The Option to Sell Shares Program of SSS
Investing in the stock market requires a combination of reliable information and precision timing. When the stocks are low, you buy. When the stocks are high, you sell. And there are a lot of other factors that come to play in between. But, what if we miss out on the opportunity to sell and we end up with debt?
If you find yourself in this sticky situation, SSS has the solution for members who are behind on their Stock Investments Loan Program (SILP) and Privatization Fund Loan Program (PFLP) loan payments. SSS offers a way to pay off your loans with the Option to Sell Shares Program.
During the 1990s, SSS offered various programs such as SILP and PFLP to give members a chance to buy stocks from blue-chip companies such as Manila Electric Co., Philippine Long Distance Telephone and PETRON. SSS has released a fund allocation of P1.10 billion, which benefited around 29,444 memberborrowers who bought shares of stocks in these companies. However, at present, the program is no longer available since SSS has been offering different types of loan programs that are more in tune with the member’s
immediate financial needs.
In 2015, the Option to Sell Shares Program was launched for members who are unable to pay their loans from the SILP and PFLP accounts. The member-borrower gives the SSS the authority to sell his/her shares of stock at the current stock market price, based on the quotation of an SSS accredited broker, and depending on the broker’s commission, taxes, and other fees as applicable. The net amount of the sale will be used as payment for his/her outstanding SILP and PFLP loans.
To qualify, a member-borrower must have a delinquent stock investment or privatization loan with the SSS. Documents to be submitted (which is centralized for submission at the Member Loans Department (MLD), 5th floor SSS Building, East Avenue, Quezon City
In 2015, the Option to Sell Shares Program was launched for members who are unable to pay their loans from the SILP and PFLP accounts. The member-borrower gives the SSS the authority to sell his/her shares of stock at the current stock market price, based on the quotation of an SSS accredited broker, and depending on the broker’s commission, taxes, and other fees as applicable. The net amount of the sale will be used as payment for his/her outstanding SILP and PFLP loans.
or at their nearest SSS Branch) are as follows:
1. Application Form for “Option to Sell” (downloadable from SSS web site)
2. Special Power of Attorney (downloadable from SSS web site)
3. Broker Specimen Card (from MLD or any SSS branch)
4. Customer Account Information Form (from MLD or any SSS branch)
5. Two valid IDS of the memberborrower and two valid IDS of the representative of the member-borrower (if he/she cannot personally appear)
Once all of these documents are submitted, SSS will now have the authority to sell the stocks. The amount from the sale will be used to pay off their SILP/ PFLP loan. If there is still a remaining loan balance, there will be penalty charges that the member-borrower has to pay, or it will be deducted from his/ her final benefits. However, if there is an excess amount after the loan has been paid, it will be used to pay off other SSS loans that the memberborrower has, or if there is none, the excess amount will be refunded to the member-borrower.
As of June 30, 2020, there are 2,895 account availments of the Option to Sell Shares Program out of the 8,792 original accounts during the launch of the program.
Finance guru and Hermoney podcaster Jean Chatzky said, “Debt certainly isn’t always a bad thing. A mortgage can help you afford a home. Student loans can be a necessity in getting a good job.” Indeed, debt is not necessarily a bad thing, but being buried in debt is.
SSS will help you earn so you will have more income, and will get you out of debt when the need arises. Truly, the SSS is the kabalikat of the working Filipinos in the private sector.
Buti na lang, may SSS!!!