SSS to restructure loans next month

MANILA, Philippines — State-run Social Security System (SSS) is planning to implement starting March a loan condonation program, which will allow delinquent members and employers to pay their unpaid contributions without penalties, according to a top official.

In an interview with reporters, SSS president and chief executive officer Emmanuel Dooc said the SSS would be ready to roll out a loan restructuring program once RA 11199 or the Social Security Act of 2019 becomes effective on March 5. 

“That is automatic in the law. Because this law was passed, six months (within) its effective date, delinquent employers or members can apply for condonation.

So we are ready for that. Once it gets effective, we can accept application for condonation,” Dooc said.

SSS senior vice president and chief legal counsel Voltaire Agas said the program will encourage more members and employers to come out and pay their unpaid contributions as the SSS will be waiving their penalties within the prescribed six-month period.  

Antonio Argabioso, SSS vice president for the Large Accounts Division, said members will also be given an opportunity to wipe out their delinquencies either through full payment or installment basis.  

He said the terms of the condonation program, however, will still depend on the law’s implementing rules and regulations (IRR), which the SSS is currently drafting.  

Once the draft is done, Dooc said the SSS would conduct public consultations on the IRR. He said one is scheduled this March 4 in Cebu, and another one in March 4 at the SSS’ head office in Quezon City.  

RA 11199 or the SS Act seeks to empower the Social Security Commission to increase benefits, condone penalties and rationalize investments, among others. 

Under the transitory provisions of the SS Act, an employer who is delinquent or has not remitted all contributions due and payable to SSS may, within six months from the effectivity of the law, remit said contributions or submit a proposal to pay it in installment within a period approved by the Social Security Commission, without incurring the prescribed penalty.

In case the employer fails to remit contributions within the six-month period, the penalty will be imposed from the time the contributions first became due.

Upon approval and payment of the contributions in full or installments, any pending case filed against the employer shall be withdrawn. However, this will be refiled if the employer fails to settle their obligations.

Dooc, citing data from the Commission on Audit (COA), earlier said the SSS has uncollected contributions amounting to P13.8 billion as of end-2017.

Currently, the SSS is already implementing a Loan Restructuring Program, which is effective until April 1, 2019.

The program was launched in April 2 last year and had collected more than P2 billion from nearly 300,000 avails in the first five months of its implementation.  

From April 2 to Aug. 31 last year, SSS was able to condone P4.3 billion in penalties, resulting in restructure loans amounting to P4.9 billion. 

This 2019, Dooc said SSS is targeting to raise its contribution collections to P223 billion, P42 billion higher than the P181.92 billion collected last year, and more than double its end-2013 level of P103 billion.