Richie Q. Caranto has been appointed as the receiver for CAP Pension, following an assessment of the company’s liquidity and solvency by the Insurance Commision (IC).
The IC has determined that the firm is currently unable to fulfill its financial obligations in the ordinary course of business.
As a result, a stay order has been issued, suspending all payments of claims from August 23 until further notice. This includes legal actions to enforce claims, whether through the Claims Adjudication Division (CAD) of the Insurance Commission or other means.
Additionally, CAP Pension is prohibited from selling or disposing of its properties except in the ordinary course of business or with the favorable recommendation of the appointed Receiver and the IC.
The Stay Order is temporary and may be revoked once CAP Pension regains financial stability or undergoes liquidation, as necessary.
CAP Pension is a subsidiary of College Assurance Plans Philippines, Inc. (CAPPI), and it had previously been placed under conservatorship in 2010 for capital impairment and trust fund deficiencies.
In 2021, the Supreme Court ruled that CAP Pension is not liable for the obligations of CAPPI, allowing the IC to proceed with CAP Pension’s conservatorship.