SSS Offers New Loan Penalty Condonation Program
The Social Security System (SSS) has introduced a new penalty condonation program to assist its members in repaying their overdue loans.
Launched on October 4, 2022, the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty program aims to provide relief to members burdened by outstanding loan balances.
SSS President and CEO Michael G. Regino encourage eligible members to seize this opportunity and regain their good standing with the SSS.
Understanding the Purpose
Regino emphasizes the SSS’s objective to recover past-due loans from its members. However, he acknowledges the significant impact of the pandemic on individuals’ livelihoods.
Considering these circumstances, the SSS has designed the consolidated loan program to assist members in settling their loan obligations by waiving penalties and offering flexible payment terms.
The SSS aims to strike a balance between debt recovery and supporting its members during challenging times.
Eligibility and Program Details
Members who can avail of this program include those with unpaid short-term member loans such as Salary Loans (including Salary Loan Early Renewal Program – SLERP), Calamity Loans, Emergency Loans, and Restructured Loans.
The program’s primary objective is to consolidate the principal and interest of a member’s overdue short-term loans into a single consolidated loan.
Moreover, all outstanding penalties will be combined and waived upon the full repayment of the consolidated loan.
Requirements for Application
To qualify for the program, interested members must fulfill the following requirements:
- Possess an outstanding short-term member loan at the time of application.
- Not have received any final benefits such as permanent total disability or retirement.
- Not be disqualified due to fraudulent activities against the SSS.
- Maintain an active My.SSS account.
Application Process
To apply for the consolidated loan program, members can conveniently submit their applications online through their My.SSS account.
This streamlined process aims to simplify and expedite the application process, allowing members to take advantage of the program’s benefits promptly.
Payment Options
Once approved, members have two payment options available to them: a one-time payment or an installment scheme.
For the one-time payment, the member must settle the consolidated loan within thirty (30) calendar days after receiving the approval notice.
Alternatively, members can choose the installment scheme, requiring a down payment equivalent to at least 10% of the consolidated loan within the same thirty-day period.
The remaining balance can be paid over a maximum period of 60 months, depending on the loan amount.
Consequences of Non-Payment
It is essential for members to adhere to the payment terms outlined in the consolidated loan agreement.
Failure to meet these terms may result in the SSS deducting the outstanding balance from short-term benefits, such as sickness, maternity, or partial disability claims, as authorized by the Social Security Commission (SSC).
Moreover, the SSS may also deduct the remaining balance from death benefits paid to the member’s beneficiaries or deduct it from other final benefit claims.
Final Summary
The SSS Condonation Program offers a lifeline to members struggling with unpaid loans. By consolidating the principal and interest of overdue loans and waiving associated penalties, the SSS aims to alleviate the burden on its members.
With flexible payment options and an easy online application process, members have an opportunity to settle their loan obligations and restore their good standing with the SSS.
It is crucial for eligible members to explore this program and seize the chance to regain financial stability.