New SSS policy stalls loan bids

CEBU, Philippines - Need a loan? Try to check first if your company is not among those tagged delinquent by the Social Security System (SSS) or you’ll waste your time lining up for nothing.

It is estimated that millions of SSS members all over the country, including those in Cebu, can not be granted salary loans and other benefits if their employers are delinquent in terms of remitting contributions and loan payments.

In fact, even if your company has been diligent lately, previous problems with remittances can still stall applications for loans and benefits.

Several SSS members who went to the Cebu City office along Osmeña Boulevard yesterday were demoralized after they were told that their loan applications cannot be processed, because of the new policy being implemented by the agency starting last week.

Maria Teresa Gelbolingo, head of the SSS-Cebu members’ assistance division, admitted that she received several complaints from those whose loan applications were denied.

Gelbolingo also admitted that the SSS had erred by not informing the public about the new policy.

She did not, however, identify the affected companies in Cebu nor did she give figures.

Records show that SSS members who are currently employed make up 83 percent of the 6.8 million delinquent short-term loan accounts — salary, calamity, emergency, educational, study now-pay later, vocational, stock investment and privatization fund loans.

Gelbolingo said the employers should be one to be blamed if their personnel would not be able to pay their loans or their monthly contributions because the policy is that they should collect such from their staff and remit to the SSS.

Several members, who claimed to be “good payers” of their loans, described such policy of the Social Security System as very unfair saying that the SSS should only ban those concerned delinquent borrowers and not everyone.

Gelbolingo agreed with the sentiments of the members who complained to her, but explained that the Cebu-based officials are only following the directives from the national office.

The SSS offered an amnesty program for businesses that failed to remit their employees’ loan amortizations the past several years, but still many failed.

Unless the employers would settle their overdue contributions and loan obligations, their workers cannot avail of SSS benefits.

The SSS earlier told the employers with unpaid contributions to first settle their overdue SSS premiums by paying in full or submitting an installment proposal on or before July 31 to be eligible for loan amnesty.

SSS, through its official website, also announced that it will step up the filing of cases against employers who remain delinquent and just ignored the offered amnesty that was already lapsed last month.

The SSS charges a monthly penalty of three percent for overdue contributions and one percent for delinquent loans.

The loan amnesty covers short-term SSS member loans such as salary, calamity, emergency, stock investment and privatization fund loans. 

Under the Social Security Law, non-remittance of contributions is punishable by imprisonment of six to 12 years.

The SSS primer showed that the employers shall be responsible for the collection and remittance to the SSS of the amortizations due on the member-borrower’s salary loan through payroll deduction.

The employer shall require new employees to secure from the SSS an updated statement of account to know whether they have pending loans while they were still connected with their previous employers.

If the new worker still has pending loan, the new employer shall continue the deduction and shall be accountable for remittance to the SSS.

In most cases, if the employees would resign from their jobs, the employers would just do nothing.

The SSS said in case the employee is separated or they will resign or retires from the job the employers shall be required to deduct the total amount of balance of the loan from the benefits due to the employee and shall remit the same to the SSS. — /NLQ

(THE FREEMAN)