September 6, 2022 | 00:00
MANILA, Philippines — Members of the state-run Social Security System (SSS) pension fund may soon apply for loan consolidation and indulgence programs to give them a chance to settle their arrears.
In its latest circular, the SSS released the guidelines for the consolidated loan program with penalty tolerance, which will start on September 30.
This comes after SSS approved the consolidation of delinquent short-term member loans (STML) with penalty tolerance last June.
All delinquent MLTS include Payday Loan, Disaster Loan, Emergency Loan and Restructured Loans.
Delinquent MLTS are loans that have an outstanding obligation consisting of principal, interest and penalties equivalent to more than three monthly amortizations or whose loans have an outstanding balance past their due date.
With SSS ready to open the application, all principal and outstanding interest on the member-borrower’s delinquent loans will be combined into one consolidated loan on demand.
Unpaid penalties, on the other hand, will be consolidated separately and subject to a conditional waiver.
Eligible members are those who have delinquent loan accounts, have not received any final benefits, or have been disqualified by the SSS and have active online accounts.
SSS said members would be allowed to pay in full or in instalments. For installment plans, a deposit of at least 10% of the consolidated loan must be paid within 30 days of application approval.
The remaining balance shall be payable in equal monthly amortization from six months to five years depending on the remaining balance of the loan.
For the conditional tolerance, 100% of the consolidated penalty will be tolerated upon full payment of the consolidated loan with the approved payment period.
If a member seeks retirement or claims a disability or death benefit, the SSS said any outstanding consolidated loan balance would be deducted from benefit proceeds.