SSS: Victims of 'Kristine' may avail of salary, pension loans

MANILA, Philippines — The Social Security System (SSS) said on Thursday, October 24, that members suffering from the effects of Severe Tropical Storm “Kristine” (international name: Trami) may immediately access salary and pension loans to aid their financial recovery. 

According to the SSS Senior Vice President for Lending and Asset Management Group Pedro Baoy, the state insurer is ready to provide urgent financial support amid natural disasters. 

What are the requirements?

For a one-month salary loan, members must meet these criteria:

• At least 36 monthly contributions
• Six of the contributions must have been made in the 12 months preceding the loan application
• The member must be under 65 years of age at the time of application

For a two-month salary loan, members must meet these criteria:

• A minimum of 72 posted contributions
• The member must be under 65 years of age at the time of application

Baoy emphasized that members who pay individually must have at least six posted contributions under their current membership type before they can apply for a loan.

He also reminded employers to ensure that employee contributions are up to date for members to qualify for a loan.

Retiree-pensioners may access a pension loan ranging from three to twelve times their basic monthly pension, plus an additional P1,000. However, the total loan amount cannot exceed P200,000.

The requirements are as follows:

• The pensioner-borrower must be 85 years old or younger by the end of the loan term
• No deductions from the monthly pension (e.g., outstanding loan balance, benefit overpayment payable to SSS)
• No existing advance pension under the SSS Calamity Assistance Package
• The pensioner-borrower must have received their regular monthly pension for at least one month
• Pension status must be active
• Contact information must be updated

Baoy said that retiree-pensioners who previously availed of an 18-month advance pension must have been receiving their regular pension for at least one month.

How to apply?

The loan application can be accessed and submitted digitally through My.SSS Portal. It may also be processed over the counter at an SSS branch. 

Members with approved applications will receive their loans through their registered Unified Multi-Purpose Identification (UMID)-ATM Card. 

The loans may also be credited to a member’s active accounts in a participating bank with PESONet or the Philippine Electronic Fund Transfer System and Operations Network. 

Repayment terms 

According to the SSS, members have up to two years, or 24 equal monthly installments, to repay salary loans, which carry a 10% annual interest rate.

This means that if a member borrows P24,000, they can pay at most P1,000 a month for two years, including a monthly interest of P200. This brings the total repayment amount to P28,800 for the two-year amortization.

For pensioners, the loan amortization includes a 10% interest rate calculated on a diminishing principal balance. This means that interest is applied only to the remaining unpaid balance, rather than the original loan amount.

Repayment of the pension loan will be deducted from the monthly pension. The state insurer assured that the net take-home pension will remain at least 47.25% of the basic monthly pension, including the P1,000 benefit.

Pensioners will be charged for repayment over a period of six, 12, or 24 months, depending on the loan amount.

The National Disaster Risk Reduction and Management Council reported on Thursday that a total of 2,077,643 individuals, or 431,738 families, have been affected by Severe Tropical Storm Kristine in the country.