|CEAP Retirement Plan Profile|
The CEAP Retirement Plan is the Retirement Program for CEAP accredited member schools. It was established on July 1, 1968 upon the initiative of the CEAP National Board with 22 schools committing to join the Plan during the CEAP Retirement Board’s first meeting held on September 15, 1968. As of April 2015, it has 649 employers and more than 30,000 individual members.
The Plan was formally approved by the Bureau of Internal Revenue as a qualified Plan under R.A. 4917 on April 11, 1969, entitling it to certain tax exemptions. The Plan has undergone several amendments, the latest of which was on January 21, 1999 and later on qualified and approved by the Bureau of Internal Revenue on March 9, 2001.
The Objective of the Plan is to establish on the basis of private initiative a multi-employer retirement plan that would promote institutional loyalty and provide retirement and auxiliary benefits for teachers and other employees of Catholic schools, over and above the retirement benefits under the Pag-Ibig Fund and the Social Security System.
The Plan is provident and non-contributory. The monthly contributions of the Participating Employers provide their employees with the assurance that their retirement benefits are being funded regularly during their years of service. Employees under certain conditions are allowed to make their own personal contributions towards their retirement.
When the Plan was conceived and established in 1968, there was no law requiring private employers, including private schools, colleges and universities, to pay retirement benefits to their employees. It even preceded the Bureau of Private Schools Memorandum No. 99, series of 1974 and Memorandum No. 127, series of 1974 on August 22, 1974 and October 29, 1974 respectively, requiring establishment or adoption of a retirement plan for the teaching and non-teaching personnel in each private school to enhance careerism which was bolstered by PD No. 451.
The Investment Committee is composed of five (5) members appointed by the Retirement Commission through its Chairperson. The Investment Committee acts as the oversight body focusing on setting the Fund and the Supplemental Fund’s investment objectives and policies (asset allocation, investment guidelines, and Trustee or Investment Manager selection), evaluating fund performance results, and providing advice to the Retirement Commission on strategic options, tactical shifting, and investment choices.
The specific functions of the Investment Committee include but not limited to: (i) recommending and endorsing to the Retirement Commission the selection or termination of a Trustee or Investment Manager; (ii) formulating investment policies, objectives, and guidelines; (iii) resolving specific issues relating to the investment of the Fund and the Supplemental Fund, provided that any action taken by the Investment Committee shall comply with the guidelines approved by the Retirement Commission; and (iv) reviewing periodically the investment performance of the individual Trustees or Investment Managers and overall fund performance results versus selected benchmarks.
The Risk, Compliance and Audit Committee is composed of five (5) members appointed by the Retirement Commission through its Chairperson. The specific functions of the Risk, Compliance and Audit Committee include but not limited to: (i) identifying internal and external risk areas in all aspects of the operations of this Plan and recommending policies and procedures to eliminate or mitigate such risks; (ii) ensuring that all risk mitigating actions and procedures are implemented prior to consummation of activities that are identified as high risk and high impact; (iii) assessing the implementation and effectiveness of policies and procedures established to eliminate or mitigate identified risk areas through the conduct of internal audit; and (iv) overseeing external audit process up to the release of annual audited financial statements.
The Retirement Plan Office, headed by a Director, with a twelve-person manpower complement, implements the directions and policies set forth by the Commission.
The administrative and operational activities of the Retirement Plan Office are financed by a budget approved by the Retirement Commission and the National Board from gross income generated by the Fund’s investments.
With a Fund value of a little over P 4,000 at the end of December 1968, the Fund’s assets are now valued at Php5.62 as of April 2015.
The CEAP Retirement Plan
Programs and Services