SSS pilots loan program for pensioners

MANILA, Philippines — State-run Social Security System (SSS) has allotted P10 billion for the pilot launch of its Pension Loan Program (PLP) in 20 branches nationwide, a top official said yesterday.

During a soft launch event yesterday, SSS president and chief executive officer Emmanuel Dooc said the state fund has started the pilot implementation of the PLP, which aims to provide loan assistance to some 1.3 million member-pensioners in the country.

Dooc said this was in response to the clamor from senior citizens to put an end to the growing incidence of pensioners falling victims to loan institutions that offer high interest rates to help them with their short-term needs.

According to Dooc, the SSS has initially set aside P10 billion for the implementation of the program, but added that the state fund is ready to raise this to as much as P30 billion if required.

“We have allotted P10 billion in funds. But it would still depend on the utilization. That may be exhausted before the end of the year and we are ready to augment that up to P30 billion,” he said.

For the pilot implementation, Dooc said the PLP would initially be rolled out in 20 SSS branches in Luzon, Visayas, and Mindanao.

These include the branches in Diliman, Caloocan, Pasig-Pioneer (Shaw), New Panaderos (Mandaluyong), Manila, Makati-Gil Puyat, Alabang, Naga, Dagupan, Baguio, Ilagan, Bacoor, Binan, Cebu, Tacloban, Iloilo Central, Cagayan De Oro, Davao, General Santos, and Zamboanga.

“All 171 branches of SSS will accept PLP applications as soon as our system is ready for the full-scale implementation. Our pensioners need not to worry if PLP is not yet available in SSS branches nearest them because they may apply in the first 20 branches,” Dooc said.

Under the program, retiree pensioners may avail of a minimum loan amounting to twice their basic monthly pension and an additional P1,000 benefit. The maximum loan amount is equivalent to six times their basic monthly pension plus the P1,000 benefit,  not exceeding P32,000.

SSS said the loan would incur an interest rate of 10 percent per annum until fully paid. The pensioner may opt to pay the loan in three, six, or 12 months depending on the multiple of the loan amount. The first monthly amortization will be due on the second month after the loan was granted.

Dooc said the state fund would also waive the collection of the one-percent service fee. However, he said the borrower must apply for a credit life insurance, the premium of which would be deducted from the proceeds of the loan.

“This will secure both the pensioner borrower and his beneficiaries and the SSS should there be an untoward incident that will happen to the former during the repayment period,” Dooc said.

To qualify for the loan, retiree pensioners must be 80 years of age or below at the end of the loan term. Applicants must also have no deductions from their monthly ­— such as outstanding loan balance, benefit overpayment payable to SSS­ — and no existing advance pension under the SSS calamity package.

They must be receiving their regular monthly pension for at least six months, with an active pension status.

Pensioners will be allowed to renew their pension loan after full payment of the current loan.