History

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.

Organization
The CEAP Retirement Plan is administered by a Retirement Commission. The Retirement Commission is composed of fifteen (15) members as follows: (i) Nominees of the Fund’s biggest stakeholders appointed by the National Board as regular members; and (ii) the CEAP President, the CEAP Executive Director, and the CEAP Treasurer as ex-officio members.   The Retirement Commission elects from among its members a Chairperson.

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.

Operations

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.

Fund Value

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

  1. Aims to be the Primary Retirement Plan for all Catholic schools, colleges and universities under the CEAP umbrella.
  2. Strives to build and strengthen linkages with its Bank Partners, as well as other financial institutions, government organizations and corporate entities, in delivering value-added services with distinctive quality to its members.
  3. Endeavors to be relevant with the realities of the times, responsive to the ever changing needs of its stakeholders, as well as exercising judicious fiduciary responsibility in providing fair returns and growth for the monies entrusted to its care.
  4. Shall be cognizant of its 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 strictly adhering to its Code of Corporate Governance.

Programs and Services

  1. Advocacy – The adoption of the Big Brother/Small Brother Paradigm that brings into the CEAP Retirement umbrella small CEAP member schools that allows them to obtain better financial returns for their funds than if they were to do it individually.
  2. Annual Assembly – The CEAP Retirement Plan annually holds a general assembly for its participating institutions every September to foster camaraderie and goodwill and at the same time be informed on matters affecting the Retirement Fund as it relates to fund administration, economic/financial situations and legal and tax issues.
  3. Plan Amendments – The CEAP Retirement Plan is updated and amended as the need arises to suit the requirements of its members and be in tune with prevailing economic/financial climate.
  4. Savings Mobilization – The strategic partnership with First Metro Investment Corporation and Marist Development Foundation to put up Save and Learn Mutual Funds provides CEAP member schools and their employees’ families an alternative mechanism to save for the future, as well as an avenue for better financial returns on their institutional and personal savings, thus allowing them to have a direct hand in the development of capital markets and spurring economic development in the country.
  5. Technological Advancement/On-line Capability – An upgraded system in both the Fund’s back office administration as well as in the Retirement Office’s information technology capability aims to improve the overall quality of its services to its stakeholders whereby enhanced service quality comes in the form of improved benefits, attractive fund yields, timely and relevant information, reliable data and reports and streamlined procedures.
  6. Retirement Plan Website – An informative and interactive website (www.ceapretirement.org) for the Plan’s stakeholders with links to the website of the CEAP National Office, ASC Philippines Inc. and First Metro Asset Management Inc.
 
 

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