SSS to implement another loan condonation program-A A +A
Wednesday, November 9, 2011
THE Social Security System (SSS) said it will implement another round of amnesty for unpaid short-term loans.
SSS president and chief executive officer Emilio de Quiros Jr. said the new member loan penalty condonation program was already approved last month though the date of implementation is yet to be fixed pending approval of the amnesty guidelines. "We will make the appropriate announcement regarding its implementation in the coming weeks."
He added that in the spirit of fairness, the amount of condonable penalties will now vary depending on the reason behind the member's loan delinquency.
A higher percentage of penalties shall be condoned for full payment because it allows SSS to recover the loan principal earlier. "If the member or beneficiary is not at fault, 100 percent of penalties shall be condoned. For example, penalties of members whose loan amortizations were not remitted by their employers would be fully condoned upon availment of the program."
SSS will also waive 100 percent of the penalty on loans of members who have passed away to lessen the amount of loan balance deductions on the survivorship claims of the beneficiaries. "Members filing for total disability or retirement claims will have 50 percent of their penalties condoned with the balance taken out from their benefits. Borrowers who neglected to pay even once are not covered by the program."
For borrowers with at least three loan amortizations, SSS would condone 90 percent of the penalty if paying in full and 80 percent if the member will settle by installment. They must also have at least three contributions immediately prior to the month of application for the program.
In a statement, De Quiros said SSS has implemented various amnesty programs since 2003 and has waived all penalties upon availment. In the first semester this year, around 100,300 members settled loan delinquencies amounting to P1.11-billion under the six-month loan penalty condonation program for employers which ended last June 30.
Published in the Sun.Star Bacolod newspaper on November 09, 2011.