One-time 60-day refund under the SSS Pension Loan Program

IN September 2018, the Social Security System started offering the Pension Loan Program to provide immediate financial assistance to qualified SSS retirement pensioners through a low interest rate loan. We are aware that in the previous years, most of them sought personal loans from various private lending companies that charge higher interest rates with pawned collaterals like their Automated Teller Machine (ATM) cards. This is where SSS comes in when it finally opened the PLP to all its retirement pensioners.

To qualify, they must meet the following:

■ 85 years old and below at the end of the last month of the loan term;

■ no outstanding loan balance and benefit overpayments payable to SSS;

■ no existing advance pension under the SSS Calamity Assistance Package; and

■ must be receiving their regular monthly pension for at least one month with an “active” status.

Under this program, qualified retirement pensioners can avail themselves of a loan equivalent to three, six, nine, or 12 times their basic monthly pension (BMP) plus their P1,000 additional benefit. However, the loanable amount should not exceed the maximum loan limit of P200,000, which in turn may be payable in six, 12, or up to 24 months.

On PLP’S first year, SSS disbursed a total of P2.52 billion to 74,503 pension loan borrowers, while in 2020, we paid off a total of P3.39 billion to 74,799 pension loan borrowers. From January to December 2021, we have granted a total of P3.08 billion to 69,039 pension loan borrowers. This only shows that PLP has really served its purpose in helping our pensioners during this pandemic where additional funds were allocated for medical purposes, among others.

Under the program, the monthly amortization shall be deducted from the monthly pension of the pension loan borrower. As agreed in the contract, SSS regularly deducts the monthly amortization from the monthly pension. What’s important here is that pensioners still maintain a net take-home pension equivalent to a least 47.25 percent of their basic monthly pension, including the P1,000 additional benefit that was granted by SSS starting January 2017.

Good news, too, since effective January 20, 2022, SSS has implemented a one-time 60-day refund of monthly pension loan payments to all PLP borrowers. The refund is based on Circular 2022-002 and in compliance with the provisions of Republic Act 11494 or the Bayanihan to Recover as One Act. Under the said law, banks, quasi-banks, financing companies, lending companies, and other financing institutions, both public and private, were directed to give a 30-day grace period for borrowers’ loan payments without incurring any interest, penalties, fees, and other charges. The provision covered loan payments with dues that fall within September 15 to December 31, 2020.

“Currently amortizing,” as stated in the circular, refers to PL borrowers with loans falling due, or any part thereof, on or before December 31, 2020. PL borrowers with pending requests for re-adjudication or adjustment of pension benefits or whose terms have already ended prior to the implementation of the refund are not yet eligible.

SSS shall refund the PL amortizations deducted from the pension of the borrower, as follows:

The refund shall, in effect, extend the term of the PL by one month or two months, as the case may be:

1. Currently amortizing PL borrowers, and retirement pensioners who applied for PLS in August and September 2020, shall be eligible for a two-month refund;

2. Those who applied for PLS in October shall be eligible for a onemonth refund (first amortization to start on December 2020); and

3. Pensioners who applied for PLS in November and December 2020 shall not be eligible for the refund as per guidelines on the Enhanced Pension Loan Program for Retirement Pensioners, the first monthly amortization shall become due on the second month after the loan was granted.

The amount for refund shall be credited immediately upon implementation of the refund on January 30, 2022 to the PL borrower’s savings account, which should be in the following order of priority:

1. SSS UMID-ATM card; or

2. Union Bank of the Philippines Quick Card.

Moreover, the refunded amount shall be deducted from the monthly pension of the PL borrower on the extended term of the loan. Borrowers need not worry as SSS shall not charge any additional interest or penalty for the extended loan term on account of the refund. The PL shall continue to be insured during the extended term and SSS shall not charge the PL borrowers additional premiums for the extended insurance coverage.

Eligible PL borrowers shall not be required to file a request or application for refund with the SSS. All PL borrowers eligible for refund shall be allowed to apply for loan renewal after the expiration of their original loan payment terms. Whereas, the remaining balance of their loan shall be deducted from the proceeds of the new PL.

Earlier this year, SSS received an attestation from SOCOTEC Certification Philippines, Inc., the leading provider of accredited ISO certification services with more than 5,000 clients in 26 countries worldwide, that its Pension Loan Granting Process of all branches under the SSS Luzon Operations Group underwent a thorough assessment of their Quality Management System in accordance with the requirements of ISO 9001:2015. The ISO 9001: 2015 is a world standard that determines that an organization is able to provide international quality and services consistently. This only proves that SSS never stops in devising ways to enhance and improve its systems and processes for the benefit of our SSS members, employers, pensioners, and the general public.

Have a good day everyone!