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Frequently Asked Questions

Nature of the Plan

  1. What is the CEAP Retirement Plan?

    It is a Plan established to provide retirement and other benefits for the qualified employees of (a) the CEAP member schools and CEAP Secretariat and Retirement Office and (b) other Catholic institutions which are subsequently accepted by the CEAP Retirement Commission.

  2. What other institutions may be accepted as Participating Employers in the Plan?

    Any Catholic school or institution, college, university, congregation, order or diocese may be accepted 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.

  3. Is the CEAP Retirement Plan qualified under BIR regulations?

    Yes and as such, Participating Employers and Members of the Plan are entitled to the following privileges:

    • All school contributions to the Retirement Fund are deductible from the school's taxable income, if any;
    • The income of the retirement fund is exempt from tax; and
    • The retirement benefit payments from the Retirement Fund of the qualified and retired members are exempted from tax.

     


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Membership
  1. Who are qualified to become members in the Plan?

    All regular employees of the Participating Employers, including probationary employees but excluding part-time, casual and temporary employees, whose ages are less than 60 years shall automatically become members of the Plan. 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.

  2. What is the rationale for including probationary employees to automatically become members in the Plan?

    The rationale for this is that under the Labor Code, as amended by R.A. 7641, the lump sum retirement benefit is computed from date of employment as a probationary employee, not from date of permanency or acquisition of tenure. Hence, a Participating Employer might as well start contributing to his employee's retirement from the date of hire as a probationary employee and not three (3) years later. If the employee does not become a regular or permanent, his credits in the Retirement Plan due to his employer's contributions are forfeited and used to reduce the employer's subsequent contributions.

    This is also in line with the requirement in the Social Security Act that a probationary employee is covered by social security from date of hire. It will also mean that the counting of periods of continuous service will commerce from date of hiring as a probationary employee and not three (3) years later (in the case of academic employees) or six (6) months later (in the case of non-academic employees).

  3. Does a full-time employee who changes his status to a part-time employee still qualify to become a member in the Plan?

    The CEAP Retirement Plan does not cover part-time employees. The original Plan considered as members "regular" employees of a Participating Employer. The latest amended Plan categorically states that "part-time" employees are excluded.

    In view of this provision in the Plan, a part-time employee can not be a member of the Plan. And a full-time employee who changes his status to a part-time employee may be considered as one who has resigned as a full-time employee and applied for employment and was hired as a part-time employee. By that voluntary change of status from full-time to part-time, the employee losses even the tenure he had as a full-time employee. Another consequence is that he can no longer considered a member of the CEAP Retirement Plan and therefore must be paid whatever benefits he is entitled to under Sec. 3 Art. XI of the Plan.

  4. What is meant by continuous service?

    Continuous service means the uninterrupted service as determined by the Participating Employer's personnel records. Leaves of absence approve by 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.

  5. How does an Institution/School apply for membership in the Plan?

    Institutions/Schools interested in joining the Plan should either first get themselves CEAP-accredited or accepted by the CEAP Retirement Commission. They can get in touch with:

    The Director
    CEAP Retirement Plan Office
    Room 303, JBD Plaza
    No. 65 Mindanao Avenue, Bagong Pag-Asa
    1105 Quezon City, Metro Manila
    Telephone Nos. (02) 426-2677 & (02) 926-6273
    Fax No. (02) 929-7428
    E-mail:
    All communications regarding application for Plan membership should be sent to the Retirement Office. Thereafter, the office will submit to the Retirement Commission for approval all such applications. The Institution/School will be informed of the Commission's decision in writing.


  6. If a member resigns after having been admitted into the Plan and is afterward re-employed by the same or new Participating Employer, will he be treated as a new member?

    Yes, except when it concerns portability of benefits

  7. What is meant by portability of benefits?

    It is a feature of the CEAP Retirement Plan wherein the credit earned by a member from his Participating Employer who has rendered less than 10 years of continuous service is carried to his new Participating Employer and the length of service in both will be taken into consideration in determining his total years of continuous service for purpose of Section 3, Article XI only but not for purpose of computing his retirement benefits. Furthermore, the following requirements must be met:

    • He must first secure the approval of the Participating Employer whose service he is leaving.
    • He must notify in writing the Chairman of the CEAP Retirement Commission of his decision; and
    • He must be employed by another Participating Employer within a period of one (1) year following the effective date of this resignation.

    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 Section 3, Article XI.

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Beneficiaries

  1. Who can be nominated as beneficiaries?

    Any Member shall upon joining the Fund, forthwith nominate in writing in such forms, as shall be described by the Retirement Commission (CEAP-RB Forms No. 1 and 8), a person or persons to received the amount which may be due in case of his death from among those enumerated hereunder in the order specified.

    • Legitimate spouse and children
    • Parents
    • Brothers and sisters
    • His estate or any other person or entity

    However, single or unmarried members may indicate any beneficiary not necessarily following the order provided by the law on intestate succession.

  2. If a member fails to nominate any beneficiary, who shall receive the benefits due him in the event of his death?

    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.

    • Legitimate spouse and children
    • Parents
    • Brothers and sisters
    • His estate

  3. If the beneficiary is a minor or under any disability at the time of death of the member, to whom shall the benefits be given?

    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.

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Contribution

  1. Are the members required to contribute to the CEAP Retirement Fund?

    The CEAP Retirement Plan is basically non-contributory. 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 Retirement Fund an amount equal to 1% but not more than 4% of his current monthly salary, provided that the option, once exercised, will served 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 shall be subject to the provisions of the Plan and shall not be subject to withdrawal unless for a cause provided herein.

  2. How does a member apply for a voluntary contribution?

    A member who wishes to contribute voluntarily to the Fund should fill out CEAP-RB Form No. 10 which will serve as a continuing authority for the Participating Employer to deduct every month the indicated percentage of salary as voluntary contribution and to remit the same to the Trustee.

  3. How much should a Participating Employer contribute to the Fund in behalf of its covered employees?

    Starting from the date of acceptance in the Plan each Participating Employer is required to contribute to the Fund the following amounts.

    • Past service - 5% of each member's average monthly salary for the 12 month period immediately preceding the date of acceptance of the Participating Employer in the Plan multiplied by the number of months of past service. It may be paid into the Fund 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.
    • Future service - 4% of each member's current monthly salary, effective SY 1994-1995.

    On a voluntary basis, Participating Employers which can afford to contribute more to the Retirement 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.

  4. What is meant by Future Service?

    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, Article VI.

  5. What is meant by Past Service?

    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 Retirement Plan to the date of acceptance of the Participating Employer in the Plan.



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Administration
  1. How is the Plan administered?

    A Retirement Commission composed of not less than 12 persons appointed by the CEAP National Board shall administer the Plan. All questions relating to the operation and administration of the Fund, except those strictly pertaining to its investments, shall be resolved by the 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 Commission may seek the advice of counsel and may appoint an independent accountant to audit the Fund, with professional fees and expenses to be charged to the Fund.

  2. What is the role of the Retirement Commission's Investment Committee?

    The investment committee anchors its investment philosophy on the belief that it has a fiduciary responsibility to the Participating Employers and members of the Plan to exercise prudence and conservatism in the management of their funds. It also believes that superior returns can only be achieved over the-long-term by gaining a thorough understanding of the myriad and constantly changing factors effecting the investment markets and by the active participation in the management of the Fund's portfolio.

  3. Who has been appointed as Trustee of the CEAP Retirement Fund?

    Metropolitan Bank and Trust Company (MetroBank) is the appointed Trustee of the CEAP Retirement Fund.

    Metropolitan Bank and Trust Company (MetroBank) can be contacted/reached at:

    Attention: Jacqueline Mariano Gregorio
    Email Address:
    Telephone: (02) 580-9521
    Address:
    18/F GT Tower International Building
    6813 Ayala Avenue corner HV Dela Costa St.
    Makati City
  4. What is the role of the Trustee?

    The Trustee receives, invests and re-invests the contributions from the Participating Employers and voluntary contributions from the members and releases payments of benefits due to the retired/separated individual members and beneficiaries of the Plan.

  5. What is the role of ASC Philippines Inc?

    ASC Philippines Inc. has been appointed by the CEAP National Board to be in charge of the CEAP Retirement Plan’s Administration/Record Keeping Services.

    Consequent to its functions, ASC Philippines Inc. will provide the following reports to the Plan Administrator and Participants:

    Monthly Management Reports
    Omnibus Plan Activity Report ( Activity Totals for all CEAP Retirement Plan Member Schools
    Individual School/Institution Trust Report Consisting of:

    • Market Value Reconciliation (Reconciliation Report)
    • Investment Fund Activity
    • Activity by Transaction (Summary of Contribution & Distribution)
    • Activity by Account

    Quarterly Management Reports
    Omnibus Plan Activity Report ( Statement of Participants Equity by School)
    Individual School/Institution Trust Report Consisting of:

    • Market Value Reconciliation (Reconciliation Report)
    • Investment Fund Activity
    • Activity by Transaction (Summary of Contribution & Distribution)
    • Activity by Account

    Summary of Participant Accounts
    Summary of Terminated Participants
    Summary of Forfeiture Activity by School
    Individual Participant Account Activity

    Additionally, ASC will provide Online Employee Statements for each participant.

    Semi-Annual Reports

    Semi-annually, ASC will send hard copy statements to each participant.

    ASC Philippines Inc. can be contacted/reached at this address:

    Attention: Karen Ching
    Email Address:
    Telephone: (02) 729-2146
    Telefax: (02) 757-1180
    Address:
    17/F GT Tower International Building
    6813 Ayala Avenue corner HV Dela Costa St.
    Makati City, Philippines

  6. How are the members informed of the amount standing to their credit at a certain date?

    As soon as practicable after the beginning of each year, Feliciano F. Miravite, Inc. shall prepare and furnish to each member and the Participating Employer a written statement or statements of:

    • All earnings of the Retirement Fund during the prior fiscal year;
    • The value of the Fund as of December 31 of the prior year; and
    • The status of the respective member's accounts as of December 31 of the prior year.


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Retirement Dates

  1. When can a member retire from the service of a Participating Employer?

    A member may retire on early, normal or late/deferred retirement date.

  2. What is the 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 member, the normal retirement date shall be the day he reaches age 60.

  3. What is the 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.

  4. What is the deferred/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.

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Payment of Benefits

  1. What is the benefit scheme of the Plan?

    The retirement benefits payable under the Retirement Plan shall be computed based on the total amount standing to the credit of the member in the books of the Trust (Retirement) Fund consisting of his own contributions and income earned, if any, and the contributions of his Participating Employer in his favor plus the income earned respectively credited thereto determined as of the last valuation date.

  2. What are the benefits of a member upon reaching early and normal retirement date?

    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 early or normal 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.

    Retirement benefits under the Labor Code, as amended by R.A. 7641 are exempt from income tax.

  3. Is a member entitled to any benefits under the Plan upon 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 (Retirement) 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 (Retirement) Fund computed in accordance with his length of membership in the Plan as follows:

    Completed Years of
    Continuous Serves    		 Percentage Payable
    Under the Trust (Retirement ) Fund
    Below 10 years None
    After 10 years 50%
    11 years 55%
    12 years 60%
    13 years 65%
    14 years 70%
    15 years 75%
    16 years 80%
    17 years 85%
    18 years 90%
    19 years 95%
    20 years or over 100%

  4. In case of separation prior to retirement, how is the member's length of membership in the Plan/tenure of service reckoned?

    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 on 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.

  5. What is the procedure for the payment of retirement/separation benefits?

    Application for the payment of retirement/separation benefits must be made in writing in the form (CEAP-RB Form No 9) and manner prescribed by the Retirement Commission and must be filed by the member with the Retirement Office duly endorsed by the authorized signatory of his Participating Employer at least 30 days in advanced 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 Commission shall be final and binding upon all parties.

  6. Is involuntary separation qualified as to the length of service and age of the official or employee?

    No. Amounts received by reason of involuntary separation remains exempt from tax even if the official or employee at the time of separation had less than 10 years of service and is below 50 years in age.

    Thus, it is generally, only those who voluntarily resign after 10 years of service who will be taxed on their separation benefits prior to retirement. Those who are separated due to sickness, redundancy or retrenchment to avoid serious business losses or the installation of labor-saving devices will still be entitled to tax-exemption of their separation benefits under the Labor Code. Moreover, the member shall be entitled to 100% of the amount standing to his credit regardless of such member's length of service, or the amount due him under the law, whichever is higher.

  7. How are benefits computed under the Plan?

    The benefits payable under Sections 2, 3 and 6 of Article XI of the Plan shall be computed based on the total amount standing to the credit of the Member in the books of the Trust (Retirement) Fund consisting of his own contributions and income earned, 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.

  8. Is it still required to follow the DOLE Implementing Rules on R.A. 7641 in computing retirement benefits?

    In computing retirement benefits, it is no longer required to follow the DOLE Implementing Rules on R.A. 7641, which interpreted the law to mean more or less 22.5 working days for every year of service. The National labor Relations Commission in resolutions issued last August 29, 1996 in Alita v. Dominican School, NLRC Case No. 00-10-07401-94 and last August 30, 2002 in Lavandera v. Grace Christian High School, NLRC Case No. 031379-02, clarified that the lump sum retirement pay under R.A. 7641 is still one-half month for every year of service, the half-month consisting of a) the salary for fifteen (15) calendar days; b) one-twelfth (1/12) of the 13th month pay; and c) one-twelfth (1/12) of the cash equivalent of the five (5) days service incentive leave.

  9. How are the benefits computed under the Plan?

    The benefits payable to a member may either be paid to him or his beneficiary/beneficiaries directly in lump sum.

  10. What other benefits aside from separation/retirement benefits are payable under the Plan?
    • Death Benefit - In case of death of a member, 100% of the amount standing to his credit under the books of the Trust (Retirement) Fund plus 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 Section 2, Article V regardless of such deceased member's length of service with his Participating Employer. The Participating Employer should file with the Retirement Plan Office in behalf of the deceased member CEAP-RB Form No. 11/11A - Application for Death Benefit and Attending Physician's Statement respectively, with supporting documents to expedite processing of same.

      The amount of additional death benefit is equivalent to one (1) year salary based on the member's latest salary but shall not exceed P 150,000.00. However, employees of Participating Employers which have failed to remit the contributions for a total of twelve (12) months shall not
      be entitled to this additional death benefit and the Participating Employer shall pay the beneficiary of the deceased employee an amount equivalent to this additional death benefit. In any case, where the Plan pays this death benefit, the unpaid contributions of the Participating Employer for the deceased employee shall be deducted from the death benefit, without prejudice to the beneficiaries claiming from the Participating Employer these unpaid contributions deducted from the death benefit.

    • Disability Benefit - 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 from the Trust (Retirement) Fund regardless of such member's length of service, or the amount due him under the law, whichever is higher. The determination of permanent total incapacity or disability shall be made by the doctor to be designed by the Participating Employer, and his judgment shall be final.
  11. Will a member who is dismissed by his Participating Employer for cause be entitled to any part of the Fund?

    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.

  12. Are the contributions in favor of a separated or resigned member returned to the Participating Employer?

    If a member separates or resigns form his Participating Employer with less than 10 years of continuous service, the amount standing to his credit shall be retained in the Trust (Retirement) Fund and such credit classified as forfeitures shall be used by the Participating Employer to reduce its subsequent contributions to the Fund.

    Similarly, if a member separates or resigns from his Participating Employer with more than 10 years but less than 20 years of continuous service, the portion of the amount standing to the credit of the resigned or separated member which is not paid to him by virtue of the laminations of the vesting provisions of the Plan, classified as forfeitures, shall be used by the Participating Employer to reduce its subsequent contributions to the Fund.

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Termination of Participation

  1. Can a Participating Employer withdraw its membership in the Plan?

    For adverse factors beyond its control, a Participating Employer may withdraw at any time from its participation in the Plan by serving written notice and submission of Board Resolution 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.

  2. In the case of voluntary withdrawal, do the contributions revert back to the Participating Employer?

    No. 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.

    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.

  3. Does the Retirement Plan impose sanctions on delinquent Participating Employers?

    A participating Employer who fails to make any three (3) contributions to the Retirement Fund as required by the Plan and the administrative procedures adopted by the Retirement Commission shall be subject to cancellation of its status as an active employer of the Plan. 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.

  4. Does a member have any claim on the amounts standing to his credit in the Plan?

    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 part of his interest 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 interest under the Plan.

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