CAP infuses P2.5-B into trust fund

The Securities and Exchange Commission (SEC) has approved a P2.5-billion asset and cash infusion by CAP education plan that will effectively boost the company’s trust fund holdings.

CAP was given 60 days by the SEC to enhance its trust funds by P2.5 billion. However, CAP responded quickly when it infused P137 million just days after the SEC order and the recent P2.5- billion infusion. SEC officials said CAP plan holders need not worry as the pre-need firm has enhanced the actuarial shortfall.

Before April 30 of every year, pre-need firms are required by the SEC to submit their annual trust fund report as one of the safeguards put in place by the SEC to protect consumers.

Should there be any trust fund shortfall, the SEC then requires companies to present a program for a "trust fund build-up."

CAP has complied with such requirements, resulting in the approved P2.5 billion capital infusion. As a result, this has met actuarial projection on shortfalls and SEC requirements.

"The P2.5 billion infusion will further ensure that the interest of our plan holders are protected," said CAP in a statement. The company has over P12.5 billion in trust funds deposited with various trustee banks around the country.

The pre-need industry leader that has paid over P7.3 billion in tuition fees graduating close to 44,000 students, stressed that it has consistently paid maturing obligations on time with not a single complaint from any of its planholders. There are more than 20 integrated finance offices of CaP all over the country that pay maturing obligations of planholders.

Echoing the sentiments of the SEC, the Federation of Pre-Need Plan Industries, the banking sector and leaders of consumer groups, CAP says that the supposed trust fund shortfall issue "has been blown out of proportion, unduly alarming planholders."

We wish to reiterate that there is nothing that planholders should worry about as CAP is financially stable and will continue to meet maturing obligations and serve the needs of planholders as it has done the past years," said CAP

Should there be any trust fund shortfall, the SEC then requires companies to present a program for a "trust fund build-up."

CAP has complied with such requirements, resulting in the approved P2.5 billion capital infusion. As a result, this has met actuarial projection on shortfalls and SEC requirements.

"The P2.5 billion infusion will further ensure that the interest of our plan holders are protected," said CAP in a statement. The company has over P12.5 billion in trust funds deposited with various trustee banks around the country.