SSS tolerates penalties on delinquent loans
The Social Security System (SSS) has launched a new Penalty Forgiveness Program to help members settle their delinquent loans.
SSS President and CEO Michael Regino urged members with unpaid short-term loans to take advantage of the penalty forgiveness program.
SSS members who are eligible for the Penalty Waiver Program are those who have outstanding payroll loans, including the Early Renewal Payroll Loan Program, Disaster Loan, Emergency Loan, and restructured loan.
“We continuously offer Loan Penalty Waiver Programs to help our members settle their loan balances without penalties and regain their good standing with the SSS,” Regino explained.
Under the program, SSS will combine principal and interest from a member’s delinquent short-term loans into one consolidated loan, while any outstanding penalties will be consolidated and tolerated upon full payment of the consolidated loan.
Interested members must meet the requirements to be eligible for the program. They must have an outstanding short-term member loan at the time of their application, not have received any terminal benefits such as permanent total disability or retirement, not have been disqualified due to fraud committed against the SSS and have an active My SSS account.
Regino said members can pay their consolidated loan in a single payment within 30 calendar days of receiving notice of approval or they can also choose to pay in installments.
Under the installment program, members must make a down payment equivalent to at least 10% of the consolidated loan within 30 calendar days of receiving notice of approval.
They could pay the remaining balance for up to 60 months, depending on the amount.
“We want to collect overdue loans from our members. However, we also recognize that the pandemic has significantly affected the livelihoods of many of them,” Regino said.
“At this point they might already be able to pay their loan obligations. Therefore, we have designed this consolidated program to help them settle their loan obligations by tolerating penalties and offering flexible payment terms,” he added.