QUEZON
CITY – The Social
Security System (SSS) has
granted partial to
full amnesty on loan penalties to 58,995 delinquent
borrowers who availed
themselves of the agenc.y's Loan penalty CondonatIon Program, which Is now
halfway through Its Six-month Implementation.
According to SSS President and Chief Executive
Officer Emilio de Quiros, Jr., the pension fund recorded a corresponding
total amount due or
P148.03 million in principal, interest and collectible penalties since the
Condonation Program started iastApril 2,2012. Penalties condoned amounted to P426.83
million.
"Members
only have three months left to
apply for amnesty before it ends on September 30. Otherwise, they'll have to pay the full amount Of penalties, making it much harder for them to settle their loan
obligations and risk
having these deducted from their future benefits," he said.
The SSS waives 50 to 100 percent of penalties
incurred
by members availing themselves of the program. Full
payments from 35,644
borrowers reached P378.44
million and SSS stands to collect P369.S8 million from 23,351 members
who have started
their monthly amortization, based on total
availments as of July 2.
De Quiros said the SSS posted an average of 19,665
availments per month under the current program. It was higher than the
monthly average of 11,903 avallments under the past four Implementations
of its amnesty on loan penalties for individual members, which spanned a total of 63
months within September
~003 to October 2009.
"The
rate of availments Increased despite conditions
such as varying rates of condonable penalties and required number of amortizations and contributions
to qualify for condonation in the current program. In
the past, SSS had no eligibility requirements and waived all
penalties of those who applied
for the program, n he
said.
Six out of every ten borrowers who
applied for condonation chose to make full payments, which indicates
growing awareness among members of the immediate
need to settle unpaid loan obligations and the advantages of taking the opportunity
offered by SSS, de Quiros noted.
"Those
Who cannot afford to outright payments may
still avail themselves of the program at lighter terms. Members have the option to pay in equal monthly Installments spanning 12,
24 or 36 months with a minimal annual interest
rate of three percent,” he
said.
The program is open
to members whose loan payments were unremitted by their employers (Situation 1-A) and
borrowers with at least three paid amortizations and a minimum of three contributions within the slx-rnonth period
prior to application for amnesty (Situation 2). (Marissu
G. Bugante, SSS/ PIA Sorsogon)