Good News! The New Social Security System (SSS) member loan penalty condonation program for individual members will be launched starting on April 2. SSS Members such as employees, self-employed workers and voluntary members with overdue loans can settle their unpaid principal and interest without paying the full amount of penalties under a new amnesty program. I am so glad with this amnesty program and I believe that it will help a lot of delinquent members.
According to SSS President and Chief Executive Officer Emilio de Quiros, Jr., the amnesty “differs from SSS loan penalty condonation programs in the past” and its terms and requirements for applicants will depend on the type of delinquent borrower.
The New Social Security System (SSS) member loan penalty condonation program for individual members:
- SSS will waive 100 percent of penalties of qualified applicants whose loan delinquency was not their fault, such as members whose employers failed to remit their amortizations to SSS despite deducting loan payments from their salaries
- Requirement:Members must have at least three contributions within the last six months before the month of application and present proof of deducted loan amortizations such as pay slips, company certification and notarized affidavits to be eligible for full condonation of penalties.
- Members can pay their loan principal and interest in full, or avail of a three-year installment payment scheme at an annual interest rate of three percent.
- SSS will also offer amnesty to beneficiaries of deceased borrowers who will file their death claim applications within the availment period. SSS will waive 100 percent of penalties and the member’s delinquent loan principal and interest will be deducted from the death benefit.
- Delinquent borrowers who paid at least three amortizations can also apply for amnesty, provided that they have remitted a minimum of three monthly contributions within the last six months prior to the month of application.
- Members with at least three paid amortizations will have 90 percent of their penalties condoned if they pay in full. Those who will pay in monthly installments over three years at a three percent annual interest rate will have 80 percent of their loan penalties waived
- Borrowers filing total disability or retirement claims within the availment period will have 50 percent of their penalties condoned under the amnesty program. The outstanding loan balance and remaining penalties will be deducted from their retirement or disability benefit.
- The amnesty program covers overdue salary, calamity, emergency, educational, study-now-pay-later, stock investment and privatization fund loans