Amended CEAP Retirement Plan Approved

Section 2.

Catholic Educational Association of the Philippines Retirement Plan (Amended as of February 20, 2009) Article I Creation and Effectivity
Section 1.	Title This Plan shall be known as the “Catholic Educational Association of the Philippines (CEAP) Retirement Plan.”
Section 2.	Date of Effectivity The Plan became effective on July 1, 1968. Amendments to the Plan were effected on January 26, 1989, October 1, 1989, September 1, 1992, June 1, 1993 and January 21, 1999. The same Plan was further amended as of February 20, 2009.
Article II Definitions
Section 1.	Definitions The following words and phrases, as used herein, shall have the meaning indicated, unless a different meaning is plainly required by the text: (a)“Plan” shall mean the CEAP Retirement Plan adopted herein together with any amendments or interpretations thereof duly adopted by the Retirement Commission. (b)“Fund” shall mean the CEAP Retirement Fund, the trust fund established under this Plan, and shall mean generally the monies or other things of value which comprise the corpus of the trust fund together with all income, capital gains and other additions hereto, less any losses, charges, expenses and benefit payment therefrom. (c)“Retirement Commission” shall mean the body created by the Catholic Educational Association of the Philippines with powers and authority to administer the Plan in accordance with Article VII hereof. (d)“Participating Employer” shall mean the school, college, university, congregation, order or diocese which originally participated in the creation of this Plan or is subsequently accepted to participate in the Plan by the Retirement Commission in accordance with Article III and which agrees to make contributions to the Fund in accordance with the Plan. (e)“Member” shall mean any regular employee of a Participating Employer who has qualified for membership under Article IV excluding part-time employees, casuals, temporary employees, and others not regularly employed with any of the Participating Employers. Coverage under one Participating Employer will not preclude a second membership with another Participating Employer, provided that the employee meets in both employers the requirements for membership. (f)“Continuous Service” shall mean the uninterrupted service as determined by the Participating Employer’s personnel records. Leaves of absence approved by the Participating Employer with or without pay and school vacation, shall not constitute an interruption of service, but only periods of compensated service shall be used in computing benefits under the Plan. (g)“Past Service” shall mean that continuous service of a Member to the Participating Employer from the date the Member met the requirements for membership in the Plan to the date of acceptance of the Participating Employer in the Plan. (h)“Future Service” shall mean periods of covered employment on or after July 1, 1968 or after the acceptance of Participating Employer for which contributions are paid in accordance with Section 2, Article VI. (i)“Salary” shall mean the current basic salary or wage paid to the Member of the Participating employer, but excludes bonuses, overtime pay, allowance and other special emoluments. (j)“Trustee” shall mean a bank or other financial institutions so named in the Trust Agreement and or its successors. (k)“Fund Administrator” shall mean an entity or an independent business process outsourcing provider tasked with the backroom operations and administration/record keeping services of the Fund.
Section 2.	The masculine pronoun whenever used herein shall include the feminine gender and the single number whenever used herein shall include the plural and the singular unless the context indicates otherwise.
Article III Participation in the Fund
Section 1.	General This Retirement Fund is established to provide retirement and other benefits for the qualified employees (a) of the CEAP member schools and CEAP Secretariat and Retirement Office, and (b) other Catholic institutions which are subsequently accepted by the Retirement Commission.
Section 2.	Original Participants The employers which shall be considered to have originally participated in the establishment of the Plan are the Participating Employers which are signatories to the original Plan filed with the office of the Catholic Educational Association of the Philippines.
Section 3.	Acceptance of New Employers Any Catholic school or institution may be accepted by the Retirement Commission as a Participating Employer upon application and upon signing a pledge to the effect that it will pay the contributions required by the Plan for its covered employees, provided that said Catholic school or institution becomes CEAP-accredited within 12 months from the date of acceptance in the Plan and that, in the opinion of the Commission, sufficient proof exists to show that the applicant intends and has the capacity, financial and otherwise, to continue its participation in the Plan indefinitely, and provided further that its acceptance will not prejudice the tax exemption of the Plan. However, in its acceptance of a Participating Employer, neither the Retirement Commission, nor the Catholic Educational Association of the Philippines, nor the Trustee shall be liable for the non-compliance by the Participating Employer with the rules of the Retirement Plan and the implementing rules and regulations issued by the Retirement Commission, or for any violation by the Participating Employer thereof.
Section 4.	Notice of Acceptance A written notice of acceptance shall be sent by the Retirement Commission to a new employer who is accepted for participation and until such written notice is sent, no employer shall be deemed to have been accepted for participation in the Plan.
Section 5.	Termination of Participation The termination of an employer’s status as a Participating Employer shall be governed by the provisions of Article XIII.
Article IV Membership
Section 1.	Membership Membership in the Plan shall be automatic for all regular employees of the Participating Employers, including probationary employees, regardless of age but prior to age sixty (60). Membership in the Plan shall commence on the first day of the month coincident with or next following the date on which the above requirements are met.
Section 2.	Application The application for membership shall contain a pledge to the effect that the applicant has read and is in conformity with this Plan and that he shall abide by its provisions and with any amendments and supplementary rules thereto.
Section 3.	Termination Membership in the Plan shall cease automatically upon the termination of the Member’s service with the Participating Employer, except as provided for in Article XIII.
Section 4.	Re-employment A Member whose membership in the Plan is terminated and is subsequently employed by any or the same Participating Employer shall, upon re-admission to the Plan, be treated as a new Member and his past service shall be reckoned from the date he became a Member after hiring or rehiring, without prejudice to Article XII.
Article V Nomination of Beneficiaries
Section 1.	Nomination Any Member shall upon joining the Fund, forthwith nominate in writing in such forms, as shall be prescribed by the Retirement Commission, a person or persons to receive the amount which may be due him in case of his death from among those enumerated hereunder in the order specified. (a)Legitimate spouse and children (b)Parents (c)Brothers and sisters; and (d)In the absence of the foregoing, any other person or entity or his estate. However, single or married Members may indicate any beneficiary not necessarily following the order provided by the law on intestate succession. Every nomination or appointment shall remain in force until the death of the nominee or until revoked or amended by the Member making it by delivering to the Retirement Commission another nomination or appointment in the prescribed form. In the event of death, during the life of the Member, of his designated beneficiary, the Member shall nominate or appoint another person or persons in his stead.
Section 2.	Failure to Nominate If at the death of a Member there shall exist no valid nomination by him of a beneficiary, he shall be conclusively presumed to have appointed, as his beneficiary or beneficiaries, the person or persons in the first of the following classes then surviving: (a)Legitimate spouse and children (b)Parents (c)Brothers and sisters; and (d)His estate
Section 3.	Payment to Beneficiary or Beneficiaries On the death of a Member, the amount standing to his credit at the time of his death shall be made payable to the beneficiary or beneficiaries named by the deceased Member in the existing nomination on file with the Retirement Commission or his presumed beneficiary or beneficiaries as provided for in Section 2 above. If a beneficiary is declared judicially incompetent, payment to his legal guardian shall be deemed as if made to the Beneficiary in person and shall discharge the Fund from liability to the extent of the amount paid. In case the beneficiary is a minor or is under any disability to give a legal discharge for payment of the benefits, the benefits shall be paid to the duly appointed judicial guardian for and in behalf of the minor or person under disability, except that where the beneficiary is a minor and the benefits due him amount to P 50,000.00 or less, payment may be made to his legal guardian, in accordance with Article 225 of the Family Code of the Philippines. However, in no case will the beneficiary be entitled to any interest on the amount of the benefit during the period that payment was deferred because of the absence of a judicial guardian.
Article VI Contributions to the Fund
Section 1.	Non-Contributory Plan No Member shall be required to make any contribution to the Fund. However, prior to his retirement, a Member may, at his option, elect to contribute monthly to the Trust Fund an amount equal to not more than four percent (4%) of his current monthly salary, provided that the option, once exercised, will serve as a continuing authority for the Participating Employer to deduct every month thereafter the corresponding amount from his salary and to remit the same to the Trustee. The contribution hereunder shall be subject to the provisions of this Plan and shall not be subject to withdrawal unless for a cause provided herein.
Section 2.	Future Service Contributions Starting from the date of acceptance in the Plan, each Participating Employer shall contribute monthly to the Trust Fund for the credit of the employees who are Members of the Plan an amount equal to three per centum (3%) of the Member’s salary. However, effective School Year 1994 to 1995, said contribution shall be increased to 4%. Remittance to the Fund for the period or month covered shall not be later than 15 calendar days of the following month. On a voluntary basis, Participating Employers which can afford to contribute more to the Trust Fund may further increase their future service contributions provided that every percentage increase in the Participating Employer’s contributions, may be matched by the Employee as forced savings.
Section 3.	Past Service Contributions In addition to the future service contributions, each Participating Employer shall make a past service contribution to the Trust Fund for the credit of each Member under its employ. This contribution will be equal to five per centum (5%) of the Member’s average monthly salary for the twelve month period immediately preceding the date of acceptance of the Participating Employer in the Plan and shall be reckoned according to the definition of “past service” given in Article II, Section 1. The past service contributions will be paid into the Trust Fund for the credit of the Member concerned either in lump sum or in equal monthly installments over a period of 10 years or over a period up to the Member’s normal retirement date, whichever is the shorter period. However, in case of the termination of the Fund in accordance with Article XIII or in case of the withdrawal of a Participating Employer from the Plan in accordance with Article XIII, Section 2, the balance of the unpaid past service contributions need not be paid by the Participating Employer or Employers concerned.
Section 4.	Acceleration of Past Service Contributions In the event that, on the date on which a Member dies or is separated from service on account of permanent total disability or incapacity or redundancy, the total past service contribution that has been paid into the Fund by his Participating Employer for his credit is less than the total amount of past service benefits to which he is entitled to receive under the law, his Participating Employer shall make a single payment to the Trust Fund to make up for the deficiency.
Section 5.	Limitations of Contributions The contributions to the Trust Fund shall be limited to the future and past service contributions specified in Sections 2 and 3 above without prejudice to contributions under the second paragraph of Section 2.
Article VII Administration
Section 1.	The Plan The Plan shall be administered by a Retirement Commission. The Retirement Commission shall consist of not less than twelve (12) persons appointed by the Catholic Educational Association of the Philippines from nominees submitted by the Participating Employers. A Member of the Commission shall serve for a term of three (3) years or until his successor is appointed and qualified. The CEAP President, the CEAP Executive Director and the CEAP Treasurer shall serve as ex-officio members of the Commission. Four (4) members of the Commission shall represent the National Capital Region (NCR), Luzon, Visayas and Mindanao respectively. All questions relating to the operation and administration of the Fund, except those strictly pertaining to its investments shall be resolved by the Retirement Commission. This includes but is not limited to the power to interpret, construe and administer the Plan to determine the rights of Members and their beneficiaries to the Fund, and all such powers necessary or useful in the discharge of its duties. The Retirement Commission may seek the advice of counsel and may appoint an independent internal and external auditor to audit the Fund as well as engage the services of an independent business process outsourcing provider for the administration and record keeping services of the Fund, professional fees and expenses to be charged to the Fund. The Retirement Commission and the Trustee may adopt and promulgate from time to time supplementary and complementary rules and regulations concerning the administration and disposition of the Fund which are not inconsistent herewith.
Section 2.	Trust Agreement The Retirement Commission, upon approval by the CEAP National Board, shall appoint one or several Trustees who shall invest, reinvest and administer the Fund in accordance with Section 3 hereof. The Commission shall authorize any two (2) out of the five (5) authorized signatories of the Investment Committee to execute and sign the Trust Agreement in behalf of the Commission.
Section 3.	The Fund The contributions to the Fund and the earnings thereof shall be placed under the Trusteeship of a bank or another financial institution so named in the Trust Agreement and/or its successor appointed and acting in accordance with the terms and conditions of the Trust Agreement. Subject to the provisions of the Trust Agreement, the Trustee, in addition to the powers authorized by law and subject to the limitation of existing bank circulars and trust rules and regulations including disclosure requirements and prior approval of the Trustor’s Investment Committee shall have the power and authority to hold, place, invest and reinvest the Fund without distinction as to principal and income in any property, real or personal, or part interest therein. Investments and reinvestments may include but need not be limited to common and preferred stocks, securities issued or guaranteed by the Philippine government or any of its subdivisions and instrumentalities, notes, bonds, deposits, money market placements, any and all forms of securities, with any financial institution including the Trustee’s affiliates and or subsidiaries. Medium and long-term investments need the prior written approval of the Investment Committee. Likewise, the Trustee may adopt and prescribe such rules and regulations as are necessary for the proper administration of the Fund.
Section 4.	Director The Retirement Commission may appoint, when it deems necessary, a Director to perform the following duties: To supervise the Retirement Plan Office staff of the Retirement Commission. To communicate with and answers correspondence from Members and Participating Employers. To prepare the Retirement Commission’s agenda, recording its minutes, and safekeeping its acts, minutes and resolutions. To perform such other functions as maybe required by the Retirement Commission. The compensation and other terms and conditions of his appointment shall be fixed by the Retirement Commission.
Article VIII Earnings and Reserve Accounts
Section 1.	Earnings Account The Earnings Account shall be credited or debited, as the case may be, with all realized interests, dividends, capital gains and losses, other income and expenses on every valuation date.
Section 2.	Reserve Account The Reserve Account shall be credited or debited, as the case may be, with up to 100% of the net unrealized appreciation or up to 100% of the net unrealized depreciation of the Fund’s investment in stocks, dollar bonds and notes and of other major currencies, real estate and other tangible assets on every valuation date. Notwithstanding this provision, the Retirement Commission may instruct the Fund Administrator to proportionately distribute any or all amounts standing in the Reserve Account to the Equity of the individual members on any valuation date.
Section 3.	Investment Revaluation Account All entries to the Reserve Account shall be matched by corresponding contra-entries to an Investment Revaluation Account which shall be part of the assets of the Fund.
Section 4.	Distribution of Earnings Account The net balance in the Earnings Account shall be credited or debited to the Equity of the Members every month end based on their proportionate shares in the total value of the Fund at the end of each month.
Section 5.	Capital Gains and Losses Should capital gains or losses be incurred through the sale of investments, the investment Revaluation Account, Reserve Account and Equity of Members shall be adjusted to remove therefrom the corresponding portions of the gains or losses actually realized which previously were taken up as unrealized appreciation or depreciation in accordance with Sections 1, 2, 3 and 4 of this Article.
Article IX Accounting and Information to Members
Section 1.	Fiscal Year The fiscal year of the Fund shall begin on May 1 and end on April 30.
Valuation The Fund shall be valued on a monthly basis as of the last day of every month. The valuation will be based on fair market value as per International Accounting Standards and Philippine Accounting Standards.
Section 3.	Member’s Account The Fund Administrator shall maintain a separate account for each Member, to which account shall be credited his own contributions, if any, plus the Participating Employer’s contributions allocated to him. At the end of each month, his account shall also be credited or charged with: His proportionate share of the net balance in the Earnings Account proportionately accruing to him, as provided in Article VIII, Section 4 above. His proportionate share of the Reserve Account or any portion thereof which the Fund Administrator, upon instruction by the Retirement Commission, may choose to distribute in accordance with Article VIII, Section 2 above.
Section 4.	Member’s Statement The Fund Administrator shall prepare and furnish to each Member and the Participating Employer a written statement or statements of: The accumulated contributions remitted by the Participating Employer in behalf of its covered employees plus the earnings as of June 30 and December 31; The status of the respective Member’s accounts as of June 30 and December 31, inclusive of the Member’s accumulated voluntary contributions plus earnings, if any; and the accumulated contributions made by the Participating Employer in his favor plus the income earned.
Article X Retirement Dates
Section 1.	Normal Retirement Date For faculty or academic Members, the Normal Retirement Date of a Member shall be the last day of the semester during which he attains age sixty (60) or, if he reaches age 60 outside of a semester, his actual birthday. For other Members, the Normal Retirement Date shall be the day he reaches age 60.
Section 2.	Optional or Early Retirement Date For faculty or academic Members, with the consent of the Participating Employer, a Member may retire at an early retirement date which may be the last day of the semester after he has rendered twenty (20) years of continuous service or if the last day of his 20th year of service falls outside of a semester, on the said last day itself. For other Members, the early retirement date, with the consent of the Participating Employer, may be the day the Member has completed twenty (20) years of continuous service to the Participating Employer.
Section 3.	Deferred or Late Retirement Date Under exceptional circumstances and upon the request of the Participating Employer, a Member may be asked to continue active service after his normal retirement date but in no case to exceed age 65. Contributions to the Plan with respect to such Member shall continue until his actual retirement from the Plan.
Article XI Payments of Benefits
Section 1.	Computation of Benefits The benefits payable under Sections 2, 3, and 6 below of this Article shall be computed based on the total amount standing to the credit of the Member in the books of the Trust Fund consisting of his own contributions, if any, and the contributions of his Participating Employer in his favor plus the income respectively credited thereto determined as of the last valuation date.
Section 2.	Normal and Early Retirement Benefits A Member who reaches his normal retirement date or who elects to retire upon reaching his early retirement date shall be entitled to and shall be paid the whole amount standing to his credit at retirement. If the Normal or Early retirement benefits to be received by the Member from contributions made by his Participating Employer in his favor shall be less than what is required by law as a lump sum retirement benefit, his Participating Employer shall pay the difference.
Section 3.	Separation Prior to Retirement A Member who is separated from his Participating Employer prior to retirement, due to resignation or for any reasons other than dismissal for cause attributable to the fault of the Member, shall be entitled (a) to the return of his total contributions plus the income accrued thereon under the Trust Fund, if any, and (b) to a specified proportion of the total contribution of his Participating Employer in his favor plus the income credited thereto under the Trust Fund computed in accordance with his length of membership in the Plan, a fraction of at least six (6) months being considered as one (1) whole year, as follows: Completed Years of Percentage Payable Continuous Service Under the Trust Fund Below 10 years (120 months) None After 10 years (120 months) 50% 11 years 12 years 13 years 14 years 15 years 16 years 17 years 18 years 19 years 20 years (132 months) (144 months) (156 months) (168 months) (180 months) (192 months) (204 months) (216 months) (228 months) (240 months) 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% For purposes of this Section, the tenure of service of a Member shall be reckoned from actual date of hire with the Participating Employer. Leaves of absence without pay shall not be considered as an interruption of continuous service, but the period during which the Member is on leave without pay shall not be considered as part of his years of service.
Section 4.	Procedure for Payment Application for the payment of the benefits under Sections 2 and 3 must be made in writing in the form and manner prescribed by the Retirement Commission and must be filed by the Member with the Commission duly endorsed by his Participating Employer at least 30 days in advance of the date of actual retirement, resignation or separation. The Retirement Commission shall be the sole judge of the sufficiency of the information submitted, the application and the interpretation of the Plan and the entitlement to and the amount of the benefits. The decision of the Retirement Commission shall be final and binding upon all parties.
Section 5.	Manner of Payment The benefits payable to a Member under this Article may either be paid to him or his beneficiaries directly in lump sum, through his Participating Employer.
Section 6.	Death Benefits Notwithstanding the schedule of payment provided in Section 3 in case of death of a Member, 100% of the amount standing to his credit under the books of the Trust Fund and the proceeds of his additional death benefit under the Plan shall be paid to his beneficiary or beneficiaries, or in their absence to the persons referred to in Article V, Section 2, regardless of such Member’s length of service with his Participating Employer. The additional death benefit is One Hundred Fifty Thousand Pesos (Php 150,000.00), regardless of the salary of the deceased Member. Participating Employers shall not have any arrears and should be current in its contributions to the Fund a month prior to the death of its employee to entitle the beneficiary or beneficiaries the additional death benefit of Php 150,000.00 In the event that the Participating Employer is not current in its contributions, it will be given a grace period of three (3) months to update it for its covered employees. If after 3 months the Participating Employer fails to do so, it will be obliged and required to pay the beneficiary or beneficiaries the additional death benefit of Php 150,000.00.
Section 7.	Disability Benefits A Member who is separated from his Participating Employer for reason of permanent total incapacity or disability shall be entitled to 100% of the amount standing to his credit in the Trust Fund and an additional permanent total disability benefit of One Hundred Fifty Thousand Pesos (Php 150,000.00). Participating Employers shall not have any arrears and should be current in its contributions to the Fund a month prior to the total disability of its employee to entitle the beneficiary or beneficiaries the additional total disability benefit of Php 150,000.00 In the event that the Participating Employer is not current in its contributions, it will be given a grace period of three (3) months to update it for its covered employees. If after 3 months the Participating Employer fails to do so, it will be obliged and required to pay the beneficiary or beneficiaries the additional total disability benefit of Php 150,000.00. The determination of permanent total incapacity or disability shall be made by the doctor to be designated by the Participating Employer, and his judgment shall be final.
Section 8.	Dismissal for Cause A Member who is dismissed by his Participating Employer for cause attributable to his fault shall not be entitled to any part of the Fund except his own contributions with the particular income accrued thereon.
Section 9.	Forfeitures The portion of the amount standing to the credit of a separated Member which is not paid to him by virtue of the limitations specified by Sections 3 and 8 shall be retained in the Trust Fund and shall be used to reduce the subsequent contributions of the Participating employer which contributed the same. Section 10.! Lien of Participating Employer The Participating Employer shall have the first lien upon the amount standing to the credit of its Members to cover all liabilities of the Member to the Participating Employer and all losses, costs and expenses which the Participating Employer may incur through his dishonesty, defalcation, theft or any other act.
Section 11.	No Other Benefit No benefit other than those previously provided shall be payable under the Fund. In the event that existing or future laws or enactment of any legislation such as the Separation Pay Law or contracts such as the Collective Bargaining Agreement requires payment to the Members or his legal heirs, by his Participating Employers, of pensions, annuities, retirement benefits, disability benefits, severance payments, or any other payment arising out of his employment by the Participating Employer, except for his regular salary, the Participating Employer reserves the right to have such payments made in full or in part, as it may exclusively determine, from funds standing to the Member’s credit in the Trust Fund. The Member, however, shall not be eligible to or shall be precluded or prohibited from receiving both what the law, legislation or contract requires the Participating Employer to give and the benefits provided herein, but shall be entitled only to whichever benefit is the highest among them.
Article XII Portability of Benefits
Section 1.	Portability of Benefits Any provisions to the contrary notwithstanding, subject to the approval of the Participating Employer whose service he is leaving and after due notification to the Retirement Commission, the membership in this Plan of a member who has rendered less than 10 years of continuous service and resigns or is separated from employment from one Participating Employer, and who is employed by another Participating Employer within a period of one year following the effective date of his resignation, shall not be deemed terminated. Upon the transfer of his employment under these conditions, he shall not be entitled to the payment of any amount under Article XI, Section 3 nor will the credit standing in his favor be considered as forfeited under Article XI, Section 9. Instead, he will carry the credit earned under his former Participating Employer of less than ten (10) years to his new Employer and the length of service in both will be taken into consideration only in determining his total years of continuous service for purpose of Article XI, Sectin 3, but not for purpose of computing his retirement benefits. However, if upon resignation or separation, the Member has already rendered at least ten (10) years of continuous service with a Participating Employer or with two or more successive Participating Employers, he shall be paid the proportion of the amount standing to his credit, as provided in Article XI, Section 3. Consequently, the forfeitures arising out of the separation of the Member who has rendered at least 10 years of continuous service but less than 20 years of continuous service, shall be proportionately divided among the Member’s previous employer/s whose credit were carried by their former employee to his current Participating Employer, whose service he is leaving.
Article XIII Termination of Participation
Section 1.	General The financing of the benefits provided by the Plan is based on the continued contributions from the Participating Employers, as required by the Plan. If a Participating Employer should fail to make the required contributions, the Plan cannot be continued for the employee of such Participating Employer. Moreover, should any action be brought against the Catholic Educational Association of the Philippines, the Retirement Commission and/or the Trustee in view of the nonpayment of contribution or for any violation of the provisions of the Plan by the Participating Employer, the Participating Employer shall render free and harmless the Catholic Educational Association of the Philippines, the Retirement Commission and the Trustee from any liability and the latter three (3) entities either collectively or separately, shall have a right of recourse against the Participating Employer.
Section 2.	Voluntary Withdrawal For adverse factors beyond its control, a Participating Employer may withdraw at any time from its participation in the Plan by serving written notice with the Retirement Commission of its intention to withdraw. The withdrawal shall become effective fifteen (15) days after the acceptance thereof by the Retirement commission. Under no circumstances whatsoever shall such withdrawal permit the return to the Participating Employer of any portion of the contributions made by it to the Fund, nor allow any part of the assets of the Fund to be used for, or diverted to purposes other than the exclusive benefit of the Members of the withdrawing Participating Employer or their beneficiaries.
Section 3.	Delinquent Participating Employer Failure to make any three (3) contributions to the Fund as required by the Plan and the administrative procedures adopted by the Retirement Commission shall subject to cancellation the delinquent employer’s status as a Participating Employer. However, the Retirement Commission, may, upon request and proper justification by the Participating Employer for its failure to contribute, grant a three (3) month grace period within which the Participating Employer shall be allowed to remit all the unpaid contributions due. This period is not subject to further extension and the failure to pay the amount due within the said period will automatically cancel the delinquent employer’s participation in the Plan. During the period of delinquency, the Members who are employees of the delinquent employer shall, however, participate in the income of the Trust Fund. However, a Member who has contributed voluntarily to the Fund and is still included in the members’ Masterlist but is no longer connected with his Participating Employer will have his personal equity donated to the CEAP scholarship fund if he can no longer be contacted at his last known address and there is no activity in his account for a period of 10 years from his last transaction date. In the case of employer contributions, it will be governed by Section 9, Article XI of the Plan. Should the delinquent Participating Employer later on decide to reactivate its participation in the Plan, the former should accelerate all past contributions payable equivalent to five percent (5%) of the Members’ current basic monthly salary. The past service contributions will be paid to the Retirement Fund for the credit of the concerned Member/s either in lump sum or in equal monthly installments over a period of ten (10) years.
Section 4.	Effect of Termination of Participation In case of the voluntary withdrawal from the Fund or the cancellation of the participation of a Participating Employer, after providing for any administrative expenses and other charges, the amounts standing to the credit of its employees who are Members of the Plan, shall be allocated and distributed among said Members without prejudice to the provision of Section 9, Article XI. However, should the Participating Employer withdraw from the Plan with the intention of setting up its own retirement plan or segregating its own retirement fund, the amounts standing to the credit of its employees shall be transferred to its duly appointed Trustee.
Article XIV Amendment and Termination of the Plan
Section 1.	Amendment The Retirement Commission may amend or modify this Plan at any time by a resolution approved by at least two-thirds (2/3) vote of the Members of the Commission, subject to the approval of the CEAP National Board. Any amendment shall immediately be communicated to each Member through his Participating Employer. However, nothing in this present Plan nor in any subsequent amendments to be made therein shall be construed as providing or intending to provide for the return to the Participating Employers of any portion of the contributions made by them to the Fund, nor operate to permit any part of the assets of the Fund to be used for or diverted to purposes other than the exclusive benefit of the Members and their Beneficiaries.
Section 2.	Termination of the Fund (a)Although the Catholic Educational Association of the Philippines intends to continue the Fund indefinitely, the Plan may be terminated at any time by a resolution approved by at least two-thirds (2/3) of the directors of the CEAP National Board as recommended by a majority of the members of the Retirement Commission and confirmed by the majority of the Participating Employers. (b)In case of the termination of the fund, the entire outstanding balance of the Fund shall be allocated and distributed among all Members in proportion to their respective equities notwithstanding Article XI, Section 3, but without prejudice to the provisions of Article XI, Section 9. However, Participating Employers are given the option to continue the retirement fund with reference to its own employees by setting up a Retirement Plan approved by the Bureau of Internal Revenue and transferring funds allocated to its employees to the Trustee of the new Retirement Plan.
Article XV Miscellaneous Provisions
Section 1.	Non-Alienation of Benefits No Member of the Plan shall have any claim upon the amounts standing to his credit in the Plan other than in accordance with the rules of the Plan. Specifically, he shall have no right of alienation or assignment of any sum standing to his credit, nor shall it be liable for or subject to any obligation or liability of such Member except as otherwise provided by law or this Plan. If a Member alienates, assigns, cedes, pledges or charges the whole or part of his interests under the Plan or any part thereof without written consent of the Participating Employer, or if any Member shall be adjudged insolvent by a competent court, he shall forfeit all his rights and interests under the Plan. However, the Participating employer may, at its discretion, waive such forfeiture or revive the Member’s interest wholly or in part at a later date in such manner as it deems fit or pay directly the benefits to the Member or his beneficiary, but in no case will any payment be made to an assignee or pledgee.
Section 2.	Rights of Members Except as specifically provided in this Plan, no person, other than the Trustee of the Fund, shall have any right, title, or interest in any of the income or property of any character received or held by it for the account of the Fund, and no person shall have any vested right in any income or property in the Fund. Moreover, nothing herein contained shall be deemed to give any Member the right to be retained in the service of the Participating Employer or to interfere with the right of the Participating Employer to discharge such Member at any time, nor shall it give the Participating Employer the right to require a Member to remain in its service, nor shall it interfere with the Member’s right to terminate his service at any time.
Section 3.	Applicable Laws The validity, effect and interpretation of this Plan shall in every instance be governed by the laws of the Republic of the Philippines.
	Approved By: Sister Lioba Tiamson, OSB Chairman-Retirement Commission Catholic Educational Association of the Philippines

Chairman’s Address – 10th CEAP Retirement Plan Assembly - Manila

• We will continue to harness information technology by way of the Internet to provide our members with the latest information/update on their equities and related matters. This service is being provided by ASC Philippines, Inc. We’ll hear from them later as they give you an update on the backroom functions that they do for the Fund.
• We will continue to live up to our corporate social responsibility by providing college scholarships to deserving, qualified but underprivileged high school graduates of CEAP Retirement Plan member schools. We acknowledge our partners, SM Foundation, Inc. and ASC Philippines Inc. for this endeavor. For the current school year 2009-2010, we have 6 scholars. Hopefully, future benefactors will take heed our call for more scholarship grants, this time in the area of vocational education, which will afford high school graduates of a much earlier engagement in entrepreneurship and other livelihood enterprises.
• Our joint venture with First Metro Asset Management, Inc. (FAMI) was in anticipation of R.A. 9505 - an act establishing a provident savings plan, known as the Personal Equity Retirement Account (PERA), the aim or objective of which is to promote capital market development and savings mobilization thru the establishment of legal and regulatory framework of retirement plans for persons, comprised of voluntary personal savings and investments. This is similar to Individual Retirement Accounts (IRAs) that is in place in the United States. We also want to provide the Plan’s retirees with a safe alternative savings vehicle where they can profitably invest their hard earned retirement benefits, by way of mutual funds instead of being lured into get-rich quick schemes.
• For the longest time, the clamor of members with voluntary contributions to borrow against it has not died down. The position of the Retirement Commission is clear. The rationale why we didn’t open it for such purpose is to ensure that at the time of their separation or retirement from their participating employers, they will have a nest egg that will complement whatever separation or retirement benefits they will receive from the Fund. We have existing multi-purpose loan arrangements with our bank partners to facilitate such transactions to qualified, credit worthy individuals.

Highlights of Operation

Deep in Consumer Debt? SMILE!
Efren Ll. Cruz, RFP

Debt is death to those who abuse it. But what are you to do if you find yourself buried under a ton of consumer debt?

Well, the last thing that you should do is to frown to the point of making your eyebrows appear like they’re shaking hands. On the contrary, the first thing that you should do is SMILE!

I recommend smiling not so much to deny the existence of a consumer debt problem but more to conjure up the strength and resolve to attack a tough one. The act of smiling is nature’s pain killer and muscle relaxant. Smiling allows us to calm our emotions and think clearer. One tip though, we must smile honestly and profusely; in other words, we should smile with our whole being. Many times, this honest and profuse smile is manifested in smiling with our zygomatic major and orbicularis oculi muscles, which is smiling with our mouths and our eyes.

There is recent talk about DaVinci. Well, we all know that the world’s most famous smile is that of Mona Lisa, as painted by Leonardo DaVinci. However, if we look closely at Mona Lisa, she seems to display only a half smile. In fact, the University of Amsterdam ran an emotion recognizing software on Mona Lisa and found that she was only 83% happy while being 9% disgusted, 6% fearful and 2% angry. So sport a full and honest smile when you find yourself in deep consumer debt trouble.

Of course, smiling is just the beginning. Immediately after developing the proper disposition, we should begin to buckle down to solve our consumer debt problem.

The basic solution to solving debt problems is through restructuring to make debt repayment more manageable. The reason is that most debt problems occur because the debt that is over due needs to be paid within a very short period of time. Restructuring would allow you to repay your debt over a longer period of time and hopefully at a lower interest rate ( and not just because of the absence of penalty charges). Please note, however, that while a lower interest rate may be charged, the total absolute amount of interest to be paid may be higher because of the length of the repayment period for the restructured debt. As a rule of thumb, therefore, you should restructure your debt over the shortest time and most affordable amortization level as possible.

The cheapest way to restructure is to borrow from relatives at concessional rates and then repay them over a number of years. You could raise an amount equal to your total outstanding debt and pay off all your creditors, leaving behind just your relative to repay. The irony of it all, however, is that relatives tend to disappear during such times of need.

If relatives do become inaccessible, you could always negotiate restructuring with your creditors themselves. Creditors would rather get paid than have to run after your assets, especially if your assets are other than cash.

A better way of negotiating is to consolidate your debt with just one creditor instead of a couple. That way, you need to think of just one creditor, one amortization amount and one date on which to repay your debt. On the assumption that your credit standing is still good, consolidation can be facilitated by the balance transfer facilities of your credit cards, getting a home-equity loan or line or even borrowing against the cash value of your life insurance (assuming it is sufficient). In consolidating debt, just be aware that some creditors use “Add On Rate” or “AOR” in computing interest.

AOR computes your monthly interest expense based on the original loan amont, regardless of the amount of the loan that you have already paid up. The amount of monthly principal repayment, which is added to the monthly interest payments, is computed by simply dividing the original loan amount by the term of the loan. If you want to know the effective rate of an AOR offer, you may use the calculator that comes with my book, “Pwede Na! The Complete Guide to Personal Finance.”

Sometimes, consolidating debt will not be enough. This is when you may want to sell some of the assets that you really don’t need like that 4th TV, your MP3 player, excess clothes and shoes, etc. Do an “ukay, ukay” garage sale and you could realize a small fortune out of your excess assets.

You may also try to augment your income by performing a service. Don’t just go jumping into going into any business as that business may require a lot of money as well – something that you are currently short of. Rather, perform a service that you can do from home or do with little capital. Needless to say, the service must be moral.

Lastly, stay debt free. You’ve been through hell and back. Don’t fall into the same hole again.

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Originally published in the Business Mirror. Efren Ll. Cruz is a registered financial planner with the RFPI USA. He is author of the bestselling books, “Pwede Na! The Complete Pinoy Guide to Personal Finance” and a “Personal Finance Coach.” He is Chairman and CEO of Personal Finance Advisers Philippines Corporation. Questions about the article may be emailed to cruise@skydsl.com.ph Efren may be reached a the same email address for the scheduling of consultations and personal finance seminars. This article does not constitute nor forms part of any offer or solicitation of an offer to buy or sell any securities. The opinion and views expressed herein are solely those of the author’s and do not necessarily reflect those of the Personal Finance Advisers Philippines Corporation.

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CEAP Retirement Plan Assembly – Now On Its 11^th Year

The CEAP Retirement Plan is holding its Annual Assembly at the Baltic-Tasman Function Rooms of Waterfront Cebu City Hotel. Lahug, Cebu City on September 21, 2010.

Now on its 11th year, the objective of this yearly event is bring under roof all of the Plan’s stakeholders and institutional partners, not only as a vehicle to foster goodwill and camaraderie but also to be a source of reliable information on matters affecting the Plan and its Fund as it relates to administration, financial, legal and tax issues.

Since its establishment in July 1968, the Plan has always been committed to providing programs and services to address the members’ evolving needs, thru delivery of value-added services with distinctive quality. It continues to strive to be the primary Retirement Plan of CEAP member schools, deeply committed to the tenets of a corporate citizen. As a prime mover in the local retirement fund industry and the largest retirement provider of Catholic schools and institutions with assets of P 3.3 billion, it remains steadfast to its core objectives of advocacy, stability, service, assembly, interactivity and mobility.

For the last 10 years, the Assembly has made the Plan timely and relevant thru the various themes it had espoused, while alternately holding it in Manila, Cebu and Davao in its desire to bring this gathering to its stakeholders’ doorsteps.

The last five Assemblies, beginning in 2005, had for its themes the importance of the Plan’s stakeholders, to wit:

• September 13, 2005, Grand Men Seng Hotel, Davao City, “CEAP Retirement Plan: Creating Stakeholders’ Values”.
• September 12, 2006, The Manila Hotel, City of Manila, “Moving Forward…Raising Stakeholders’ Value to the Next Level”.
• September 11, 2007, The Waterfront Cebu City Hotel, Lahug-Cebu City, “CEAP Retirement Plan @ 39: Strengthening Linkages With Our Stakeholders”.
• September 10, 2008, Grand Men Seng Hotel, Davao City, “Renewing Visions and Missions @ 40”.
• September 15, 2009, The Manila Hotel, City of Manila, “CEAP Retirement Plan @ 41: Challenges and Opportunities Amid A Financial Slowdown”.

CEAP Retirement Plan Assembly – Now On Its 10^th Year

The CEAP Retirement Plan held its Annual Assembly at the Maynila Ballroom of the Manila Hotel last September 15, 2009.
Now on its 10th year, it was able to achieve its objective of bringing together under one roof all of the Plan’s stakeholders and institutional partners, with the aim of not only to foster goodwill and camaraderie but also to be a source of information not only on matters affecting the Plan and its Fund as it relates to administration and financial, legal and tax issues but also on significant social/moral issues of the day.
Since its establishment in July 1968, the Plan had always been committed to providing programs and services to address the members’ evolving needs, thru delivery of value-added services with distinctive quality. It continues to strive to be the primary retirement Plan of CEAP member schools, deeply committed to the tenets of a corporate citizen. As a prime mover in the local private retirement fund industry and the largest retirement provider of Catholic schools and institutions with assets of P 3 Billion, it remains steadfast to its core objectives of advocacy, stability, service, assembly, interactivity and mobility.
For the last 9 years, the Assembly has made the Plan timely and relevant thru the various themes it had espoused, while alternately holding it in Manila, Cebu and Davao in its desire to bring this gathering to its stakeholders’ doorsteps. The last 4 Assemblies, beginning in 2005, had for its theme the importance of the Plan’s stakeholders, to wit:

• September 13, 2005, Grand Men Seng Hotel, Davao City, "CEAP Retirement Plan: Creating Stakeholders’ Values".
• September 12, 2006, The Manila Hotel, City of Manila, "Moving Forward…Raising Stakeholders’ Value to the Next Level".
• September 11, 2007, Waterfront Cebu City Hotel, Lahug-Cebu City, "CEAP Retirement Plan @ 39: Strengthening Linkages With Our Stakeholders".
• September 10, 2008, Grand Men Seng Hotel, Davao City, “Renewing Visions and Missions @ 40”.

Highlights of the Assembly focused on the following:
• There were close to 500 participants representing some 300 participating employers in attendance.
• Mr. Angel L. Bunag, Managing Director of Investor Relations Global, Inc., shared his advocacy in promoting clean, orderly, honest elections thru KILOS! BOTANTE 2010, in support of the Parish Pastoral Council for Responsible Voting (PPCRV) and the National Movement for Free Elections (NAMFREL). He also announced the BIDA competitions in the areas of video production, songwriting, photography, T-shirt design and poster design, with cash rewards and trophies to be given to the winners. The contests aim to challenge the creativity of individuals or groups, awakening their passion, talent and drive for self-expression. At the same time, they will create awareness for the upcoming 2010 elections. More importantly creative expression is hoped to be a critical force in convincing first time youth voters to participate in the elections and also serve as a means of connecting with the youth’s very unique psyche.
• Fr. Albert E. Alejo, SJ, National Team Leader of Jesuit Ehem! Anti-Corruption Program, gave an inspiring talk on the topic “Toward a Spirituality of Shared Integrity”. The documentary that he produced, Ehenm!Ehemplo set the tone and mood for the talk, an eye opener on how endemic various forms of corruption have crept into the country’s moral fiber. His experience and advocacy in propagating transparency and accountability, both in government and the private sector (especially in schools, congregations and churches), helped inspire the delegates to a renewed vigor of basic Christian values for responsible stewardship of human and financial resources.
• The Assembly gave a resounding affirmation via “viva voce” the proposed amendments to the CEAP Retirement Plan, as presented.

FAMI’s Monthly Investment Program for CEAP Employees

First Metro Asset Management, Inc. (FAMI), a company that manages mutual funds and a subsidiary of First Metro Investment Corporation (FMIC), the investment banking arm of the MetroBank Group, recently launched its Monthly Investment Program (MIP) among the regional directors of the Catholic Educational Association of the Philippines (CEAP).

FAMI Vice-Chairman Roberto Juanchito Dispo explained, “This monthly investment scheme is in line with the company’s mission to enrich the lives of the Filipino people through disciplined and effective savings and investment.”

FAMI will provide the investment mechanism, while any employee of the member schools of the CEAP makes voluntary monthly savings via salary deduction.. These savings are invested in a FAMI managed mutual fund of the employees’ choice. FAMI is the administrator, investment manager, and distributor of four mutual funds - equity, fixed income, balanced and money market - under the brand Save and Learn.

“Everyone needs to save for some future requirement, whether for their wedding, their children’s education or for their retirement. However, most of the time, people find it difficult to do. The FAMI monthly investment program provides the answer to this need by providing a saving and investment scheme to make these dreams a reality,” said FAMI EVP Hector De Leon.

The MIP was first introduced by FAMI last year among the Metrobank Group employees. “We are now on to our next phase of tapping the employees of our partner CEAP,” explained De Leon.

FAMI, established in 2005, is 70% owned by First Metro Investment Corp., 15% by CEAP and 15% by the Marist Development Foundation. Its Save and Learn Equity Fund registered a net yield of 53% at the close of 2009 and was named by the Investment Company Association of the Philippines (ICAP) the best performing equity fund under the 3-year category.
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CEAP Retirement Fund Pegged at P 3.382 Billion

For the fiscal year ended April 30, 2010, the Fund’s market value stood at P3.382 Billion. This is another milestone for the Fund, having previously breached the P 1 Billion and P 2 Billion mark in 2000 and 2005 respectively. It’s growth has been steady, an average increase in Fund level of P 200 million during the last 5 years.

The Fund has remained committed to its Investment Objectives as defined by its General Investment Guidelines, which are two-fold:

• Return Objective – the objective is to obtain stable and maximized total returns for the Fund. The asset value of the Fund is expected to grow over the long run and earn, through a combination of investment income and/or capital appreciation a rate of return (time-weighted total return) in excess of established benchmarks.
• Risk Tolerance – capital preservation is a primary concern for the Fund in general.

CEAP Retirement Fund Breaks P 3 Billion Mark

As the Fund ended the first 2 months of its new Fiscal Year ( May and June 2009), its market value stood at P 3.001 Billion. This is another milestone for the Fund, having previously breached the P 1 Billion and P 2 Billion mark in 2000 and 2005 respectively. Its growth has been steady, an average increase in Fund level of P 200 Million during the last 5 years. The Fund has remained committed to its Investment Objectives as defined by its General Investment Guidelines, which are two-fold:

• Return Objective – the objective is to obtain stable and maximized total returns for the Fund. The asset value of the Fund is expected to grow over the long run and earn, through a combination of investment income and/or capital appreciation a rate of return (time-weighted total return) in excess of established benchmarks.
• Risk Tolerance – capital preservation is a primary concern for the Fund in general.

CEAP Retirement Plan Assembly To Be Held on September 15, 2009

The CEAP Retirement Commission is pleased to announce that the 10th CEAP Retirement Plan Assembly has been scheduled on September 15, 2009. It will be held at the Maynila Room, The Manila Hotel, One Rizal Park, Roxas Blvd., Manila, from 8:00 AM to 5:00 PM.

This year’s theme is:“CEAP Retirement Plan @`41: Challenges and Opportunities Amid A Global Financial Slowdown.” In the light of the prevailing global economic and financial malaise not seen since the Great Depression of the 1930s, this annual gathering hopes to provide the participating employers’ financial stewards/administrators with useful and practical insights on responsible stewardship of schools’ financial resources.

Notable speakers from the Fund’s allied bank and institutional partners will be invited to share their expertise in the fields of investment, legal, fund management and plan administration.

A highlight of this years’s Assembly will be a mini-workshop with the delegates on the topic “Moral Transformation: A Deterrent to Corruption.”Each Participating employer can send a maximum of two (2) official delegates, who are directly responsible for their institution’s retirement concerns. Since it is likely that they will be attending the bigger CEAP National Convention the following day, it is expected that they have already made necessary arrangements for their travel, board and lodging and hotel reservation.

It is recommended that participating employers mark the date in their calendar and make the necessary provisions in their budget for the travel and lodging expenses of their delegates.

Due to space and other logistical limitations, pre-registered official delegates will be given priority on the kits and food stubs. Non-official representatives are welcome but they will have to provide for their snacks/lunch during the event. For more information on the Assembly, please contact the Retirement Secretariat at (02) 426-2677 and (02) 926-6273 and look for Ms. Filomena M. Amores – Administrative Assistant.

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CEAP Retirement Plan Assembly To Be Held on September 15, 2009

The CEAP Retirement Commission is pleased to announce that the 10th CEAP Retirement Plan Assembly has been scheduled on September 15, 2009. It will be held at the Maynila Room, The Manila Hotel, One Rizal Park, Roxas Blvd., Manila, from 8:00 AM to 5:00 PM.

This year’s theme is:“CEAP Retirement Plan @`41: Challenges and Opportunities Amid A Global Financial Slowdown.” In the light of the prevailing global economic and financial malaise not seen since the Great Depression of the 1930s, this annual gathering hopes to provide the participating employers’ financial stewards/administrators with useful and practical insights on responsible stewardship of schools’ financial resources.

Notable speakers from the Fund’s allied bank and institutional partners will be invited to share their expertise in the fields of investment, legal, fund management and plan administration.

A highlight of this years’s Assembly will be a mini-workshop with the delegates on the topic “Moral Transformation: A Deterrent to Corruption.”Each Participating employer can send a maximum of two (2) official delegates, who are directly responsible for their institution’s retirement concerns. Since it is likely that they will be attending the bigger CEAP National Convention the following day, it is expected that they have already made necessary arrangements for their travel, board and lodging and hotel reservation.

It is recommended that participating employers mark the date in their calendar and make the necessary provisions in their budget for the travel and lodging expenses of their delegates.

Due to space and other logistical limitations, pre-registered official delegates will be given priority on the kits and food stubs. Non-official representatives are welcome but they will have to provide for their snacks/lunch during the event. For more information on the Assembly, please contact the Retirement Secretariat at (02) 426-2677 and (02) 926-6273 and look for Ms. Filomena M. Amores – Administrative Assistant.

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President’s Message
Fr. Roderick C. Salazar, Jr.,
SVD CEAP President

Forty.  As we may have often heard it said, life begins at this age. Why that may be is not really explained.  But if it is so, what were the years before, one wonders.  Pre-life, perhaps?  Or maybe, though there may have been life, the one that starts at 40 is meant to be different.  At this point, it is probably assumed that one has matured, having gone through the toddler years, the teen-age span, the young adult stage from the 20s through the 30s, and now – Ruby.

This is where we are in 2008:  CEAP Retirement Plan is 40 years old.  And we?  For some of us, this, too, is our age though others may still be below it and still others, above.  But because we are one association, we celebrate it together. Our mother organization, CEAP, is 67 years old, and we, one of its children, are 40.

We remember our forebears with gratitude.  Not just those who founded CEAP in 1941 but those who had the vision to set up the Retirement Plan in the first place, and had the patience, the dedication, the integrity to nurture the Plan until what it is now. We thank God for guiding us through the years.

We gather in assembly a day before the CEAP National Convention.  Though we have our own theme of renewing our vision and mission, we can still take the cue on how to do this from the CEAP Convention theme of  Growing Into Soul:  Inner Space, Sacred place in Catholic Education.  For our vision and mission as a Retirement Plan flows from our commitment as Catholic schools and as an association of Catholic educational institutions.  And that commitment comes from within – from the heart, from the soul.  When we have that familiarity and at-home-ness with the life of the spirit, then it is more than material benefits and financial security that we receive when we retire, but the confidence that the sacred eternity we look forward to will be but the continuation of the sacred time we had spent, treasured, and honored in our earthly life

The Sufi poet, Rumi, put his thoughts on this in Guest House:

This being human is a guest house
Every morning a new arrival
A joy, a depression, a meanness,
some momentary awareness comes
as an unexpected visitor.
Welcome and entertain them all!
Even if they are a crowd of sorrows,
who violently sweep your house
empty of its furniture,
still treat each guest honorably.
He may be clearing you out for some new delight.
The dark thought, the sham, the malice,
meet them at the door laughing
and invite them in.
Be grateful for whoever comes,
because each has been sent
as a guide from beyond.

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CEAP Retirement Plan Celebrates Its Ruby Anniversary
Fund Level Pegged at Php 2.771 Billion

The CEAP Retirement Plan held its 9th Annual Assembly last September 10, 2008 at the Granada & Monte Clair Halls of Grand Men Seng Hotel in Davao City – in tandem with the Plan’s Ruby Anniversary – 40 years of quality and selfless service to its 640+ participating institutions and 34,500+ individual members.

This year’s theme, “CEAP Retirement Plan; Renewing Missions and Visions @ 40”, provided its stakeholders with the opportunity to revisit and reassess the Plan’s rationale and relevance amid today’s social, financial and economic realities while paving the groundwork and laying the foundation for innovative programs and expanded services that will accrue to its members for years to come.

A major highlight of the celebration was a 8-minute Audio Visual Presentation  on the 40 year history of the Plan, putting emphasis on the Pillars  it is grounded on …

• Pillar of Stability – judicious fiduciary responsibility of members’ funds
• Pillar of Service – towards creating stakeholder values
• Pillar of Advocacy – to help smaller CEAP schools earn more and mmanage finances better
• Pillar of Assembly – of united participating institutions
• Pillar of Interactivity – via online website
• Pillar of Mobility – through institutional partnerships to foster culture of savings
• Pillar of Capacity – building effort via scholarships

Corollary to the Plan’s Ruby Anniversary, Fr. Roderick C. Salazar, Jr., SVD, CEAP President awarded Plaques of Appreciation to 5 individuals whose selfless service and dedication to the Plan brought it to where it is now – the largest private retirement program provider for Catholic schools and institutions – namely: Sister Lioba Tiamson, OSB – Chairperson, CEAP Retirement Commission; Mr. Jose M. Santos – Vice-President for Finance/Treasurer, Ateneo de Manila University; Mr. Nestor J. Lemana, Sr. – CEAP Regional Director, ARMM; Fr. Redentor S. Corpuz – CEAP Region 4 Director; and Atty. Sabino R. Padilla, Jr. – CEAP Legal Counsel.

Mr. Renato Maria L. Aseneta, Director of the CEAP Retirement Plan Office, reported that Fund Assets reached Php 2.77 billion for the fiscal year ended April 30, 2008.  Total contributions remitted amounted to Php 263 million while various benefits paid out  to 1,925 members/beneficiaries was pegged at Php 164.5 million. Voluntary contributions plus income from several thousand participants reached Php 516 million.  Net investment earnings for the 3-year period 2005 to 2007 totaled Php 780 million for an average credited rate of return of 9.28%. The ROI of -1.34% arising from net investment earnings of –Php 29 million was largely due to the decline in market value of the Fund’s fixed income and equity investments as a function of mark to market volatility, in compliance with the Philippine Financial Reporting Standards. The ROI of the Fund’s major asset classes were at par with the established benchmarks, HSBC Local Bond Index (HSLI) of 1.04% and Philippine Stock Exchange Index (PSEi) of -15.93%.

Distinguished speakers, in the persons of Mr. Paul Joseph Garcia – President, Fund Managers Association of the Phils.; Mr. Eduardo A.Mendoza – President, First Metro Asset Management Inc.; Mr. David J. John – President, Administrative Services Corp. (ASC); and Atty.Sabino R. Padilla, Jr. – CEAP Legal Counsel, shared their expertise and knowledge on their chosen topics with the delegates.

The pro-active participation of the nearly 400 delegates during the breakout session, facilitated by Ms. Lynda C. Garcia of Miriam College, who also served as Emcee, brought out their positive sentiments and feelings on the relevance of the Plan and on how the Retirement Office can improved on its service orientation, particularly on the feedback mechanism. 

In her closing remarks, Sister Lioba Tiamson, OSB put more emphasis on the foundation the Plan was grounded on and invited the delegates to the Plan’s 10th Annual Assembly to be held in Manila in September 2009.

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Congratulations to the CEAP Ruby Awardees

PERA Bill Signed Into Law 

The PERA seeks to promote a “culture of savings” among Filipinos, particularly those who are not required by law to be members of the Social Security System (SSS) or the Government Service Insurance System (GSIS). Hopefully, this will help increase the country’s saving rate of  23% of gross domestic product (GDP), which is the lowest in the region. Neighboring countries like Malaysia, Singapore and Vietnam have posted savings rates of 34% to 40% of their GDP.

Under the law, an individual may make a maximum annual contribution of Php 100,000 to his or her PERA account, or Php 200,000 for married individuals. If the contributor is an OFW, he shall be allowed to double the maximum account, or Php 400,000.

Contributions would be invested in qualified PERA investment products such as investment trust funds, mutual funds (  like the Save and Learn Mutual Funds ), annuity contracts, insurance or pension products, pre-need pension plans, shares of stocks, exchange-traded bonds or any other investment product or outlet, which the Bangko Sentral ng Pilipinas, as the regulatory body, may allow for PERA purposes.

Contributors are entitled to an income tax credit equivalent to 5% of the total PERA contribution. Income from contributions as well as the eventual distribution of the proceeds from PERA to the contributor are tax-exempt. The amount contributed can be withdrawn when the contributor reaches the age of 55. If the contributor wants to continue the PERA even after reaching the age of 55, he is allowed to do so. Complete distribution shall be made upon the death of the contributor, regardless of the age at the time of death.

Early withdrawals are also allowed but would be subject to a penalty. However, early withdrawals under the following circumstances are exempted from the penalty: for payment of accident or illness-related hospitalization in excess of 30 days and for payment to a contributor who has been subsequently rendered permanently totally disabled as defined under the Employees Compensation Law, Social Security Law and the GSIS Law.

Hopefully, PERA will fill the void in the country’s retirement scheme and offer an alternative to the labor force of about 35.81 million wherein only 78% are members of government-initiated pension funds ( 26.49 million for SSS and 1.4 million for GSIS).

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RETIREMENT AGE 

CEAP Appoints New Retirement Commission Member 

PERA For Your Retirement

Have you ever wondered how your life would be when you are retired? Not quite comfortable for millions of Filipinos if we look at the figures. As of June 2006, the monthly SSS pension of retirees ranged from P1,000 to P14,970. Since most SSS pensioners are at the lower end, the average monthly pension was a measly P2,546.00. For a sickly senior citizen this pitiful amount is probably just enough to buy medicine. If this is not bad enough, some studies say that SSS funds will only last until 2015; for GSIS it’s 2042.

It’s not hard to imagine that many retirees will be living in poverty in their old age without the support of their children. And for the really unlucky ones whose children are as poor as their parents, the only option left is to continue working until their old creaky bones give way; their golden years awfully tarnished.
And we are only talking here of SSS pensioners. What about the 8 million Filipinos who are not members of either SSS or GSIS? Add to this, the millions of OFWs who are not covered by the state-sponsored pension program. Living conditions during retirement for these people will most likely be more miserable because they don’t have sufficient savings to look forward to.

The online survey conducted by Citibank last year revealed that the average Filipino’s savings will only last a little over two months. There’s not much retiring you can do with that amount; I’ve always thought of retirement as living hassle-free for years or decades, not months. The same survey revealed that only about 1 in 10 has a retirement plan and has enough savings to cover their needs.

One thing is obvious, if you want to live comfortably after you hang up your working clothes, you should make it your responsibility to build the funds you will need during your retirement years. You simply cannot leave it all up to the government or to your children to provide you old-age support; they have their own problems to worry about.

Enter PERA or the Personal Equity and Retirement Account, a voluntary personal savings plan which supplements SSS and GSIS pension schemes and provides an alternative pension fund for those who are non-members, especially the OFWs. The landmark PERA bill, co-authored by Senators Ed Angara, Mar Roxas & Migz Zubiri in the Upper House is awaiting the signature of the President and once it becomes a law it is expected to encourage people in the public and private sectors to save up for their retirement.

Among the features of the PERA bill and what these mean to ordinary citizens like you and I are:

1. Any taxpaying individual, referred to in the bill as the contributor, may create and maintain a maximum of 5 PERA. The provision for multiple PERAs will allow the contributor to explore and select different investment products or channels to best grow his or her retirement funds.



2. A contributor may make a maximum contribution of P100,000 or P200,000 for both spouses. For an OFW and his or her spouse, the limit is P400,000. If you make the maximum contribution of P100,000 every year and assuming your fund grows at an average annual rate of 8% (actual rate can be lower or higher), you will have more than P7.3M after 25 years. For a married couple, the fund can reach over P14.6M. With this amount you can really enjoy your retirement and embrace old age with open arms and a sweet smile. I encourage everyone to make the maximum contributions once the PERA bill becomes a law and the implementing rules & regulations established.



3. A private employer may contribute to it’s employees PERA and such contribution is deductible from the employer’s gross income. Isn’t this great? If you’re working for a generous company you could get “free” money to add to your retirement fund; all the more reason you should open a PERA.



4. PERA investment products must be pre-qualified by the regulatory authorities (i.e. BSP, SEC and the Insurance commission). These products include unit investment trust funds (UITFs), mutual funds, annuity contracts, insurance pension products, pre-need pension plans, shares of stocks listed in exchange and exchange-traded bonds or any other investment product or outlet allowed by the regulatory authorities. You now have the option to invest in products which have much higher potential rates of return compared to low-interest deposit accounts. The range of investment products available for PERA will suit almost all kinds of investment risk appetites.



5. Contributors get a tax credit equivalent to 5% of his/her contribution; all income earned by a PERA is tax exempt and funds are distributed without any tax deductions. Taxes eat up a considerable chunk of your investment funds; with these generous tax incentives you should be the first in line to open a PERA.



6. PERA funds can only be distributed when the contributor reaches the age of 55; early withdrawals will be subject to penalties. This provision ensures that the savings of the contributor will be held long-term, which is beneficial to both the contributor (it makes certain than he/she has sufficient funds upon retirement) and the economy (it makes funds available for the capital market).



7. A PERA should be under an administrator (e.g. bank, mutual fund or insurance company). Since administrators are regulated by the BSP, SEC or IC, the contributor is assured that his/her funds are invested in accordance with strict & prudent guidelines. Administrators are also mandated to educate the contributor. Since lack of financial literacy is one of the major reasons why Filipinos have such low savings rate, this provision will allow PERA owners to make wiser investment decisions.
   

To make PERA effectively serve its purpose, a massive information campaign should be undertaken not only to educate the public about its many benefits but also to persuade people to change their spending habits and become regular savers. PERA investment products have been around for many years and only a well-informed & savings-conscious general public will start tapping these instruments through the PERA. With PERA available for your retirement, I see no reason why any hard-working Filipino should live in poverty after his working days are over.
_____________________________
Alvin T. Tabanag, RFP Business Mirror, June 30, 2008

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CEAP Retirement Plan  to Commemorate Ruby Anniversary in Davao City

The CEAP Retirement Commission has scheduled the holding of the Plan’s 9th Annual Assembly on September 10, 2008 at the Grand Men Seng Hotel, Serenade & Granada Hills, Davao City with the theme “CEAP Retirement Plan: Moving Ahead to Renewing Missions and Visions @ 40.”

As the Retirement Plan celebrates its Ruby anniversary, this is a good time to revisit and reassess the mission and objectives set forth by the Plan’s founding fathers and its relevance to today’s social and financial realities, while at the same time laying the foundations for innovative programs and expanded services that will benefit its stakeholders for years to come.

Notable speakers from the Plan’s allied bank and institutional partners will be invited to share their expertise in the fields of investment, legal, fund management and  plan administration. The participants will also share their reflections on the significance of the Plan’s Ruby Anniversary.

Since the participants will be attending the bigger CEAP National Convention the day after, it is expected that they have already made necessary arrangements for their travel, board and lodging and hotel reservations.
Participation is limited to one (1) representative per participating employer, who has a direct link or responsibility to their institution’s retirement matters so that they can pass on to their employees the latest updates regarding the CEAP Retirement Plan.

Please mark the date in your calendar and make the necessary provisions in your budget for the travel and lodging expenses of your representatives.

As in previous Assemblies, no registration fee will be required and snacks/lunch will be served to the registered representatives.

For more information, you may call the CEAP Retirement Plan Office, c/o Ms. Mennie Amores and Ms. Anne C. de Leon at tel. nos. (02) 426-2677 or (02) 926-6273.

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CEAP Retirement Comission
Chairperson's Message - 2008

A Peaceful and Grace-filled New Year – 2008 – to all the Participating Employers and Members of the CEAP Retirement Plan.

Indeed, this year is  both a milestone and a  defining and memorable event for the CEAP Retirement Plan as it celebrates its 40th year this July, true to its objective of providing its Participating Institutions with a safe and efficient vehicle for amortizing the cost of the retirement and other auxiliary benefits of their academic and non-academic employees, in compliance with the new retirement  and other related labor laws.

In retrospect, what have we achieved these past forty summers?  We were able to live up to our Vision of creating value for our stakeholders in the form of enhanced benefits, efficient fund administration, streamlined procedures, online technological capability, and judicious fiduciary responsibility in providing fair returns and growth for the monies entrusted to us.

But as in any  mutual relationship, it takes two to tango and the misstep of one leads to the misstep of the other – setting of a chain reaction of unpleasant missteps to those who remain solidly behind the Plan’s objectives.  While the Plan had a very modest start in terms of financial resources – its Fund’s market value of P 4,000.00 at the end of December 1968, the undying commitment of its active participating employers and the fair  returns generated by the Fund’s investments have brought the Fund level to P 2.8 billion as of end December 2007. However, a sizable number of the Plan’s Participating Institutions are in arrears and various stages of delinquency which somehow negate the auxiliary  benefits that can be received by  the employees and their  beneficiaries. They will not be entitled to the additional death and total disability benefits amounting to P 150,000 each if their Employers will continue to be in arrears and fail to keep current their monthly contributions to the Fund.  Hopefully, our appeal will not be an empty cry into the wilderness. We have kept our part of the deal. It’s now your turn – make your move in the spirit of fairness and justice.

Our  two-fold mission is modest – we shall aim to be the Primary Retirement Plan for all Catholic schools, colleges and universities under the CEAP umbrella and we shall be cognizant of our role in society as one of the pillars in the private retirement fund industry and shall remain committed to the tenets of a corporate citizen by adhering strictly to our Code of Corporate Governance.

For the realization of this mission, we have put in place allied programs and services, consistent with the Plan’s vision, in the following areas:

As we celebrate our 40th year as a service organization, rest assure that we have already laid the foundation for the new crop of administrators that will guide the Plan into the next decade and beyond, guided by the vision that you, our stakeholders, are our “raison d’etre.” 

It inspires us that we all work together with a strong resolve and an unequivocal unity of purpose.  We have seen people come and go, defining events come and go. The times are different and our response should always be equal to the challenges that lie ahead, if not superior.  We are cognizant of your cooperation, dedication and support and if quality of service is the basis for living up to our members’ expectations, we would have already accomplished our vision and mission and already won.

Thank you.

Sister Lioba Tiamson, OSB
Chairperson
CEAP Retirement Commission

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An Appeal For A Better Philippines
by Bro. Manuel V. De Leon, FMS
former Chairperson, CEAP Retirement Commission

TO OUR COUNTRYMEN:

            The transfomation of the nation begins with the transformation of ourselves and the community where we can make a difference. We need to do our share in helping build the nation by doing what is right.

            It is time to unite in the name of TRUTH, JUSTICE and REFORMS.

            Let us be proud to be Filipinos by recovering our lost identity, integrity and dignity.

TO OUR PRESIDENT GLORIA MACAPAGAL ARROYO:

            We humbly beg that you return back the trust and respect of the Filipino people to the Office of the President by having resolutions and proper closure to all allegations of wrongdoings against your personal and official families.

TO OUR LAWMAKERS:

            Be more of statesmen and stateswomen rather than mere politicians. Your loyalty to the country takes precedence before other loyalties.

TO OUR CHURCH AND MORAL LEADERS:

            The people yearn for moral and spiritual guidance through good example. Issuing statements without commitment to journey with them in their struggles for a just and humane society make them lose confidence in you.

TO OUR GOVERNMENT LEADERS:

            You can make a big difference in your own barangays, towns, cities, congressional districts and provinces by using your authority to serve your constituents with sincerity and dedication and by placing their interests over and beyond your own. Let performance and not patronage be the basis in electing you to office.

TO THE MEDIA:

             Be zealous in defending the Freedom of the Press. It is our only safeguard against tyranny and bigotry. Be the people’s advocate in seeking and speaking the Truth. Abuses or excesses can only be exposed through a free responsible media.

TO OUR YOUNG PEOPLE:

            Channel your energies and talents to productive use by shunning away from self-destructive activities. Be aware, be informed, and be involved in the socio-political affairs of the country. Don’t let your political and economic leaders steal the future from you. Make them accountable for every and all of their wrongdoings no matter what the cost.

OUR PRAYER:

            Lord God, our Creator, Redeemer and our Light, make us humble always as we try to discern your Holy Will for us. Let us tell the Truth without being uncharitable to our neighbors. Let us be real witness of your love for humanity, especially the poor, and for all your creation. Let us plant the seed of goodness in the hearts and minds of our people, especially the little children who deserve a better tomorrow. Let us be instruments of peace and reconciliation rather than of division. We do all these for your greater honor and glory, and for the good of our neighbor. Amen.

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CEAP Retirement Plan Adopts New Investment Guidelines

The CEAP Retirement Commission has put in place a general investment guidelines for the CEAP Retirement Fund, as recommended by its Investment Committee. This will assist and guide the Commission, as provided for in Section 1, Article VII of the Plan, in the discharge  of its fiduciary responsibility to the Plan’s participating employers and members to exercise prudence and conservatism in the management of the Retirement Fund’s portfolio.
           
The role of the Investment Committee would include but not limited to:

• Approval of investment policies and guidelines
• Approval of asset allocation strategies and portfolio construction
• Approval of performance measures and benchmarks
• Approval of allocation of funds to external fund managers
• Approval of appointment of new external fund managers and removal of existing external fund managers based on their performance
• Review and endorsement of broad policy decisions to the Retirement Commission

The  investment objective of the Committee is to obtain  stable and maximized total returns for the Fund, with the expectation that its asset value is expected to grow over the long run and earn, through a combination of investment income and/or capital appreciation a rate of return in excess of established benchmarks.  Capital preservation is the primary concern of the Fund in general.
           
The Investment Committee allows the Fund’s six (6) investment managers full investment discretion within the scope of a mutually upon investment parameters, as defined and contained in the investment management/trust agreements entered into with CEAP.
           
The present asset allocation and performance benchmarks are as follows:

A. Asset Allocation

B. Performance Benchmark

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CEAP Retirement Plan Reappoints Manabat Delgado Amper & Co.

The CEAP Retirement Commission’s Audit Committee has once again engaged the services of Manabat Delgado Amper & Co. to audit the CEAP Retirement Plan for the fiscal year ended April 30, 2008. It will be conducted in accordance with auditing standards generally accepted in the Philippines.    

The objective of the audit is to express an opinion on the fairness of the presentation of the Plan’s financial statements in conformity with generally accepted accounting principles, in all material respects. The audit will be planned and performed to obtain reasonable, rather than absolute, assurance that the financial statements are free of material misstatement. It will also include the following:

• Obtain an understanding of the internal controls sufficient to plan the audit and to determine the nature, timing and extent of audit procedures to be performed.
• Examine on a test basis evidence supporting the amounts and disclosures in the financial statements
• Assessment of the accounting principles used  and significant estimates made by management, as well as evaluating the overall financial statement presentation.

The financial statements are the responsibility of the Retirement Commission, thru its Audit Committee, and as such has the mandate to exercise oversight control in (1) establishing and maintaining effective internal controls over financial reporting, (2) identifying and ensuring that the Plan complies with the laws and regulations applicable to its activities, (3) proper recording of transactions in the accounting records, (4) selecting and applying accounting policies, (5) adjusting the financial statements to correct material misstatements, (6) making appropriate accounting estimates, (7) safeguarding assets, (8) the overall accuracy of the financial statements and their conformity with accounting principles generally accepted in the Philippines, and (9) making all financial records and related information available to the External Auditor.

The Audited Financial Statements for the fiscal year ended April 30, 2008 will be distributed to the participants/attendees during the Plan’s Assembly in Davao City this coming September 10, 2008.

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FAMI-CEAP INITIATIVE: Teaching Teachers to Invest

It is a well known fact that a country’s domestic savings rate plays a major role in economic development. The ability to mobilize long-term investments not only benefits the investor but other people as well. Long-term money provides for business expansion which in turn results in higher employment rate. With more employment comes higher disposable income which results in higher spending and more business activities. While this may be a simple overview, the bottom line is higher savings contribute to a stronger and more robust economy.

Unfortunately, the Philippine Domestic Savings Rate is not as good compared to its closest neighbors. Data from the World Bank shows that on the average the Domestic Savings Rate in the Philippines from 1990 to 2005 is a mere 16.61% of its Gross Domestic Product (GDP). This is way below the average of other countries like Indonesia (29.64%), Thailand (33.59%), Korea (34.96%), and Malaysia (41.77%). As if the Philippine figure is not bad enough as it is, what is worse is the fact that the average for the Philippines (from 1975 to 2000) used to be 22%.

The number of investment vehicles available to the Filipino investor has grown in recent years. While this is indeed a very positive development, these new instruments are not as easy to understand compared to the typical deposit products that Filipinos have grown accustomed to. That is why investment education is a critical ingredient in improving the savings rate of the Philippines.

For several years now First Metro Asset Management, Inc. (FAMI) has been at the forefront of providing Filipinos with the much needed investment education. In 2006 FAMI was recognized by the Investment Company Association of the Philippines (ICAP) as the “Best in Promoting Corporate Social Responsibility and Financial Literacy” among its general membership.

To complement its existing financial literacy program, FAMI, in coordination with the Catholic Educational Association of the Philippines (CEAP), is launching a Monthly Investment Program for teachers and school employees. The program aims to provide a practical facility behind the financial literacy concepts that FAMI and CEAP advocate. The program, which will be implemented on a voluntary basis through the mutual funds being managed by FAMI, will help the teachers and school employees save by setting aside small amounts regularly to meet major long-term financial objectives. Fr. Redentor Corpuz, CEAP Region IV Director, will spearhead the project in Luzon. He will be working closely with FAMI in educating the CEAP members and implementing the programs for the different schools.

FAMI is a partnership among First Metro Investment Corporation (FMIC), Catholic Educational Association of the Philippines (CEAP), and the Marist Brothers Foundation and is a member company of the MetroBank Group. At present, FAMI manages three mutual funds – Save and Learn Equity Fund, Save and Learn Balanced Fund, Save and Learn Fixed-Income Fund. The three basic fund structures can enable investors to tailor-fit their investment portfolio to match their investment risk profile and attain their financial goals.

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New Participating Employers of the Plan
May 2008 to April 2009

Region 3
Anao Catholic School
Poblacion, Anao, Tarlac

Region 4
Maragondon Parochial School, Inc.
Poblacion 1A, Maragondon, Cavite

De Guia Academy of Magallanes
Poblacion, Magallanes, Cavite

San Roque Parochial, Inc.
Brgy. Ilasan, Tayabas, Quezon

CEAP Retirement College Scholarship Program

SM Foundation, through its Executive Director Mrs. Linda Atayde, recently announced the granting of two (2) scholarship slots to deserving, qualified but underprivileged high school graduates of CEAP Retirement Plan member schools for School Year 2008-2009.

The CEAP Scholarship Committee will submit a shortlist of qualified candidates to the Foundation from a list of nominees submitted by participating institutions and they will undergo a process of competitive screening that will include personal interviews and qualifying exams. The top 2 candidates will enjoy a 4-year scholarship grant, with focus on accounting, information technology, education and engineering courses, at any of the SM Foundation accredited colleges/universities nearest the scholars' place of residence. Some of the benefits include free tuition and school fees, monthly stipend, work opportunities during summer and Christmas breaks and job fair for graduates.

They need to maintain an average of 2.5 or 85% or better and must not have any failing marks in any subject to stay in the Program and must not be in violation of any of the rules or regulations set forth in the scholarship contract.

The Program's first batch of scholars (SY 2006-2007) are doing well. They continue to meet the grade and comply with all the required rules and regulations. Mr. Henley M. Alcantara, who graduated from Holy Rosary School of Pardo in Pardo, Cebu is presently enrolled in Cebu Normal University taking up a course in Elementary Education while Ms. Hyacinth Kathleen B. Penales, who graduated from St. Gregory Academy in Indang, Cavite is presently enrolled in DLSU-Dasmarinas taking up a course in Accounting.

ASC Philippines, Inc. likewise offered two (2) scholarship slots for SY 2007-2008. The Program’s second batch of scholars are Ms. Jelena Marie C. Noble, a graduate of Colegio de San Sebastian, Sablayan, Occidental Mindoro, taking up a course in BS Education at the College of the Holy Spirit-Manila and Ms. Kimberly Jane S. Mariano, a graduate of St. Augustine Academy of Pampanga, taking up a course in BS Accountancy at the Guagua National College, Guagua, Pampanga. Both are doing well academically and are within the parameters set forth under the scholarship contract.

CEAP Retirement Plan Holds  8th Assembly in Cebu;
Retirement Fund Total Assets at P 2.748 Billion

The CEAP Retirement Plan held its 8th Annual Assembly last September 11, 2007 at the Mediterranean Hall, Waterfront Cebu City Hotel, Lahug, Cebu City, a day ahead of the CEAP National Convention, also held at the same hotel, which run from September 12-14, 2007, coinciding with the 66th anniversary of the CEAP.

This year’s theme CEAP Retirement Plan at 39: Strengthening Linkages With Our Stakeholders underscored the need to continue building and strengthening linkages with the Retirement Plan’s Bank partners, as well as other financial institutions, government organizations and corporate entities, in delivering valued-added services with distinctive quality to the Plan’s member-participants, thereby setting forth the aim of making the CEAP Retirement Plan the primary plan for all Catholic schools, colleges and universities under the CEAP umbrella.

Mr. Renato Maria L. Aseneta, Director of the CEAP Retirement Plan Office, welcomed the delegates numbering around 300 representing some 250 participating employers, and did the emceeing chores as well. It formally opened with an invocation led by Sister Celeste Licas, OSB and Mr. Michael A. Gamo, members of the CEAP Retirement Commission.

In his Welcome Message, Fr. Roderick C. Salazar, Jr. SVD – CEAP President, shared his view on retirement from a first person account and how the CEAP Retirement Plan, on the eve of its Ruby Anniversary  in 2008, have the touched the lives and made a difference on the Plan’s retirees as they drive into the sunset and unretire, tirelessly contributing their years of experience and expertise to the betterment of their local communities.

Mr. Aseneta reported to the delegates that at the end of fiscal year April 30, 2007, the Fund’s Total Assets has reached P 2.748 billion while the Members’Fund was pegged at P 2.364 billion. Contributions amounted to P 230 million while benefit payments reached P 227 million, covering 2,666 employees and 63 deceased employees’ beneficiaries. Mention was also made on the enhanced  additional death and total disability benefits amounting to P 150,000, subject to the provisions of the Plan. He also reported that the bulk  of the Fund, equivalent to P 2.484 billion, was invested in peso fixed income instruments as well as dollar investments amounting to US$ 2.54 million. It also has diversified its portfolio to include exposure in equities amounting to P 122.5 million and FAMI Save and Learn mutual funds with a combined value of P 92 million. He also stated that the Fund generated P 230 million in revenues, out of which P 185 million was allocated to the members’ equities as earnings for the period,  realizing a ROI of 8.23%.

Ms. Karen Mae Ching, General Manager of ASC Philippines Inc., provided the delegates with an update on the automation and on-line capability of the Fund’s back office administration, which is central to providing efficient and effective delivery of service to the Plan’s participating employers and participants. This capability has resulted in timely and relevant information, reliable data and reports, and streamlined procedures.

The Assembly also expressed its appreciation to
Atty. Sabino Padilla, Jr., CEAP Legal Counsel,for taking the time to share his legal expertise on the latest legal and tax developments that confront CEAP schools, particularly on issues of tax-exemption  on some of their activities (bookstore and canteen operations) as well as concerns on the probationary employments of academic and non-academic personnel.

Other speakers include Mr. Frederico Rafael D. Ocampo,Chief Investment Officer of Deutsche Bank AG Manila, who provided the delegates with an overview of global economic upswings, particularly in the US, Euroland, and Asian regions, and its medium and long-term effects on the Philippine economy while
Mr. Roberto Juanchito T. Dispo, Executive Vice-President of First Metro Investment Corporation, talked about the growth potential of FAMI mutual funds in the light of the proposed PERA Bill awaiting approval in Congress.

The highpoint of the Assembly was the awarding of
Certificates of Recognition to some 115 Participating Employers who have been with the Plan for more than 25 years, proof of their loyalty to the mission and objectives set forth since its inception 39 years ago.

Sister Lioba Tiamson, OSB, Chairperson of the CEAP Retirement Commission, formally closed the Assembly, thanked the delegates for making the event a success, and looked forward to the Ruby Anniversary of the CEAP Retirement Plan next year in Davao City.

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CEAP Retirement Plan Assembly

The CEAP Retirement Commission has scheduled the holding of the 8 th CEAP Retirement Plan Assembly on September 11, 2007, from 8:00 AM to 5:00 PM at the Mediterranean Hall, Waterfront Cebu City Hotel, Lahug, Cebu City.

The Assembly’s theme is “CEAP Retirement Plan @ 39: Strengthening Linkages With Our Stakeholders.” Speakers have been invited who will share their perspectives and experiences on topics that matter to the Plan’s stakeholders, particularly on the newly legislated pension program, update on the Fund’s performance, Philippine economic/financial situationer, and legal and tax issues pertaining to retirement.

Registration forms have already been sent and confirmation of participation should be no later than August 31, 2007. School administrators and treasurers, who have a direct hand in the retirement affairs of its personnel, are encouraged to attend this Assembly as this will give them the opportunity to be updated on the programs and activities being undertaken by the CEAP Retirement Plan Office.

We look forward to meet up with you in Cebu City.

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Retire Worry-Free

It’s amazing how the old building at the corner of Ayala and Paseo de Roxas has been transformed into the Enterprise Center that houses at least two major banks, two multinational life insurance companies, an embassy, several call centers, an audit firm, and other big-name companies. One can imagine the activity and energy that happen daily to make these businesses profitable. What is more interesting are the people that walk in and out of the building daily. The other day, at the food court of the Enterprise, I watched three people at two different tables. At one table sat a young guy, most likely working as a call center representative, with a headphone on his head and an iPod tucked in his belt, and busy texting with his N91 cellphone. At another table sat two middle-aged men. One had a laptop and the other was listening to the man with the laptop make an insurance proposal.

A bustling business center. Thriving businesses. Banking. Finance. Insurance. Call centers. These all translate into work and work opportunities.

Laptops. Latest technology gadgets. Financial security. These all translate into the rewards of work.

But does retirement come to mind? More specifically, does retiring comfortably come to mind?

What is retirement? Simply put, retirement is the point where a person stops regular employment to engage in activities other than what he has done all his life. An employee, after long and hard work, spending the best years of his life, enters the last phase of his life preferably debt-free and worry-free. Ideally, too, it is time well-spent with family, a time to settle down and pursue hobbies, a time for travel and rest. The reality, though, is that very few retirees have maintained their lifestyle prior to retirement. Only a handful have actually achieved their dream retirement goals. It is more common to see a Filipino retiree use his entire retirement pay to settle a debt and with everything gone in 60 seconds! This retiree ends up working once more in a downgraded job ( a job not commensurate to his or her talent or at par with one’s previous position), selling fishballs or barbecue outside his house, or totally depending on his family for support. Many retirees are even afflicted with illness. It happens that the retiree’s monthly pension is not even enough to buy maintenance medicines. I know of a family in which the retiree had to undergo a major operation and the children had to pitch in all their savings and ended up mired in debt! These situations are very real, all because many people do not prepare for retirement.

What does it take to prepare for retirement? Here are a few valuable tips:

Know beforehand what you are entitled to receive. The first step is to know the basic retirement benefits that you will received from both the government and from your employer.

As a private employee, your first source of retirement funds would be government-sponsored programs like your social security pension and your retirement pay from Pag-IBIG. (Government employees are entitled to retirement benefits from the Government Service Insurance System.)

The Social Security System (SSS) pays a monthly pension that is guaranteed for 60 months or 5 years. To qualify, the SSS member must be at least 60 years of age and is already separated from employment or has ceased to be self-employed and has made at least 120 monthly contributions. For example, an employee who retired on January 1, 2007 with 40 years of service, whose salary at retirement was P 25,000 and in the last 5 years is above the maximum social security wage base of P 15,000, would be receiving a monthly SSS pension of P 12,300. This monthly pension replaces only 49% of the previous salary ( the replacement ratio is computed as the ratio of the monthly retirement income to the monthly income prior to retirement).

An employee’s contributions to the Pag-IBIG fund are another source of retirement funds. An employee’s membership with Pag-IBIG is terminated at the end of 20 years or at retirement. The member then receives the total accumulated value of the contributions that he and his employers made.

In more developed countries, governments have systems that provide more substantial pensions upon retirement. Certain countries have also progressed to funding of post-retirement health care as the cost of medical care in retirement is high. Our government at present cannot really afford to give anything higher without increasing the employer’s and employee’s contributions. Of course, this will lead to reduced net pay for an employee.

Another key source of retirement income is your employer. Republic Act No. 7641 of the Labor Code of the Philippines stipulates that all private employees are entitled to a minimum retirement benefit of a half-month salary for every year of service for employees who have reached age 60 and at least achieved 5 years of service. “One-half month salary” is defined as the last 15-day salary, 1/12 of 13 th month pay, and the cash equivalent of 5 days of service incentive leaves. This translates into about one month’s salary per year of service. For the aforementioned employee who has loyally served his employer for 40 years, the retirement pay will be around P 1,000,000.

Many employers, though, are providing supplementary retirement benefits. Because of the high value they place on their human capital and since they understand that social security benefits are insufficient, these companies are giving more than the minimum provided by law. The average would be about 1.4 times the final monthly salary. There are even some generous firms who give roughly three times the final monthly salary.

You should understand the future sources of your retirement income so you will know where you are.

Make a projection of your retirement needs. Many people shun numbers but projections are really necessary. If companies make long-term projections of their businesses, so should individuals. Project your future savings and retirement benefits and determine if they can cover the activities you want to do and the things you may need upon retirement. You’ll be amazed how your projections will make you decide what to do now. If you project that you will need P 10 million to survive your retirement days and see that you will only receive P 1,000,000 from all sources of retirement benefits, you can promptly act now on what to do with this glaring deficiency.

Save. Invest wisely. If your retirement needs cannot be fully covered by both government-funded programs and the benefits you will get from your employer, the best source to augment this deficiency is your savings. Studies show that in the Asia-Pacific region, Filipinos have the lowest savings rate. This is quite understandable as majority of Filipinos are in the low-income bracket. But it is surprising that many from the middle class barely have savings. Extra income is usually spent on buying the latest gadgets instead of being saved or invested wisely. Learn more about mutual funds, unit investment trust funds, and the like to earn higher yields on your hard-earned savings. I know certain wealthy people who invest in art to decorate their houses, but have also identified art pieces which they will sell in the future to finance their heart bypass or angioplasty. The point is, whichever way you do it, you need to save and properly invest your money for old age.

Advice For The Employer

Employers play a key role in ensuring the welfare of their retirees. While it is obvious that social security benefits as well as government health care are often deficient, the employer can provide supplementary retirement benefits in a cost-effective manner. The employer needs to know how the different retirement plans operate.

There are three types of retirement plans in the Philippines: defined benefit plans (DB), defined contribution plans (DC), and hybrid plans. DB programs provide benefits that are defined by a formula in the plan rules while the contributions necessary to meet the promised benefits are estimated periodically by an actuary. With DC plans, on the other hand, employer contributions are fixed in the plan rules while the benefits are a function of both the total contributions made and the investment performance of the fund. Benefits are variable and, thus, cannot be quantified in terms of final salary prior to retirement. Examples of hybrid plans are those that have separate DB and DC features and plans which are basically DC in nature but with a minimum DB benefit. In a study made by Watson Wyatt on retirement benefits, most companies’ retirement plans are of the DB type. A number of companies with DB plans are now shifting or considering tp shift to the DC or the hybrid type.

There are tax advantages for the employer in a tax-qualified trusteed plan. Contributions are deductible (subject to limitations) as ordinary and business expense. In addition, income from the trust fund is exempt from corporate income tax. Company contributions for tax-qualified non-trusteed plans and nontax-qualified plans are nondeductible.

It is important to note that in our competitive business environment, employee retention has become an issue. While many large, successful companies have spent millions on recruitment and training and the development of their employees, many also experience losing key personnel to competition. The resulting “ return on investment” is not maximized over time or is totally lost. Whether this happens to only one highly valued employee or is a perennial problem in an organization, employee retention should be constantly evaluated. Moreover, issues like competitive pay, potential for growth, work environment, and competitive employee benefits, which are very real, can no longer be ignored. A competitive retirement plan, thus, helps address employee retention challenges.

If you are an employer who highly values your human capital, you should:

Evaluate your present retirement plan vis-à-vis market practice. Review your budget and see whether improvements can be made on your existing retirement plan.

Educate your employees regarding their retirement benefits, whether they are the minimum required by law, or a scheme in which supplementary benefits are provided. Sometimes, even the minimum benefits are not fully understood by the average employee.

Before retirement, hold a seminar for your retirees on the benefits they will get from the SSS, PhilHealth, and Pag-IBIG. Go the extra mile in providing lectures on where and how they can invest their retirement pay. They will certainly need and appreciate your gesture.

Are you ready to retire? Between the call center guy and the professional evaluating an insurance product, who is most likely preparing for retirement? The answer is obvious. You don’t solve the problems of retirement when you get there. You solve them before you get there.

____________________

Reprinted from BusinessWorld-Wealth Manager dated June 4, 2007. Written by Soraya C. Manaloto, actuarial consultant at the Actuarial and Benefits Consulting Group of Watson Wyatt Philippines.

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Enhancement of Total Disability and Death Benefits

During the 2nd quarter of 2007, the CEAP National Board, upon the recommendation of its Retirement Commission, approved the enhancement of the Plan’s total disability and death benefits. These were formally presented to the participating institutions during the Plan’s 8th Annual Assembly held in Cebu last September 2007.

The enhancements are significant improvements from a financial standpoint. In the event that an employee, while in the active employ of his employer, become totally disabled, his beneficiary will be entitled to an additional total disability benefit amounting to P 150,000.00 Similarly, an employee who dies while in the active employ of his employer, will entitle his beneficiary to an additional death benefit amounting also to P 150,000.00 Their beneficiaries will be entitled to these additional benefits provided that the participating institutions are not in arrears and are current in their contributions to the Fund prior to the members’ total disability or death.

Participating Employers are duty-bound and morally obliged to be current in their contributions to enable their employees to fully enjoy the benefits provided for in the Plan, when they separate or retire or when the unexpected happens, such as death or they become totally disabled or incapacitated.

In the event that the Participating Employer is not updated in its contributions, it will be given a grace period of three (3) months to update it for its covered employees. If after 3 months the Participating Employer fails to do so, it will be required to pay the beneficiary or beneficiaries the additional benefit of P 150,000.00.

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CEAP Retirement Commission Approves Enhanced Total Disability Benefits and Death Benefits

During the 2nd quarter of 2007, the CEAP National Board, upon the recommendation of its Retirement Commission, approved the enhancement of the Plan’s total disability and death benefits. These were formally presented to the participating institutions during the Plan’s 8th Annual Assembly held in Cebu last September 2007.

The enhancements are significant improvements from a financial standpoint. In the event that an employee, while in the active employ of his employer, become totally disabled, his beneficiary will be entitled to an additional total disability benefit amounting to P 150,000.00 Similarly, an employee who dies while in the active employ of his employer, will entitle his beneficiary to an additional death benefit amounting also to P 150,000.00 Their beneficiaries will be entitled to these additional benefits provided that the participating institutions are not in arrears and are current in their contributions to the Fund prior to the members’ total disability or death.

Participating Employers are duty-bound and morally obliged to be current in their contributions to enable their employees to fully enjoy the benefits provided for in the Plan, when they separate or retire or when the unexpected happens, such as death or they become totally disabled or incapacitated.

In the event that the Participating Employer is not updated in its contributions, it will be given a grace period of three (3) months to update it for its covered employees. If after 3 months the Participating Employer fails to do so, it will be required to pay the beneficiary or beneficiaries the additional benefit of P 150,000.00.

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CEAP Retirement Fund Performance Report
For The Year Ended December 31, 2006

Contributions by participating employers amounted to P 210.23 million while benefitg payments reached P 116.05 million.

As to portfolio mix, the bulk of the Fund, equivalent to P 2.510 billion or 95.58% is invested in fixed income instruments. For its peso investments amounting to P 2.393 billion, the bulk of these are in government securities. The Fund’s dollar investments, with Deutsche Bank and ING Investment Bank, amounting to $ 2.393 million (P 117.40 million) are in ROPs sovereign bonds and unit investment trust fund.

The Fund’s investment in real estate (Tagaytay and Bacolod properties) continues to be valued at cost, with a combined value of P 54.8 million. The latest appraisal puts the combined value of the properties at P 104.2 million.

The Fund continues to hold on to its publicly listed equities valued at P 20.2 million as of December 31, 2006, registering an increase of P 9.0 million from December 31, 2005 level of P 11.2 million, translating to a modest increase of the Fund’s unrealized gains in its equity portfolio.

Portfolio Mix

As of December 31, 2006

As to profitability, the Fund generated a net income of P 206.7 million, proportionately distributed to the members’ equities as earnings for the 12-month period; P 22.57 million was accounted for by aggregate trust fees, administrative and other expenses; while unrealized gain, due to marked-to-market revaluation, stood at P 181.2 million and set aside in a reserve account.

The Fund posted a ROI of 17.64% p.a. ( realized earnings at 9.40%; unrealized earnings at 8.24%), net of fees based on realized and unrealized earnings of P 387.97 million.

Financial Highlights

January – December 2006

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CEAP Retirement Plan Holds Seminar on Financial Markets

The CEAP Retirement Plan Office, in partnership with Technistock Phils. Inc. and the Philippine Stock Exchange (PSE) sponsored an Investment Tools for Financial Markets Seminar at the PSE Center Trading Floor last Valentine’s Day. The affair was well attended with 68 participants from various member schools of the CEAP.

The seminar was organized to provide school treasurers and finance officers a market overview of the Philippine stock market, introduce them to decision tools for financial market research and analysis, and to create awareness on how their students, especially those majoring in business courses, can be more informed and involved in the local capital/equities market.

The seminar was also used as the venue for the formal launching of the PSE Open Stock Trading Tournament 2007, a 6-month individual competition open to all college students of state universities and colleges, private higher education institutions and local universities and colleges in the Philippines. It aims to provide college students with hands on experience in stock trading where they may apply financial theories, valuation techniques and adherence to trading rules among others.

The PSE Best Thesis Competition 2007 was also simultaneously launched, the objective of which is to recognize and encourage students to undertake research work and thesis projects related to the Philippine capital markets, more particularly the equities market. It is open to all duly enrolled undergraduate students of any Philippine state university or college, private higher education institution or local university or college for the academic year 2006-2007.

Fr. Vicente Rayco, SVD, Finance Head of St. Jude Catholic School led the invocation while Mr. Melchor Guerrero of the PSE opened the seminar with a brief introduction on the role of the exchange in the financial markets. This was followed by a 3-part lecture on the outlook of the stock market by Mr. Francisco Liboro, President of PCCI Securities Brokerage Corporation (PCCI). Mr. Richard Kho, President of Technistock Phils. Inc. presented the functionalities of the Technistock Financial Terminal for financial market analysis. Also present in the affair was PSE President and CEO Atty. Francis Ed Lim, as well as Ms. Gloria C. Garrovillo, Vice Chairperson of the CEAP Retirement Commission and Renato L. Aseneta, Director of the CEAP Retirement Plan Office.

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New Appointments at the CEAP Retirement Commission

The CEAP National Board, during its meeting last December 14, 2006, appointed Ms. Gloria C. Garrovillo as Vice-Chairperson of the CEAP Retirement Commission; Mr. Jose M. Santos as Head of the Investment Committee; and Ms. Ma. Rowena R. Dolor as member of the Investment Committee.

Ms. Garrovillo is a member of the Retirement Commission. She is the Finance Director of Miriam College of Quezon City, a Director of the Save & Learn Equity Fund and Save & Learn Fixed Income Fund, and a consultant of Country Rural Bank of Taguig Inc. She was consultant of Mobil Asia Pacific-Singapore and Manager of Mobil Philippines, Inc. She took up the Ateneo-Regis MBA program at Ateneo de Manila University. She finished her Bachelor of Science degree at the University of the Philippines. She took up various courses in banking, information technology and marketing from different institutions here and abroad. She is also a Certified Public Accountant.

Mr. Santos is a member of the Retirement Commission. He is currently the Vice-President for Finance and Treasurer of Ateneo de Manila University since 1986, a Director of the First Metro Asset Management, Inc., involved in Sylvia Santos, Inc., a family business since 1984. He was President & CEO of Philippine Pacific Capital Corporation and Head of the Trust and Investments Division of RCBC. He is a graduate of Ateneo de Manila University with a Bachelor of Arts degree in Economics and a product of the Graduate School of Wharton, University of Pennsylvania.

Currently Head of the Investments and Treasury Unit of De La Salle Philippines (DLSP). The network consists of 18 La Salle member schools nationwide.
Has over 18 years fund management experience. Prior to joining DLSP, was based in Kuala Lumpur as Assistant Vice-President for the International Instittutional Sales Desk Team of Rashid Hussain Bank Berhad. Before overseas assignment, was Portfolio Manager and Research Head of the Retirement Funds Department of San Miguel Corporation. Worked as Senior Portfolio Manager of the Portfolio Management Group of the Trust and Investments Division of AB Capital and Investment Corporation. Worked as Supervising Analyst with the Investments and Research Unit of the Trust Banking Group of Far East Bank & Trust Company. Earned her Bachelor of Science degree in Management of Financial Institutions from De La Salle University and completed all academic units (except thesis presentation) of the MBA program of the Ateneo Graduate School of Business. Completed the Certification Course on Professional Education from the University of the Philippines.

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CEAP Retirement Plan Holds 7th Assembly in Manila Fund's Total Assets Pegged at P 2.469 Billion

The CEAP Retirement Plan held its 7th Annual Assembly last September 12, 2006 at the Maynila Ballroom of the Manila Hotel, a day ahead of the CEAP National Convention, also held at the Manila Hotel’s Fiesta Pavilion, from September 13-15, 2006, which by the way, was also celebrating its 65 th or Diamond Anniversary.

This year’s theme was “Moving Forward…Raising Stakeholders’ Value to the Next Level.” The rationale behind this year’s theme was that the CEAP Retirement Plan had always been service oriented and central to providing efficient and effective delivery of such service was the automation of the Plan’s back office administration, consistent with its objective of further improving the overall quality of its commitment to the Plan’s participating employers through improved benefits, attractive fund yields, timely and relevant information, reliable data and reports, and streamlined procedures.

Mr. Renato Maria L. Aseneta, CEAP Retirement Plan Office Director, welcomed the delegates and did the emceeing chores as well. It formally opened with an invocation led by Sister Lioba Tiamson, OSB – Chairperson of the CEAP Retirement Commission. The delegates also observed a minute of silence in memory of two individuals who have contributed their time and effort to the Plan, namely: Bro. Andrew Gonzalez, FSC, former Chairman of the CEAP Retirement Board, who passed away last January 29, 2006 and Sister Amada O. Halili, former member of the CEAP Retirement Commission, who passed away last July 26, 2006.

Fr. Roderick C. Salazar, Jr., SVD – CEAP President delivered the keynote address. His message centered on this year’s theme – “Moving Forward…Raising Stakeholders Value to the Next Level.” He stated that “from whichever point we came since last year, we cannot now stand still, we cannot say this is enough, take our bow and quit. That cannot be. If we say we moved forward, then we truly must.” A few positive steps have been made, like:

In his report on the Fund’s performance for the ten-months period ended April 30, 2006, Mr. Aseneta happily informed the delegates that the Fund’s Total Assets has reached P 2.469 billion while the Members’ Fund was pegged at P 2.407 billion. Contributions amounted to P 178.3 million while benefit payments/withdrawals reached P 52 million, benefiting 655 employees, inclusive of 20 beneficiaries of deceased members. The bulk of the Fund, equivalent to P 2.314 billion, is invested in peso and dollar fixed income instruments, with the Fund’s dollar exposure pegged at $ 2.205 million ( P 114 million). He also reported that the Fund generated P 403 million in revenues, out of which P 149 million was allocated to the individual members’ equities while P 231 million represented unrealized gains on AFS financial instruments, brought about by marked-to-market revaluation, set aside in a reserve account. The Fund realized a ROI of 23.40% ( realized – 9.44% and unrealized – 13.96%).

The topic discussed by Atty. Sabino Padilla, Jr., CEAP Legal Counsel , focused on the following issues:

The Fund’s Trustee, Metropolitan Bank & Trust Company Trust Banking Group, represented by Ms. Josephine G. Cervero, gave an update on the transaction flow of contributions by way of almost 600 MetroBank branches nationwide, as well as on the transaction flow of withdrawals. Concerns by the Plan’s participating employers on matters like a) MBTC branches not accepting schools’ contributions; b) difficulty in encashing checks; and c) non-receipt of benefit payment checks on time were addressed and remedied by the Trustee during the open forum segment of the Assembly.

Other speakers included Ms. Carmen Linda M. Atayde, Executive Director of SM Foundation Scholarship Program, who gave an update on the 2 scholars currently enrolled under the CEAP Retirement Plan scholarship program; Mr. David J. John, President of ASC Trust Corporation, gave a rundown on the computerization and automation of the Fund’s back office operations; Mr. Frederico Rafael D. Ocampo, Chief Investment Officer of Deutsche Bank Manila AG, provided the delegates with an overview of global economic upswings, particularly in the US and Asian regions, and its medium and long-term effects on the Philippine economy; and Mr. Eduardo Mendoza, President of First Metro Asset Management Inc., who offered the schools’ financial stewards with ways on how to maximize financial/investment opportunities by way of Save & Learn Fixed Income Fund and Save & Learn Equity Fund.

The Assembly concluded with the closing remarks delivered by Sister Lioba Tiamson, OSB, wherein she reiterated the Plan’s concern and commitment to its participants and participating employers, as enumerated by Fr. Rod in his message. She bade them Godspeed and good luck as well as a promise to see each other again during the Plan’s Assembly in Cebu in September 2007.

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Message from the Chair Person

Thirty eight years have passed and the vision lives on. More than the promise to pay the Plan's participants the benefits provided for in the Plan, the CEAP Retirement Commission has embarked on programs enhancing stakeholder values and formulated a strategic direction designed to infuse further benefits, improved service delivery systems and a meaningful corporate social responsibility program into the Plan.

While we can not ignore or steer away from the country's political, economic and financial realities that influence the policies and decisions of the Commission in relation to investments and fund performance, it is paramount to make the Plan relevant to the times. This has been done by introducing several amendments to the Plan, especially in the areas of Administration, Earnings Account, Accounting and Information, Payment of Benefits and Employer Participation.

It is timely that as CEAP looks forward to its milestone 65 th anniversary, the Plan continues to move forward and raise its stakeholders' value to a higher level. The fruition of the commitments promised by Fr. Roderick C. Salazar, Jr., SVD, CEAP President, during the 6 th Retirement Plan Assembly held in Davao last September 2005 have already been realized.

These include the following:

As the CEAP Retirement Plan moves ahead into its fourth decade as a service organization, the Retirement Commission has already set into motion the process of selecting younger but qualified members to ensure continuity of the Plan's long range fiduciary goals and programs. The end objective is to ensure that the funds of its participating employers and participants continue to be managed efficiently and effectively.

Rest assured that we will continue to find ways to better improve the benefits and services provided for by the Plan, and that the strides undertaken are firmly anchored on the belief that the welfare of our stakeholders is always our priority.

It is our ardent desire that we all work together with a strong resolve and an unequivocal unity of purpose never before experienced in the history of the Fund. The times are different and our response should always be equal to the challenges if not superior. But we always appreciative of your support and if quality is a basis of how we are going to move forward, we should have already won.

Thank you.

Sister M. Loiba Tiamson, OSB
Chairperson

Reprint from 2006 CEAP Retirement Plan Annual Report.

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FAMI and CEAP launch Financial Stewarship Series

First Metro Asset Management, Inc. (FAMI), a joint venture between First Metro Investment Corp. (FMIC), the Catholic Educational Association of the Philippines (CEAP) and Marist Development Foundation, together with the CEAP Retirement Plan Office recently launched the Financial Stewardship Series, a quarterly forum geared towards educating the treasurers of the of the Catholic education sector on sound financial management practices and intelligent investing.

The first Financial Stewardship Series was held at the Penthouse of Metrobank Plaza in Gil Puyat Ave., Makati City. Carrying the theme, “Where to Park Your Money These Days”, the forum was participated in by school directors and treasurers of CEAP member schools in Metro Manila.

FAMI Vice Chairman and FMIC Executive Vice President Roberto Juanchito T. Dispo gave a comprehensive overview of the financial markets in the country. Unit Investment Trust Funds (UITFs) and Marked-to-market valuation of fixed income securities were discussed by Augusto M. Cosio Jr., Program Designer and Resource Speaker in Financial Markets of the Ateneo Professional Schools Center for Continuing Education. FAMI President and FMIC Vice President Mr. Eduardo A. Mendoza meanwhile lectured on the opportunities and risks of investing in mutual funds.

Mr. Dispo said that FAMI including the activities it undertakes is not just a business venture for First Metro Investment, the investment banking arm of Metrobank, but more importantly, it is a part of the fulfillment of the company’s vision of promoting the Philippine capital markets and financial literacy throughout the country. FAMI and CEAP are in the preparation stage for the rollout of the Financial Stewardship Series nationwide.

FAMI currently manages the First Metro Save & Learn Equity Fund (SALEF), the best performing stock market mutual fund in the market today, and First Metro Save & Learn Fixed Income Fund (SALFIF), a relatively new bond fund competing tightly against established fixed-income funds.

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7th CEAP Retirement Plan Assembly

The CEAP Retirement Plan will hold its 7th Annual Assembly at the Centennial Ballroom of the Manila Hotel on September 12, 2006.

This year’s theme is “Moving Forward…Raising Stakeholders’ Value to the Next Level.” From the time it was established in July 1968, the CEAP Retirement Plan has always been service oriented and central to providing efficient and effective delivery of same is the automation of the Plan’s back office administration, consistent with the objective of further improving the overall quality of its commitment to the Plan’s participating employers and their employees. Enhanced service quality will be delivered in the form of improved benefits, attractive fund yields, timely and relevant information, reliable data and reports, and streamline procedures.

For more information about the Assembly, please contact the CEAP Retirement Plan Office at telephone nos. (02) 426-2677 and (02) 926-6273 or e-mail us at retirement_ceap@yahoo.com and look for Ms. Mennie Amores or Ms. Anne C. de Leon.

See you there.

Multi-Purpose Loan Program

The CEAP National Board, during its meeting last May 26, 2006 approved a multi-purpose loan program for the CEAP Retirement Plan’s member participants by way of the ChinaTrust Salary Stretch Program and the Banco de Oro (BDO) Salary Loan Program.

Under this multi-purpose loan program, qualified members can enjoy guaranteed low rates, flexible loan terms and fast turnaround time. For accredited participating employers, it can be deemed as enhancement to employee benefits.

This facility is open to full-time, regular employees with at least P 6,000 gross monthly salary ( excluding overtime pay, bonuses and other non-cash compensations). Loanable amount is from a minimum of P 10,000 to a maximum of P 300,000 at competitive rates and the term can be for 6, 12, 18, 24 and 36 months. Repayment will be via fixed monthly amortization through salary deduction.

To activate the facility, the participating employer needs to enroll into the program, either with ChinaTrust Salary Stretch Program or BDO Salary Loan Program.

CEAP Retirement Plan-SM Foundation College Scholarship Program

The Memorandum of Agreement governing the CEAP Retirement Plan-SM Foundation College Scholarship Program was signed last Friday, June 30, 2006 at the SM Corporate Offices in SM Central Business Park, Pasay City. Sister Lioba Tiamson, OSB, Chairperson of the Retirement Commission and Ms. Carmen Linda M. Atayde, Executive Director-Scholarship Program, inked the Agreement in behalf of the CEAP and SM Foundation, Inc., respectively.

Two (2) college scholarship slots were allotted to CEAP for SY 2006-2007. A short list of candidates, composed of 14 qualified and deserving high school graduates, were submitted to SM Foundation, Inc. They all took the qualifying examinations and after a series of interviews, two (2) successful candidates were awarded the slots, namely: Ms. Hyacinth Kathleen B. Penales, a graduate of St. Gregory Academy-Indang, Cavite and Mr. Henley M. Alcantara, a graduate of Holy Rosary School of Pardo-Pardo, Cebu.

Ms. Penales is currently enrolled at DLSU-Dasmarinas taking up Accountancy while Mr. Alcantara is enrolled at Cebu Normal University taking up Education. For as long as they meet all the academic standards requirement set by the Foundation and the University they are enrolled in, they will continue to enjoy and benefit from the scholarship grants.

The CEAP wishes them well and we are confident that they will be members of their respective graduating classes four to five years from now.

CEAP Retirement Plan Amendments

The CEAP National Board, during its meeting last May 26, 2006, approved the recommendation of the CEAP Retirement Commission to amend several articles contained in the Plan, covering the following: Article VI – Contributions to the Fund; Article VII – Administration; Article VIII – Earnings and Reserve Account; Article IX – Accounting and information; Article XI – Payment of Benefits; Article XII – Portability of Benefits; and Article XIII – Termination of Participation.

As provided for in Article XIV, Section 1 of the Plan, the Retirement Commission may amend or modify provisions/articles in the Plan at any time by a resolution approved by at least two-thirds (2/3) vote of is members. The amendments have already been forwarded to the Bureau of Internal Revenue for approval and tax qualification. Once approved, the amended Retirement Plan as of May 26, 2006 will supercede the existing Plan which was amended last January 21, 1999.

Enumerated hereunder are highlights of the amendments:

· Article VII, Section 1 – … A Member of the Commission shall serve for a term of three (3) years or until his successor is appointed and qualified. The CEAP President, the CEAP Executive Director and the CEAP Treasurer shall serve as ex-officio members of the Commission. Four (4) members of the Commission shall represent the National Capital Region (NCR), Luzon, Visayas and Mindanao, respectively.
· Article VIII, Section 1 - … the Earnings Account shall be credited or debited, as the case may be, with all realized interests, dividends, capital gains and losses, other income and expenses on every valuation date.
· Article IX, Section 1 - … the fiscal year of the Fund shall begin on May 1 and end on April 30.
· Article XI, Section 3 - … and to a specified proportion of the total contribution of his participating employer in his favor plus the income credited thereto under the Trust Fund computed in accordance with his length of membe5rship in the Plan, a fraction of at least six (6) months being considered as one (1) whole year…
· Article XII, Section 1 - … consequently, the forfeitures arising out of the separation of the Member who has rendered at least 10 years of continuous service but less than 20 years of continuous service, shall be proportionately divided among the Member’s previous employer/s whose credit were carried by their former employee to his current Participating Employer, whose service he is leaving.
· Article XIII, Section 3 - …however, a Member who has contributed voluntarily to the Fund and is still included in the members’ Masterlist but is no longer connected with his Participating Employer will have his personal equity donated to the CEAP scholarship fund if he can no longer be contacted at his last known address and there is no activity in his account for a period of 10 years from his last transaction date. In the case of employer contributions, it will be governed by Section 9, Article XI of the Plan.

CEAP Appoints ASC Philippines Inc. New Retirement Fund Administrator

The CEAP appointed ASC Philippines Inc., the local unit of Guam-based ASC Trust Corporation, as the Retirement Plan’s new retirement fund administrator, in charge of administration and record keeping services, last October 21, 2005, upon the recommendation of the CEAP Retirement Commission. This is line with the CEAP Retirement Plan’s objective of improving the overall quality of its services to its approximately 600 participating employers and about 27,000 of their employees by not only providing improved benefits and attractive fund yields, but more importantly, timely and relevant information, reliable data and reports and streamlined procedures.

The company manages over 350 retirement plans in 11 Asian countries, where a large percentage are School and University Plans. ASC is capable of providing computerized web-based services to the Fund’s Participating Employers and member participants, via their website www.ascpac.com, access to their most recent balances. Furthermore, the company is SAS 70 compliant.

SAS 70 is the Statement of Auditing Standards for Business Process Outsourcing, a recommended way of checking the reliability of companies providing outsourcing services. Although not yet strictly observed in the Philippines, SAS 70 compliance is required by most multinational companies when using service providers.

To quote from SAS 70 Overview… “In today’s global economy, service organizations or service providers must demonstrate that they have adequate controls and safeguards when they host or process data belonging to their customers. SAS No.70 is generally applicable when an auditor (user auditor) is auditing the financial statements of an entity (user organization) that obtains services from another organization (service organization). Service organizations that provide such services could be application service providers, bank trust departments, claims processing centers, Internet data centers, or other data processing service bureaus.”

The software system used by ASC Philippines Inc. is a flexible system, which provides accurate, timely processing, and efficient plan administrative computing. The system is designed to maintain plans of varying complexity and is based upon a range of proven accounting methods. These methods facilitate the rapid and accurate implementation of the vast majority of plans without the need for special programming. The result is a reliable system, which can quickly respond to the ever-changing requirements of the CEAP Retirement Plan.

CEAP Retirement Plan Launches College Scholarship Program

The objective of the scholarship program is to provide quality education to deserving underprivileged high school graduates, whose annual household income does not exceed P 200,000 pesos and who have attained a fourth year weighted average grade of at least 88% in the second or third grading period.

Initially, it will cater to the graduates of CEAP Retirement Plan member high schools located in SM Foundation preferred areas – National Capital Region (NCR), Cavite, Laguna, Pampanga, Cebu, Iloilo, Davao, Cagayan de Oro, Bulacan, Baguio, Lucena and Batangas.

To get the program going, SM Foundation will take in 2 scholars for school year (SY) 2006-2007. In the future, we hope to get more slots and a wider area of coverage. For this school year, available courses that may be applied for by CEAP scholars are the following:

CEAP scholars will be entitled to benefits, such as: a) free tuition and school fees; b) monthly stipend; c) work opportunities during summer and Christmas breaks; d) regular scholars’ meetings; e) annual sportfest, Christmas party, recollection, presentation to benefactors; and f) job fair for graduates.

An average of 2.5 or 85%, no failing marks in any subject and compliance to scholarship contract are “must dos” for the CEAP scholar to continue his eligibility in the Program.

We believe that as this program gets to take off this coming school year 2006-2007, the CEAP Retirement Plan will have reason to hope and be inspired and to aspire and be rewarded.

In Memoriam

Brother Andrew Benjamin Gonzalez, FSC ( Macario Arnedo Gonzalez) passed away last January 29, 2006 at the age of 64. At the time of his passing, he was President Emeritus of De La Salle University – Manila. Previous to this appointment, Brother Andrew served as President of De La Salle University – Manila from 1979-1990; System President of De La Salle University System from 2003-2005. He also became President of the Manila Bulletin Publishing Corporation from 1991 to 1994. He was appointed Secretary of Education, Culture and Sports in July 1998 and served in that capacity until January 2001. He was also the Chairman of the CEAP Retirement Board from 1981 to 1998.

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Lessons Brother Andrew Taught Us

Plan Orientation Updates

An orientation on the CEAP Retirement Plan was conducted by the CEAP Retirement Plan Office last August 26, 2009 with the employees/staff of Universidad de Sta. Isabel – Mother Seton Hospital (USI-MSH) in Naga City, with emphasis on the Plan’s core objectives of advocacy, stability, service, assembly, interactivity and mobility.

Sister Dolores C. Cornejo, DC – USI-MSH Vice President for Health Services, presenting a Certificate of Appreciation to Renato Maria L. Aseneta, Director of the CEAP Retirement Plan Office.