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Circular No. 2012-005
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Circular No. 2012-005

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New SSS Member Loan Penalty Condonation Program for Individual Members

New SSS Member Loan Penalty Condonation Program for Individual Members

Published in: Economy & Finance, Business
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  • 1. A N N O U N C E M E N T SOCIAL SECURITY SYSTEM CIRCULAR NO. 2012-005TO : SSS MEMBER-BORROWERSSUBJECT : NEW SSS MEMBER LOAN PENALTY CONDONATION PROGRAM FOR INDIVIDUAL MEMBERS Pursuant to the approval of the New SSS Member Loan Penalty Condonation Program for Individual Members by the President of the Philippines on13 October 2011, as recommended by the Social Security Commission (SSC) under Resolution No. 916-s.2011 dated 24 August 2011, the followingguidelines and procedures are hereby issued: I. Who can avail of the program? Situation 1a: Members whose employers deducted loan amortization from their salaries/separation pay but did not remit said loan amortization to SSS; 1b: Beneficiaries of deceased member-borrowers with unpaid loans who shall file for death claim within the availment period; Situation 2: Delinquent member-borrowers who have paid at least three (3) monthly amortization since loan takeout; Situation 3: Delinquent member-borrowers who shall file for retirement or total disability claim during the availment period. II. What are the terms and conditions? Situation 1a: Members whose employers deducted loan amortization from their salaries/ separation pay but did not remit said loan amortization to SSS. Availment Period 02 April 2012 to 30 September 2012 Eligibility Requirement Three (3) monthly contributions within the last six (6) months prior to month of application for condonation Penalties Covered Penalties that have accrued as of 01 April 2012.Penalties from 02 April 2012 up to payment date shall be collectible. Penalties to be Condoned 100% of penalties covered Modes of Payment a. Full Payment b. Installment Payment over 12, 24 or 36 months at 3% per annum Loan Renewal Upon full payment within the availment period and after the 2-year prescribed amortization period of loan. Required Documents Any of the following: Pay slip showing deductions of loan amortization· Pay envelope showing deductions of loan amortization· Employer’s certification/applicant’s notarized/administered affidavit attesting to the fact that loan amortization has/have been deducted from salary· Proof of payment of contributions (if without posted contributions prior to month of application). Situation 1b: Beneficiaries of deceased member-borrowers with unpaid loans who shall file for death claim within the availment period Availment Period 02 April 2012 to 13 March 2013 Eligibility Requirement None Penalties Covered Penalties that have accrued as of 01 April 2012.Penalties from 02 April 2012 up to payment date shall be collectible. Penalties to be Condoned 100% of penalties covered Modes of Payment Outstanding loan less 100% of penalties covered as of 01 April 2012 shall be automatically deducted from the death benefit Loan Renewal Not Applicable Situation 2: Delinquent member-borrowers who have at least three (3) posted monthly amortization since loan takeout Availment Period 02 April 2012 to 30 September 2012 Eligibility Requirement Three (3) monthly contributions within the last six (6) months prior to month of application for condonation Penalties Covered Penalties that have accrued as of 01 April 2012.Penalties from 02 April 2012 up topayment date shall be collectible. Penalties to be Condoned Full Payment: 90% of penalties covered Installment Payment: 80% of penalties covered Modes of Payment a. Full Payment b. Installment Payment over 12, 24 or 36 months at 3% per annum Loan Renewal Full Payment: 2 years from date of full payment Installment Payment: 3 years from date of full payment Required Documents Proof of payment of contributions (if without posted contributions prior to month of application). Situation 3: Delinquent member-borrowers who shall file for retirement or total disability claim during the availment period Availment Period 02 April 2012 to 30 September 2012 Eligibility Requirement None Penalties Covered Penalties that have accrued as of 01 April 2012.Penalties from 02 April 2012 up to payment date shall be collectible. Penalties to be Condoned 50% of penalties covered Modes of Payment Outstanding loan less 50% of penalties as of 01 April 2012 shall be automatically deducted from the retirement or total disability benefit. Loan Renewal Not Applicable III. What are the sanctions when the member-applicant defaults in the payment of the scheduled monthly amortization of his restructured loan? Termination of the member-applicant’s approved installment plan; Re-imposition of accrued penalties on the loan in proportionate amount; Entire loan becomes due and demandable; Total loan obligation shall be deducted from the member’s future benefits; Permanent suspension of member’s loan privileges IV. Documentary Requirements for Submission The applicant shall submit to the SSS Office the accomplished application for New Member Loan Penalty Condonation Program for Individual Members, together with the documents listed under full or installment payment, in addition to the listed requirements under situations 1a and 2: 1. Full payment - Statement of Account from SSS 2. Installment payment - Statement of Account from SSS - Installment payment schedule - Notarized promissory note Please be guided accordingly. EMILIO S. DE QUIROS JR. Approved by: President and CEO THE SOCIAL SECURITY COMMISSION JUAN B . SANTOS Chairman 28 February 2012 Address: SSS Main Building, East Avenue, Diliman, Quezon City E-mail: member_relations@sss.gov.ph Web Site: http://www.sss.gov.ph

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