The Social Security System (SSS) has opened a penalty tolerance program for members’ short-term loans from November 15 until February 14 next year.
SSS President and CEO Aurora Ignacio said the Short-Term Member Loans Condolence Program (STMLPCP) is part of the Pandemic Relief and Restructuring Programs (PRRP 5) offered by the state-managed pension fund.
“Our hearts go out to our members who have been greatly affected during this pandemic and yet they are doing their best to get back on their feet,” Ignacio said in a statement.
“SSS is always here to expand not only in the form of cash benefits and loan privileges, but also in the form of conditional tolerance which offers financial relief by waiving their accrued penalties once principal and interest of the loan are fully paid, ”she added.
The SSS said that among the programs included are Salary, Calamity, Salary Loan Early Renewal Program (SLERP), Emergency Loans, and Loans Restructured under the Loan Restructuring Program (LRP) set. implemented from 2016 to 2019.
The state-run pension fund said the qualified applicants are:
- Members with short-term member loans past due at least six (6) months from the first day of the lease availability period;
- Members who have not received any definitive benefits such as permanent total disability or retirement;
- Members who have not been disqualified due to fraud committed against the SSS;
- Members who will submit their final claim for permanent total disability or retirement benefits, whose contingency date is no later than the last day of the period of availability of the condolence program; and
- The heirs or beneficiaries of deceased borrowing members who will submit the application for the death benefit, whose contingency date is no later than the last day of the period of availability of the condolence program.
- For borrowing members who will pay their consolidated loan in installments, their age must be less than 65 at the end of the installment term.
In the meantime, under the Short-Term Member Loans Penalty Cancellation Program (STMLPCP), the total amount of principal and interest outstanding on the member’s overdue loans will be consolidated and settled as per the provisions. following:
- Full payment in one go, in one payment transaction, within 30 calendar days of receipt of notice of approval of the STML Penalty Excuse Request.
- Payment Term – Member must pay the 50 percent of the Consolidated Loan in full, in one payment transaction, within 30 calendar days of receipt of notice of approval of the STML Penalty Excuse Request. During this time, the remaining 50 percent of the consolidated loan will become the Restructured Loan 1 (RL1) and will be paid in six equal monthly installments from the month following the end of the 30 calendar day period.
“Please note that no installment / partial payments will be allowed for the one-off consolidated loan or 50% installment down payment, even if the required payment is made within the 30-day time frame,” Ignacio said.
The SSS said member borrowers aged 65 or over who choose not to file their final benefit claim within the availability period will only be able to benefit from the one-time payment.
However, members-borrowers and heirs or beneficiaries-time payment scheme by deduction from the proceeds of the service.
Ignacio said that applicants, except final benefit depositors, must pay their consolidated loan using the Payment Reference Number (PRN) issued by the SSS along with the amount and due date for each payment required. .
She added that the RL1 has an annual interest rate of three percent calculated on a declining principal balance over the payment term of six months.
During this time, any unpaid or late payments will be charged a penalty of one percent per month.
For other terms and conditions under the loan penalty, the tolerance can be viewed in SSS Circular 2021-014 which can be viewed online. – Richa Noriega / BAP, GMA News