SSS grants amnesty to overdue loans

MANILA, Philippines - The Social Security System (SSS) has granted amnesty to nearly P600 million in overdue loan obligations and condoned penalties, the state-run provident fund said yesterday.

The amnesty involved 80,994 members who availed of the Member Loan Penalty Condonation Program, which totaled P1.03 billion in principal, interest and outstanding penalties.

SSS president and chief executive officer Emilio de Quiros Jr. said they continue to call out to the delinquent members to avail of the program.

Under the program, delinquent borrowers can avoid having their loan balance deducted from their future benefits for retirement, total disability or death. The SSS charges a one percent monthly penalty on unpaid loans.

“They also risk having the delayed release of their SSS pension because their benefits will be first applied to paying the overdue loan,” De Quiros added.

The six-month availment period of the condonation program for delinquent borrowers will end on Sept. 30. The pension fund grants condonable penalties of 50 to 100 percent, depending on the borrower’s situation and mode of payment under the program.

Delinquent SSS members can file their applications for penalty condonation at the nearest SSS branch, while those who no longer need to submit supporting documents can apply electronically by logging on at www.sss.gov.ph.

“The SSS has approved a total of 7,083 web-based applications, 5,550 of which were filed by members who opted for installment payments and 1,533 more from those who paid in full. Employee-members accounted for 6,037 of applications filed through the SSS website,” the SSS chief executive said.

The SSS offers 100-percent condonation of penalties to borrowers under Situation 1-A, or those whose employers failed to remit the loan amortizations deducted from members’ salaries. They can submit proof of employers’ un-remitted loan payments such as pay slips or affidavits.

Borrowers with at least three paid amortizations and a minimum of three contributions within the last six months before the month of application, or contributions for the next three months, qualify under Situation 2, which condones 90 percent of penalties for full payment and 80 percent for installment payments of up to three years.

Members applying under Situation 2 no longer need to wait for posting of the required contribution and loan payments. They can present SSS receipts as proof of payments processing starts immediately.

Delinquent borrowers filing retirement or total disability claims within the availment period can apply for penalty condonation under Situation 3. Half of their loan penalties will be waived and the rest will be deducted from their retirement or disability claim.

De Quiros said the amnesty is also extended to beneficiaries of member-borrowers who died with unpaid loans (Situation 1-B) to enable dependents to receive the full amount of death benefits. They can file their application for condonation with their SSS death claim until March 13, 2013.