In the Matter of the Petition for Corporate Rehabilitation with Prayer for Suspension of

Payments of Pacific Plans Inc.

By reason of the unforeseen and systematic decline in coupon or interest rates and the
corresponding downward pressure in the interest yields on the trust funds which adversely
affected the yields of the covering trust funds,
APEC advised you that, Court Appointed Rehabilitation Receiver (CARR) filed a
supplemental petition to the approved rehabilitation plan of PPI with RTC-Makati to include
the:

PENSION LEGACY PLANS and;

probable inclusion of the Education fixed value plans.

CARR has also filed a supplemental petition to the approved rehabilitation plan of Pacific
Plans Inc. (PPI) with RTC-Makati to include the said discontinued legacy Education fixed
value plans.
THIS ACTION WAS MEANT TO ENSURE THAT THE COVERING TRUST FUND
ASSETS OF THESE LEGACY EDUCATION FIXED VALUE PLANS ARE PRESERVED TO
ALLOW A SETTLEMENT PROGRAM THAT WOULD MAXIMIZE THE FEASIBLE
RECOVERY FOR PLANHOLDERS, WITH RESPECT OF THEIR INVESTMENT.

As advised by the CARR, the proposed settlement under the filed supplemental petition
may consider the following:

Entitlement to be based on the Advanced Pepstar Payout Program (APPP) wherein APPP
will pay the present value of the total educational benefits using a stipulated discount
rate as provided and adopted for the APPP program.

However, when APPP is less than the original investment, settlement is to be based on
the original investment amount (return of capital).

Interest to be paid on the outstanding balance of the entitlement over the paying period
and;

In case of disability or death during settlement period, the outstanding entitlement at that
time to be settled immediately.