SSS gives firms until mid-November to update workers’ loan accounts

MANILA, Philippines—Employers have been given until mid-November to update their employees’ loan accounts to remove their delinquent status with the Social Security System, SSS chief executive Emilio de Quiros Jr. said Tuesday.

De Quiros said many companies have been classified as delinquent due to “procedural bog down” resulting from workers changing employers.

“In the meantime, SSS will accept salary loan applications of employed members if they have no unpaid loans and meet our other requirements,” he said.

“Applications turned down in the past few days can be re-filed starting next week,” he added.

De Quiros explained that since 2004, the pension fund’s guidelines on salary loan require employers to be updated in contributions and loan remittances.

Based on the guidelines, overdue salary loans incur one percent monthly penalty and 10 percent annual interest until full payment.

“Many employers say that they were tagged as delinquent because of unpaid loans of employees who have already left the company,” the SSS chief said.

De Quiros said SSS decided to give employers one month to submit requirements to update their loan accounts and allow their employees to avail of loans.

He said employers could submit an affidavit with a list of separated employees and the dates of separation, SSS collection lists or R-3 forms duly received by an SSS branch, or resignation letters of separated members sent to the company.

De Quiros said employers should collect and remit their workers’ monthly loan amortization, as required by the law, including those of new employees by requiring them to submit an updated statement of account upon employment.

He added that employees, on the other hand, should check regularly if their employers were updated in remitting their monthly payments to SSS.

The pension fund hopes to cut down in the next few years the huge loan delinquency of members, which has exceeded P27 billion, 83 percent of which represent employed member. –Ronnel Domingo, Philippine Daily Inquirer