SSS to offer amnesty on loan penalties-A A +A
Thursday, January 12, 2012
EMPLOYEES, self-employed workers and voluntary members with overdue SSS loans can settle their unpaid principal and interest without paying the full amount of penalties under the new amnesty program from April 2 to September 30 this year.
The amnesty shall cover overdue salary, calamity, emergency, educational, study-now-pay-later, stock investment and privatization fund loans.
But SSS president and chief executive officer Emilio de Quiros Jr. explained in Wednesday’s advisory that this year’s “amnesty differs from loan penalty condonation programs” that SSS implemented in the past in that the terms and requirements will depend on the type of a delinquent borrower.
“SSS will waive 100 percent of penalties of applicants whose loan delinquency was not their fault,” he said, citing those members whose employers were the ones who failed to remit their amortizations to SSS despite deducting the loan payments from their salaries.
SSS will take legal action against employers who fail to remit their workers’ deducted amortizations, the official stressed.
The concerned members must have at least three contributions in the last six months before the month of applying for a loan amnesty and should present proof of deducted loan amortizations like pay slips, company certification or notarized affidavits to be eligible for full condonation of penalties.
“They can pay their loan principal and interest in full or avail themselves of a three-year installment payment scheme at an annual interest rate of three percent."
Delinquent borrowers who paid at least three amortizations can also apply for amnesty, provided that they have remitted a minimum of three monthly contributions in the last six months prior to the month of applying for amnesty.
“Members with at least three paid amortizations will have 90% of their penalties condoned if they pay in full while those who will pay in monthly installments over three years at an annual interest rate of three percent will have 80% of their loan penalties waived," De Quiros said.
He added that those filing total disability or retirement claims within the availment period will have 50% of their penalties condoned with the outstanding loan balance and remaining penalties to be deducted from the member’s retirement or disability benefit.
SSS, meanwhile, will waive 100% of the penalties of deceased borrowers if their beneficiaries file death claim applications within the availment period.
“The member’s delinquent loan principal and interest will be deducted from the death benefit. And while the deadline of application for the amnesty program will be on September 30, beneficiaries of borrowers who passed away without settling their delinquent obligations can apply until March 30 next year," De Quiros said.
Published in the Sun.Star Bacolod newspaper on January 12, 2012.