CORPORATE GOVERNANCE SCORECARD REPORT – A

Name of GOCC: PHILIPPINE RETIREMENT AUTHORITY

Sector: TRADE, AREA DEVELOPMENT AND TOURISM SECTOR

Date Submitted: 01 APRIL 2022

Year being assessed: CY 2021

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 35, Communication Policy, of PRA Manual of Corporate Governance. Y  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 35, Communication Policy, of PRA Manual of Corporate Governance. Y  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 State of the Nation Updates to the Department of Tourism, the PRA submitted its accomplishments which included a COVID 19 Response Program. Y SONA 2021 Report to the Department of Tourism
2.b Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Interaction with the communities) For CY 2020, the PRA established a mitigation program to address the Pandemic’s “New Normal” setting and to align with the IATF/WHO protocols Y  SONA 2021 Report to the Department of Tourism
2.c Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Environmentally-friendly value chain) There was 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) statements that can be referred to its corporate website but no CSR activities.  Y Corporate Governance:
IV-H. PRA Corporate Social Responsibility (CSR) Statement)
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 and are also included in the posted PRetA Annual Reports. Y About PRA – Directory’ in the website’s homepage:

Transparency Seal:
I-B. Directory of Key Officials
III. 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. N 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 2021 but relatedly, the PRA had an “Administrative Support
Response to COVID-19 Crisis” published in its 2020 Annual Report. It is a continuing program.		 Y  2020 Annual Report
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 Division. Y Training Calendar-In House

Training Calendar-Offsite
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

Training Calendar-Offsite
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.) are highlighted in the sections of its Annual Report and in its Performance Scorecard with specific performance indicator under the Finacial 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
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
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 Not yet. PRetA to seek consent of appointive members first, before posting/disclosing their biographical data N  
7.f Does the GOCC’s website disclose the following items: Training and/or continuing education programme attended by each director/commissioner The data was not published yet. N  
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? There was no statement yet. 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, are being reviewed and approved by the PRetA’s Board of Trustees for submission to the GCG. However for 2021, PRetA submitted the PES proposal to the GCG as endorsed by its General Manager, which is also allowed by the GCG Circular 2017-02. Y Board Approved Recalibrated PES for FY 2020
11.b Does the Board of Directors monitor/oversee the implementation of the corporate strategy? The PRetA’s Board of Trustees (BOT) approves the corporate objectives and strategies of the Agency. PRetA acquaints/informs the BOT of the status of implementation of strategies through the conduct of Board meetings and transmittal of correspondences. Y II-D. Attendance Records of PRA Board of Trustees
13.a Are the details of the code of ethics or conduct disclosed? PReTA’s Manual of Corporate Governance under Section 26 explicitly addresses that the directors/Board of Trusteee must comply with “all legal provisions, rules and regulations and coprorate governance standards”

This is stated in the Code of Conduct published May, 2010		 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? PReTA’s Manual of Corporate Governance under Section 26 explicitly addresses that the directors/Board of Trusteee must comply with “all legal provisions, rules and regulations and coprorate governance standards”

This is stated in the Code of Conduct published May, 2010		 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 PRetA Code of Conduct is posted on the website Y PRA Code of Conduct
14 Does the Board appoint a Nomination Compensation / Remuneration Committee? None yet. N  
15 Did the Nomination Compensation/Remuneration Committee meet at least twice during the year? Data is not published as there is no Nomination Compensation /Renumeration Committee N  
16 If yes, is the report of the Nomination Compensation/Remuneration Committee publicly disclosed? None yet. N  
17 Does the Board appoint an Audit Committee? The names of members of the Audit Committee are disclosed through the Board Resolution No. 20, series of 2019, “Approval of the Selection of the Members of the Board Audit Committee.” Y Corporate Governance:
II-C. PRA Board Committee(s) and Activities
18 If yes, is the report of the Audit Committee publicly disclosed? Minutes of the meeting is not published, however, date of meeting and attendees to regular committee meetings are posted in the corporate website of PRetA. N Corporate Governance:
II-C. PRA Board Committee(s) and Activities
19 Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? PRA BOT member HON. MARIA ALMASARA CYD N. TUAÑO-AMADOR is Deputy Governor, Resource Management Sector and Security Bangko Sentral ng Pilipinas (BSP) and member of the Audit Committee Y Directory
and
Board Resolution No. 20 Series of 2019
20 Did the Audit Committee meet at least four times during the year? The Audit Committee convened twice in the year 2021.

The attendance records of the committee members to regular committee meetings are posted in the corporate website of PRetA.		 N Corporate Governance:
II-C. PRA Board Committee(s) and Activities
21 Does the Board appoint a Risk Management Committee? None yet. N  
22 If yes, is the report on Risk Management Committee publicly disclosed? None yet. N  
23 Does at least one member of the Risk Management Committee have a background in finance and investments? None yet. N  
24.a Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) None yet N  
24.b Does the Board of Directors meet at least monthly? The PRetA Board of Trustees meet as the need arises, subject to the submission of a request Memorandum from the PRA proponent or upon the directive of the Board. Y Corporate Governance:
II-D. Attendance Records of PRA Board of Trustees
24.c Did the Board of Directors meet on at least 75% on their scheduled meetings? The PRetA Board of Trustees meet as the need arises, subject to the submission of a request Memorandum from the PRA proponent or upon the directive of the Board. Y Corporate Governance:
II-D. Attendance Records of 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 PRetA Board of Trustees meet as the urgent need arises. The number of Board Meetings held is disclosed in the PRetA’s corporate website. Y Corporate Governance:
II-D. Attendance Records of PRA Board of Trustees
24.e Did the Board of Directors meet separately at least once during the year without the President/CEO present? Board of Directors which composes the Audit Committee meets/convenes without the President/CEO. Y Corporate Governance:
II-D. Attendance Records of PRA Board of Trustees
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 written policy/guideline on this, however, as requested by the Board and as practiced, materials are transmitted to the Board atleast 3 working days prior to the scheduled Board meeting. N  
25.b Is the Board Secretary trained in legal, accountancy or company secretarial practices? The Board/Corporate Secretary holds a Bachelor of Laws Degree Y  
26.a Does the company have a separate internal audit function? The PRetA has its own Internal Audit Division. Y GCG Memorandum Order 2013-34, Rationalization of the Philippine Retirement Authority; GCG’s transmittal letter dated 11
October 2013.
26.b Does the appointment and removal of the internal auditor require the recommendation of the Audit Committee? None yet N  
27.a Does the company disclose the internal control procedures/risk management systems it has in place? None yet N  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 2021 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 2020		 Y
FY 2020 Annual Audit Report Page 36
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 2020 Audited Financial Report		 Y 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 2020 Audited Financial Report		 Y Corporate Governance:
III. On Financial and Operational Matters A. PRA Annual Financial Reports
28 Do different persons assume the roles of Chairman and CEO? The Chairman of the PRetA Board of Trustees is the Secretary of the Department of Tourism (DOT), while the PRetA CEO/General Manager is the Vice-Chariman of the PRetA Board of Trustees. Y  Tourism Act of 2009, Section 30

Philippine Retirement Authority Manual of Corporate Governance Section 9, Composition of the Board of Trustees
29.a Does the GOCC have orientation programs for new Directors? Briefings are conducted for new Directors, wherein the background of the GOCC, its programs and powers and responsibilities of the Board are presented and discussed. Y

Corporate Governance:
II-D. Attendance Records of PRA Board of Trustee
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? None yet. N  
30.a Is an annual performance assessment conducted of the Board of Directors? There was no actual assessment being done in 2021. 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 the Section 18 of PRetA Manual 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 the Section 18 of the PretA Manual of Corporate Governance Y Corporate Governance:
Art 3.Sec 18. PRA Manual of Corporate Governance
31 Is an annual performance assessment conducted of the Board of Directors Committees? None yet N