SSS unveils new loan penalty condonation program

The Social Security System (SSS) on Thursday announced a new loan penalty condonation program for qualified members, citing the impact of the COVID-19 pandemic.

Under the program, the SSS said it will combine the principal and interest of past-due short-term member loans into one consolidated loan, with all unpaid penalties consolidated and condoned once the loan is fully paid.

Members can choose an installment scheme where they will be required to pay at least 10% of the consolidated loan within 30 calendar days after the approval notice.

They will be given up to 60 months to pay the remaining balance, depending on the amount.

“We want to collect the past-due loans from our members. However, we also recognize that the pandemic has greatly affected the livelihood of many of them. At this point, they might already be able to pay their loan obligations,” SSS president and chief executive officer Michael Regino said in an emailed statement.

“[W]e designed this consolidated program to help them settle their loan obligations by condoning the penalties and offering flexible payment terms,” he added.

Members eligible for the program are those with a past-due short-term loan, have not been granted any final benefit such as permanent total disability.

They must also have an active account on the agency’s My.SSS platform, and should not have any record of fraud.

For members who do not meet the payment terms, the SSS said it will deduct the outstanding balance of the consolidated loan from the short-term benefits and final benefits.

The outstanding balance from the consolidated loan can also be deducted from the death benefit of the members’ beneficiaries, or deduct it from the actual final benefit claims.

The SSS is mandated to promote social justice and provide protection to members and families against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden.—AOL, GMA News