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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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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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 Institutions as of April 2008

NCR
De La Salle Philippines
Taft Avenue, Manila

Association of Major Religious Superiors of the Philippines
Quezon City

Our Lady of Grace Parish
Caloocan City

Region 1
Padre Annibale School
Laoag City, Ilocos Norte

Region 3
St. Catherine Academy
Porac, Pampanga

St. Michael’s College
Guagua, Pampanga

Dominican Sisters of Our Lady of Remedy
San Fernando, Pampanga

Dominican Sisters of Apalit
Apalit, Pampanga

Region 4
Liceo de Liliw
Liliw, Laguna

Colegio San Agustin
Binan, Laguna

Mater Carmeli Catholic School
Alabat, Quezon

Liceo de Cavinti
Cavinti, Laguna

Region 6
Our Lady of Fatima Academy of Dao, Inc.
Dao, Capiz

Region 9
Holy Family Academy
Zamboanga del Sur

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