100,000 college planholders may not be able to enroll their kids this year — SEC

More than 100,000 college planholders may not be able to enroll their children when school reopens this year after four major pre-need firms offering traditional plans have asked the courts for a suspension of payments, the Securities and Exchange Commission (SEC) said yesterday.

In an interview over radio station dzMM, SEC chairwoman Fe Barin said the estimate was based on figures submitted by the four pre-need firms to the corporate watchdog.

Among the pre-need firms that have sought debt reprieve from the courts are Pacific Plans, Platinum Plans, College Assurance Plan Phils. Inc., and The Professional Group.

Pre-need firms blamed runaway tuition and restrictive SEC rules for their failure to service thousands of their planholders.

However, some planholders accused the pre-need firms of mismanagement resulting in the erosion of their funds.

Planholders of several pre-need firms have agreed to join their legal resources and file criminal charges in court against the directors and officers, whom they have accused of fraud, swindling and other criminal acts.

Their lawyers will offer free legal aid to planholders intending to file cases in court.

Earlier, the government had set aside P1 billion to rescue distressed pre-need firms.

In particular, dividends from state pension funds would be allocated to public universities and colleges that admit students holding education financing plans from companies facing financial difficulties.

The payment –effectively a bailout –will shrink the government’s dividends from the Government Service Insurance System.