As a result of the recent audit made by its internal auditors, the Fund was able to discover overpayments made in the past.
“We are discovering a little bit more,” said auditor Lilian Pangelinan referring to the ongoing complicated audit that goes as far back as 16 years ago.
Pangelinan said the Fund is in the process of issuing letters trying to recoup these overpayments.
She reported to the trustees that nine of about 100 disability annuitants had been overpaid.
Of the 14 files on surviving children with disabilities, the Fund found that only one was in full compliance.
Their audit revealed that those receiving annuities among surviving children with disability submitted insufficient reports.
There was no follow-up made to determine continuing eligibility of beneficiaries.
The Fund’s audit also revealed that alternative reports were used as “acceptable” forms in determining disability.
Trustee Adelina Roberto asked if the Fund could legally stop issuance of pensions unless otherwise they could prove they are still eligible.
Carolyn Kern said there’s a process in which the auditor makes a recommendation to the administrator.
She said when these discrepancies are found, the Fund would inform the beneficiary.
“We have to give them due process,” Kern said.
She said in the letter they would inform the beneficiary or annuitant that the Fund is taking an adverse action.
“We are stopping the pension until you provide these reports,” she said.
She said the Fund would issue a notice of suspension of benefits and the beneficiary or annuitant has 30 days to make an appeal with a hearing officer assigned to hear the appeal.
On the payment of cost of living allowance to disability annuitants, legal counsel Viola Alepuyo said, “They have to be totally or permanently disabled.”
Kern told the trustees that the Fund had a mechanism in place to check continuing eligibility for this benefit.
Kern said, “We do have a process to recertify their disability each year for the first five years and every three years after that.”
