SSS begins amnesty program for delinquent members

April 3, 2012 11:53 pm 

MANILA, April 3 -– The Social Security System (SSS) said Tuesday it has begun an amnesty program for its delinquent members who have overdue loans.

SSS assistant vice president for lending Luz Generoso said the members include employees, self-employed workers and volunteer members who have unpaid loans such as salary and emergency classifications.

Generoso said they can now settle their unpaid principal and interest without paying the full amount of penalties under a new amnesty program which began April 2.

The SSS official said the amnesty differs from the previous SSS loan penalty condonation program and its terms and requirements for applicants will depend on the type of delinquent borrower.

She said SSS will waive 100 of penalties of qualified applicants whose loan delinquency was not their fault, such as members whose employers failed to remit their amortizations to SSS despite deducting loan payments from their salaries.

Members must have at least three contributions within the last six months before the month of application and proof of deducted loan amortizations such as pay slips, company certification, and notarized affidavits to be eligible for full condonation of penalties.

They can pay their loan principal and interest in full, or avail of a three-year installment payment scheme at an annual interest rate of three percent, according to Generoso.

She also said SSS will take legal action against employers that fail to remit their workers’ deducted amortizations.

SSS also offers amnesty to beneficiaries of deceased borrowers who will file their death claim applications within the availment period. It will also waive 100 percent of penalties and the member’s delinquent loan principal and interest will be deducted from the death benefit.

Delinquent borrowers who paid at least three amortizations can also apply for amnesty, provided that they have remitted a minimum of three monthly contributions within the last six months prior to the month of application, the SSS official said.

Members with at least three paid amortizations will have 90 percent of their penalties condoned if they pay in full.

“Those who will pay in monthly installments over three years at a three percent annual interest rate will have 80 percent of their penalties waived,” she explained.

Borrowers filing total disability or retirement claims within the availment period will have 50 percent of the penalties condoned under the amnesty program. The outstanding loan balance and remaining penalties will be deducted from their retirement or disability benefit.

The deadline of application of amnesty program will be on September 30, but beneficiaries of borrowers who passed away without settling their delinquent obligations can apply until March 30 next year.

The amnesty program covers overdue salary, calamity, emergency, educational, study-now-pay-later, stock investment and privatization fund loans. (PNA)

DCT/JCA/mec

Comments

Comments are closed.