SSS grants moratorium on short-term loan payments

by Mary Grace Padin (The Philippine Star), 7 Nov 2020

MANILA, Philippines — State-run Social Security System (SSS) has granted a moratorium on the payment of loans for the months of October and November to provide relief to its members amid the coronavirus pandemic.

SSS president and chief executive officer Aurora Ignacio issued Circular 2020-028, establishing the guidelines to implement the grace period on short-term loans payments pursuant to the Bayanihan to Recover as One Act.

The circular covers all member-borrowers with loan amortization for the applicable months of October and November.

“Short-term loan moratorium shall commence from the applicable month of October 2020 with payment due date on Nov. 30, up to the applicable month of November with payment due date on Dec. 31, 2020,” the circular stated.

The SSS said the grace period is applicable to members with salary loans, calamity loans, emergency loans, restructured loans under the Loan Restructuring Program, or educational assistance loans. They must also be residents of the Philippines.

Qualified members will be electronically identified based on the eligibility qualifications, according to SSS. Thus, they are automatically covered and need not file a request or application.

“Accrued interest during the moratorium period shall be paid by the member-borrower on the last month of the loan payment term,” the SSS said.

“No interests shall be charged on interests, penalties, fees or other charges falling due within the period covered,” it said.

A member’s loan payment term will also be extended depending on the number of loan amortizations falling due within the moratorium period.

Earlier, the SSS extended anew the deadline of contribution payments to Dec. 1, also in compliance with the Bayanihan 2 law.

The extension covers the contribution of regular members for the months of February to October.

Contribution payments of self-employed, voluntary and non-working spouse members, as well as household employees from January to September are likewise extended until the said date.

Employers with SSS-approved installment proposals which fall due from March to October 2020 are also given until Dec. 1 to deposit their post-dated check.

Meanwhile, the SSS reiterated that it has been following a new schedule for the disbursement of monthly pensions using the Philippine Electronic Fund Transfer System and Operations Network (PESONet) and other checkless disbursement channels.

Under the new schedule, pensioners with dates of contingency falling on the first to the 15th day of the month will receive their pensions on the first day of the pension month, while those with dates of contingency from the 16th to the last of the month will receive their pensions on the 16th day.

If the credit date falls on a weekend or a holiday, the pension will be credited to their accounts on the previous working day.

The SSS said it has already credited the first batch of November 2020 pensions to other PESONet banks on Oct. 30.