Residents are ferried on a rubber boat after being rescued from their roofs where they stayed to avoid high floods caused by Tropical Storm Trami hit Libon town, Albay province, Philippines on Wednesday Oct. 23, 2024. (Michelle Ricasio via AP)
The Social Security System (SSS) on Thursday announced that members and pensioners affected by the onslaught of Severe Tropical Storm Kristine could immediately avail salary and pension loans for their monetary needs.
“As part of our proactive response to the urgent financial needs of our members and pensioners during natural calamities, the SSS loan programs are readily available to support their recovery,” SSS Senior Vice President for Lending and Asset Management Group Pedro Baoy said in a statement.
To be eligible for a one-month salary loan, employed, self-employed, and voluntary members must have made 36 monthly contributions, with at least six of those contributions occurring within the 12 months leading up to the loan application.
READ: Severe Tropical Storm Kristine kills over 20 in Bicol, hits 12 regions
Members should have at least 72 posted contributions if they opt to avail themselves of a two-month salary loan.
“They must be under 65 years of age at the time of loan application and have not been granted any final benefit like total disability, retirement, or death benefits,” Baoy said.
Meanwhile, individually paying members must have at least six posted contributions under their current membership type before the month of the loan application.
“Employers’ compliance is crucial in these situations since their updated contribution and loan payments are essential for their employee’s loan eligibility,” Baoy added.
Members can pay the salary loan in two years through 24 equal monthly amortizations with an annual interest rate of 10 percent.
Meanwhile, retirement pensioners can avail the SSS pension loan equivalent to three, six, nine, and 12 times their basic monthly pension plus P1,000 additional benefit, but not exceeding the maximum P200,000.
The loan amortization, with a 10 percent annual interest rate on a diminishing principal balance, will be deducted from the monthly pension.
This ensures that the Net Take Home Pension remains at least 47.25 percent of the Basic Monthly Pension (BMP) plus an additional P1,000 benefit.
Repayment terms are also available for six, 12, or 24 months, depending on the loan amount.
To qualify, the pensioner-borrower must be 85 years old or younger at the end of the loan repayment month, have no deductions from their monthly pension (like unpaid loans or benefit overpayments), not have an existing advance pension from the SSS Calamity Assistance Package, and have received their regular monthly pension for at least one month, with an “active” status.
“If retirement pensioners availed of the 18 months advance pension, they must be receiving their regular monthly pension for at least one month,” Baoy said.