SSS borrowers urged to pay stock accounts

The Social Security System (SSS) is urging the delinquent Stock Investment Loan Program (SILP) and Privatization Fund Loan Program (PFLP) borrowers to settle their past due debt obligations.

SSS Officer-in-Charge of Member Loans Department Esperanza E. Salvado is calling on borrowers to take advantage of recent stock market gains by settling their past due debt obligations through the SSS Option to Sell Shares of Stocks Program.

“We call on delinquent SILP and PFLP borrowers to avail now of the Option to Sell Shares of Stocks Program to secure generous gains from unloading their stocks. More importantly, it helps stop their debt burden from further ballooning,” Salvado said.

Launched in February last year, the Option to Sell Shares of Stocks Program enables borrowers to sell their stocks bought using their SILP and PFLP loans at the prevailing market price as determined by an SSS-accredited stock broker.

The resulting proceeds, net of the broker’s commission, taxes and other fees, would be applied to the outstanding SILP or PFLP loan balance, and then to other delinquent member loans and housing loan, if any.

Any excess amount from the sale of stocks would be refunded to the borrower.

“If the generated funds from the sale of stocks are inadequate to cover the overdue SILP or PFLP loan balance, the member can pay the remaining amount in cash, or through deduction from salary loan renewal or from final benefit claims,” Salvado said.

“But until the loan is fully paid, the usual monthly penalties and interest will apply,” she added.

Since the launch, the state-run pension fund has recorded a total of 1,115 accounts that have benefited from the Option to Sell Shares of Stocks Program as of the end of June 2016, while collections from these overdue SILP and PFLP payments have reached R63.56 million.

“However, there are still nearly 7,700 SILP and PFLP accounts that remain unpaid. If their loans remain delinquent, the borrowers’ principal, penalties and interest would be deducted from their final benefit claims such as retirement, total disability or death,” Salvado noted.

Among the companies whose shares of stocks are held by SILP and PFLP borrowers include Jollibee Foods Corp., Manila Electric Co., San Miguel Corp., Philippine Long Distance Telephone Co., Globe Telecom, Petron Corp., Ayala Land and Union Bank of the Philippines.

In the past, SSS members keen to invest in the stock market could borrow funds under the SILP, which was launched in the 1980s.

Meanwhile, the PFLP was introduced in 1994 to serve as the lending facility for SSS members interested to buy stocks during the initial public offering for Petron, which was then governmentowned, as well as to purchase Meralco stocks previously held by the SSS.

To avail of the program, interested borrowers should submit their application form along with the required supporting documents to any SSS branch or to the SILP Section of the MLD at the 11th Floor of the SSS Main Office in Diliman, Quezon City. R27.9