Pension fund relaxes procedures in applying for calamity loans

The state-run Social Security System (SSS) relaxed loan-application procedures to help its members who were affected by recent storms to apply for emergency credit, the pension fund announced in a statement Monday.

Also on Monday, its counterpart, the Government Service Insurance System (GSIS), resisted a suggestion by lawmakers to revert to manual system to speed up the processing of loan applications, especially those of people affected by the recent storms.

SSS President Romulo Neri said that his agency has removed the 50-percent payment of an existing loan as a requirement for renewal. “Under our new guidelines, a member can avail of early renewal even with only a net loan of at least P1,000 after deducting the balance of a previous loan,” he added in a statement.

SSS salary loans range from P1,000 to P24,000 payable in two years with a two-month grace period. Applicants must have at least 36 posted contributions, six of which within the past 12 months.

The pension fund has received about 45,000 applications for early loan renewals after it liberalized its loan policies as part of its measures to help members in calamity areas. In the past, only members who have fully paid their loans were allowed to apply for renewal.

Neri also said that SSS also waived the 1-percent service fee and incorporated the loan interest for the first year into the monthly amortization instead of its regular practice of deducting it in advance from the loan proceeds.

Checks for pickup

He said members could get their checks at the SSS corporate headquarters in Diliman, Quezon City, starting also on Monday.

“SSS normally mails the checks to members, but we believe it would be faster and more secure if we release it directly to the members,” Neri added. “Many of our members lost their homes and stay with relatives. Their checks might get lost or returned to SSS.”

Before going to its corporate office, though, Neri said members should first verify if their checks were ready for pick up by calling the SSS hotline at 917-7777.

He added, “We also set up a Special Assistance Counter at the lobby of the SSS main office where members can inquire if their checks are ready. The checks will be given only to members and letters of authorization will not be honored.”

Members must bring their SSS biometric card or identification documents such as tax identification number ID, driver’s license, passport, clearance from the National Bureau of Investigation (NBI), permit to carry firearms, marriage contract and Philippine Regulatory Commission (PRC) ID. Those without IDs must present instead a barangay or police clearance.

GSIS resists manual mode

The Government Service Insurance System, or GSIS, rejected the proposal of some lawmakers for the state pension fund to revert to manual mode of processing loans, including calamity loans.

The GSIS, the pension fund of government employees, said in a statement that a complete abandonment of the computerized system would be disastrous for members. It conceded that it was having serious difficulties in processing loans and benefits because of limitations mostly brought about by an allegedly faulty database management software.

“The GSIS processes about 3.5 million loans, three million pension payments, and 300,000 claims every year,” the statement said. “This means GSIS disburses P38 billion in claims and benefits and another P25 billion in loans.”

The fund also maintains the records of 3.7 million active and inactive members, 1.3 million active and inactive pensioners, and 5.6 million active loan accounts, it added. “It is therefore apparent that with this volume of transactions, it is practically impossible to process all these transactions manually without sacrificing accuracy and efficiency.”

The GSIS explained that if it reverts to on manual mode, the processing of calamity loan applications would take months to complete.

As it is, the GSIS said it was able to comply with its commitment of processing emergency loan applications in about three days after the agency of the member approves the loan.

Pension fund vs. IBM

Also in the statement, GSIS defended its media commercials that lay the blame on the IBM Database2 software for processing delays at the pension fund.

“The press statements and the ads are not meant to lambaste our suppliers,” according to the statement. “The GSIS believes the only way to solve the problems it has is to go through it with truthfulness. If other companies are hurt by the truth, we can’t do anything about it.”

GSIS has filed a case against IBM and the third party that supplied the database software in a local court. And IBM filed a counter lawsuit against the fund. Those cases were still pending in court. –Lailany P. Gomez And Francis Earl A. Cueto, Manial Times