To : CEAP Retirement Plan Participating Employer
From : Sister Lioba Tiamson, OSB
Date: March 5, 2009
Re : Voluntary Contributions to the CEAP Retirement Fund
In the midst of the prevailing global financial crisis, the CEAP Retirement Commission invites your academic and non-academic employees, who are active participants of the CEAP Retirement Plan, to participate in a pro-active savings program within the Fund. The twin objectives of this savings program is to promote the value of savings and as a mechanism to complement whatever benefits they will receive from the Plan upon separation or retirement.
As provided for in the Plan, your employee may, at his option, elect to contribute monthly to the Fund an amount equal to not more than 4% of his current monthly basic salary, provided that the option, once exercised, will serve as a continuing authority for the Participating Employer to deduct every month thereafter and that these contributions shall only be subject to withdrawal upon the termination of employee’s participation in the Plan.
The advantages to your employees are 2-fold: first, their contributions will have the same rate of return as the main corpus of the Fund; second, the income of their contributions will not be subject to the 20% withholding tax, for as long as the amounts are within the Fund. The net benefit is a better growth rate for their savings.
Presently, some 14,000 of the Plan’s 35,000 partcipants from the 200 + Participating Employers have opted to voluntarily contribute to the Fund which now stands at Php 550 million. The current members who have opted to avail of this “Employee Voluntary Contribution” are expressing their sincere gratitude and are looking forward to a better and comfortable life at retirement from the option given. The employees can choose from 1% to 4% of their basic monthly salary as voluntary contributions. Interested employees can approach the respective Business Offices of their Participating Employers and secure CEAP Retirement Form No. 10.
Should you have any queries on the matter, please do not hesitate to contact the CEAP Retirement Plan Office and look for Mr. Renato Maria L. Aseneta – Director or Ms. Filomena M. Amores – Administrative Assistant.
Thank you for your continued patronage of the CEAP Retirement Program.
(SGD) Sister Lioba Tiamson, OSB
