Attention: Parents/planholders

[hitomi]

hi guys

 

you might wanna join/help the Parents Empowering Parents Coalition, the group that is going after the said companies and pushing for reforms in the whole industry. one of the organizers - Joseph Piccio - posted his mobile number on tv while being interviewed on ANC, i jotted it down so interested people can get this number from me and talk to him directly. maybe something will happen to resurrect the dead plans.

 

 

here is their position paper and here's a helpful link from the PCIJ: PCIJ

 

PARENTS ENABLING PARENTS (PEP) COALITION

POSITION PAPER

The PEP COALITION is an organization of very concerned and outraged parents who bought openended

education plans from Pacific Plans, Inc. (“PPI”). The objectives of the group are:

• To work towards ensuring that Pacific Plans Inc. stand up to its obligations and honor the

contractual agreement between Pacific Plans Inc. and the plan holders. If Pacific Plans Inc.

refuses to honor said contract, institute criminal actions against all liable corporate officials

and file appropriate charges against the corporation in the SEC.

• To ensure that SEC officials judiciously perform their regulatory functions in overseeing the

operations of the pre-need industry.

• To lobby for better laws in the pre-need industry by seeking the help of legislative officials to

investigate Pacific Plans Inc. in aid of legislation.

We purchased these open-ended plans in good faith and with the fervent hope that our children

would be able to attend the better schools and go out into the world better prepared to face its

many challenges. Now, we are shocked to learn that a regional trial court judge had approved a

temporary restraining order that, in effect, allows PPI to suspend payments to its Plan Holder I creditors.

Our review of what happened shows a plan involving corporate machinations and devious

manipulations hatched by PPI top people, all with the nefarious intent of escaping from fully honouring

its open-ended educational plan contracts.

It is clear that PPI’s game plan is to use various corporate tricks and devices to get rid of its openended

plans where it sees itself losing money (but, and retain only the more profitable fixed-amount

plans.) More specifically, in the guise of “corporate re-engineering”, it created subsidiary corporations

that assumed the more profitable fixed-amount plans, while leaving the money-losing open-ended

plans with PPI. Then, it proceeded to show that PPI is in financial distress and prepared a “rehabilitation

plan” that will get their open-ended Plan Holders to accept settlements considerably less that what

had been committed to them contractually, i.e., the current tuition fees.

 

THE PPI PLAN IN MOTION

On August 12, 2004 PPI incorporated a new company lifetime Plans Inc. with the SEC following an

earlier approval in principle that it can transfer all its fixed-value plans to Lifetime. Pacific’s

representation: Lifetime is a wholly-owned company of PPI and therefore there is no change in the

character of the issuer(the debtor/oblige).

Like a thief in the night, the Board of Directors on August 20, 2004 approved the sale of all of its interest

in Lifetime to GPL Holdings (the actual Deed of Sale is dated September 28,2004). The fact that this

was done so quickly following the incorporation of Lifetime shows that that it was already a

premeditated plan even before Lifetime was incorporated The ever vigilant SEC Is caught totally

unaware of this move because in its September 23, 2004 En Banc Meeting it even cited that lifetime is

a wholly owned subsidiary of Pacific.

Finally, to add insult to the SEC and the Plan Holders, on January 25, 2005, GPL sold its interest in

Lifetime to Exemplar Holdings. Exemplar is a P100.0 Thousand company.

 

RATIONALE FOR THE REHABILITATION

Now that the Yuchengcos have switched all the profitable products to one Lifetime, and retained the

money-losing open-ended educational plans with PPI, it proceeds to further create the drama of a

supposed distressful financial condition on the part of PPI. Thus, in 2004 Pacific reported a net loss of

P278.28 Million. For this purpose, the PPI Board front-loaded the expenses in 2004 to overcharge the

mutilated company

• Deferred commission of P180. 14 Million was booked as expense in 2004 instead of amortizing

it till 2005. This has a double whammy impact with Pacific: first, the expense was lumped in

2004; second the income associated with this expense will be recognized by Lifetime and not

by Pacific.

• P100.0 Million insurance premium was immediately charged to expense even if the SEC allows

amortizing this expense till 2007. This expense has probably nothing to do with Pacific. It stopped

selling the traditional plans in 1992.

• P18.46 Million Management Fee paid to Lifetime Plans Inc for 4 months of service in 2004 And

they claim the spinning off will be cost efficient to Pacific.

Having reported a net loss, the Yuchengcos now claim PPI does not have sufficient funds to

pay the Plan Holders.

They probably are not reading their own financial statements. In 2003 the Audited Financial Statement

showed a Trust Fund of P11.272 Billion against the Actuarial Reserve Liability (ARL) of P10.299 Billion or a

positive variance of almost P1.0 Billion. In 2004, this positive variance is P600.0 Million. Simply put, Pacific

has the fund to pay for its obligations to its open-ended Plan Holders.

 

OTHER QUESTIONABLE AND PROBABLY CRIMINAL ACTUATIONS

• The sale of Pacific interest in Lifetime to GPL Holdings was for a measly sum of P205.137 Million.

Per our conservative estimate, the value should have been at least P2.5Billion The P2.5 Billion is

only the present value of its Unrealized Gross Profit of P3.051 Billion reported in 2003. In our

valuation no value was given to the 20,000 experienced sales force, the data base for the

400,000 plan holders, to name a few.

• RCBC Trust in 2002 started investing Pacific’s trust fund in the NAPOCOR Bond. NAPOCOR

probably is the worst stinking government corporation in existence. As the Trustee, it should

have decided like a good father deciding for his family.

In 2003 the NAPOCOR Bond accounted for 85% of the Trust Fund. In 2004, it accounted for

99%. A good, prudent father wouldn’t invest its entire savings in one type of investment.

The NAPOCOR bond is a zero coupon bond that will mature in 2010. RCBC Trust is fully

aware that the fund has to pay the yearly tuition fee of the scholars. Why lock up the trust

fund - which exists precisely to pay the annually maturing educational plans - into an

instrument that will be released only 6 to 7years later? Where will it get the funds to pay for

the annually maturing obligations? What is the rationale for this investment?

Moreover, RCBC Trust bought a bond that is not openly traded in the International Market.

NAPOCOR Bond can be sold but you will be at the mercy of the buyer. This is exactly what

the Yuchengcos are now saying, “You wait for the bond to mature”.

RCBC Trust made an imprudent decision when it invested practically all of the trust fund in

a dollar denominated currency. All its liability is denominated in peso.

RCBC Trust borrowed over P4.0 Billion just to buy more NAPOCOR Bonds.

RCBC Trust knows fully well that there are other alternative investment outlets in the market,

the ROP Bond is one.

 

THE PRACTICE WHERE THE HIGH AND MIGHTY GETS AWAY IN DOING INJUSTICE HAS TO STOP!!!

Please FAX, E-mail to friends, associates and other plan holders so that they may be better informed

about the real situation.

Edited May 23, 2006 by hitomi

[andrewfordmedina]

Just a query......

 

Didn't former Congressman Mark Jimenez doled out P50M for the planholders?

[Dildog]

Yes he did and it was distributed to planholders not just of Pacific, but also planholders of other pre-need companies that are in trouble. I think it was the PEP coalition that chose who will receive from the P50 million

[Seyer95]

I'am a CAP planholder for my son. What's the latest news?

[Nash David]

It seems what supposed to be a forced savings for our children's future (College Education) is gone to the drain. Does anyone remember PAMANA plans. What CAP and PPI is going through is just the same as it is today.

[monsignor28]

OT:

 

I have a bad experienec with PRUDENTIAL LIFE Plan. My father Died last November at the age of 61. He was bedridden for almost 2 years. After he died we tried to file a clain for my Dads Life plan. Prudentail asked for ID's and a lot of documents which is ok with me because I know they need to verify if we are the beneficiary or not. The problem starts when they are asking for ID's. My dad is 61 Y.O. and bedridden for almost 2 years and he is like labas masok sa hospital for 5 years. What they are asking is for any LATEST ID. The only ID that we can present is his Fire Arm ID which expired 2004. They also ask for the ID to have a much clearer SIGNATURE. I said WHAT???!!! Patay na ang Dad ko tapos naghahanap sila ng mas malinaw na Signature? So what I did was trace the signature of my Dad to make it look more readable and then they accept it. Wow! galing nho yun lang pala ang kailangan. Pagkabigay ko ng Compete Requrements they said I have to wait for up to 1 month fror processing and release of the check. They used the term UP TO para ang dating baka sakaling mas maaga marelease pero ang totoo 1 month talaga narelease yung check. After 1 week nandito na ulit yung ahente nag aalok ng insurance sa amin. Ang kapal ng mukha nyang sabihin na 2 hours lang daw ang release ng check sa kanila, nagkataon lang daw na kulang ang requirements na binigay namin kaya tumagal.

 

Kaya dun sa mga inaalok ng insurance ng Prudential, mag isip muna kayo, dahil sabi rin naman nila inaantay pa nila ma verify ng Grepalife yung requirements na binigay namin, so mas mabuti pang kung kukuha kayo ng Insurance, deretso na lang kayo sa Grepalife di pa matagal mag release.

 

Pasensyan na sa mga ahente ng Prudential Life

[whip]

safe pa rin bang mag invest sa ganyan? gusto ko rin yang mga insurance pero sa economy ng pinas malabo ata e?

[whip]

OT:

 

I have a bad experienec with PRUDENTIAL LIFE Plan. My father Died last November at the age of 61. He was bedridden for almost 2 years. After he died we tried to file a clain for my Dads Life plan. Prudentail asked for ID's and a lot of documents which is ok with me because I know they need to verify if we are the beneficiary or not. The problem starts when they are asking for ID's. My dad is 61 Y.O. and bedridden for almost 2 years and he is like labas masok sa hospital for 5 years. What they are asking is for any LATEST ID. The only ID that we can present is his Fire Arm ID which expired 2004. They also ask for the ID to have a much clearer SIGNATURE. I said WHAT???!!! Patay na ang Dad ko tapos naghahanap sila ng mas malinaw na Signature? So what I did was trace the signature of my Dad to make it look more readable and then they accept it. Wow! galing nho yun lang pala ang kailangan. Pagkabigay ko ng Compete Requrements they said I have to wait for up to 1 month fror processing and release of the check. They used the term UP TO para ang dating baka sakaling mas maaga marelease pero ang totoo 1 month talaga narelease yung check. After 1 week nandito na ulit yung ahente nag aalok ng insurance sa amin. Ang kapal ng mukha nyang sabihin na 2 hours lang daw ang release ng check sa kanila, nagkataon lang daw na kulang ang requirements na binigay namin kaya tumagal.

 

Kaya dun sa mga inaalok ng insurance ng Prudential, mag isip muna kayo, dahil sabi rin naman nila inaantay pa nila ma verify ng Grepalife yung requirements na binigay namin, so mas mabuti pang kung kukuha kayo ng Insurance, deretso na lang kayo sa Grepalife di pa matagal mag release.

 

Pasensyan na sa mga ahente ng Prudential Life

 

 

uy nice one!! thanks sa advice!!! san kaya mas magandang company na insurance other than what uy have mention??

[Google]

uy nice one!! thanks sa advice!!! san kaya mas magandang company na insurance other than what uy have mention??

 

 

just get your life insurance from reputable insurance companies here in the philippines. life insurance companies are regulated by the insurance commission under the department of finance as well as SEC, compared to pre-need firms which are only regulated by the SEC.

 

samples: Grepalife, Pru Life U.K, Sunlife of Canada, Insular Life, Philam Life, Manulife.

[hotrod2005]

just get your life insurance from reputable insurance companies here in the philippines. life insurance companies are regulated by the insurance commission under the department of finance as well as SEC, compared to pre-need firms which are only regulated by the SEC.

 

samples: Grepalife, Pru Life U.K, Sunlife of Canada, Insular Life, Philam Life, Manulife.

 

 

Naw, not Grepalife ... definitely NOT - remember, the owners of this insurance company are also the ones who owned Pacific Plans

[fill_upp]

Naw, not Grepalife ... definitely NOT - remember, the owners of this insurance company are also the ones who owned Pacific Plans

 

 

YES SAME OWNERS - yung mga mayaman na may ari ng RCBC towers. Yung may helicopter. Yung kumuha ng pera ng plan holders.

Yup kawawa naman sila Yuchengco wala pa silang 747. :evil: :evil: :evil:

[fingle_fin]

ASK KO LANG PO, OK PO BA ANG STATUS NG PHILAMLIFE? ARE THEY IN HOT WATER NOW OR ARE THEY DOING JUST FINE? MAY EDUCATIONAL PLAN PO KASI ANG ANAK KO SA KANILA I JUST WANNA MAKE SURE NA WALANG MAGIGING PROBLEMS...

[gd2jo]

I strongly agree! Never kong tatangkilikin ang produkto nila.Actually,under sila ng YGC. Biruin nyo,nag file sila ng bankruptcy for Pacific Plans,kawawa ang mga plan hoilders. Tapos ang kapal ng mukha na magtayo ng panibagong company(lifetime plans) na nagrerecruit pa din ngyn ng plan holders.Kung nagawa nila noon, gagawin pa din nila yan in the future. Sa kanila din ung Malayan insurance. Eto naman po ay pananaw ko lang...

 

 

Naw, not Grepalife ... definitely NOT - remember, the owners of this insurance company are also the ones who owned Pacific Plans

[CloudZtrife]

re: CAP

 

was able to use my CAP for a year =/

 

can't they sell their assets to compensate the plan holders?

[rainbowdancer]

Mabuhay ang PEP. Iboto namin sila sa Partylist.