SSS offers settlement for delinquent employers

MANILA, Philippines — State-run Social Security System (SSS) is now offering an additional payment scheme for delinquent employers who are experiencing financial difficulties in fulfilling their obligations to the pension fund.

In a statement, SSS president and chief executive officer Emmanuel Dooc said delinquent employers who are able to pay their principal contributions in full or within a period not exceeding 90 days from the approval of their application will be entitled to a one-year period to defer the payment of their accrued penalties.

“The additional payment option specifically caters to delinquent employers who are currently experiencing financial difficulties due to income losses, mismanagement or those who were greatly affected by natural and man-made disasters,” Dooc said.

“As valuable partners of the pension fund, we want to help them instead of giving much burden by providing lenient ways in paying their financial obligations to SSS,” he added.

Delinquent employers who are qualified for the settlement option are those with outstanding obligations of at least P100,000 exclusive of penalty, with or without pending cases before the Prosecutor’s Office, courts, and the Social Security Commission, and with or without subsisting approved settlement scheme.

 “If the employers failed to settle the principal amount within the 90-day period, a three percent per month penalty shall be imposed on the balance until the principal contribution is fully paid. That’s why it is crucial for employers to strictly follow the additional guidelines to avoid penalty accruals,” Dooc said.

After paying the principal obligations, employers can settle their penalties either in full or on a staggered basis in accordance with the provisions of SSS circular no. 2011-002 or the Revised Guidelines in the Installment Payment Scheme for Employers.

“A legal interest of six percent per annum shall be imposed on the substituting penalty delinquency upon payment either in full or on installment after the one-year deferment period,” Dooc added.

To apply for the new payment option, applicants should submit a letter of request signifying their intention to pay in full their principal delinquency based on their updated and consolidated Statement of Account.

They must also submit a duly-notarized promissory note or undertaking and collection list for processing and review of the concerned SSS branch office or large accounts department.

If it is only the representative of the employer who will apply, he must secure a special power of attorney from his employer and submit it together with the necessary documents.