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HISTORY
BEFORE THE CREATION AND ACTIVATION OF THE AFP PENSION AND GRATUITY MANAGEMENT CENTER (AFPPGMC), THE AFP TASK FORCE ON THE ENHANCEMENT OF PENSION ADMINISTRATION (TF PENSION) WAS CREATED TO CONDUCT INITIALLY A COMPREHENSIVE ANALYSIS OF THE AFP PENSION AND ADDRESS ITS DYSFUNCTION AT SOONEST TIME POSSIBLE. EFFORTS TO IMPROVE THE AFP PENSION SYSTEM, THROUGH ACTIVITIES CONDUCTED BY TF PENSION HAS MADE THE ADMINISTRATION OF THE PENSION SYSTEM IN A MUCH CONTROLLED ENVIRONMENT THAN IT USED TO BE. THE CLEANSING OF THE PAYROLL THROUGH THE ESTABLISHMENT OF THE PENSIONERS’ DATABASE AND THE PENSION SYSTEM INTERNAL CONTROL MECHANISM HAS SAVED THE GOVERNMENT MILLIONS OF PESOS. IN FACT, IT WAS THROUGH THESE EFFORTS THAT RETIREES OF CY-2001 TO CY-2003, DESPITE THE ABSENCE OF BUDGET APPROPRIATIONS, CONTINUE TO RECEIVE THEIR RESPECTIVE MONTHLY PENSIONS. HOWEVER, DESPITE THESE EFFORTS, MANAGING AND ADMINISTERING OF THE MULTI-BILLION PESO PENSION FUND IS STILL FACED WITH CHALLENGES DUE TO THE COMPLEXITIES OF HARMONIZING THE CONTRIBUTORY EFFORTS OF THE DIFFERENT OFFICES/UNITS INVOLVED IN THE PENSION SYSTEM.
A MAJOR CONCERN AFFECTING THE MANAGEMENT OF THE PENSION SYSTEM IS THE ABSENCE OF A SPECIFIC OFFICE TO MANAGE AND ADMINISTER THE PENSION FUND. UNLIKE OTHER FUNDS BEING ADMINISTERED BY AFP, PENSION FUND IS ADMINISTERED THROUGH COLLECTIVE EFFORTS OF OJ1, BCD-OTAG, AND AFP FINANCE CENTER. OJ1 IS THE DESIGNATED PROGRAM DIRECTOR FOR PENSION. IT IS ONLY RESPONSIBLE IN PLANNING FOR THE ANNUAL BUDGETARY REQUIREMENTS FOR AFP PENSION. BENEFITS CLAIMS DIVISION (BCD) OTAG IS ONLY INVOLVED IN PROCESSING AND VALIDATING OF CLAIMS, AND AFP FINANCE CENTER IS TASK TO EXECUTE THE PAYMENT OF PENSION.
DUE TO THIS SET-UP, FUNCTIONAL GAPS ARE SEEN ON THE FOLLOWING AREAS; MANAGEMENT OF FUNDS, MONITORING OF PENSIONERS, AND IMPLEMENTING NUMEROUS LAWS AFFECTS NOT ONLY THE BENEFITS TO BE GRANTED TO THE RETIREES BUT ALSO THE PUNITIVE ASPECT OF THE LAW. THESE GAPS HAVE MADE THE AFP PENSION SYSTEM VERY VULNERABLE TO FRAUD AND OTHER ANOMALIES INVOLVING NOT ONLY AFP PERSONNEL BUT ALSO THE RETIREES THEMSELVES OR THEIR RESPECTIVE BENEFICIARIES. WITH THESE SCENARIO, THE INTERNAL AUDIT, AFP IN ONE OF THEIR MEETING WITH TF PENSION, RECOMMENDED THE CREATION OF AN OFFICE OR UNIT TO ADDRESS THE NUMEROUS ADMINISTRATIVE FLAWS, WHICH THE PRESENT ORGANIZATION SET-UP CANNOT ATTEND TO SINCE THEY ARE JUST CONTRIBUTORY EFFORT IN THE ADMINISTRATION OF THE PENSION SYSTEM. THERE IS NO SPECIFIC UNIT OR OFFICE THAT CAN BE HELD LIABLE FOR THE NON-PAYMENT OR UNAUTHORIZED PAYMENT OF PENSION TO A RETIREE OR PENSIONER.
THE TF PENSION, AFTER A SERIES OF MEETINGS AND CONSULTATION WITH CONCERNED UNITS, PROPOSES THE CREATION OF THE AFP PENSION AND GRATUITY MANAGEMENT CENTER (AFPPGMC) THAT WILL BE SOLELY RESPONSIBLE IN THE MANAGEMENT AND ADMINISTRATION OF THE AFP PENSION FUNDS. THIS UNIT SHALL FILL-IN THE ORGANIZATIONAL AND FUNCTIONAL GAPS THAT EXIST IN THE CURRENT SYSTEM. THE PROPOSED CENTER WILL INTEGRATE THE PRESENT PENSION ADMINISTRATION FUNCTIONS OF BCD-OTAG AND AFP FINANCE CENTER TO INCLUDE OTHER FUNCTIONS THAT ARE CRITICAL IN PENSION ADMINISTRATION. THIS UNIT SHALL BE UNDER THE FUNCTIONAL SUPERVISION OF OJ1 AND WILL HAVE OVERSIGHT FUNCTIONS ON ALL THE PENSION AND GRATUITY ADMINISTRATION BRANCHES IN THE MAJOR SERVICES. THE PROPOSED PENSION AND GRATUITY MANAGEMENT CENTER WILL BE INFORMATION TECHNOLOGY-BASED THAT SHALL SIMPLIFY THE BUSINESS PROCESSESS OF PENSION MANAGEMENT BUT INSTILL AN EFFECTIVE AUDITING AND MONITORING SYSTEM.
THUS, BY VIRTUE OF GENERAL ORDERS NUMBER 1259, GHQ, AFP DTD 17 OCTOBER 2005, THE ARMED FORCES OF THE PHILIPPINES PENSION AND GRATUITY MANAGEMENT CENTER WAS ACTIVATED EFFECTIVE 16 OCTOBER 2005. FROM THEREON, THE CHALLENGE BEGINS.
