Sunday, April 17, 2005

Check issued by Pacific Plans and drawn on RCBC after the TRO was granted

This is what planholders woke up to after the TRO was granted by the Makati RTC was granted. Notice that the amount paid out is now described as "Tuition Support". Planholders were also "informed" that the only amounts that they could expect from their plans is substantially less than the amount originally promised by Pacific Plans.

23 Comments:

At Monday, April 18, 2005 12:15:00 AM, Anonymous Anonymous said...

Is there someone who will get a copy of the actual petition and annexes which were submitted by PPI to the court?

 
At Monday, April 18, 2005 12:40:00 AM, Anonymous Anonymous said...

When you get your check/s, you will be asked to sign the attached voucher to signify receipt. Make sure that you put a note "RECEIVED UNDER PROTEST" and indicate the date and time of check receipt.

 
At Monday, April 18, 2005 9:21:00 AM, Anonymous Anonymous said...

The Media has not covered this matter with the same zeal and frequency as they did with CAP which had a similar problem, albeit without any legal court order. Why? Lets ask our friends and contacts in the media to protect not only the planholders but the public in general.

 
At Monday, April 18, 2005 9:27:00 AM, Anonymous Anonymous said...

Any friendly lawyers among the disenfranchised planholders, please provide us with legal advice on how we can proceed. We should hit the PPI Management and Owners together with their affiliated companies with appropriate legal action not only in the courts but also in the courts of public opinion. This is definitely a matter of public interest and hence, the public should be informed and warned!

 
At Monday, April 18, 2005 10:11:00 AM, Anonymous Anonymous said...

PPI has sent letters to the planholders although many of us have not yet received their copies. Among those who have seen the letter with exhibits, the manner of computation is very suspicious. We have seen from some exhibits that the Present Value of the unavailed portion is computed based on an interest rate of roughly 14%. The impact to the planholder is that the amount to be used in computing the 7% rate of return until 2010 (Future Value) is greatly reduced. Furthermore, simple math will show that the difference of 14% to 7% is 7 percentage points, thats a gross profit of about 100% for Pacific Plans! Why and why further disadvantage the planholder? Starting the year 2006 until 2010, the children who are now in school will no longer have the chance to get any tuition refunds nor tuition support. The planholders are left to fend for themselves despite PPI's contractual agreement that states that "PACIFIC GUARANTEES TO PAY IRRESPECTIVE OF COST AT THE TIME OF AVAILMENT, THE TUITION AND OTHER STANDARD SCHOOL FEES FOR ENROLLMENT OF THE SCHOLAR IN THE EDCUATIONAL PROGRAM CONTRACTED BY THE PLANHOLDER." We have also been told that PEP-Trad plans are the only plans managed by PPI. They have reengineered their business to purposely present to the courts that PPI needs to be rehabilitated by simply transferring the PEP-Star (Fixed Plans) outside of PPI. They have held our money for many years and have had reasonable returns with the combined funds of both the traditional and the fixed value plans. By reengineering their business and by the spreads by which they make profits, it is clear that PPI and its owners (primarily the Yuchengco family) simply want to profit excessively while disenfranchising its traditional planholders who have labored hard and saved through the years for the peace of mind of not worrying about their children's education. Pacific Plans should show the financials of both the combined Traditional and Fixed Plans as well as the reengineered Traditional Plans only business. We need legal support, media mileage and we should really be very vocal and visible about this fiasco. We need congressional and senate support. Lets talk to our Congressmen and Senators. Lets get our friends and contacts to help as this is not just an issue of PPI's planholders it is a Pre-Need Industry issue and it is the general public whom they market and sell to and therefore a very serious PUBLIC ISSUE!

 
At Monday, April 18, 2005 11:15:00 AM, Anonymous wmb said...

We will have a General Assembly meeting on Saturday morning. We have invited a panel of lawyers to answer all our queries re legal options open to us. We shall send out details re time and venue by Wednesday at the latest.

Thank you for your penetrating insights, we will look into these.

 
At Monday, April 18, 2005 1:31:00 PM, Anonymous Anonymous said...

We should spread the word about the PPI matter to the public by every means possible, e.g., tv and radio thru the news, investigative journalism programs such as the Probe Team, Dong Puno Live, The Correspondents, etc., the members of the House and Senate, Government Officials, school PTA's, business and civic clubs, our friends, relatives and others who may be able to help in our Crusade.

We should pass on text messages to visit the website, print common flyers (narrating the relevant points about PPI and the actions they have so far taken) to be distributed to the crowds gathering at the PPI office in Dungon corner Kamagong, in schools, shopping malls and other public places. The public has to be informed of the facts that have transpired leading to the disenfranchisement of PEP-Trad planholders. It is becoming quite clear that actions PPI have taken prior to the court order have been planned for months and it will become more apparent as they react to the discontent that is now relatively quietly brewing. We should be vigilant and prepared for any moves the PPI and its Yuchengco cabal will launch to influence the media, the public, the politicians and governement officials in high places as well as the judiciary while backed up by high profile legal personalities. We should ensure that our collective voices are heard so that this matter will not be ignored and forgotten until justice to the planholders is served to our complete and total satisfaction. PPI and the Yuchengco group should honor their moral and legal obligations to its planholders.

Our flyers should also request the planholders and the public to let us know how they can be contacted thru cell phone, email id's, egroups, etc. and for them to help in passing the word around.

 
At Monday, April 18, 2005 1:49:00 PM, Anonymous Anonymous said...

Lets publish on this website the various documents and material so far released and available regarding the PPI matter, e.g. the Court Order, Sample Letters sent prior to, during and after the court order as well as other documents related to PPI.

A letter sent way back in August, 2004 informed planholders that instead of paying the school directly, it would pay the planholder. Take note that in their contracts, it made explicit mention that "PACIFIC SHALL PAY DIRECT TO THE SCHOOL THE DUE ANNUAL/SEMESTRAL/TRIMESTRAL FEE UPON THE NOTIFICATION OF THE ACCEPTANCE OF THE SCHOLAR IN A DULY RECOGNIZED SCHOOL AND PRESENTATION OF THE ASSESSMENT SCHEDULE PREPARED BY THE SCHOOL UNTIL COMPLETION OF THE EDUCATIONAL PROGRAM COVERED BY THIS AGREEMENT." This letter may have been part of a plan in preparation for the court order, re: "Rehabilitation" of PPI. We will be able to piece the puzzle together from the documents that PPI sent its planholders, the court order and other pertinent material that we are able to retrieve and publish on this website. These material will actually be in support of legal actions and options which we may take.

 
At Monday, April 18, 2005 9:12:00 PM, Anonymous amanda said...

amanda said...
I pray and hope the Yuchengco family will reconsider their corporate decision on Pacific Plans that has left families in shambles, reeling under the prospect of shattered hopes for their children.

The Ambassador, a well respected man, will surely not turn a blind eye to the plight of planholders who bought their plans and staked their children's future on the strength of the Yunchengco name and everything it stands for....

Monday, April 18, 2005 6:09:07 AM

 
At Tuesday, April 19, 2005 11:13:00 PM, Anonymous Anonymous said...

Here's my two cents worth. Everything starts with the trust fund. The trust fund is set up to answer for the future liabilities (tuition fees) of our plans. On a yearly basis, an actuarial valuation report on the existing plans is prepared indicating therein the funds required at present values to answer for the total liabilities also computed at present values. This simply means that PPI is required by law and the SEC, on a yearly basis, to maintain and put up sufficient funds to pay for future and current liabilities both computed at present values. With that, am curious (and furious) about the following:

If PPI has submitted to the SEC an actuarial valuation report last year that says they have no deficit in the trust fund, then our plans should be properly funded or have sufficient funding at present values. Why then is PPI forcing this immoral act down our throats? Why is the SEC allowing this unethical move of PPI if the funds that were reported to them are sufficient?

Assuming that PPI reported a deficit last year, PPI is required by law and the SEC to fund this deficit within a year or within five years (leeway arrangements allowed by the SEC). And if a deficit was reported, how come PPI was allowed by SEC to transfer/sell or assign the other plans (fixed value educ plans, pension and life) to the other company, which is Lifetime Inc. That's another thing, how were they able to identify, divide and allocate the consolidated trust fund of these products? How come all the other products were properly funded when they were transferred to the other company? How sure are they that the other products did not incur or experience deficits as well, and yet were properly funded when transferred?

Assuming further that PPI can no longer provide sufficient funding in the future, then they should give us the funds (or reserves) that were reported in the actuarial valuation report last year, not this measly pittance that they are giving us.

Am amazed at how inutile the SEC is in handling the PPI magical problem. Am offended at how PPI assumed that their planholders are stupid.

This is too much na. I am still reeling from what had happened to my CAP plans, tapos eto na naman. People, we need an actuary on our side, plus the lawyers of course. We can't let this people do this to us.

 
At Thursday, April 21, 2005 9:09:00 AM, Anonymous Anonymous said...

We already received our check which was capped already though we didn't have the foresight to sign "under protest".

Some other policy holders informed us that they were able to get their checks prior to the announcement of Pacific's rehab thus they were able to deposit and clear their checks which were substantially higher than the current PHP35,000.00 limit.

Others saw their checks being rejected by the schools and upon going back to Kamagong to have the check replaced, the value was lowered by more than PHP2,000.00. Very expensive managers' check.

 
At Friday, April 22, 2005 8:55:00 PM, Anonymous Anonymous said...

My son started to avail of the five yr.college- non exclusive plan since July 2003.PPI pays directly to MAPUA,a YGC ,too. Total tuition fees per qtr. totals to P20K +.But PPI pays only a fixed amount of P9214.65 per quarter up to March 2005.For this 2nd qtr of 2005,it is now P9744.86.I just accepted this arrangement But I was surprised to know from their letter that I have 2 availments left for this 2005 and the remaining amount of P6K + will be place in gov't. bond. 5yr college non-exc =16 qtrs. I have only availed 8 qtrs. Will the P6K + equal to the remaining 8 qtrs? May I know from you co-planholders if you also do not receive/reimburse the total tuition fees due to the school per quarter/semester?HOw come in the educ.plan agreement,it says"PPI guarantees to pay,irrespective of the cost at the time of availment,the tuition & other standard school fees for enrollment of the scholar in the Educational Program contracted by the Planholder.Anybody who is experiencing the same ?

 
At Sunday, April 24, 2005 6:47:00 PM, Anonymous Anonymous said...

File a P100 million class suit ( for conspiracy, breach of contract and fraud) against the board of directors, key officers and the judge who gave PPI the way out.

 
At Sunday, April 24, 2005 11:18:00 PM, Anonymous Anonymous said...

This is not getting the checks today or 2010. it is about fullfilling their promises. You have the fund for the arena you have control, why not give it to us, the planholders. Have some conscience if you have one. I dont think you have one.

 
At Monday, April 25, 2005 3:14:00 PM, Anonymous Anonymous said...

i knew something was wrong when they transferred their offices from Buendia to a hole in the wall office in Kamagong. It looked like a seedy run down place, and not a business that had billions in funds. we should really question why the yuchengcos can brazenly build a billion dollar building at the corner of ayala and buendia and separate the Pacific offices, which they also own...Can somebody investigate what they have been doing with their money? When they did not give the proceeds of the educational fund when enrollment was about to start in many schools, the timing is just malicious. And who is the Makati judge who quietly gave Pacific Plans the TRO to stop payment to the parents?

 
At Monday, April 25, 2005 6:00:00 PM, Anonymous Anonymous said...

Let us all join hands to fight this deliberate act of deception. If we do nothing, if the Yuchengcos don't even feel a tenth of the loss we feel, OTHERS WILL FOLLOW this devious course of action. I am only a housewife who scrimped and saved just to have a plan for my child's high school education. What do we do now? The Yuchengcos have their RCBC, Honda, Lifetime Plans. But what do we simple folk have to rely on? Please, please, please, Pacific Planholders who know people that matter (Senators, Congressmen, Department Secretaries, friends of politicians), approach your friends/acquaintances .... seek help to lend a louder voice to people like me. God help us!!!

 
At Monday, April 25, 2005 6:01:00 PM, Blogger jipped said...

Let us all join hands to fight this deliberate act of deception. If we do nothing, if the Yuchengcos don't even feel a tenth of the loss we feel, OTHERS WILL FOLLOW this devious course of action. I am only a housewife who scrimped and saved just to have a plan for my child's high school education. What do we do now? The Yuchengcos have their RCBC, Honda, Lifetime Plans. But what do we simple folk have to rely on? Please, please, please, Pacific Planholders who know people that matter (Senators, Congressmen, Department Secretaries, friends of politicians), approach your friends/acquaintances .... seek help to lend a louder voice to people like me. God help us!!!

 
At Friday, April 29, 2005 5:21:00 PM, Anonymous Anonymous said...

Did you notice that while PPI is saying that they will pay in Year 2010 at 7% interest, in reality, PPI is offering negative, repeat, negative interest. All you need to do is look at your respective letters sent by PPI.

In my case, my high school scholar has availed of P70,014 in his 1st year. PPI estimates availments in the next 3 years at the same amount (completely ignoring possible tuition fee increases). Now, Pesos 70,014 for 3 years will amount to P 210,042. Deducting the P 35,000 tuition support, the resulting PPI obligation amounts to P175,042 over the next 3 years. Compare this amount to PPI’s computed Maturity Value on July 31, 2010 of Pesos 145,400.

If I am entitled to P175,042 in 2005-2007, and PPI delays these payments to 2010, and considering that there is an interest earning of 7%, shouldn’t the amount increase? Yet, PPI is going to reduce, not increase, the amount by giving only P 145,400 in year 2010.

It is easy to compute the correct maturity value in 2010. The P35,042 due in 2005 will earn 7% interest per year over 5 years to 2010. The P70,042 due in 2006 will earn 7% interest per year over 4 years to 2010. The final P70,042 due in 2007 will earn 7% interest per year over 3 years to 2010. The total of all these, or the correct maturity value in 2010 is P226,653. This is 56% higher than what PPI would have us believe as the proper amount.

How is PPI trying to hoodwink us into accepting their erroneous computation? Their method, as shown in their letters to us, is to multiply the amount of their future obligation by a low number, in my case by 64%. This is supposed to “de-escalate” their future obligations to 2004 values (not 2005), by assuming an interest rate, according to my computations, of over 20% per year. Then, they escalate the supposed 2004 value by 6.5% every year (not even 7%) up to 2010.

What is the concept behind PPI’s computation? The “de-escalation” to 2004 values is like theoretically advancing payments to us, and for that we are paying PPI over 20% interest per year advanced. (Note that even if the money is already due today in 2005, PPI is able to de-escalate by choosing 2004 as base). On the other hand, when the payment is delayed from 2004 to 2010, PPI is offering only 7% (I compute only 6.5% in their formula).

What crazy method is this? When PPI theoretically advances the amount to us, we pay them over 20%, but when PPI actually delays payment, they give us 6.5% interest.

While the delay in payment is in itself unacceptable, PPI even tries to cheat us by reducing the delayed amount by a very large percentage.

 
At Saturday, April 30, 2005 11:10:00 AM, Anonymous Anonymous said...

Do we or do we not claim the check they are distributing now to tide us over this last year till 2010. if we sign "under protest" will that stand in court or any other venue when this will settle. they put in their letters that we can call 8160000 for clarification, been doing so the past week, phone just nrings and rings, though they ahve posted that they are at another venue issuing check, but waht about us out of towners and those in the island provinces. the guy at the office here is asking for the list of requirements to put the remaining value into the 2010 bond for the release of the check. others who have commented said they only showed two id's and CFP's. which is it. is Pacific reading this. post something on the net for us to read. will not give you the doc's to process the funds for 2010 mwhen all i want in the check you are giving now. ano ka sineswerte? pacific is going down-rats leaving the ship

 
At Tuesday, May 17, 2005 5:36:00 PM, Anonymous Anonymous said...

i know this is stupid, but can we asked yuchengco thru rcbc to give us a loan for the tuition fees at 7%interest our collateral would be the so called bond which ppi intends to pay up by 2010.

 
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