Issue 1 March 2022
2.b Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Interaction with the communities) In the fourth quarter narrative report submitted to the Department of Tourism, PRA was able to disclose related activities to Interaction with the communities like the Social Integration Program of the SRRV holders. Y

PRA Narrative Report as of Fourth Quarter of 2023

2.c Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Environmentally-friendly value chain) None yet N  
3 Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section? The PRetA has a Corporate Social Responsibility (CSR) statement that can be referred to its corporate website. On the other hand, for the CSR activities, please refer to the FY 2023 narrative report submitted to the Department of Tourism as of the fourth quarter.  Y

IV-H. PRA Corporate Social Responsibility (CSR) Statement)

PRA Narrative Report as of Fourth Quarter of 2023.

4 Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights. Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights? The contact details of the PRetA officers are indicated in the PRetA corporate website, i.e. Directory and Contact Us page and are also included in the posted PRetA Annual Reports. Y

Contact Us Page

Transparency Seal: I-B. Directory of Key OfficialsIII. PRA Annual Reports

Corporate Governance:III-C.PRA Annual Reports

 

5.a Performance-enhancing mechanisms for employee participation should be permitted to develop. Does the GOCC explicitly mention the health, safety and welfare policy for its employees? There was no separate policy yet, however, may refer to the provisions of Article VII, Section 34 of PRA Manual of Corporate Governance. Y

Corporate Governance: IV-E. PRA Manual of Corporate Governance

5.b Does the GOCC publish data relating to health, safety and welfare of its employees? There was no separate published data on the topic for 2023 but relatedly, the PRetA thru its Administrative Support Division has continuing COVID-19 response activities. In 2024, the Administrative Support Division has included Workplace Wellness Activities in its 2024 Proposed Operational Plan and Budget. N  
5.c Does the GOCC have training and development programmers for its employees? There are training and development programs being undertaken for PRetA’s employees through its Administrative Support Divisio Y

Training Calendar – In House

5.d Does the GOCC publish data on training and development programmes for its employees? There are training and development programs being undertaken for PRetA’s employees through its Administrative Support Division Y

Training Calendar – In House

6.a Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior? The PRetA has a Whistleblowing Policy approved by its Board of Trustees in 2017. Y Corporate Governance:
IV-G. PRA Whistleblowing Policy
6.b Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? The procedures on the protection of a whistleblower from retaliation are stated in the approved Whistleblowing Policy. Y Corporate Governance:
IV-G. PRA Whistleblowing Policy

II. Disclosure and Transparency

ITEM QUESTION COMPLIANCE ANS REFERENCE LINK/SUPPORTING DOCUMENTS
7.a Does the GOCC’s website disclose the following items: Corporate objectives The corporate objectives are the strategic objectives indicated in the Performance Scorecard of PRetA posted in its corporate website. Y Transparency Seal:
V-A. GCG-Approved Performance Scorecards
V-B. GCG-Validated Performance Scorecards


Corporate Governance: III-I. PRA Performance Evaluation System(PES)
IV.C-PRA Performance Scorecards
7.b Does the GOCC’s website disclose the following items: Financial performance indicators The PRetA Financial Performance (e.g. revenue, net operating income, dividends, etc.) is highlighted in the sections of its Annual Report and its Performance Scorecard with specific performance indicators under the financial perspective. Also, the COA Audited Reports are included in the PRetA Annual Reports. Y

Transparency Seal:
II. PRA Annual Financial Reports
III. PRA Annual Reports



Corporate Governance:
III. On Financial and Operational Matters
A. PRA Annual Financial Reports
B. PRA Annual Audited Financial Statements
C. PRA Annual Reports

IV-C. PRA Performance Scorecards

7.c Does the GOCC’s website disclose the following items: Non-financial performance indicators The PRetA non-financial performance/ accomplishments (e.g. SRRV enrollment, after-enrollment services rendered, industry partners accreditation, etc.) are highlighted in the sections of its Annual Report. Y

Transparency Seal:
III. PRA Annual Reports


Corporate Governance:
III-C. PRA Annual Reports

Transparency Seal: V.A.2. 2022 Approved Performance Scorecard

Corporate Governance: III.I.2. 2022 Approved PES

7.d Does the GOCC’s website disclose the following items: Details of whistle-blowing policy The procedures on the whistleblowing policy for PRetA’s stakeholders are cited in the approved Policy. Y Corporate Governance:
IV-G. PRA Whistleblowing Policy
7.e Does the GOCC’s website disclose the following items: Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners Details as disclosed and submitted by the Board/Trustees are provided in the PRetA website   Corporate Governance: II. A. List of PRA Board of Trustees with attached Data Sheets
7.f Does the GOCC’s website disclose the following items: Training and/or continuing education programme attended by each director/commissioner Y Corporate Governance: II. A. List of PRA Board of Trustees with attached Data Sheets
9 Does the GOCC’s website contain a statement confirming the company’s full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each such issue? The PRA has not established any other recommended Board Committees aside from the Audit Committee. This is because considering the size of the Governing Board which is composed of only five (5) trustees including the Chairperson and the Vice-Chairperson, it is deemed more practical that matters to be acted upon by the committees be taken into the full Board meeting. N  

III. Board Responsibility

ITEM QUESTION COMPLIANCE ANS REFERENCE LINK/SUPPORTING DOCUMENTS
11.a Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year? The Annual Performance Evaluation System (PES) Documentary Requirements of the PRetA, including the Vision-Mission Statements and details of the performance targets for 2023 were reviewed and approved by the GCG and PRA Management during the Performance Target Conference (PTC) held last 09 March 2023. The Management-approved Charter statement which includes the mission and vision can be submitted in absence of a Board quorum. No quorum yet after national election. Awaiting appointment of ex-officio members of the Board at the time the PES was due for submission N

 

11.b Does the Board of Directors monitor/oversee the implementation of the corporate strategy? The Board was not able to monitor/oversee the implementation of Preta’s corporate strategy. N  
13.a Are the details of the code of ethics or conduct disclosed? The details are covered by the Duties and Obligations of Trustees under PRetA’s Revised Manual of Corporate Governance which is provide in the PRetA website. Y

Corporate Governance:
IV-E. PRA Manual of Corporate Governance

13.b Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? The details are covered by the Duties and Obligations of Trustees under PRetA’s Revised Manual of Corporate Governance which is provide in the PRetA website. Y

Corporate Governance:
IV-E. PRA Manual of Corporate Governance

13.c Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? The PRA Code of Conduct is posted on the website Y PRA Code of Conduct
14 Does the Board appoint a Nomination Compensation / Remuneration Committee? This is not disclosed. Considering that the PRetA Board of Trustees are Ex-Officio members of the Board who are not entiled to any additional compensation, the Board does not appoint a Nomination Compensation / Remuneration Committee. N

 

15 Did the Nomination Compensation/Remuneration Committee meet at least twice during the year? Data is not published because the is no Nomination Compensation/Remuneration Committee. N  
16 If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed? There is no report because the is no Nomination Compensation/Renumeration Committee. N  
17 Does the Board appoint an Audit Committee? The names of all members of the Audit Committee and their Alternates are disclosed in the PRetA website, Y CY 2024 BAC 
18 If yes, is the report of the Audit Committee publicly disclosed? Minutes of the meeting and Reoslutions of the Audit Committee are not published. However, date of meeting and attendees are posted in the PRetA website. N CY 2023 BAC 
19 Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? The Governor of the Bangko Sentral Pilipinas (BSP) or his Alternate is a member of the Audit Committee. The current BSP Governor is a certified public accountant. Y

CY 2024 BAC 

20 Did the Audit Committee meet at least four times during the year? The Audit Committee met only once for the year 2023. N CY 2023 BAC 
21 Does the Board appoint a Risk Management Committee? The PRA did not appoint a Risk Management Committe. This is because considering the size of the Governing Board which is composed of only five (5) trustees including the Chairperson and the Vice-Chairperson, it is deemed more practical that matters to be acted upon by the committees be taken into the full Board meeting. N  
22 If yes, is the report on Risk Management Committee publicly disclosed? This is not disclosed because there is no Risk Management Committee. N  
23 Does at least one member of the Risk Management Committee have a background in finance and investments?

This is not disclosed because there is no Risk Management Committee.

N  
24.a Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) Board Meetings are requested to be scheduled at the first quarter of the year. However, confirmed schedule is dependent on the availability of the Board of Trustees to meet a quorum. The first Board Meeting was scheduled on 20 March 2023. Y  
24.b Does the Board of Directors meet at least monthly? The Board of Trustees meet as the need arises, subject to the submissions of the proponents of matters for the Board’s action or upon directive of the Board. Y Corporate Governance: II-D Attendance and Records of the PRA Board of Trustees
24.c Did the Board of Directors meet on at least 75% on their scheduled meetings? The Board of Trustees meet as the need arises, subject to the submissions of the proponents of matters for the Board’s action or upon directive of the Board. Y Corporate Governance: II-D Attendance and Records of the PRA Board of Trustees
24.d Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? The Board of Trustees meet as the need arises. The number of Board Meetings held are disclosed in the PRetA website, Y Corporate Governance: II-D Attendance and Records of the PRA Board of Trustees
24.e Did the Board of Directors meet separately at least once during the year without the President/CEO present? The CEO of the GOCC is the Ex-Officio Vice-Chairperson of PRetA’s Board of Trustees. N  
25.a Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting? No wriiten policy/guidelines on this. However, as requested by the Board and as practiced, materials are transmitted to the Board at least three (3) working days prior to the scheduled Board Meeting. N  
25.b Is the Board Secretary trained in legal, accountancy or company secretarial practices? Atty. Reyna Mae C. Directo-Cabangon, is a Bar passer and a member of the Integrated Bar of the Philippines. Y  
26.a Does the company have a separate internal audit function? The Internal Audit Division of the PRetA was created upon the issuance of GCG Memorandum Order No. 2013-34, Rationalization of the Philippine Retirement Authority. Y Approved Staffing Pattern
26.b Does the appointment and removal of the internal auditor require the recommendation of the Audit Committee? No.The Internal Auditor is a plantilla position under the PRetA Organizational Chart. N Approved Staffing Pattern
27.a Does the company disclose the internal control procedures/risk management systems it has in place? Yes, as posted on the PRA website Y Corporate Governance III. H. PRA Material Risk Factors and Measures Taken to Manage the Risks
27.b Does the Annual Report disclose that the board of directors/commissioners has conducted a review of the company’s material controls (including operational, financial and compliance controls) and risk management systems?
The 2023 PRA Financial Report is still undergoing COA audit and has not yet been published to date.
 
This disclosure requirement, however, is already included in the PRA Annual Audit Report for FY 2022
Y

Transparency Seal II. A. Annual Audit Report (Page 34)

Corporate Governance III. A. Annual Audit Report (Page 34)

27.c Does the company disclose how key risks are managed? As stated in the RISK MANAGEMENT OBJECTIVES AND POLICIES
4.1. Risk Management Framework of the 2022 Audited Financial Report and the PRA Material Risk Factors and Measures Taken to Manage the Risks.
Y

Transparency Seal: II. A. 2022 Annual Audit Report

Transparency Seal: III. A. 2022 Annual Report

Corporate Governance: III. On Financial and Operational Matters A. PRA Annual Financial Reports B. PRA Annual Audited Financial Statements C. PRA Annual Reports

27.d Does the Annual Report contain a statement from the Board of Directors or Audit Committee commenting on the adequacy of the GOCC’s internal controls/risk management systems? As stated in the RISK MANAGEMENT OBJECTIVES AND POLICIES
4.1. Risk Management Framework of the 2022 Audited Financial Report and the PRA Material Risk Factors and Measures Taken to Manage the Risks.
Y

Transparency Seal: II. A. 2022 Annual Audit Report

Transparency Seal: III. A. 2022 Annual Report

Corporate Governance: III. On Financial and Operational Matters A. PRA Annual Financial ReportsB. PRA Annual Audited Financial StatementsC. PRA Annual Reports

28 Do different persons assume the roles of Chairman and CEO? The Chairman of the of the Board of Trustees is the Secretary of Tourism, while the PRetA CEO is the Vice-Chairman of the Board of Trustees. The list of PRetA’s Board is provided in the PRetA website. Y Board of Trustees with attached Data Sheets
29.a Does the GOCC have orientation programs for new Directors? Briefings are conducted for new Trustees, whrein the background of the GOCC and the powers and responsibilities of the Board are presented. However for the year 2023 the briefing was only done with the newly appointed General Manager, Cynthia L. Carrion, during the orientation/discussion conducted by all the PRetA Divisions and Units. Y

 

29.b Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programs? None yet. N  
29.c Did all Appointive Directors attend at least 1 training for the calendar year? The only appointive director of the PRetA Board is the Vice-Chairperson, which is the the appointed General Manager/CEO of the PRtetA. The previous General Manager/CEO, Atty. Bienvenido K. Chy, attended the Mandatory Continuing Legal Education. Y  
30.a Is an annual performance assessment conducted of the Board of Directors? The was no actual assessment done in the year 2023. N  
30.b Does the GOCC disclose the process followed in conducting the Board assessment? The processes involved in undertaking the Board Appraisal are indicated in Section 18 of PRetA Mnual of Corporate Governance. Y Corporate Governance:
IV-E. PRA Manual of Corporate Governance
30.c Does the GOCC disclose the criteria used in the Board assessment? The criteria for assessment are provided in Section 18 of the PRetA Manual of Corporate Governance. Y Corporate Governance:
IV-E. PRA Manual of Corporate Governance
31 Is an annual performance assessment conducted of the Board of Directors Committees? None yet. N