State auditors have reported that Boy Scouts of the Philippines employees’ life and retirement insurance in 2013 were covered by the Social Security System (SSS), instead of the Government Service Insurance System (GSIS), which they said was contrary to the law.
In a 2013 report, the Commission on Audit (COA) pointed out that Boy Scouts of the Philippines is a public entity and is governed by the GSIS Law.
“Previously, BSP was regarded as a private entity, however, the Supreme Court of the Philippines made a decision per G.R. No. 1777131 dated June 7, 2011, making the BSP as a government-controlled corporation [GOCC] subject to government rules and procedures,” COA said.
BSP refers to Boy Scouts of the Philippines.
BSP, as a GOCC, the auditors pointed out, is governed by the GSIS Law, which provides that retirement benefits provided by the state fund shall be the only retirement program in the government service.
“In our audit of Personal Services account particularly that of personnel benefit contributions, we noted that the life and retirement insurance contributions for the employees were being paid to the SSS instead of the GSIS as the personnel were not members of GSIS,” they said.
“Interview with management disclosed that the employees were SSS members ever since BSP was created,” the state auditors added.
COA then recommended that BSP comply with the GSIS Law and pursue transfer of the life and retirement insurance coverage of its employees from the SSS to the GSIS.