PET Plans submits business plan for SEC approval

PET Plans, an all-Filipino pre-need company, has submitted to the Securities and Exchange Commission (SEC) its business plan outlining measures on how to boost its trust fund and address obligations to planholders.

Based on its proposal, PET Plans intends to transfer its excess pension trust fund to its education trust fund, and to liquidate its major real estate properties and its shares in Excel Unified Land Resources Corp., a high-end property development firm in partnership with San Miguel Properties.

Excel’s initial project is WedgeWoods, a high-end subdivision at the heart of Calabarzon.

With the real estate swap, PET Plans can fund its education obligations at least for an additional year while for its pension fund, it can still be funded up to 2015.

BPI and ING Bank, the trustee banks of PET Plans, said there will be no impairment of the 10-percent liquidity requirements of the pension trust fund.

The SEC earlier renewed the dealership license of PET Plans for another six months or until June 30 this year.

The extension of the effectivity of the license is subject to the company’s compliance with the trust fund requirement.

PET Plans, however, believes that the sale of some of its assets would address the SEC’s requirement on trust funds.

PET Plans said it continues its program to retire its traditional educational plans, which has resulted in the retirement of over 75 percent of unavailed traditional plans with only approximately 1,000 remaining for a net reduction in its actuarial reserve liability of P200 million.

It said it also expects to book a gain of over P62 million in income and P67 million in cash from the sale of its unlisted equity.

The pre-need firm cited its track record of fulfilling planholder obligations and full compliance with the rules and regulations of the SEC.

"Our board of directors and shareholders are persons with successful track records and are not known for running away from responsibility. It is our every intention to fulfill our obligations. We believe our plans in place will allow for this to happen," PET Plans said.

With 100 business centers nationwide, PET Plans has over 160,000 planholders, 12,000 licensed agents and 400 employees.