Fund Deputy Administrator Esther Ada said: “When we processed her refund application, we based it on a clearance sheet from Finance.”
The unnamed government employee filed for an application for refund in 2009 and received her check yet continues to work for the government.
Pangelinan said the employee should have known that she was supposed to resign from government but did not do so.
“This matter was forwarded to legal counsel and is under review,” she told the board.
Fund legal counsel Carolyn M. Kern said, “The Fund made a mistake in not having a NOPA [or Notification of Personnel Action] but the employee received a check knowing she never stopped working. The employer must have known this as well.”
Kern said multiple parties were in error.
“We have 90 days in which to make the refund. We have reissued a policy about refunding and reemployment and we’re much stricter with policing,” she added.
The Fund has informed government employees about the new policy, she said.
Ada said if the employee decides to come in and retire, we are not going to account for the length of service that she withdrew.”
Legal counsel Viola Alepuyo said, “If she withdrew in 2009, she can’t be in the DB [Defined Benefit Plan] anymore.”
Villagomez said she never separated from government service.
There was no break in the contribution, Ada said.
Pangelinan also reported to the Fund board that a letter had been forwarded to the Office of the Public Auditor advising them that the Fund would not collect on travel advances based on audit report in March 2000 because of the statute of limitations.
“Based on Oct. 25 board meeting in which the trustees approved the security deposit resolution, the Fund had written to OPA to close this finding along with the travel advances OPA report. Basically the Fund had advised OPA that due to the statute of limitations, the Fund would not take action and try to collect on these travel advances.”
Pangelinan said the Fund was hopeful that OPA would close the two findings in its Dec. 31 tracking recommendation.
