Download CEAP RB FORM NO - CEAP Retirement Plan Office

CEAP Retirement Form No. 10
CATHOLIC EDUCATIONAL ASSOCIATION OF THE PHILIPPINES
RETIREMENT PLAN
AUTHORIZATION FOR VOLUNTARY CONTRIBUTION
Name of Member
Last
First
Middle
Participating Employer
Address
Date of membership in the Plan
Present Monthly Salary
Effectivity Date
VOLUNTARY CONTRIBUTIONS (To be implemented through monthly deductions)
Amount
( )
1%
( )
2%
( )
3%
( )
4%
I have decided to exercise my option to participate in the Fund through my own voluntary
contributions. I hereby authorize may Employer to make the monthly payroll deduction that I have indicated
above; and to remit these in my behalf to the Trustee as soon as possible thereafter. This serves as
continuing authority to my Employer that shall be valid throughout the duration of my membership in the
Plan. This authority, once duly noted, supersedes any similar authority that I may have made previously.
I understand that my voluntary contributions and corresponding gains or losses shall be subject to the
provisions of the Plan and to the Rules and Regulations the CEAP Retirement Commission may issue from
time to time, and shall not be subject to withdrawal except for the causes provided in the said Plan and Rules
and Regulations.
There are inherent risks involved in the investments in CEAP Retirement Fund (see Page 2 of 2). As
such, I have the responsibility to fully understand the nature of these risks.
Signature Over Printed Name
Date
Noted By:
Employer’s Representative
Designation
Distribution:
1 copy for Participating Employer
1 copy for CEAP Retirement Commission
1 copy for Member
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RISK DISCLOSURES
Subject to the provisions of the Trust Agreements and/or Investment Management Agreements with the
Trustees or Investment Managers, the CEAP Retirement Fund and the Supplemental Fund (collectively, the
“Fund”) are invested and reinvested, without distinction as to principal and income, in any property, real or
personal, or part interest therein. These investments and reinvestments may include but are not limited to
peso-denominated, US$-denominated, or other major foreign currency-denominated common and preferred
stocks, securities issued or guaranteed by the Philippine government or any of its subdivisions and
instrumentalities, notes, bonds, deposits, money market placements, and any and all forms of securities with
any financial institution, including the Trustees’ affiliates and/or subsidiaries.
There are inherent risks involved in the investments in these securities.
exposed to the following risks:
Investments to the Fund are
A.
Interest Rate Risk - This is the possibility that the Fund may experience losses due to changes in
interest rates which will affect the value of fixed income investments, such as bonds (e.g., as interest rates
rise, bond prices fall and when interest rates decline, bond prices rise).
B.
Market/Price Risk - This is the possibility that the Fund may experience losses due to changes in
market prices of securities. This is the risk associated with price fluctuations because of general market
conditions, economic changes, or other events that impact large portions of the market, such as political
events, natural calamities, etc.
C.
Liquidity Risk – This is the possibility that the Fund may experience losses due to the inability to sell
or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss.
This may happen due to various reasons such as absence of buyers or an underdeveloped capital market.
D.
Credit Risk/Default Risk – This is the possibility that the Fund may experience losses due to a
borrower’s failure to pay principal and/or interest in a timely manner on instruments such as bonds, loans, or
other forms of security which the borrower issued.
E.
Reinvestment Risk – This is the risk associated with the possibility of having lower returns or earnings
when maturing funds or the interest earnings of funds are reinvested.
F.
Foreign Exchange Risk - This is the possibility that the Fund may experience losses due to
fluctuations in foreign exchange rates. Since exchange rates are dependent upon a variety of global and
local factors, e.g., interest rates, economic performance, and political developments, the Fund may
experience losses when investments in securities are denominated in other currencies.
G.
Country Risk - This is the possibility that the Fund may experience losses arising from investments in
securities issued by/ in foreign countries due to the political, economic and social structures of such
countries.
H.
Other Risks – The Fund may also be exposed to the risk of any actual or potential conflicts of interest
in the handling of in-house or related party transactions by the Trustees or Investments Managers (e.g.,
purchase of assets from or sales by the Trustees or Investment Managers to its own institution, directors,
officers, subsidiaries, affiliates or other related interests/parties).
The CEAP, the Retirement Commission, any of its members, the Retirement Plan Office Director and
Trustees and/or Investment Managers do not guarantee positive returns in investments to the Fund and shall
not be liable for losses associated to the above-enumerated risks.
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