State-run Social Security System (SSS) condoned P9.5 billion short-term loan penalties of over 658,000 calamity-affected members under its second Loan Restructuring Program (LRP), and strongly urge member-borrowers to pay religiously the monthly amortization of their restructured loans.
SSS President and Chief Executive Officer Aurora C. Ignacio said that the program, which ran from April 2018 to April 2019, has restructured P10.9 billion worth of loans and generated an income amounting to P4.4 billion.
“Members who paid their outstanding loans in full through LRP will again enjoy their loan privileges after six months from the time that they have paid their loans. They are now worry-free from any loan deductions on their future benefits such as their retirement pension. We encourage those who are paying their restructured loans in installment terms to ensure that they are paying their loan obligations on time to eventually regain their good standing with the pension fund,” said Ignacio.
The SSS first opened its LRP on April 28, 2016 until April 27, 2017 to assist its calamity-affected members who were struggling to pay their short-term loans such as salary, emergency, educational (old), Study-Now-Pay-Later Plan, Voc-Tech, and Investment Incentive.
In its first implementation, the SSS restructured P13.8 billion worth of loans and condoned P13.5 billion worth of penalties which benefitted more than 856,000 members. It also generated an income amounting to P5.8 billion.
While the first LRP posted remarkable results, many members failed to avail of the program and clamored for another LRP. In response, SSS opened the second implementation of the program upon the approval of President Rodrigo Duterte.
Ignacio said that they are pleased with the results of the two LRPs, especially with the number of member-borrowers who applied under the program. Both the first and second LRP exceeded its target number of availees by 68 percent and 28 percent, respectively.
“SSS understands that natural calamities make it difficult for its members to pay their loan obligations. We are glad that through the LRP, the pension fund was able to help more than 1.51 million member-borrowers who were affected by various calamities to settle their unpaid loans,” Ignacio said.