By Lee C. Chipongian
The Bangko Sentral ng Pilipinas (BSP) has approved a new insurance package for retiring high-ranking officials such as the governor and the members of the Monetary Board (MB).
Approved recently, the Monetary Board resolution stated that the sitting governor of the BSP will be insured at P5 million upon retirement while Monetary Board members will be insured at P3 million.
The deputy governors – currently there are three – will also be insured at P3 million when they retire from the central bank.
Sources said the BSP will be looking for outside insurance providers for the P5 million and P30-million coverage.
All BSP employees, as with all government workers, are covered by the Government Service Insurance System or GSIS for retirement benefits. BSP employees – which number over 5,000 – are also entitled to benefits from the BSP Provident Fund for their retirement funding and have group life term insurance in case of death. Funding for the BSP Provident Fund comes from both employees’ and BSP contributions.
The BSP will be paying for the premium of the P5 million for the governor and P3-million coverage for the six Monetary Board members, based on documents.
All covered BSP employees will be automatically enrolled annually for five years for insurance coverage, according to same documents. The BSP governor and Monetary Board members are entitled to the insurance until the age of 70 years old for five years after retirement.
It was also approved that “payments for the annual premiums will be taken from the proposed additional bank shares to the BSP Provident Fund.” However, in cases wherein the additional bank shares are not sufficient to cover the annual premiums, “the employee may opt to pay the deficiency directly to HMO provider or request the lower (coverage) or discontinue his/her coverage.”
Bank shares refer to shares or funds to be provided by the BSP.
The BSP is also maintaining a self-insurance fund of almost P4 billion. This is mostly coverage for some P7.5 billion worth of BSP properties and some assets. This assessment was made in 2012. BSP properties include buildings and machineries, and the contents of these buildings. The fund will not cover paintings, antiquities and other artworks inside BSP buildings which reportedly, is worth more than P500 million.
The BSP also has a P2-billion self-assurance fund called the directors and officers liability insurance or DOLI.
The DOLI – also called the “anti-lawsuit fund” – and GSIS funds are readily available resources that BSP officials can claim in the event of legal entanglements from the exercise of their supervisory authority. The DOLI was created in 2005 with an initial budget of P500 million.