by Elijah Felice Rosales – The Philippine Star, 18 Nov 2021
MANILA, Philippines — The Social Security System (SSS) has waived until February next year the penalties for members whose loan payments are overdue.
SSS president and CEO Aurora Ignacio said yesterday members may now avail of the short-term member loan penalty condonation program (STMLPCP) which was put up as part of the pandemic relief and restructuring programs (PRRP 5).
The STMLPCP consolidates the principal and interest of overdue loans, allowing members to settle their accounts through two arrangements: pay the backlog in full within 30 calendar days from the receipt of the notice of approval for their application or pay 50 percent of the consolidated loan within the same timetable, with the remaining 50 percent to be restructured and should be paid in installments in six months.
Restructured loans accumulate an interest of three percent during the payment period, slapping a one percent penalty for every late or unpaid installment.
“Please do take note that no staggered or partial payment shall be allowed for the consolidated loan under one-time payment or a 50 percent down payment under installment term, even if the required payment is completed within the 30-day period,” Ignacio said.
Members with loans that are overdue by at least six months at the first day of the STMLPCP, or on Nov. 15, may apply for condonation from the SSS.
However, members who received a final benefit like disability or retirement, and those who committed fraud against the SSS, are disqualified from obtaining the waiver.
Ignacio also reminded applicants who will pay on installment basis that they should be under 65 years old by the last day of their payment schedule. For borrowers over 65 years, they can only choose the one-time settlement option and should postpone their retirement claim during the term.
Ignacio said the SSS comes up not only with loan programs during the pandemic but also penalty waivers to take off some financial burden on its members. The PRRP 5, for one, offers a series of condonations that employers and employees may avail for the backlogs.
“SSS is always here to extend not only in the form of cash benefits and loan privileges, but also conditional condonation, which provides a financial relief by waiving their accumulated penalties once their loan principal and interest are fully paid,” Ignacio said.
Using My.SSS accounts, members may file their applications for the STMLPCP using their SSS-issued payment reference number along with the amount and due date for each payment.