SSS offers loan condonation program
State-run pension fund Social Security System (SSS) has called on its members with unsettled loans to avail themselves of the agency’s condonation program and clear out their obligations.
In a statement, SSS executive vice president Rizaldy Capulong urged members to apply for loan consolidation and penalty condonation programs to give them an opportunity to get rid of their delinquencies.
Doing so will allow SSS members to regain their good standing with the pension fund and once again take advantage of different loan programs of the agency.
In particular, members can avail themselves of the consolidation of past due short-term member loans (STML) with condonation of penalty.
All past due STML include salary loan, calamity loan, emergency loan and restructured loans.
Past due STML are loans with unpaid obligation consisting of principal, interest and penalties equivalent to more than three monthly amortizations, or loans with remaining unpaid balance after its maturity.
With the program, all outstanding principal and interest of the memberborrower’s past due loans will be combined into one consolidated loan upon application.
Unpaid penalties, on the other hand, will be consolidated and condoned or waived upon full payment of the consolidated loan.
“We want to persuade our members with unpaid loans to grab this opportunity to pay their past-due loans without penalties through an easy payment scheme,” Capulong said.
“This is like a relief to aid our members who find it challenging to fulfill their loan obligations with the SSS,” he said.
Eligible members are those with past due loan accounts, have not been granted any final benefit or disqualified by the SSS and have active online accounts.
SSS said members will be allowed to pay in full or in installments. For installment plans, downpayment of at least 10 percent of the consolidated loan should be paid within 30 days of application approval.
The remaining balance should be payable in equal monthly amortizations from six months to five years, depending on the remaining loan balance.
However, if a member fails to meet the payment terms, SSS will deduct the outstanding balance of the consolidated loan from the shortterm benefits and final benefits, as authorized by the Social Security Commission.
The outstanding balance of the consolidated loan can also be deducted from the death benefit of the members’ beneficiaries or deducted from the actual final benefit claims.