Policy holders of pre-need firm APEC Financials receive only a small part of expected benefits
Pacific Plans, Inc. (PPI) policy holders are questioning where their money has gone after receiving only a fraction of the promised benefits under their pre-need education or pension plans.
Settlements were made with the release of cash doleouts in Cebu from December 1 to 13.
The troubled pre-need company was acquired by Abundance Providers and Entrepreneurs Corporation (APEC) in 2009.
APEC Financials and Insurance Agency, Inc., an affiliate of APEC, now handles the existing plans of PPI.
Pacific Plans was placed under court-ordered rehabilitation for Traditional Education (PEPTrad) plans on April 12, 2005 by the Regional Trial Court (RTC) of Makati, Branch 61.
In 2010, distribution of entitlements for PEPTrad plan holders began.
In 2014, both the pension plans (August) and the fixed value educational plans (September) were included in the rehabilitation program.
OPTION
Early this year, an Alternative Payment Plan (APP) was proposed to the court as the best option for all plan holders and was approved on July 10, 2015.
However, it was only recently that policy holders found out to their dismay that the settlements they would receive were less than 50 percent of what was assured in their plans.
Arlene L. Laping, one of the planholders of Pacific Education Plan. (CDN PHOTO/CHRISTIAN MANINGO)
“Gahunahuna ko nga m0-claim na ko ani. Wa ko kahibaw nga mao diay ni ang sitwasyon, nga mao ra ni akong ma-receive (I thought I would be able to claim my benefits. I didn’t know this was all I would receive),” said Arlene Laping, a policy holder from Cebu.
Laping contacted Cebu Daily News on December 12, saying that several PPI policy holders were outraged when they went to Rajah Park Hotel, where APEC was disbursing the benefits.
Laping bought a fixed-educational plan from PPI in 2000, paying by installment.
By 2005, she had fully paid her investments for a total of P65,340.00.
After a 15-year maturity, she expected to receive P22,000 per semester for four years. This puts her expected returns at P176,000.00.
SMALLER
Following the court decision to rehabilitate APEC Plans, the policy holder can only get back P12,000, which is just 18.4 percent of what she originally invested.
“Ganahan ko makahibaw ang mga tawo unsay nahitabo (I want people to know what’s going on),” she said.
Other policy holders have similar complaints about their pension or educational investments. One policy holder, who expected a return in investments of P1 million, could only receive P40,000.
Laping said the APEC staff present at the hotel explained that the company was losing and was under rehabilitation. Policy holders were given two options: accept the cash settlement or participate in the APP and reinvest their money.
But for Laping and many other policy holders, these options were inadequate. They were far from the amount they originally invested for the pre-need plans.
“Kani nalang unta akong gisaligan para sa akong anak kay ganahan na ko mo-retire og trabaho kay gikapoy na ko. Bisag i-uli nalang ninyo akong gi-invest (I was relying on this for my child’s needs because I wanted to retire. If only they could just return the amount I first invested),” she tearfully said.
Laping has a 16-year-old child in high school at the University of Cebu- Lapu-Lapu-Mandaue.
The single mother was banking on the educational plan to help her child through college.
BEARERS
APEC Plans vice president for sales and marketing Manolo Quizon, who was present during the distribution of cash settlements, said their role was just to implement the court decision.
“There’s no denying the fact that the company is in trouble. The rehabilitation program is a remedy, but any recovery takes time,” Quizon added.
“There is no guarantee (for recovery of investments) but the rehabilitation program has already been approved, so we’re just implementing it,” he said.
The official said all policy holders were thoroughly briefed about the two options open to them.
Many policy holders he talked to chose to take the cash, but several also decided to continue to participate in the APP.
Policy holders were informed of the rehabilitation program a month after the court issued the decision, he said.
NOTICE
Laping received her notice in a letter dated August 28 this year.
“Under the terms of the approved alternative payment program, all the trust fund assets particular to PPI’s legacy fixed value pension and education plans are to be liquidated and converted to cash by the current trustee banks, namely Bank of the Philippine Islands and Rizal Commercial banking Corp. in approximately 30 days. After the conversion to cash, plan holders will be given the choice of two settlement options,” the letter read.
Asked about feedback in Cebu on the options, Quizon said, “Siyempre, there’s always disappointment. No one is happy about this – not even us. We’re just the bearers of the bad news,” he said.
HANDS TIED
Top officials from the Securities and Exchange Commission (SEC) and Insurance Commission (IC) said their hands are tied because the case is pending with the court.
“It wasn’t the SEC or the IC which appointed the receiver. It’s the decision of the court,” said lawyer Cesar Rodriguez Olau, Jr. of the IC.
He said that neither PPI nor APEC Plans are on the agency’s list of pre-need companies with approved certificates of authority for license in 2015.
He said the IC is aware of the problem because many complaints of plan holders go through them.
However, like the SEC, the agency forwards all complains to the court.
“Once it is under court jurisdiction, we cannot touch it,” he added.