PARENTS who have banded together to fight for their promised benefits  from troubled preneed companies believe that, properly managed, preneed companies will overcome present difficulties and bring stability to the industry.

Philip Piccio, president of the Parents Enabling Parents Coalition, said   in the radio program Konsyumer atbp. over station dzMM that preneed companies should not be lumped together. He cited Eternal Plans as one of the preneed companies that have a track record of reliable service.

Also present at the radio program were lawyer Gerard Lukban, Securities and Exchange Commission secretary; and Elmer Lorica, president and chief operating officer of Eternal Plans Inc. They were interviewed by program hosts Winnie Cordero and Trade Undersecretary Zeny Maglaya on the topic “Pagpili ng matatag na education plan” or “Choosing a reliable and secure education plan.”

While the program’s focus was the education plan, the discussion inevitably led to the case of preneed companies unable to deliver the promised benefits when these fall due.

According to Piccio, responsible management of a company’s trust fund is an important factor to consider in choosing an education plan. He noted that Eternal Plans had also experienced trust-fund deficiency, but had undertaken a program to put in the required amount.

This is “putting your money where your mouth is,” Piccio said.

Lorica, for his part, said the trust fund of preneed companies was affected by the economic crisis. However, he added, what matters most is for the companies to infuse the necessary amount when required, in order to ensure sufficient funds for the benefit of plan holders.

Eternal Plans, he said, puts money into the trust fund whenever it becomes deficient to make sure that the fund remains healthy.

Lukban clarified that the trust fund does not form part of the assets of the company, but is earmarked for the payment of benefits of plan holders. The SEC, he explained, continuously monitors the trust fund and trustee banks of preneed companies.

Lorica, representing the only preneed company that took part in the discussion, said the past errors in the industry can be corrected, as he affirmed that Eternal Plans remains committed to deliver the benefits to plan holders.