SSS offers amnesty program

MANILA, Philippines - The Social Security System (SSS) said it is offering members a discount of 50 to 100 percent discount for overdue and unpaid loans under a new amnesty program that will be ready for members starting April 2.

SSS president and chief executive officer Emilio de Quiros Jr. said the amount of penalties, which may be waived or condoned by SSS under its Loan Penalty Condonation Program for individual members would depend on the borrowers’ payment history.

“Borrowers whose delinquency was not their fault and those who have shown more initiative to pay monthly amortizations will get a higher rate of condonable penalties as compared to members who waited until retirement to settle their obligations,” he said.

The SSS will grant full condonation to members whose deducted amortizations were unremitted by their employers and those who are beneficiaries of deceased borrowers.

“Beneficiaries of borrowers who died with unpaid loans can apply for amnesty on penalties if they file their death claim within the availment period. In effect, they will receive a higher amount of benefits because SSS will no longer deduct penalties from their claim,” De Quiros said.

Members with a minimum of three paid amortizations, who are classified can avail of amnesty as long as they have least three contributions within the last six months before the month of application.

Furthermore, De Quiros said SSS would waive 90 percent of loan penalties of borrowers if the members pay in full, and 80 percent if they avail of an installment payment scheme of one, two or three years with a three percent annual interest.

“Delinquent borrowers filing claims for retirement or total disability within the availment period are also covered. Fifty percent of their penalties will be waived and the rest will be automatically deducted from their retirement or total disability benefit,” he said.

The condonation program will be in effect from April 2 to Sept. 30, 2012.