IC lifts teachers’ group conservatorship status

MANILA, Philippines — The largest professional association of public school teachers in the country has exited the conservatorship of the Insurance Commission (IC) after 17 years.

Commissioner Dennis Funa has lifted the conservatorship status of the Philippine Public School Teachers Association (PPSTA) following its compliance with the minimum guaranty fund and risk based capital (RBC) ratio requirements.

Established in 1947, the PPSTA has more than 200,000 teacher-members under the employ of the Department of Education, including administrators, supervisors, classroom teachers and non-teaching support personnel.

It serves as a financial security provider for Filipino public school teachers through its retirement, life insurance and loan programs.

The PPSTA was placed under conservatorship in April 2005 due to its insurance reserve deficiencies.

It was deemed compliant with the minimum guaranty fund requirement of P12.5 million and its RBC ratio of 402 percent.

From a negative RBC ratio of 24 percent in 2013, the association’s RBC ratio grew to 402 percent in 2020, which is more than triple the required minimum RBC ratio of 125 percent.

From a total members equity of negative P115.77 million as of 2013, this has now amounted to P2.57 billion.

According to IC verification, the PPSTA has total assets worth P7.02 billion and liabilities at P4.46 billion, leaving a total members equity of P2.57 billion.

“Upon its exit from conservatorship, IC will be monitoring PPSTA’s observance of the Code of Corporate Governance for Insurance Commission Regulated Companies (CCG-ICRC) and the implementation of its digitalization program and its rationalization plan,” Funa said.

The CCG-ICRC was adopted in 2020 and intended to raise the corporate governance standards of the IC’s regulated entities to a level at par with its regional and global counterparts.

Meanwhile, PPSTA’s digitalization program aims to improve its operational efficiency through the acquisition of new information technology equipment, systems migration, strengthening of IT security and the IT training of its personnel.

Its rationalization plan, on the other hand, aims to improve the efficiency of services to its teacher-members.