Member-borrowers with past due short-term loans may apply for the Social Security System’s penalty condonation program via their My.SSS accounts until Feb. 14, 2022.
Included in the program are those with outstanding salary, calamity, Salary Loan Early Renewal Program (SLERP), emergency loans, and restructured loans under the Loan Restructuring Program (LRP) implemented in 2016 to 2019.
SSS president and chief executive officer, Aurora Ignacio, said the Short-term Member Loan Penalty Condonation Program (STMLPCP) is part of the Pandemic Relief and Restructuring Programs (PRRP 5) being offered by the state-run pension fund.
“Our heart goes to our members who were greatly affected during this pandemic and yet they try their best to get back on their feet. SSS is always here to extend not only in a form of cash benefits and loan privileges but also conditional condonation which provides financial relief by waiving their accumulated penalties once their loan principal and interest are fully paid,” Ignacio said in a statement.
Qualified applicants include members with short term loans that are past due for at least six months as of the first day of the condonation availment period; those who have not been granted any final benefit such as permanent total disability or retirement;
Members who have not been disqualified due to fraud committed against the SSS; those who will file their final benefits application for permanent total disability or retirement, whose contingency date is on or before the last day of the availment period of the condonation program; and heirs or beneficiaries of deceased member-borrowers who will file the death benefit application, whose contingency date is on or before the last day of the availment period of the condonation program.
For member-borrowers who will pay their consolidated loan under instalment basis, they must be under 65 years old at the end of the instalment term.
Under the STMLPCP, the total amount of the outstanding principal and interest of the member’s past due loans shall be consolidated and settled through the following arrangements:
One-time full payment, in a single payment transaction, within 30 calendar days from receipt of notice of approval of the STML penalty condonation application; or instalment term where a member shall pay the 50 percent of the consolidated loan in full, in a single payment transaction, within 30 calendar days from the receipt of the notice of approval of the STML penalty condonation application.
The remaining 50 percent of the consolidated loan will become Restructured Loan 1 (RL1) and shall be paid in six equal monthly instalments.
“No staggered or partial payment shall be allowed for the consolidated loan under the one-time payment or 50 percent down payment under instalment term even if the required payment is completed within the 30-day period,” Ignacio said.
Other terms and conditions under the loan penalty condonation can be viewed in SSS Circular 2021-014 which can be accessed through https://bit.ly/3GEzwhf. | NND
