The state-run pension fund Social Security System (SSS) is offering another round of loan structuring starting April 2 to members with unpaid obligations, especially those affected by the recent calamities and natural disasters.
SSS president and chief executive Emmanuel F. Dooc also told reporters in a press conference that they expected the planned contribution rate hike, to increase to 14 percent from the present 11 percent, to push through by the second half.
This second round of loan structuring program that will end on Oct. 1 is a follow through of the first one offered from April 2016 to April 2017. The SSS collected about P6 billion from over 800,000 members in this first round, Dooc said.
“The re-implementation of the loan restructuring program that condones penalties of borrowers with past-due loans is a response to the widespread clamor of those members who were not able to avail of the [previous] program,” Dooc explained.
“While many have benefited from the loan restructuring program implemented in 2016, we have also received numerous requests from members to extend or re-implement it,” Dooc added.
“Members flocked to our branches on the deadline of the previous program last April 27, 2017. So for those who were not able to apply, this is your time to clean your outstanding loan balance and regain your good-standing with SSS,” he said.
Those affected by the Marawi siege as well as Mayon Volcano eruption could avail themselves of the program, he said.
For this year’s loan structuring, the SSS expects to generate P1.2 billion from about 250,000 member-borrowers in the next six months.
Under the program, members could “settle their overdue loan principal and interest in full or by installment under a restructured term depending on their capacity,” the SSS said.
“For both schemes, the SSS shall waive all the loan penalties after the member has completed paying the restructured loan,” it added.
“The program covers all member-borrowers who have past due loans like the salary loan, emergency loan, (old) educational loan, study now pay later plan, voc-tech loans, Y2K loans, and investments incentive loan,” according to the SSS.
Loans that were past due for at least six months as of April 2 are qualified under the program.
According to the SSS, the restructured loan provides more affordable amortization slapped with a lower interest rate of 3 percent.
Penalties will be condoned upon full payment, while also allowing loan renewal after six months.
Through the program, “members will be back in good standing, enjoy loan privileges again, and need not worry that they will not fully enjoy their final benefit claim,” according to the SSS.
However, the SSS will only allow a one-time condonation availment, such that members cannot undergo another condonation or restructuring program in the future.